PDD C1 Flashcards
1
Q
What are the 5 characteristics of successful product development?
A
- Product quality
- Product cost
- Development time
- Development cost
- Development capability
2
Q
Describe product quality
A
- How good is the product?
- Does it satisfy customer needs?
- Is it robust/reliable?
- Reflected in the market share and price customers are willing to pay
3
Q
Describe product cost
A
- Manufacturing costs:
- Spending on capital equipment and tooling
- Incremental cost of producing each product
- Determines how profitable a firm is
4
Q
Describe development time
A
- How fast was the product developed?
- Determines how competitive the firm is against other firms and technological improvements
- Determines how fast the firm profits
5
Q
Describe development cost
A
- How much did the firm have to spend in developing the product?
- Usually a significant portion of the investment
6
Q
Describe development capability
A
- How well can the firm develop products?
- Determines how effectively and economically the firm can develop products
7
Q
What other factor contributes to economic success?
A
- Stakeholder interests
8
Q
What are the 3 central functions of product development?
A
- Marketing
- Design
- Manufacturing
9
Q
Describe marketing function
A
- Mediates interactions between firm and customers
- Identifies product opportunities, market segments, and customer needs
- Also arranges communication, sets target prices, and oversees launch/promotion of products
10
Q
Describe design function
A
- Defines the physical form of the product to best meet customer needs
- Split into engineering and industrial design
11
Q
Describe manufacturing function
A
- Designs, operates, and/or coordinates the production system
- Also includes purchasing, distribution, and installation
- Supply chain
12
Q
How is a team composed?
A
- Core team and extended team
13
Q
Describe a core team
A
- A small enough group to meet in a conference room
- Team lead, head designers, marketers, buyers
14
Q
Describe an extended team
A
- A large group of individuals outside the core team that facilitate development in the firm
- Finance, sales, legal, suppliers, other firms
15
Q
Describe the duration and cost of product development
A
- Duration often takes 3-5 years and can take upwards of 10
- Cost of development is often proportional to the number of team members and the duration
- Development expenses and investment in tooling and equipment
16
Q
Describe the challenge of trade-offs
A
- One of the most difficult aspects of product development is recognizing, understanding, and managing such trade-offs in a way that maximizes the success of the product.
17
Q
Describe the challenge of dynamics
A
- Technologies improve, customer preferences evolve, competitors introduce new products, and the macroeconomic environment shifts. Decision making in an environment of constant change is a formidable task
18
Q
Describe the challenge of details
A
- The choice between using screws or snap-fits on the enclosure of a computer can have economic implications of millions of dollars. Developing a product of even
modest complexity may require thousands of such decisions.
19
Q
Describe the challenge of time pressure
A
- Any one of these difficulties would be easily manageable by itself given
plenty of time, but product development decisions must usually be made quickly and
without complete information.
20
Q
Describe the challenge of economics
A
- Developing, producing, and marketing a new product requires a large investment. To earn a reasonable return on this investment, the resulting product must be both appealing to customers and relatively inexpensive to produce.
21
Q
Describe the appeal of creation
A
- The product development process begins with an idea and ends with the production of a physical artifact. When viewed both in its entirety and at the level of individual activities, the product development process is intensely creative.
22
Q
Describe the appeal of satisfying needs
A
- All products are aimed at satisfying needs of some kind. Individuals interested in developing new products can almost always find institutional settings in which they can develop products satisfying what they consider
to be important needs.
23
Q
Describe the appeal of time diversity
A
- Successful development requires many different skills and talents. As a result, development teams involve people with a wide range of different training, experience, perspectives, and personalities.
24
Q
Describe the appeal of team spirit
A
- Product development teams are often highly motivated, cooperative groups. The team members may be co-located so they can focus their collective energy on creating the product. This situation can result in lasting camaraderie among team members.
