GMS 401 Lecture Notes - Lecture 4: Modular Design, Reverse Engineering, Cash Flow

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 401
• Professor: Payman Ahi

Document Summary

The product development system may well determine not only product success but also the fi(cid:396)(cid:373)"s futu(cid:396)e. Identifying products that appear likely to capture market share, be cost effective, and be profitable, are in fact very difficult to produce, may lead to failure rather than success. Need ideas which come from employees (marketing and r&d), customers (survey, focus groups), suppliers, and competitors (reverse engineering) Functional specifications (how the product will work or perform its intended function) Product specification (how the product will be made) Design review (make sure that the product specifications meet customer requirements) Test market (does product meet customer expectations) Understanding the customer is the premier issue in new-product development. Many commercially important products are initially thought of and even prototyped by users rather than producers. Economic change brings increased levels of affluence in the long run but economic cycles and price changes in the short run.