Coordination and Decision Making in Budgeting on New Product Development Projects in the Execution Phase

Abstract

On budgeting for product development, how to stimulate field members and promote innovation has been studied. On the other hand, how the senior manager makes coordination and decisions on PJs hasn’t been clarified. At the research site, in the planning phase, the senior manager asked PJ teams to achieve purposes and plans, showed the goal as the organization and encouraged plan changes and proposals for new PJs. In the execution phase, PJ teams had discretion in budgeting, progress checking and decision-making meetings were repeated, coordination and proposals were made within the team, with departmental heads and other teams, and decisions were made by the senior manager. This paper describes that business operation with flexibility and efficiency is realized by that budgeting.