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7/18/2016 © 2016 C&N Inventions CC 1 Product Development Process

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Page 1: Product Development Process-18Jul2016

7/18/2016 © 2016 C&N Inventions CC 1

Product Development Process

Page 2: Product Development Process-18Jul2016

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.

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Page 3: Product Development Process-18Jul2016

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.

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Page 4: Product Development Process-18Jul2016

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.

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Page 5: Product Development Process-18Jul2016

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.

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Page 6: Product Development Process-18Jul2016

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.

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Page 7: Product Development Process-18Jul2016

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

Page 8: Product Development Process-18Jul2016

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.

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Page 9: Product Development Process-18Jul2016

Phase 0: Planning

Marketing Articulate market opportunity.

Define market segments.

Design Consider product platform and architecture.

Assess new technologies.

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Page 10: Product Development Process-18Jul2016

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.

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Page 11: Product Development Process-18Jul2016

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.

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Page 12: Product Development Process-18Jul2016

Phase 1: Concept Development (Cont…

Manufacturing Estimate manufacturing cost.

Assess production feasibility.

Other functions Finance: facilitate economic analysis.

Legal: investigate patent issues.

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Page 13: Product Development Process-18Jul2016

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.

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Page 14: Product Development Process-18Jul2016

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.

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Page 15: Product Development Process-18Jul2016

Phase 3: Detail Design

Marketing Develop marketing plan.

Design Define part geometry.

Choose materials.

Assign tolerances.

Complete industrial design control

documentation.

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Page 16: Product Development Process-18Jul2016

Phase 3: Detail Design (Cont..

Manufacturing Define piece-part production processes.

Design tooling.

Define quality assurance processes.

Begin procurement of long-lead tooling.

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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.

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Page 18: Product Development Process-18Jul2016

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.

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Phase 5: Production Ramp-up

Marketing Place early production with key customers.

Design Evaluate early production output.

Manufacturing Begin operation of entire production system.

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Page 20: Product Development Process-18Jul2016

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.

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Page 21: Product Development Process-18Jul2016

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 systems7/18/2016 © 2016 C&N Inventions CC 21

Page 22: Product Development Process-18Jul2016

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Contact Details

Conrad Sebego-Principal Associate

Email: [email protected]

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