Product Design and Development Essay

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Product Design & Development INTRODUCTION The economic success of most firms depends on their ability to identify the needs of customers and to quickly create products that meet these needs and can be produced at Low cast. Characteristics of Successful Product development: Product quality: Product quality is ultimately reflected in the price that customers are willing to pay and market share. Product cost: Product Cast determines how much of profit accrues to the frim for a particular sales volume and a particular sales price. Ultimately depends upon the manufacturing cast and development cast. Development Time: Development time determines how responsive the firm can be to competitive forces and to technological developments. Development Cost: Development cast is usually a significant fraction of the investment required to achieve the profit. Development Capability: Development capability is an asset the firm can use to develop products more effectively and economically in the future. The Challenges of product development: Time Pressure: Any one of these difficulties would be easily manageable by itself given plenty of time, but product development decisions must usually be made quickly and without complete information. Economics: Developing, Producing and marketing a new product requires larger investment. To earn a reasonable return on this investment, the resulting product must usually be both appealing to customers and relatively inexpensive to produces. Creation: The product development process begins with an idea and ends with the production of a physical artefact. When viewed both in its entirety and at the level of individual activities, the product development process is intensely creative.

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