Reasons for Expensive and Risky Product Development

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Why do most product ideas fail to reach the market during the product development stage?

Mainly due to poor economic analysis

Because of high product cost and low functionality

Resulting from a change in demand, technology, or lack of resources (correct)

Due to lack of proper project planning and scheduling

What is the main objective of Product Analysis before the actual design phase starts?

To speed up the launch of new products by sacrificing functionality

To increase the product cost while maximizing functionality

To introduce design modifications at a later stage

To keep the product cost as low as possible while satisfying customer requirements (correct)

Why are design modifications more expensive at a later stage of the product life cycle?

Due to a decrease in competition and demand

Because economic analysis suggests costlier modifications later on

Because design changes become unwelcomed after product launch (correct)

As a cost-cutting measure to increase functionality

What does the physical reliability of a design concept refer to?

The probability that product components will perform satisfactorily under given circumstances Signup and view all the answers

In the context of economic feasibility of design concepts, what is the main goal?

Providing desired quality at minimum cost Signup and view all the answers

Which step in the design process involves producing a prototype used as a sample for reproducing goods or services?

Synthesis Signup and view all the answers

What is the primary focus when considering economic analysis in design?

Balancing cost and performance tradeoffs effectively Signup and view all the answers

What are the aspects considered for product analysis?

Functionality, Operational, Quality, Reliability, Durability, Maintainability, Aesthetic Signup and view all the answers

Which factor is not considered in the 'Manufacturing related factors' for Product Development Document (PDD)?

Availability of distributors - reputation and facilities Signup and view all the answers

Which factor is considered under 'Distribution related factors' for Product Development Document (PDD)?

After-sale service - maintenance and repair costs Signup and view all the answers

Why is early concept generation emphasized in the development process?

To reduce the likelihood of generating a superior concept late in the development process. Signup and view all the answers

What role does customer needs identification play in developing new products?

It drives the development of new products or changes to existing ones. Signup and view all the answers

How does a slow product build contribute to product quality?

It allows time to address issues with components, fabrication, and assembly procedures. Signup and view all the answers

What is the primary reason why not innovating new products is considered increasingly risky for manufacturing companies?

It hinders the company's ability to meet consumer demand for new and improved products Signup and view all the answers

How does product development differ from product design in terms of scope and activities?

Product development encompasses activities from identifying a market opportunity to product sales, while product design is limited to creating the product concept Signup and view all the answers

Why is innovating a new product considered expensive and risky for manufacturing companies?

It requires significant investment in research and development, which may not guarantee success Signup and view all the answers

What does product quality in successful product development primarily reflect?

Customer satisfaction Signup and view all the answers

In the context of successful product development, what does product cost determine?

Profit for the firm Signup and view all the answers

What is the main aspect associated with development cost in the context of successful product development?

Investment required for profit Signup and view all the answers

Which factor directly influences the speed of completing the development effort in successful product development?

Development Time Signup and view all the answers

Study Notes

Product Development Challenges

Most product ideas fail during development due to factors like poor market research, lack of differentiation, and ineffective project management.
Early concept generation is emphasized to identify viable ideas and reduce risks before significant resource investment.

Objectives of Product Analysis

The main goal of product analysis before design is to evaluate feasibility, market potential, and alignment with customer needs.

Cost of Design Modifications

Design modifications become more expensive later in the product life cycle due to increased resources, rework, and potential delays impacting production schedules.

Physical Reliability of Design Concepts

This refers to the ability of a design to perform consistently under expected conditions without failure.

Economic Feasibility Goals

The primary aim is to assess whether the design concepts can be produced at a cost that allows for profitability and market competitiveness.

Prototyping in Design Process

Prototype development is a crucial step, serving as a tangible model for testing and refining the final product for mass production.

Economic Analysis Focus

The main focus is on cost-effectiveness, ensuring that design solutions align with budgetary constraints and market pricing.

Aspects of Product Analysis

Considerations include market potential, technical feasibility, customer demands, and competitive analysis.

Factors like production equipment, labor costs, and manufacturing processes are included, while factors not directly tied to production efficiency are excluded.

Considerations for distribution include logistics, supply chain management, and the ability to deliver products to market effectively.

Importance of Customer Needs Identification

Understanding customer needs is vital for developing products that resonate with target audiences and fulfill market demands.

Impact of Slow Product Build on Quality

A gradual approach to product development allows for more thorough testing and refinement, enhancing overall product quality.

Risks of Not Innovating

Failing to innovate is risky for manufacturers, as market competition can outpace stagnant product lines, leading to decreased relevance and market share.

Differences Between Product Development and Design

Product development encompasses a broader scope, including market analysis and strategy, whereas product design focuses on creating specific product solutions.

Costs of Innovating New Products

Innovation requires significant investment in research, development, and testing, making it both expensive and risky, particularly if market reception is uncertain.

Product Quality in Development

Successful product development reflects superior quality standards, meeting or exceeding customer expectations and regulatory requirements.

Product Costs and Development Success

Product costs influence pricing strategies, potential margins, and overall market success, impacting competitiveness.

Development Cost Considerations

Exploration of development costs involves analyzing total expenses from conceptualization to market entry, assessing return on investment.

Speed of Development Effort

Factors such as team efficiency, resource allocation, and effective project management directly influence the timeline of completing development.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the challenges faced by development teams in bringing product ideas to the market, including issues with funding, technology, manpower, and changing demand. Understand why successful products can have short life cycles due to competition and technological advancements.