The product development process The PD Process coordinates the specific research activities such as product design, rocess development, engineering plant design, marketing strategy and design ith the aim of producing an integrated approach to the development of new products. The overall aim is to create a product that an individual consumer or a food manufacturing company or a food service organisation will buy. The two parts of product development-the knowledge of the consumers needs/wants and the knowledge of modern scientific discoveries and technological developments are both equally important. The PD Process combines and applies the natural sciences with the social sciences to systematically produce innovation in industry he PD Process is a system of research for the individual product development project and the product development programme. It varies in detail from project to project but overall retains the same structure of four main stages, subdivided further into 7-9 stages in some product development models Cooper, 1996; Earle, 1997). The four stages are product strategy, product design and process development, product commercialisation, product launch and evaluation. Between the four stages, there are critical evaluations and top management decisions on the project and the products, called stage gates Cooper, 1990)or critical points(Earle, 1971). Critical points are an essential part of the PD Process. For the critical decisions to be made, certain knowledge has to be generated in the research the outcomes from the various stages. To build this knowledge, specific research is needed -the activities of the various stages. The project teams choose different procedures for these activities-the techniques used in the activities. There are important interrelationships in the four main stages between Critical decisions + Outcomes Activities Techniques
The PD Process coordinates the specific research activities such as product design, process development, engineering plant design, marketing strategy and design with the aim of producing an integrated approach to the development of new products. The overall aim is to create a product that an individual consumer or a food manufacturing company or a food service organisation will buy. The two parts of product development – the knowledge of the consumer’s needs/wants and the knowledge of modern scientific discoveries and technological developments – are both equally important. The PD Process combines and applies the natural sciences with the social sciences to systematically produce innovation in industry. The PD Process is a system of research for the individual product development project and the product development programme. It varies in detail from project to project but overall retains the same structure of four main stages, subdivided further into 7–9 stages in some product development models (Cooper, 1996; Earle, 1997). The four stages are product strategy, product design and process development, product commercialisation, product launch and evaluation. Between the four stages, there are critical evaluations and top management decisions on the project and the products, called stage gates (Cooper, 1990) or critical points (Earle, 1971). Critical points are an essential part of the PD Process. For the critical decisions to be made, certain knowledge has to be generated in the research – the outcomes from the various stages. To build this knowledge, specific research is needed – the activities of the various stages. The project teams choose different procedures for these activities – the techniques used in the activities. There are important interrelationships in the four main stages between: Critical decisions Outcomes Activities Techniques 3 The product development process
96 Food product development This Pd process can be called the Critical pd process because it is based around critical decisions, and because there is critical analysis of the activities/ techniques and the outcomes throughout the project 3.1 Product strategy Stage 1: product strategy, starts with the finalising of the product development strategy and product development programme. Then the aims of the individual product development projects can be set. The project starts with the generation of new product ideas and the outlining of the product design strategy, and ends with the product concept and product design specifications. There is real dichotomy in the decisions and activities; there is on the one hand, the need for freedom to be creative. and on the other. the need to set boundaries in the product design strategy. Before top management can make the critical decision to fund the further stages of the project, or to stop it, or to return it to the team for more knowledge. there are three critical decisions Is the product concept a unique product satisfying the needs and wants of the target consumer/customer? 2. Will the product concept and the project deliver the financial and other aims set in the business and product development strategies? 3. Does the product concept harmonise with the company's business and environment? op management, to make these decisions, needs knowledge on the processing production, distribution and marketing technologies for the product Knowledge will be incomplete at this time. The financial predictions(sales revenue, gross profits or margins, the probabilities for success, the returns on investments or break-even times), and future costs and time for the project are very approximate. There will be other specific requirements for each project, such as enhancing health(Ericson, 1997), environmental effects, food regulations and trade barriers. But of course the most important knowledge is the description of the product idea in the product concept and the product design specifications The project team has to build up this knowledge throughout the stage, and the type of knowledge identified will determine the critical activities that have to be completed in the product development project (Earle and Earle, 1999).The knowledge is built up in substages and decisions are made at the end of each stage usually by product development management, but sometimes by top anagement if the project is a major innovation and costly The substages in Stage 1: product strategy for the individual project are defining the project; developing the product concept identification of processes, distribution and marketing, development of product design specifications
