exas Instruments is a global player in thesemiconductor business. One of its divisions isMaterials and Controls (M&C), with European head-quarters in Almelo, the Netherlands. All the com-pany’s products are customer-specific. Productfunctionality and durability are qualifiers in the marketplace. Competition is mostly based on product price.Furthermore, delivery reliability is essential. Relativeto competition, the company is performing well on allthese indicators.Recently, product life cycles started to shorten. Thisrequired the company to look deeply into its time-to-market and, as its products are engineered to order,particularly new product development (NPD) leadtime. The company soon realised that its traditionalfunctional hierarchy would not allow a radical reduc-tion of time-to-market. In 1995 it was thereforedecided to change from the functional structure to aBalanced Matrix structure and to adopt a new projectmanagement procedure called the New Product Devel-opment Process – NPDP, in order to speed up NPDprojects by a factor two.The objective of the present paper is to describe andevaluate the design and implementation of, and thecompany’s experiences with, the new NPD organisa-tion and procedure and the contribution of the newsituation to the company’s performance in the marketplace. Based on that, lessons will be drawn for thetheory and practice of NPD management.