CHAPTER 1
Introduction
Dr. NGUYEN Hong Nguyen
Division of Industrial Engineering and Management
Faculty of Project Management
The University of Danang – University of Science and Technology
nhnguyen@[Link]
Research & Development Management
“Product design and development”, K. T. Ulrich and S. D. Eppinger, Mc Graw-Hill Education, 6th edition, 2016
CONTENTS
▪ Introduction
▪ Characteristics of Successful Product Development
▪ Who Designs and Develops Products?
▪ Duration and Cost of Product Development
▪ The Challenges of Product Development
▪ The Product Development Process
08/09/2025 Dr. NGUYEN Hong - Nguyen | R & D Management 2
INTRODUCTION
Product is
something sold by an
enterprise to its
customers.
Product
development
is the set of activities
beginning with the
perception of a market
opportunity and ending in
the production, sale, and
delivery of a product.
08/09/2025 Dr. NGUYEN Hong - Nguyen | R & D Management 3
INTRODUCTION
Product is
something sold by an
enterprise to its
customers.
Operations
Product
development
is the set of activities
beginning with the
perception of a market Finance Marketing
opportunity and ending
in the production, sale,
and delivery of a product.
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INTRODUCTION
▪ Design thinking process
Generate
more
ideas
EMPATHIZE IDEATE
DEFINE PROTOTYPE
TEST
Refine our
point of
view
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CHARACTERISTICS OF SUCCESSFUL PRODUCT DEVELOPMENT
▪ Product quality
▪ How good is the product resulting from the development
effort?
▪ Does it satisfy customer needs?
▪ Is it robust and reliable?
▪ Product quality is ultimately reflected in market share and the
price that customers are willing to pay.
▪ Product cost
▪ What is the manufacturing cost of the product?
▪ Cost = Capital equipment and tooling + the incremental cost
of producing each unit of the product.
▪ Product cost determines how much profit accrues to the firm
for a particular sales volume and a particular sales price.
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CHARACTERISTICS OF SUCCESSFUL PRODUCT DEVELOPMENT
▪ Development time
▪ How quickly did the team complete the product development effort?
▪ Development time determines how responsive the firm can be to
competitive forces and to technological developments, as well as how
quickly the firm receives the economic returns from the team’s efforts.
▪ Development cost
▪ How much did the firm have to spend to develop the product?
▪ Development cost is usually a significant fraction of the investment
required to achieve the profits.
▪ Development capability
▪ Are the team and the firm better able to develop future products as a result
of their experience with a product development project?
▪ Development capability is an asset the firm can use to develop products
more effectively and economically in the future.
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Who Designs and Develops Products?
Marketing
Design
Manufacturing
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Who Designs and Develops Products?
The composition of a product development team for an electromechanical
product of modest complexity.
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Duration and Cost of Product Development
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Duration and Cost of Product Development
▪ The reality is that very few products can be developed in
less than 1 year, many require 3 to 5 years,
and some take as long as 10 years.
Number Duration
of of … COST
people project
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The Challenges of Product Development
Trade-offs ❑ Opposite constraints
❑ Required large ❑ Technologies
investment ❑ Customer preferences
❑ Must both appealing to ❑ Competitors ‘s pressure
Economics Dynamics
customers and ❑ Macroeconomic
relatively inexpensive to ❑ Environment aspects
produce Challanges
❑ Usually be made Time
Details ❑ Detailed decision, but
quickly and without pressure
big consequences
complete information
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The Challenges of Product Development
Creation
Satisfaction
of societal
Team spirit Attraction and
individual
needs
Team
diversity
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The Product Development Process
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Q&A
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