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7/18/2016 © 2016 C&N Inventions CC 1
Product Development
Process
Generic Product Development
Process
 Companies continuously bring new
products to market as customer needs
and wants change.
 Product design is integral to the success
of many companies.
 Product design differs significantly
depending on the industry.
7/18/2016 © 2016 C&N Inventions CC 2
Generic Product Development
Process (Cont…
 For consumer products, understanding
consumer preferences and market testing
prospective products are very important
activities.
 For pharmaceuticals, extensive clinical tests
are often required that involve carefully
controlled experiments to test both safety and
the effectiveness of a potential product.
7/18/2016 © 2016 C&N Inventions CC 3
Generic Product Development
Process (Cont…
 Companies that specialise in the design
of products have highly developed
processes to support the activities
needed for an industry.
 In today’s world, companies often
outsource major functions rather than
supporting these functions in-house,
including product design.
7/18/2016 © 2016 C&N Inventions CC 4
Generic Product Development
Process (Cont…
 Given the potential advantages of using
contract manufacturers – a firm must decide
what its core competency should be.
 A company’s core competency is the one thing
that it can do better than its competitors.
 The goal is to have a core competency that
yields a long-term competitive advantage to
the company.
7/18/2016 © 2016 C&N Inventions CC 5
Generic Product Development
Process (Cont…
 A core competency has three
characteristics:
 It provides potential access to a wide variety
of markets.
 It increases perceived customer benefits.
 It is hard for competitors to imitate.
7/18/2016 © 2016 C&N Inventions CC 6
Generic Product Development
Process (Cont…
 The generic product development process
consists of six phases.
 The process begins with planning phase,
which is the link to advanced research and
technology development activities.
 The output of the planning phase is the
project’s mission statement, which is the input
required to begin the concept development
phase and serves as a guide to the
development team.
7/18/2016 © 2016 C&N Inventions CC 7
Generic Product Development
Process (Cont…
 The conclusion of the product
development process is the product
launch at which time the product
becomes available for purchase in the
marketplace.
7/18/2016 © 2016 C&N Inventions CC 8
Phase 0: Planning
 Marketing
 Articulate market opportunity.
 Define market segments.
 Design
 Consider product platform and architecture.
 Assess new technologies.
7/18/2016 © 2016 C&N Inventions CC 9
Phase 0: Planning (Cont…
 Manufacturing
 Identify production constraints.
 Set supply chain strategy.
 Other functions
 Research: demonstrate available
technologies.
 Finance: provide planning goals.
 General management: allocate project
resources.
7/18/2016 © 2016 C&N Inventions CC 10
Phase 1: Concept
Development
 Marketing
 Collect customer needs.
 Identify lead users.
 Identify competitive products.
 Design
 Investigate feasibility of product concepts.
 Develop industrial design concepts.
 Build and test experimental prototypes.
7/18/2016 © 2016 C&N Inventions CC 11
Phase 1: Concept
Development (Cont…
 Manufacturing
 Estimate manufacturing cost.
 Assess production feasibility.
 Other functions
 Finance: facilitate economic analysis.
 Legal: investigate patent issues.
7/18/2016 © 2016 C&N Inventions CC 12
Phase 2: System-Level
Design
 Marketing
 Develop plan for product options and
extended product family.
 Set target sales price point(s).
 Design
 Generate alternative product architectures.
 Define major subsystems and interfaces.
 Refine industrial design.
7/18/2016 © 2016 C&N Inventions CC 13
Phase 1: System-Level
Design (Cont…
 Manufacturing
 Identify suppliers for key components.
 Perform make-buy analysis.
 Define final assembly scheme.
 Set target costs.
 Other Functions
 Finance: facilitate make-buy analysis.
 Service: identify service issues.
7/18/2016 © 2016 C&N Inventions CC 14
Phase 3: Detail Design
 Marketing
 Develop marketing plan.
 Design
 Define part geometry.
 Choose materials.
 Assign tolerances.
 Complete industrial design control
documentation.
7/18/2016 © 2016 C&N Inventions CC 15
Phase 3: Detail Design
(Cont..
