Project management applied to contracts of new products in the automotive sector

Abstract

The auto parts industry is cited in the literature as an industry shrouded in competitive pressures of various kinds. This industry faces big challenges to control costs and maintain profitability, given the pressures in a complex and dynamic market. The research aims to identify how the contract management of development projects of new products in an auto parts company can contribute to create value in the company. The research is qualitative, based in unique case study method, by means of observations carried out with the areas of trade and product development in leading global supplier of Electrical Distribution System- EDS (automotive electrical components). Data collection was done by interviewing executives and managers of the areas studied based on the use of a semi-structured questionnaire. The results show that in relation to contract management of new products, the company doesn’t use in a structured and systematic concepts associated with project management. This makes the operational activities are not in line with its strategic objectives such as: a) standard model and prepare regular reports on the progress of projects; b) establish a formal approval process by the end of each stage of the project; c) strengthen the integrated design changes, because when not part of or treated properly can result in destruction of firm value.