Mediating effects of computer-aided design usage: From concurrent engineering to product development performance

As the rates of market change accelerate and customer expectations grow, product development becomes an increasingly important activity. In this environment, the performance of the product development process and the impact of product design on costs are critical factors for organizational success. To respond, firms are adding resources such as computer-aided design (CAD) to enhance product development efforts. The use of CAD technology is expected to enhance product development performance (development time, product quality, and design productivity) and to reduce product and manufacturing costs. To investigate these relationships, data were collected from 175 manufacturing firms regarding CAD usage, product development performance, and cost performance. From these data, valid and reliable instruments were developed to measure CAD usage. Structural model tests indicated that CAD usage has a positive impact on product development performance and cost performance.