Modeling of production development

From CEOpedia | Management online

Product development process consists of:

  • product line planning: analysis of the existing product portfolio,
  • the formulation of product development strategy: specifying a target market, identification of users' needs and the attractiveness of the market,
  • creation of ideas: identify opportunities, generate solutions,
  • selection of ideas: an overview of solutions to eliminate the inappropriate
  • elaboration of the concept of the product: design, testing.

Design process steps

The design process consists of the following stages:

  • Concept generation stage: specifies the initial parameters for the production of products or services, defines future requirements of the user. Decisions regarding parameters are taken by teams consisting of consumers and designers. Design teams should use the following information:
    • detailed technical and functional requirements to determine the level of quality and reliability,
    • requirements for external appearance and fashion trends
    • selling price and cost of production
    • time limit within which the product should be placed on the market
    • expected demand and costs of marketing
    • cost of the project,
    • current legal situation.
  • Evaluation and decision stage: to determine whether the planned parameters are feasible, the approval of parameters which are a compromise between the requirements and opportunities. At this stage, costs associated with the project are analyzed and referred to the production capacity in organization.
  • Implementation: preparation of product models for testing, they should meet all the requirements (functional and technological) adopted for the product. Tests made during this stage provide an answer to the question: if it is possible to create product meeting all previously set requirements.
  • Process hand-off: transfer of project to contractors (who will be actually producing goods) is performed. At the end of this stage, managers should prepare a summary report of the previous actions.
  • Pilot operations: small number of products are put on the market to validate the parameters and compliance with consumer requirements. Requirements and expectations of the client must be studied during this stage. Study should include:
    • operational information,
    • operational measures,
    • techniques of production,
    • production process design,
    • requirements and expectations.
  • Approval of the project: Last stage of project implementation. After this main production is initiated.


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