Introduction to product development

Hi everyone,  today I want to share some knowledge about product development. You might think that this topic is not so amazing or attractive as we were listening our teacher in class but you are wrong if you just only try to read the book or at least understand the teacher, you would be interested on this topic if not then you are not a true engineer))!!!! As I understand, the product development is a set of activities starting with what customers needs are and finishing with production and sales. I think that most products fail because the teams in firms who are creating this products could not get a perception of what people’s needs are and because of these kinds of fails most investors or team leaders who may have really astonishing ideas are afraid of failure to start new products which are might be as awesome as Apple or Sony. Maybe we could have now ten times more companies such as Sony, Nokia or Panasonic, who knows? The issue with investors is that they want a fast money, and they might not know that profitability is not possible to assess quickly and directly. There are five specific dimensions which directly relate to profit.

Product quality gives information about how good the product is, does it satisfy customer needs, is it reliable or not, these information is directly reflected on people, are they willing to spend their precious money!  When I take any product in my hands I already know is the product has a high quality or not! After that we ask the price of the product.

Product cost is about how much money we spent on manufacturing, capital equipment, incremental cost of producing each unit, and also how much money goes to firms or investors!

Development time is about how quickly the product will be finished, and how much time they will have until the product will be valuable as now lets say, and most important)) how quickly the firms or investors will receive their money from team’s efforts.

Development cost is about how much money they will need to spend to start their product development. In my opinion, this development cost will definitely play a big role, let’s say if the development cost will have a high prices then the prices for a unit product will also be expensive, even if the product has a high quality and may satisfy customer needs, not so many people might buy this product as the firms would expect. The second issue is that not so many investors or firms have a lot of money and COURAGE to risk and because of that I think there are a lot of projects which might been shut down!

My favorite one is development capability, it is about how teams and firms can better understand and interact with each other in the future, as a result of their experience! Development capability plays a big role on how the product will be developed more effectively and economically. I think if this development capability will be strong enough between the firms and teams, then they will be able to find better solutions to development time and cost!

Check out this site http://www.youtube.com/watch?v=gw_nmy6jT6I

The information was taken from the Product Design and Development book!!!

 

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