Phase 1 : Concept Development

2. It increase perceived
customer benefits Phase 2 : System-Level Design

3. It's hard for Phase 3 : Detail Desgin

1. Provide potential access to a competitors to imitiate
wide variety of markets Phase 0 : Planning

Operational design and Go/No-Go milestones

development decisions
Core Competency Phase 4 : Testing and Refinement
performs manufacturing
Sensitivity Analysis and/or purchasing needed to Product Development Process
produce a product as a
Circumtances service to another firm

Phase 5 : Production Ramp-Up

Sales Revenue
Ramp-up Cost
Economic Analysis of Product Contract Manufacturers
Generic (Market-Pull Products
Development Projects Product Design Technology-Push Products
Production cost
Build a Base-Case Financial Model
CHAPTER 3 Platform Products
Variants of Generic Product
Development Cost Design of Products and Services Development Process
Process-Intensive Products
Marketing and support cost

Complex Systems Customized Products

Complexity and Divergence Designing Service Products Quick-Build Products High-risk Products

Product Design Criteria

3 General Factors Designing for the Customer

A process that helps a company determine the product

Similarity to current processes Financial justification characteristics important to the consumer and to evaluate
Quality Function Deployment (QFD) its own product in relation to other

Similarity to current services

House of Quality A matrix that helps a product design team
Value Analysis/Value Engineering (VA / VE) translate customer requirements into
operating and engineering goals
simplifying
products and processes Engineering, Marketing,
Ecodesign - incorporation of better performance Design decisions
environmental considerations in design and lower cost
development of products or services

VA - VE -
cost reduction technique cost-avoidance method

A multicriteria The product is The whole life cycle

approach is considered as a of the product or service
considered system is considered