Product Development

Product Development
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PRODUCT DEVELOPMENT An insightful development roadmap to help engineers and businesspeople successfully bring a product to market In Product Development: An Engineer’s Guide to Business Considerations, Real-World Product Testing, and Launch, accomplished project manager, engineer, and business strategist David V. Tennant delivers a comprehensive walkthrough of the full scope of product development activities, from initial business considerations to real-world product testing and launch. The book covers key product development considerations like determining the target market, working with a product development team, management challenges, funding, user identification, ergonomics, product design, testing, and launch. The distinguished author presents the material in the form of practical, hands-on tutorials with case studies featuring large corporations and small- and mid-size firms. He also includes team exercises and question-and-answer features to help early-career and aspiring engineers acquire the interdisciplinary and inter-department coordination skills they’ll require to successfully bring a new product to market. Readers will learn about the critical roles played by the engineering, marketing, and finance departments, as well as each stage of the product development process. The book also includes: Thorough introductions to product development and the role of the marketing group in product development, including corporate strategy, product and business plans, and marketing leadership Comprehensive explorations of the role of the engineering group in product development, including functional areas led by engineers and engineering leadership Practical discussions of the core team and teamwork in product development, including executives’ roles, the role of the accounting department, and the identification of key stakeholders In-depth examinations of how to move forward with product development after project approval Perfect for early- and mid-career engineers working in product-oriented companies, as well as marketers and other business professionals seeking to understand engineering best practices, Product Development is the ideal reference for use in upper-level undergraduate Product Development courses.

Оглавление

David V. Tennant. Product Development

Product Development. An Engineer’s Guide to Business Considerations, Real-World Product Testing, and Launch

Table of Contents

List of Illustrations

List of Tables

Guide

Pages

Acknowledgments

About the Author

1 Introduction to Product Development

Project Management and Product Development

What Is Product Development?

How This Book Is Organized

2 The Role of Marketing in Product Development. Corporate Strategy – Strategic Planning

Discussion Case 2.1 – The Eastman Kodak Company Based on5

Case 2.1 Discussion Questions

Marketing, Sales, and the Four Ps

The 1st P – Product

Example of Product Displacement

What Marketing Cannot Do

Discussion Case 2.2 (Refer to Table 2.2)

The 2nd P – Promotion

The 3rd P – Pricing

The 4th P – Placement

The Business Case

The Roles of Marketing and Engineering in Product Development

Marketing Services

New Product Development and Market Economics: The Future of Electric Trucks vs Costs and Public Policy

Public Policy

Other Marketing Considerations

Electric Vehicle Discussion Questions

Chapter Key Points

Discussion Questions

Answers to Case 2.1 Discussion Questions – Kodak

Answers to Discussion Case 2.2 – Portable Battery Unit

Answers to Discussion Questions

References

Bibliography

3 The Role of the Engineering Group in Product Development

Driving Products – the Engineering Perspective

Engineering Disciplines

The Engineering Process

Define the Problem

Research Solutions

Develop Options

Initiate Design

Build and Test Prototype

Initiate Production

Who Is the End User?

Functional Areas and Communications

What Is a Project Engineer?

Ergonomics (Human Factors Engineering)

A True Scenario

Additional Design Considerations – Product Liability

A Fictional Scenario

Government Oversight – Consumer Protection in the United States

Labeling and Packaging

Food and Drug Administration3

Product Safety

Environmental Protection Agency (EPA)

Occupational Safety and Health Administration

Discussion Case 3.1 – Lawsuit over Hot Coffee4

Discussion Case 3.1 Questions

Design Challenges – Product Misuse

Problems with Product Development

Chapter Key Points

Discussion Questions

Discussion Case 3.1 Questions and Answers – Lawsuit Over Hot Coffee

Discussion Questions

Notes

Bibliography

4 The Core Team and Teamwork in Product Development. The Executive’s Role in Product Development

Working Within the Strategic Plan

Project Management Processes

Who Should Be Involved in Product Development?

Hypothetical Product: A New Portable Printer

Constraint on Product Development: A Note about Sarbanes-Oxley and Publicly Held Companies

Essentials of Teamwork and Communications across Functional Lines

Problems with the Matrixed Team Structure

Teamwork Essentials

Project/Product Communication

Individual Exercise (five minutes)

The Product/Project Kickoff Meeting

Budgets, Schedules, and Miscellaneous Small Tasks

Status Reporting

Presentations

Leadership in Product Development

How Do Leaders Go Wrong?

The Roles of Accounting and Finance

A Sample Product Budget

Pro Forma Modeling

Decision Points and Net Present Value (NPV)

The Bigger Picture

Driving Product Development

Working in Silos and with Stakeholders

Identifying Stakeholders

Chapter Key Points

Discussion Questions

Discussion Case 4.1 Organizational Conflict – Discussion Questions Answers

Discussion Questions – Answers

Notes

Bibliography

5 Getting Started – Project Approved Product/Project Management and Engineering. Taking the Business Case from Concept to Reality

Basic Research

Applied Research

Project Management in Product Development

Why Do Projects Fail?

