Untitled Quiz

Study Notes

Product development is the process of taking a product from a market opportunity to a product launch.

Profit is the primary measurement of success for for-profit organizations.
Product quality is defined as the ability of the product to perform its expected functions, and includes aspects like finish, reliability, durability, serviceability, and style.
Product Cost is the cost of creating each additional unit
Development cost measures the efficiency of the development process. It includes labor and prototype costs.
Development time measures how quickly the product team delivers a product, which reflects responsiveness to market demands.
Development capability refers to the new skills learned to develop future products, which can lead to new competitive advantages.

Marketing: Identify market opportunities, define market segments, identify customer needs.
Engineering/Dev: Define physical form, do technical design, do industrial design.
Manufacturing: Design production system, make products, purchase parts.
Other Functions: Sales, finance, legal.

Product development duration and cost vary greatly depending on the complexity of the product.
Screwdriver: Annual volume of 100K/year, sales price of 6,productlifecycleof40years,3parts,3peopleontheteam,1yeardevelopmenttime,6, product lifecycle of 40 years, 3 parts, 3 people on the team, 1 year development time, 6,productlifecycleof40years,3parts,3peopleontheteam,1yeardevelopmenttime,150K development cost, $150K production investment.
Printer: Annual volume of 4M/year, sales price of 130,productlifecycleof2years,200parts,100peopleontheteam,1.5yearsdevelopmenttime,130, product lifecycle of 2 years, 200 parts, 100 people on the team, 1.5 years development time, 130,productlifecycleof2years,200parts,100peopleontheteam,1.5yearsdevelopmenttime,50M development cost, $25M production investment.
Airplane: Annual volume of 50/year, sales price of 200M,productlifecycleof30years,130Kparts,6,800peopleontheteam,4.5yearsdevelopmenttime,200M, product lifecycle of 30 years, 130K parts, 6,800 people on the team, 4.5 years development time, 200M,productlifecycleof30years,130Kparts,6,800peopleontheteam,4.5yearsdevelopmenttime,3B development cost,$3B production investment.

Trade-offs: Developing new products requires making trade-offs, such as cost vs. weight, cost vs. performance.
Market Dynamics: New technologies, competitor products, and changing customer preferences create dynamic market conditions that can challenge product development.
Details: Successfully developing a new product requires resolving thousands of details. Examples include providing tool-less access to replace batteries, or deciding if adding a feature is worth the extra development time.