The thesis is focused on software development process and its products from initial designs through the way of implementation until final delivery to customer. The thesis brings up some basic facts about software engineering with further detailed description of one of its parts, the modern models of software life cycles with focus on the agile life cycle because of its significant benefits and effective implementation. This model is represented by Agile Model Driven Development which has been submitted not only theoretically but in practice. Finally, there is also a short description of Unified Modeling Language which is used as a modeling language.

Globalization has continuously brought an increased competition among companies, which entails a need for faster and more frequent deliveries of new products. Traditional project management methods, such as stage-gate and waterfall, are commonly used in production development projects and builds on a sequential approach. These methods have proven to have some disadvantages in flexibility, long lead times and it often creates communication barriers between the actors at each stage. The software industry has already encountered these obstacles and responded by introducing agile project management. Which improves the adaptability and allow changes to be made, due to new requirements from stakeholders or customers, throughout the entire development process. However, it remains unknown how agile models can improve production development. The purpose of this study was therefore to investigate how agile models can be applied to production development and what the effects are.  The authors have performed a case study at eight different companies within the automotive industry. The purpose of it has been to gain a deeper understanding about the case companies current production development processes and review how familiar the organizations are with the concept of agile project management. The extraction of the empirical data was conducted by questionnaires, interviews, and document reviews. An analyzation was done by comparing the empirical findings with the theoretical background out of eleven different categories that relates to project management (e.g., project goals, process, customer integration etc.). The analyzation concluded that the case company exclusively conducts their production development project by using a sequential approach.  The analyzation and the eleven categories where, together with the theoretical background about agile project management, later used to create the result by brainstorming different practices to become more agile. The results are presented out of three different scenarios, depending how agile the companies would like to be. For instance, are two process models suggested, one that is completely agile and one that is a hybrid of an agile and a stage-gate. Furthermore, are the implementation of self-organized teams, holistic approach towards internal and external partners, and reduced demand for documentation some of the practices that are suggested. Additionally, are three considerable aspects for the implementation presented.  The expected outcome and effects of applying these practices are discussed in the final chapter. Some of these outcomes are a company culture that will attract and retain talented personnel, where shared responsibilities and authorities triggers the employees to an increased commitment and sense of ownership towards their projects. Furthermore, are the companies expected to experience a more flexible and responsive approach towards conducting production development projects with a high focus on customer requirements and creating customer value.