Concurrent Engineering (CE), also known as Design for Manufacturing (DFM), intends to integrate and combine product development and production in the early stages of product development. This management approach is focusing on a simultaneous development of products and production processes, so that products can be effectively produced, and so that product development takes the strengths and limitations of the company's production processes into account during the design of the product. Therefore, Concurrent Engineering tries to enhance the "produceability" of new products, so that the production department is able to produce the product, and so that the production department may know which competencies may be needed in the production of the respective product.

The company's R&D and production department thus become more integrated, where new ideas and product are not "thrown over the wall". This integration is sought established through cross-functional collaboration between people from e.g. the R&D department and the production department. Such collaboration may be facilitated through a matrix project structure.

Concurrent Engineering approach therefore tries to clarify and resolve any problems within the relationship between product design and manufacturing processes. New products will thus potentially arrive faster to the market, because the product has been designed to be effectively produced by the resources and technologies available in the company.