New Product Development Process Efficiency

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Questions and Answers

Which of these factors is NOT considered a key objective in successful new product development?

Minimizing time to market

Controlling development costs

Maximizing profit margins (correct)

Maximizing fit with customer requirements

What is the primary benefit of using parallel development processes?

Improved product quality

Reduced development cycle time (correct)

Lower development costs

Increased communication between departments

What is a potential risk associated with utilizing project champions?

Champions can create conflicts with other teams

Champions may overestimate the project's feasibility

Champions can lack technical expertise

Champions may become too focused on the project and ignore other priorities (correct)

Which of the following is NOT a benefit of involving customers in the development process?

Guaranteeing high market share for the new product Signup and view all the answers

What is the purpose of beta testing in new product development?

To gather customer feedback and refine the product Signup and view all the answers

Involving suppliers in the development process can help to:

Improve the quality of materials and components Signup and view all the answers

Which of the following strategies can be used to ensure a new product matches customer requirements?

Involving customers in the development process Signup and view all the answers

Which of the following is NOT a characteristic of the stage-gate model?

It promotes parallel development processes Signup and view all the answers

What is the primary purpose of Stage 1 in Exxon Research and Engineering's Stage-Gate system?

To generate and assess scientific leads for addressing a business opportunity. Signup and view all the answers

What is the key factor in determining whether a scientific lead is feasible during Stage 1?

The successful completion of a "proof-of-principle" assessment. Signup and view all the answers

What is a typical characteristic of the Stage-Gate model for managing new product development?

It involves a series of checkpoints or "gates" where projects are evaluated. Signup and view all the answers

Which of the following companies is NOT mentioned in the text as utilizing a stage-gate process?

Microsoft Signup and view all the answers

Why does Corning consider the stage-gate process mandatory for all information system development projects?

To reduce the risk of project failure and ensure a higher return on investment. Signup and view all the answers

What is the primary purpose of a "project champion" in the context of new product development?

To provide leadership and enthusiasm for the project, advocating for its success. Signup and view all the answers

What is a key objective of the new product development process?

Controlling development costs Signup and view all the answers

Which tool helps firms create decision points in the development process?

Stage-gate processes Signup and view all the answers

Which aspect is NOT emphasized as a goal in the new product development process?

Maximizing employee satisfaction Signup and view all the answers

What can result from a firm not understanding which product features customers value the most?

Overinvesting in unnecessary features Signup and view all the answers

Which practice aids in determining customer requirements during product design?

Quality function deployment Signup and view all the answers

What often leads to the failure of new product development projects?

Overestimating customer willingness to pay Signup and view all the answers

What is a challenge firms face when addressing diverse customer demands?

Balancing conflicting customer preferences Signup and view all the answers

Which system helps reduce costs and development time in the product development process?

CAD/CAM systems Signup and view all the answers

Study Notes

Objectives of New Product Development Process

New product development must achieve three objectives: maximizing fit with customer requirements, minimizing development cycle time, and controlling development costs.

Maximizing Fit with Customer Requirements

A new product must offer compelling features, greater quality, or attractive pricing to be successful in the marketplace.
Many new product development projects fail to achieve a good fit with customer requirements due to:
- Lack of understanding of which features customers value most
- Overestimating customers' willingness to pay for particular features
- Difficulty resolving heterogeneity in customer demands

Improving New Product Development Process

Parallel development processes can shorten development cycle time and increase coordination among functions.
Project champions can help ensure a project's momentum and improve access to key resources, but also carry risks of escalating commitment and unwillingness to challenge the project.
Involving customers in the development process can help ensure that new products match customer expectations.
Involving lead users in the development process can help identify development priorities and is often faster and cheaper than involving a random sample of customers.
Beta testing can provide customer feedback, exploit external development of the product, and signal the market about upcoming products.
Involving suppliers in the development process can minimize input costs and improve the quality and timeliness of inputs.

Stage-Gate Process

A stage-gate process involves dividing the development process into stages with defined deliverables and required resources.
Each stage is followed by a gate that assesses the project's progress and decides whether to proceed or kill the project.
Exxon Research and Engineering's Stage-Gate System involves five stages: idea generation, lead identification, proof-of-principle assessment, business case development, and commercialization.
Nearly 60% of firms, including IBM, Procter & Gamble, 3M, General Motors, and Corning, use some type of stage-gate process to manage their new product development process.

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Description

This quiz covers tools and strategies to improve the effectiveness and efficiency of the new product development process, including stage-gate processes and design for manufacturing.