case study
2
New Product Development
2.1 Introduction
New product development is a multi-stage process. Many different models with a varying number of stages have been proposed in the literature. We briefly review these models and propose a new model that is better suited to decision making regarding product performance and specification. In this chapter we start with a discussion of products and product life cycle in order to set the background for the later sections of the chapter.
The outline of the chapter is as follows. In Section 2.2 we look at product classification and decomposition. Section 2.3 deals with product life and product life cycle.
Section 2.4 gives an overview of new product development and reviews some of the models proposed in the literature. Section 2.5 deals with the concepts and activities in the different phases of the five-phase product life cycle indicated in Figure 1.1.
This sets the background for a new model that is appropriate for deciding on performance and specification in the context of new product development. Section 2.6 deals with this new model.
2.2 Products
A narrow definition of products is that they are physical and tangible. This is in contrast to services that are intangible. The distinction between products (as defined above) and services is getting blurred and a more commonly accepted definition is that a product generally involves combinations of the tangible and the intangible as indicated below.
“A product can be tangible (e.g., assemblies or processed materials) or intangible (e.g., knowledge or concepts), or a combination thereof. A product can be either intended (e.g., offering to customers) or unintended (e.g., pollutant or unwanted effects).”
(ISO 8402).
16
2 New Product Development
Consumers buy products for different reasons and can be broadly divided into three categories:
Households: These comprise individuals (or families) buying products, such as food items, cosmetics, clothes,
New Product Development
2.1 Introduction
New product development is a multi-stage process. Many different models with a varying number of stages have been proposed in the literature. We briefly review these models and propose a new model that is better suited to decision making regarding product performance and specification. In this chapter we start with a discussion of products and product life cycle in order to set the background for the later sections of the chapter.
The outline of the chapter is as follows. In Section 2.2 we look at product classification and decomposition. Section 2.3 deals with product life and product life cycle.
Section 2.4 gives an overview of new product development and reviews some of the models proposed in the literature. Section 2.5 deals with the concepts and activities in the different phases of the five-phase product life cycle indicated in Figure 1.1.
This sets the background for a new model that is appropriate for deciding on performance and specification in the context of new product development. Section 2.6 deals with this new model.
2.2 Products
A narrow definition of products is that they are physical and tangible. This is in contrast to services that are intangible. The distinction between products (as defined above) and services is getting blurred and a more commonly accepted definition is that a product generally involves combinations of the tangible and the intangible as indicated below.
“A product can be tangible (e.g., assemblies or processed materials) or intangible (e.g., knowledge or concepts), or a combination thereof. A product can be either intended (e.g., offering to customers) or unintended (e.g., pollutant or unwanted effects).”
(ISO 8402).
16
2 New Product Development
Consumers buy products for different reasons and can be broadly divided into three categories:
Households: These comprise individuals (or families) buying products, such as food items, cosmetics, clothes,