Lecture5_Oct17_2005

Lecture5_Oct17_2005 - EMP5100 - Introduction to Engineering...

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EMP5100 - Introduction to Engineering Management Lecture 5 5. Developing New Engineering Products (cont.) New Product Planning The following two checklists are always useful when you are planning for a new product: A. Marketing checklist B. Technical and administrative checklist Marketing checklist (see hand-out: “Marketing checklist”) In addition Government Control should also be analyzed for marketing a new product. Technical and Administrative Checklist Patent problems or advantage Number of sizes and times Time to develop Cost to develop Availability of engineering equipment and personnel Problems in manufacturing Problems of materials Rough estimates of capital required to put into production Rough estimate of costs and selling prices Profit margin Time to reach break-even Time to absorb development cost Return on investment Possibility of creating or establishing foothold on new technology Etc. Method for choosing the right new-product idea This method starts all ideas through the development mill on an equal basis. But at seven (7) distinct stages you force formal reevaluation of the idea in terms of the company’s criteria of acceptability. If it passes - fine. Send it on to the next stage. If it does not, file the idea for future reference. Decision criteria a) Ratio of Gain to Risk. Typical Value: 2.5:1.0 b) Estimated annual dollar volume.
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This note was uploaded on 01/09/2012 for the course EMP 5100 taught by Professor Dhillon during the Winter '11 term at University of Ottawa.

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Lecture5_Oct17_2005 - EMP5100 - Introduction to Engineering...

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