This PD Process can be called the Critical PD Process because it is based around critical decisions, and because there is critical analysis of the activities/ techniques and the outcomes throughout the project. 3.1 Product strategy Stage 1: product strategy, starts with the finalising of the product development strategy and product development programme. Then the aims of the individual product development projects can be set. The project starts with the generation of new product ideas and the outlining of the product design strategy, and ends with the product concept and product design specifications. There is real dichotomy in the decisions and activities; there is on the one hand, the need for freedom to be creative, and on the other, the need to set boundaries in the product design strategy. Before top management can make the critical decision to fund the further stages of the project, or to stop it, or to return it to the team for more knowledge, there are three critical decisions: 1. Is the product concept a unique product satisfying the needs and wants of the target consumer/customer? 2. Will the product concept and the project deliver the financial and other aims set in the business and product development strategies? 3. Does the product concept harmonise with the company’s business and environment? Top management, to make these decisions, needs knowledge on the processing, production, distribution and marketing technologies for the product. Knowledge will be incomplete at this time. The financial predictions (sales revenue, gross profits or margins, the probabilities for success, the returns on investments or break-even times), and future costs and time for the project are very approximate. There will be other specific requirements for each project, such as enhancing health (Ericson, 1997), environmental effects, food regulations and trade barriers. But of course the most important knowledge is the description of the product idea in the product concept and the product design specifications. The project team has to build up this knowledge throughout the stage, and the type of knowledge identified will determine the critical activities that have to be completed in the product development project (Earle and Earle, 1999). The knowledge is built up in substages and decisions are made at the end of each stage usually by product development management, but sometimes by top management if the project is a major innovation and costly. The substages in Stage 1: product strategy for the individual project are: • defining the project; • developing the product concept; • identification of processes, distribution and marketing; • development of product design specifications; 96 Food product development
The product development process 97 predictions of project costs and financial outcome his is total technology research incorporating product, processing and market research with consumer and society studies. At this early stage, the knowledge may be generalised, and the aim is to make it greater in breadth and depth through the later stages of the project. This stage sets the direction for the product development project, and has been identified in much research as most important to the final success of the project 3.1.1 Defining the project The aim, outcomes and the constraints have been identified in the product development programme and presented to the product development team or <anager for the project. But there is usually a need for further desk research by he team to determine the accuracy of the aim, outcomes and constraints and also to 'flesh them outto give a more detailed project definition that can drive and control the project(Rosenau, 2000). This is also the time to select a suitable PD Process for the project and to set out an outline project plan There are four aspects of the initial research to define the project by developing nore detailed aims: product ideas, consumers, technology and market as shown in Fig. 3. 1. The research includes all aspects of the PD Process. At the same time the team is developing new product ideas, and relating them to the market possibility, to the technology possibility and to the product possibility. what are the products? Can they be made? Can they be sold? Who wants them? What do they need? These are the types of questions being discussed by the team and it is an important time for team interaction. This is only desk research'-using information in the company, outside records, published textbooks and papers, which are easily available. There is a maximum use of tacit knowledge within the group and within the company. Information technology has improved the storage and use of knowledge in product development, in particular the use of product models with a framework of raw materials, ingredients, packaging and production methods (onsdottir et al, 1998) hink break In a project, the aim was changed from Export a nutritional product to Thailand with a market size of $5 million Export a protein product, minimum 20% protein, to the Thai middle class, urban market, marketed through gyms and supermarkets; processed in the spray dry ing plant or the UHT plant and distributed at ambient temperatures. It must have sales greater than $4 million
• planning of the project; • predictions of project costs and financial outcomes. This is total technology research incorporating product, processing and market research with consumer and society studies. At this early stage, the knowledge may be generalised, and the aim is to make it greater in breadth and depth through the later stages of the project. This stage sets the direction for the product development project, and has been identified in much research as most important to the final success of the project. 