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The vehicle development process (VDP) is iterative in nature with numerous interactions and information flows between design groups and between development phases. The VDP has been changed from a sequential‐functional development to a concurrent‐team based approach. Concurrent execution of design activities may reduce the development lead‐time, but it increases the managerial complexity in the VDP. A system dynamics model was developed to understand the transient behavior of parallel, overlap, and sequential processes in the VDP and to determine the optimal level of overlapping considering the development lead‐time and total number of reworks. The simulation results showed that different execution processes should be used, depending upon the intensity of reworks.

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