 Manufacturing
 Define piece-part production processes.
 Design tooling.
 Define quality assurance processes.
 Begin procurement of long-lead tooling.
7/18/2016 © 2016 C&N Inventions CC 16
Phase 4: Testing and
Refinement
 Marketing
 Develop promotion and launch materials.
 Facilitate field testing.
 Design
 Reliability testing.
 Life testing.
 Performance testing.
 Obtain regulatory approvals.
 Implement design changes.
7/18/2016 © 2016 C&N Inventions CC 17
Phase 4: Testing and
Refinement (Cont…
 Manufacturing
 Facilitate supplier ramp-up.
 Refine fabrication and assembly processes.
 Train workforce.
 Refine quality assurance processes.
 Other Functions
 Sales: develop sales plan.
7/18/2016 © 2016 C&N Inventions CC 18
Phase 5: Production Ramp-
up
 Marketing
 Place early production with key customers.
 Design
 Evaluate early production output.
 Manufacturing
 Begin operation of entire production system.
7/18/2016 © 2016 C&N Inventions CC 19
Conclusion
 The described development process is
generic, and particular processes will differ in
accordance with firm’s unique context.
 The generic process is most like the process
used in a market-pull situation.
 This is when a firm begins product
development with a market opportunity and
then uses whatever available technologies are
required to satisfy the market need.
7/18/2016 © 2016 C&N Inventions CC 20
Conclusion (Cont…
 In addition to the generic market-pull
processes, several variants are common and
correspond to the following:
 Technology-push products
 Platform products
 Process-intensive products
 Customised products
 High-risk products
 Quick-build products
 Complex systems
7/18/2016 © 2016 C&N Inventions CC 21
7/18/2016 © 2016 C&N Inventions CC 22
Contact Details
Conrad Sebego-Principal Associate
Email: conrad_sebego@yahoo.ca
Mobile: +27(0)82 468-5060
Fax: +27(0)86 613-8318
Address: 13 Baobab Street, Noordwyk, Midrand, 1687
Website: http://www.c-and-n-inventions.com

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Product Development Process-18Jul2016

  • 1. 7/18/2016 © 2016 C&N Inventions CC 1 Product Development Process
  • 2. Generic Product Development Process  Companies continuously bring new products to market as customer needs and wants change.  Product design is integral to the success of many companies.  Product design differs significantly depending on the industry. 7/18/2016 © 2016 C&N Inventions CC 2
  • 3. Generic Product Development Process (Cont…  For consumer products, understanding consumer preferences and market testing prospective products are very important activities.  For pharmaceuticals, extensive clinical tests are often required that involve carefully controlled experiments to test both safety and the effectiveness of a potential product. 7/18/2016 © 2016 C&N Inventions CC 3
  • 4. Generic Product Development Process (Cont…  Companies that specialise in the design of products have highly developed processes to support the activities needed for an industry.  In today’s world, companies often outsource major functions rather than supporting these functions in-house, including product design. 7/18/2016 © 2016 C&N Inventions CC 4
  • 5. Generic Product Development Process (Cont…  Given the potential advantages of using contract manufacturers – a firm must decide what its core competency should be.  A company’s core competency is the one thing that it can do better than its competitors.  The goal is to have a core competency that yields a long-term competitive advantage to the company. 7/18/2016 © 2016 C&N Inventions CC 5
  • 6. Generic Product Development Process (Cont…  A core competency has three characteristics:  It provides potential access to a wide variety of markets.  It increases perceived customer benefits.  It is hard for competitors to imitate. 7/18/2016 © 2016 C&N Inventions CC 6
  • 7. Generic Product Development Process (Cont…  The generic product development process consists of six phases.  The process begins with planning phase, which is the link to advanced research and technology development activities.  The output of the planning phase is the project’s mission statement, which is the input required to begin the concept development phase and serves as a guide to the development team. 7/18/2016 © 2016 C&N Inventions CC 7
