Product Development
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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
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Отрывок из книги
David V. Tennant
Windward Consulting Group, Virginia, USA
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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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