In business and engineering, new product development (NPD) covers the complete process of bringing a new product to market. New product development is described broadly as the transformation of a market opportunity into a product available for sale.
NPD requires an understanding of customer needs and wants, the competitive environment, and the nature of the market. Cost, time and quality are the main variables that drive customer needs, Engineering design is the process whereby a technical solution is developed iteratively to solve a given problem,
The design stage is very important because at this stage most of the product life cycle costs are engaged. Previous research shows that 70–80% of the final product quality and 70% of the product entire life-cycle cost are determined in the product design phase, therefore the design-manufacturing interface represent the greatest opportunity for cost reduction. Design projects last from a few weeks to three years with an average of one year.
Design and Commercialization phases usually start a very early collaboration. When the concept design is finished it will be sent to manufacturing plant for prototyping, developing a Concurrent Engineering approach by implementing practices such as QFD, DFM/DFA and more.
Companies must take a holistic approach to managing this process and must continue to innovate and develop new products if they want to grow and prosper.
New Product Development IN TURBULENT TIMES
When we are in a tough economic situation usually management reduces spending on: new-product development. Usually it is done from a short-sighted point of view.
Tough times might even call for:
Greater new-product development, offering solutions for changing customer needs and tastes. Innovation helps , making the company more competitive positioning it better for future..