Traditional and Agile Project Management

Traditional Project Management

Sample Project Plan – Detailed Table of Contents

A True Case Study - Company Dysfunction and a Lack of Project Management

Developing and Controlling Scope – Using a Work Breakdown Structure (WBS)

Developing a Budget and Cash Flows

Using the WBS to Derive a Schedule

Comparison of a Traditional vs Agile Project

Business Case

Initiation

Planning

Execution

Close Out

Agile PM

The Vision Statement

Air Emissions Monitor Vision Statement

Agile Hybrid in Action – Marketing Natural Gas in the Southeastern United States: Gas South, A True Story

Obtaining Customer Input

Discussion Case 5.1 – A True Story: Product Development Without Project Management

Discussion Case 5.2 - Questions

Chapter Key Points

Chapter Discussion Questions

Discussion Case 5.1 Questions and answers

Answers to Discussion Questions

Notes

Bibliography

6 Product Development for Small Firms and Entrepreneurs

Funding for Your Start-Up: A Necessary Ingredient

Loans from the Bank and Small Business Administration (SBA)

The Small Business Administration (SBA)

Funding from Venture Capitalists

Where Do VCs Get Their Funding? Who are Their Partners?

Funding by Issuing Shares of Stock

Funding with Angel Investors

Other Sources of Business and Financial Assistance

Summary on Product Development and Sources of Funding

Small Firm Challenges

Lacking Internal Talent for Engineering, Design, and Testing

Do Not Understand How to Develop Business Plans or Cost-Benefit Models

Lack of Structured Planning

Inability to Execute on Ideas

Marketing Message Not Strong or Clear

Legal and Regulatory Obstacles

Use of a Product Roadmap

Innovation. Suggestions for Success

When (Or If) to Patent

Do I Need a Patent Attorney?

Is My Invention/Product/Process Even Patentable?

Should I Apply for a Patent?

What Protection Does an NDA Offer as Opposed to a Patent?

What Type of Patent Should I Seek?4

When Should I Apply for a Patent?

How Much Will It Cost?

How Long Does It Take to Obtain a Patent?

How Long Is a Patent Good for (Enforceable)?

My Invention or Technology Is New and Disruptive. Will the Patent Office Be Able to Understand My Patent?

If I Wish to Patent My Invention Overseas, What Is the Process and What Are the Costs?

What are the Benefits to Having a Patent?6

Chapter Key Points

Discussion Questions

Discussion Question – Answers

Notes

Bibliography

7 Manufacturing the New Product

The State of Manufacturing

Thinking About Starting Your Own Manufacturing Company?

Inventory

Safety

Housekeeping

Factory Layout – Process

Supply Chain Management

Small vs. Large Manufacturers

Just-In-Time Manufacturing (JIT)

Onshore vs Offshore

New Manufacturing Advances. 3D Printing

Robotics and the Use of Internet of Things (IOT) and 5G

Predictive or Preventive Maintenance

Chapter Key Points

Discussion Questions

Discussion Question Answers

Notes

Bibliography

8 Engineering Product Design and Testing

Managing the Approved Scope and Budget – Why Is This Important?

The Project Lifecycle

A True Story: Ignoring the Warning Signs

Preventing Failure and Surprises: Performing a Risk Review

Key Tenets of Risk Reviews

Two Types of Risk Review: Qualitative and Quantitative

Design and Status Reviews

Modeling – Speeding Product Development

Advantages of Engineering Modeling

Integrating Supply Chain and Manufacturing

Case 8.1 Reasonable Procurement Action or Big Mistake?

The Role of Supply Chain in Product Development

Maintenance of an “Approved” Supplier List

Issue of RFIs, NDAs, and RFPs

Specifications

Proposals, Pricing, Statements of Work (SOWs)

Change Orders, Expediting, and Contract Closure

New Products Vs. Commodities

New Technologies – Identification and Adaptation

Electric Vehicles and Smart Cars

5G Networking (5th Generation)

Smart Cities and IoT (Internet of Things)

Alignment with Business Strategy

Using SWOT

Gates and Stakeholders

Chapter Key Points

Chapter Discussion Questions

Answers to Case 8.1 Reasonable Procurement Action or Big Mistake?

Answers to Chapter Discussion Questions

Bibliography

9 Successful Product Launch and Post Review

Pricing

Competitor Positioning

Sales Positioning

Customer Positioning

Profit Positioning

Integrated Marketing

Marketing Strategy

Sales Partner

Product Development – Post Review

Introduction

Overview of the Project/Product

Original Objectives

Engineering and Production

Scope/Budget/Schedule Discussion

What Went Right

What Could Have Been Done Better

Identification of Outstanding Commitments

Discussion of Scope Changes

Marketing Strategy and Metrics

Expected Competitors

Next Steps: Recommendations

Conclusions

Chapter Key Points

Discussion Questions

Discussion Questions – Answers

Notes

Bibliography

10 Summary – Connecting the Dots

A Logical Process Flow

Chapter Key Points

Summary Discussion Questions (Covering all chapters)

Summary Discussion Questions – Answers

Reference

Index

WILEY END USER LICENSE AGREEMENT

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David V. Tennant

Windward Consulting Group, Virginia, USA

.....

All of the above costs must be recovered and reflected in the price of your product over time. It is important that a company recovers its development costs plus a margin; otherwise, your product is not profitable. It is likely that cost and pricing sensitivity analysis will determine the maximum amount of dollars that can be expended and remain profitable in a competitive marketplace.

Figure 2.5 shows a typical break-even graph for a product. Break-even is the point at which sales revenue equals all the costs expended; and additional sales will generate a profit going forward.

.....

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