PDD C1

Question 1

What are the 5 characteristics of successful product development?

Answer 1

• Product quality
• Product cost
• Development time
• Development cost
• Development capability

Question 2

Describe product quality

Answer 2

• 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

Question 3

Describe product cost

Answer 3

• Manufacturing costs:
  
  • Spending on capital equipment and tooling
  • Incremental cost of producing each product
• Determines how profitable a firm is

Question 4

Describe development time

Answer 4

• How fast was the product developed?
• Determines how competitive the firm is against other firms and technological improvements
• Determines how fast the firm profits

Question 5

Describe development cost

Answer 5

• How much did the firm have to spend in developing the product?
• Usually a significant portion of the investment

Question 6

Describe development capability

Answer 6

• How well can the firm develop products?
• Determines how effectively and economically the firm can develop products

Question 7

What other factor contributes to economic success?

Answer 7

• Stakeholder interests

Question 8

What are the 3 central functions of product development?

Answer 8

• Marketing
• Design
• Manufacturing

Question 9

Describe marketing function

Answer 9

• 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

Question 10

Describe design function

Answer 10

• Defines the physical form of the product to best meet customer needs
• Split into engineering and industrial design

Question 11

Describe manufacturing function

Answer 11

• Designs, operates, and/or coordinates the production system
• Also includes purchasing, distribution, and installation
• Supply chain

Question 12

How is a team composed?

Answer 12

• Core team and extended team

Question 13

Describe a core team

Answer 13

• A small enough group to meet in a conference room
• Team lead, head designers, marketers, buyers

Question 14

Describe an extended team

Answer 14

• A large group of individuals outside the core team that facilitate development in the firm
• Finance, sales, legal, suppliers, other firms

Question 15

Describe the duration and cost of product development

Answer 15

• 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

Question 16

Describe the challenge of trade-offs

Answer 16

• 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.

Question 17

Describe the challenge of dynamics

Answer 17

• 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

Question 18

Describe the challenge of details

Answer 18

• 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.

Question 19

Describe the challenge of time pressure

Answer 19

• 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.

Question 20

Describe the challenge of economics

Answer 20

• 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.

Question 21

Describe the appeal of creation

Answer 21

• 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.

Question 22

Describe the appeal of satisfying needs

Answer 22

• 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.

Question 23

Describe the appeal of time diversity

Answer 23

• 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.

Question 24

Describe the appeal of team spirit

Answer 24

• 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.