Post on 24-Dec-2015
description
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Stages of NewProduct Development
New Product Success Rate
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Cost Elements of a New ProductComparative Expenditure on a New Product
Stage of Development Cost Conception $5,000 + Feasibility $50,000 (Depending
on industry) Product/process
development20 x Cost of Feasibility
Pilot production 20 x Cost of Development
Full commercialization Much more costs
Traditional Commercialization Model
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Engineering Stages of NPD
1 - Conceptual Proofing
• Prove concept to be scientifically valid via test-of-principle model(s)
• Confirm that performance assumptions are reasonable
• Identify critical manufacturing and marketing barriers
• Conduct a state-of-the-art survey to identify potential product gaps
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2 – Technical Feasibility • Confirm target performance through
experimentation• Identify operational requirements• Identify potential safety hazards or
environmental impacts• Make a preliminary production
feasibility assessment• Make a preliminary manufacturing
assessment
3 - Development
• Make needed improvements in materials, design and processes
• Design and fabricate an engineering prototype for scaling up at a later stage
• Optimize the product through design iterations
• Conduct final tests after all modifications
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4 – Pre-Product Preparation
• Develop manufacturing techniques• Establish test market validity of the new
product• Complete a pre-production prototype• Specify the pre-production process• Design a field support system
5 – Full-Scale Production
• Finalize commercial level design features
• Specify detail manufacturing processes• Finalize distribution system and
customer assistance process• Operationalize manufacturing facilities• Perform trial manufacturing runs under
full-production conditions
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6 – Product Support • Provide technical instructions and
updates for effective use of the product• Provide instructional and maintenance
manuals and warranty services• Produce and distribute spare parts• Identify new product spin-offs or major
design changes• Ensure maximum product value through
engineering improvement
Engineering Stages of NPD
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Engineering & Marketing Influence
Summary• Engineering and business activities
must be closely integrated in this NPD process
• This 6-stage approach incorporates simultaneous steps and participation by engineering and business units
• This process involves a significant manufacturing effort for substantive products