  • 8. Generic Product Development Process (Cont…  The conclusion of the product development process is the product launch at which time the product becomes available for purchase in the marketplace. 7/18/2016 © 2016 C&N Inventions CC 8
  • 9. Phase 0: Planning  Marketing  Articulate market opportunity.  Define market segments.  Design  Consider product platform and architecture.  Assess new technologies. 7/18/2016 © 2016 C&N Inventions CC 9
  • 10. Phase 0: Planning (Cont…  Manufacturing  Identify production constraints.  Set supply chain strategy.  Other functions  Research: demonstrate available technologies.  Finance: provide planning goals.  General management: allocate project resources. 7/18/2016 © 2016 C&N Inventions CC 10
  • 11. Phase 1: Concept Development  Marketing  Collect customer needs.  Identify lead users.  Identify competitive products.  Design  Investigate feasibility of product concepts.  Develop industrial design concepts.  Build and test experimental prototypes. 7/18/2016 © 2016 C&N Inventions CC 11
  • 12. Phase 1: Concept Development (Cont…  Manufacturing  Estimate manufacturing cost.  Assess production feasibility.  Other functions  Finance: facilitate economic analysis.  Legal: investigate patent issues. 7/18/2016 © 2016 C&N Inventions CC 12
  • 13. Phase 2: System-Level Design  Marketing  Develop plan for product options and extended product family.  Set target sales price point(s).  Design  Generate alternative product architectures.  Define major subsystems and interfaces.  Refine industrial design. 7/18/2016 © 2016 C&N Inventions CC 13
  • 14. Phase 1: System-Level Design (Cont…  Manufacturing  Identify suppliers for key components.  Perform make-buy analysis.  Define final assembly scheme.  Set target costs.  Other Functions  Finance: facilitate make-buy analysis.  Service: identify service issues. 7/18/2016 © 2016 C&N Inventions CC 14
  • 15. Phase 3: Detail Design  Marketing  Develop marketing plan.  Design  Define part geometry.  Choose materials.  Assign tolerances.  Complete industrial design control documentation. 7/18/2016 © 2016 C&N Inventions CC 15
  • 16. Phase 3: Detail Design (Cont..  Manufacturing  Define piece-part production processes.  Design tooling.  Define quality assurance processes.  Begin procurement of long-lead tooling. 7/18/2016 © 2016 C&N Inventions CC 16
  • 17. Phase 4: Testing and Refinement  Marketing  Develop promotion and launch materials.  Facilitate field testing.  Design  Reliability testing.  Life testing.  Performance testing.  Obtain regulatory approvals.  Implement design changes. 7/18/2016 © 2016 C&N Inventions CC 17
  • 18. Phase 4: Testing and Refinement (Cont…  Manufacturing  Facilitate supplier ramp-up.  Refine fabrication and assembly processes.  Train workforce.  Refine quality assurance processes.  Other Functions  Sales: develop sales plan. 7/18/2016 © 2016 C&N Inventions CC 18
  • 19. Phase 5: Production Ramp- up  Marketing  Place early production with key customers.  Design  Evaluate early production output.  Manufacturing  Begin operation of entire production system. 7/18/2016 © 2016 C&N Inventions CC 19
  • 20. Conclusion  The described development process is generic, and particular processes will differ in accordance with firm’s unique context.  The generic process is most like the process used in a market-pull situation.  This is when a firm begins product development with a market opportunity and then uses whatever available technologies are required to satisfy the market need. 7/18/2016 © 2016 C&N Inventions CC 20
  • 21. Conclusion (Cont…  In addition to the generic market-pull processes, several variants are common and correspond to the following:  Technology-push products  Platform products  Process-intensive products  Customised products  High-risk products  Quick-build products  Complex systems 7/18/2016 © 2016 C&N Inventions CC 21
  • 22. 7/18/2016 © 2016 C&N Inventions CC 22 Contact Details Conrad Sebego-Principal Associate Email: conrad_sebego@yahoo.ca Mobile: +27(0)82 468-5060 Fax: +27(0)86 613-8318 Address: 13 Baobab Street, Noordwyk, Midrand, 1687 Website: http://www.c-and-n-inventions.com