Podcast
Questions and Answers
A company is deciding which factor is most important for a new product. If they want to ensure customer satisfaction and long-term market presence, which factor should they prioritize?
A company is deciding which factor is most important for a new product. If they want to ensure customer satisfaction and long-term market presence, which factor should they prioritize?
- Minimizing development time to be first to market.
- Focusing solely on development capability to create innovative features.
- Reducing development costs to maximize short-term profits.
- Ensuring high product quality and reliability. (correct)
A project has an Annual Production Volume of 2 million units, a Net Profit of $10 per unit, a Sales Lifetime of 3 years, a Development Cost of $30 million, and a Production Investment of $10 million. Considering the percentage return on investment (ROI) without opportunity cost or inflation, which calculation is correct?
A project has an Annual Production Volume of 2 million units, a Net Profit of $10 per unit, a Sales Lifetime of 3 years, a Development Cost of $30 million, and a Production Investment of $10 million. Considering the percentage return on investment (ROI) without opportunity cost or inflation, which calculation is correct?
- $(30 \cdot 10^6 + 10 \cdot 10^6) / (2 \cdot 10^6 \cdot 10 \cdot 3)$
- $(2 \cdot 10^6 \cdot 10 \cdot 3) / (30 \cdot 10^6 \cdot 10 \cdot 10^6)$
- $(2 \cdot 10^6 \cdot 10 \cdot 3) / (30 \cdot 10^6 + 10 \cdot 10^6)$ (correct)
- $(2 \cdot 10^6 \cdot 10 \cdot 3) / (30 \cdot 10^6 - 10 \cdot 10^6)$
Which of the following is NOT a typical benefit of using structured methods in product development?
Which of the following is NOT a typical benefit of using structured methods in product development?
- Creating documentation of the design process and decisions made.
- Automatically guaranteeing the success of the design process. (correct)
- Ensuring that important steps are not overlooked during the development process.
- Increasing transparency in decision-making throughout the project.
In a product development project, the finance department solely profits from the work of other departments.
In a product development project, the finance department solely profits from the work of other departments.
The chosen approach involves the examination of real-world industrial applications, concentrating on the most basic products that appropriately demonstrate the methods under discussion.
The chosen approach involves the examination of real-world industrial applications, concentrating on the most basic products that appropriately demonstrate the methods under discussion.
Describe the challenge of 'trade-offs' in product development, providing an example. This description should be based on your understanding of product development and not directly copied from any specific text.
Describe the challenge of 'trade-offs' in product development, providing an example. This description should be based on your understanding of product development and not directly copied from any specific text.
A crucial aspect of understanding the product development process is the study of the __________ between various groups and roles within the organization, particularly how they affect decision-making.
A crucial aspect of understanding the product development process is the study of the __________ between various groups and roles within the organization, particularly how they affect decision-making.
When a product development team uses structured methods, which outcome is most likely to be improved?
When a product development team uses structured methods, which outcome is most likely to be improved?
Flashcards
Successful Product Development
Successful Product Development
Meeting customer needs, low cost, quick development, efficient process, and building future capability.
ROI Formula
ROI Formula
((Annual Production Volume * Net Profit * Sales Lifetime) / (Development Cost + Production Investment)) * 100
Value of Structured Methods
Value of Structured Methods
Ensuring no steps are missed, increasing decision transparency, and documenting the design process.
Product Development Functions
Product Development Functions
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Text's Approach
Text's Approach
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Product Development Trade-offs
Product Development Trade-offs
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Product Development Time Pressure
Product Development Time Pressure
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Product Development Changing Specifications
Product Development Changing Specifications
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Study Notes
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Key characteristics for a successful product development effort include:
- Product Quality
- Product Cost
- Development Time
- Development Cost
- Development Capability
- Other factors
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Percentage Return on Investment (ROI) calculation for the "Hewlett-Packard DeskJet Printer":
- Annual Production Volume (AVP): 4 million units/year
- Net Profit From Sales (NP): $13/unit
- Sales Lifetime (SL): 2 years
- Development Cost (DC): $50 million
- Production Investment (PI): $25 million
Value of Structured Methods
- Structured methods provide value by:
- Ensuring important steps are not missed.
- Increasing transparency in the decision-making process.
- Creating documentation of the design and decision-making process.
Interdisciplinary Activity
- Product development is inherently interdisciplinary.
- Functions that are almost always central to a product development project:
- An individual or group that mediates the interactions between the firm and its customers.
- An individual or group that defines the form and/or function of the product to meet the customers' needs.
- An individual or group operates or coordinates the production and/or distribution of the product.
Approach
- The approach uses examples from industrial practice.
- Focuses on the simplest products that properly illustrate the methods being covered.
Challenges of Product Development: Economics
- Firms need to consider the expenses to develop and manufacture a product.
- Every step requires money, from engineers to the tiniest components.
- For the investment to be valuable, the firm needs to profit from it.
- Companies aim for products to be appealing and not expensive for customers.
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Description
Key characteristics for successful product development include product quality, cost, and development time. Structured methods ensure no steps are missed, increasing transparency and creating design documentation. Product development is interdisciplinary.
