Chapter 7: Product development Flashcards
What is product development?
includes all activities aimed at creating and enhancing the company’s value proposition.
Describe the typical differences between product development in
- small batch and unit production companies.
- mass production companies.
- companies in the process industry.
- service companies.
Small Batch and Unit Production:
* Start after development.
* Custom products for customers.
Mass Production:
* Driven by internal goals.
* Focus on efficiency improvements.
Process Industry:
* Small development teams.
* Innovations from production machinery.
Service Companies:
* Focus on business/operational improvements.
* Less on tech advancements.
What does the abbreviation OEM mean?
OEM (Original Equipment Manufacturer):
- Designs and produces physical products.
- Products sold under another company’s brand.
Describe a typical product lifecycle and explain why the product lifecycle is strategically important of a company.
The product life cycle consists of four stages: introduction, growth, maturity, and decline. It’s crucial for maintaining competitiveness by having products at different stages of their life cycles.
Describe the 4 innovation strategies.
Technology Pioneer: Achieve a technological monopoly by launching new, leading-edge products before competitors.
Fast Follower: Quickly adopt and improve new technologies to create cost-effective products.
Cost Minimizer: Follow pioneers’ products and reduce production costs through economies of scale.
Traditionalist: Meet existing needs precisely and avoid rapid changes, focusing on stability (e.g., certain food products).
What does core competence mean and what are the characteristic properties of a core competence?
unique capabilities that create significant customer value, can be used in different markets, and are hard for competitors to imitate.
Explain the concept modularization.
- designing products with interchangeable components
- allowing for greater flexibility, customization, and production efficiency.
Explain how to balance a project portfolio by categorizing the projects according to the degree of change.
Categorize Projects:
- Incremental: Small changes
- Radical: Large changes
- Transformative: Fundamental shifts
Goal: Ensure a mix that matches the organization’s risk tolerance and strategic goals.
Explain the principles behind the so-called development funnel.
- Early Stages: Wide, many ideas and studies
- Progression: Narrows, focuses on fewer, refined projects
- Launch Stage: Narrowest, final product
Describe the important phases of a typical product development process.
- Plan: Set objectives, define scope, allocate resources
- Concept: Brainstorm and select ideas
- Design: Define product structure and components
- Detail: Create specs and prototypes
- Test: Test and refine the product
- Produce: Begin full-scale manufacturing
- Ramp-Up: Increase production to full capacity
Describe the differences between sequential, concurrent, and agile product development. What are the advantages and disadvantages of these 3 models.
Sequential:
- Process: Complete each phase before the next
- Advantage: Clear and structured
- Disadvantage: Longer lead times
Concurrent:
- Process: Teams work simultaneously
- Advantage: Shorter lead times
- Disadvantage: Communication challenges
Agile:
- Process: Iterative and flexible
- Advantage: Quick adaptation and improvements
- Disadvantage: Hard to maintain structure
Explain the principles behind the stage-gate model.
- Stages: Divide process into distinct phases
- Gates: Decision points at the start and end of each stage
- Evaluation: Steering committee decides to proceed, revise, or terminate
The principles behind the Stage-Gate model involve dividing the product development process into distinct stages, each of which begins and ends with a decision point (gate). At each gate, a steering committee or decision-maker evaluates the progress and decides whether the project should proceed, be revised, or be terminated.
What is visual planning?
Method: Organize tasks visually
Tools: Project boards, sticky notes
Purpose: Show tasks clearly, track progress
Describe the concept: sprint.
- Short, time-boxed cycle
-Part of Scrum
-Complete specific tasks/goals within a set period