3.1.1 Defining the project The aim, outcomes and the constraints have been identified in the product development programme and presented to the product development team or manager for the project. But there is usually a need for further desk research by the team to determine the accuracy of the aim, outcomes and constraints and also to ‘flesh them out’ to give a more detailed project definition that can drive and control the project (Rosenau, 2000). This is also the time to select a suitable PD Process for the project and to set out an outline project plan. There are four aspects of the initial research to define the project by developing more detailed aims: product ideas, consumers, technology and market as shown in Fig. 3.1. The research includes all aspects of the PD Process. At the same time the team is developing new product ideas, and relating them to the market possibility, to the technology possibility and to the product possibility. What are the products? Can they be made? Can they be sold? Who wants them? What do they need? These are the types of questions being discussed by the team and it is an important time for team interaction. This is only ‘desk research’ – using information in the company, outside records, published textbooks and papers, which are easily available. There is a maximum use of tacit knowledge within the group and within the company. Information technology has improved the storage and use of knowledge in product development, in particular the use of product models with a framework of raw materials, ingredients, packaging and production methods (Jonsdottir et al., 1998). Think break In a project, the aim was changed from: Export a nutritional product to Thailand with a market size of $5 million. to: Export a protein product, minimum 20% protein, to the Thai middle class, urban market, marketed through gyms and supermarkets; processed in the spray drying plant or the UHT plant and distributed at ambient temperatures. It must have sales greater than $4 million. The product development process 97
98 Food product development Study the aims and discuss how the first aim has been improved in the second aim as a focus for the project 2. How would you improve the second aim to make it clearer for all people in the project? Desk research Market data study Technical information search Product ideas search Target consumers'study Marketing information search Societal, political environment Company environment Desk analysis How big is the market? What is the processing, raw materials What are the possible products? What is the distribution who are the consumers? What is the marketing method? /hat are societys attitudes? What are the regulations? Clearly defined project aim with target market, produot, marketing, processing Required outcomes from each stage Constraints from environment and company Fig. 3.1 Defining the project: activities, outcomes and constraints The second aim allows two different methods of processing. In other aims there may be two target markets, or two methods of marketing, as it is not clear at that time just which is the direction to go. Aims can be adjusted during the project but there must be agreed reasons for doing this The outcomes for the different stages of the PD Process are developed from the aim, the company's PD Process for this type of product, and the decisions that the top management has indicated for different times in the project. In particular the decisions identified are used to determine the outcomes as shown in Fig. 3.2. There are both product and project decisions to be made, the produc decisions and outcomes are ovals in Fig 3. 2. The general decisions are similar for many projects but there will also be specific decisions for each project Therefore other outcomes will be needed. It is important to recognise the decisions that have to be made, and by whom, and to then select the knowledge needed in the outcomes to make these decisions outcomes are sometimes called objectives; they are the knowledge goals that have to be reached at the end of the different stages of the PD Process. In some projects, especially large projects
The second aim allows two different methods of processing. In other aims there may be two target markets, or two methods of marketing, as it is not clear at that time just which is the direction to go. Aims can be adjusted during the project but there must be agreed reasons for doing this. The outcomes for the different stages of the PD Process are developed from the aim, the company’s PD Process for this type of product, and the decisions that the top management has indicated for different times in the project. In particular the decisions identified are used to determine the outcomes as shown in Fig. 3.2. There are both product and project decisions to be made, the product decisions and outcomes are ovals in Fig. 3.2. The general decisions are similar for many projects but there will also be specific decisions for each project. Therefore other outcomes will be needed. It is important to recognise the decisions that have to be made, and by whom, and to then select the knowledge needed in the outcomes to make these decisions. Outcomes are sometimes called objectives; they are the knowledge goals that have to be reached at the end of the different stages of the PD Process. In some projects, especially large projects, 1. Study the aims and discuss how the first aim has been improved in the second aim as a focus for the project. 2. How would you improve the second aim to make it clearer for all people in the project? Fig. 3.1 Defining the project: activities, outcomes and constraints. 98 Food product development
The product development process 99 Decisions 。 outcomes Stage 1 Product strategy Project acceptance Project aim, outcomes and constraints initial nvestigation cI desgn specications as tor design Product report my wh business Project plan tage 2 Product design and process development Final pro pe product eaton stage 3. Product commercialisation Commercial product product n product mix Commercial report aunch agreement oduct on plan distribution plan ” Long-tarm acceptance In1o product asts aganst largets: sales against targets Resources for fuure product develement Htext on company arket acceptance society acceptance Fig 3.2 Identifying the outcomes necessary for the decisions(After Earle amd Earle, 1999, by permission of Chadwick House Group Ltd) critical decisions may be made more often in the project; again these decisions have to be recognised and the required outcomes defined It is important to select the outcomes by balancing the need for knowledge gainst the resources and time needed for the activities to give the outcomes ith the recent emphasis on faster but quality product development, more attention is being paid to selection of outcomes. The choice of outcomes and
critical decisions may be made more often in the project; again these decisions have to be recognised and the required outcomes defined. It is important to select the outcomes by balancing the need for knowledge against the resources and time needed for the activities to give the outcomes. With the recent emphasis on faster but quality product development, more attention is being paid to selection of outcomes. The choice of outcomes and Fig. 3.2 Identifying the outcomes necessary for the decisions (After Earle amd Earle, 1999, by permission of Chadwick House Group Ltd). The product development process 99