3 - 1 - Managing Research Function - (Revised) - v1.5
3 - 1 - Managing Research Function - (Revised) - v1.5
3 - 1 - Managing Research Function - (Revised) - v1.5
D esign Ethics
D ecision M ak ing
P roduction C areer
O rganizing
Q uality
Leading
Mark eting
C ontrolling
Project M anagem ent
Product and Technology Life Cycles
Product Life Cycle
Useful for the construction of a building or a ship or the design and development of
an aerospace system.
Consumer Identification "Wants or desires" for product (deficiencies/problems are made evident
of need through basic research
Planning Marketing analysis, feasibility study, product selection, specification and
function plans, evaluation plan, logistic support plan, planning review and proposal
Research Basic research, applied research, evolution from basic research to product
function design and development
Producer Design Design requirements, conceptual design, preliminary system design,
function detailed design, engineering model/prototype development to production
Production Production and construction requirement, industrial engineering, plant
and/or engineering, manufacturing, production and quality control.
construction
Product Evaluation requirements, categories of test and evaluation, formal test
evaluation and evaluation, data collection, analysis, reporting and correction,
retesting
Consumer Product use Product distribution, operational use, maintenance support, product
and logistic evaluation and modification, product phase-out, material disposal,
support reclamation and re-cycling
Technology Life Cycle
For a product line based on a technology that is developed and improved over a
period of years of product manufacture
Figure: Sales and profits over the product’s life from inception to decline
Nature of Research and Development
Research
◦ Systematic, intensive study directed towards scientific
knowledge of the subject studied.
◦ Basic Research
Devoted to achieving a fuller knowledge or understanding rather
than practical application of it.
◦ Applied Research
Directed towards practical application of knowledge – especially for
industry culminating into products
Development
◦ Systematic use of scientific knowledge directed towards the
production of useful materials, devices, methods, products etc.
List of countries by research and development spending (2010)
New Product Strategies as suggested by Ansoff and Stewart
First to Market
◦ High expenditure before there is guarantee of success. Heavy
development expenditure and a large marketing effort – the
rewards are immense
Follow the leader
◦ Strong development engineering but less on research – follows
the competitor’s research success – brings product into the
market as soon as the innovator
Me too
◦ No research and development – simply copying the design from
others, buying and leasing necessary technology
Application engineering
◦ Taking established product and produce in customer’s desired
design and need - needs high flexibility in production
Selecting R&D Projects
Need for Selection
Initial Screening
In ‘simple checklist ‘, project is given simple
judgemental rating (poor/ fair /good/excellent or -
2/ -1/ +1/ +2) for each of characteristics and in
‘weighted checklist’ or ‘scoring model’, each
characteristics is provided with weight showing
importance of that factor.
1. Technical factors: availability of needed skills and facilities;
probability of technical success
2. Research direction and balance: compatibility with research
goals and desired research balance
3. Timing : Is R&D and market development relative to the
competition?
4. Stability : Potential market and economic condition
5. Position factor : How are other products faring
6. Market growth: Will there be a viable demand?
7. Production: can the items be produced with current manpower
and set-up?
8. Marketability: Marketing organization, distribution methods
and customer makeup.
9. Patentability: Can the product be patented?
10. Financial factors: expected investment need and rate of return
Quantitative Approaches
Payback Period For short term investment
◦ Ignores time value of money and profit beyond the point
of pay back
◦ Payback period ( Tpb ) = Investment ( I) / Annual Gross
profit ( A)
Present Worth Method
n
P= ∑ AJ
j=1 (1+i)J
where, P= Present worth of future cash flow
A=cash flow in jth year
i = minimum attractive rate of return
n= number of year of future cash flow
Maximum expenditure justified
Emj = Fc Ft P
= Pcommercial success Ptech. success NPW
Even if the net present worth is positive, there would
normally be no certainty that the projected future
earnings would be realized. For this reason, it is prudent
to calculate a maximum expenditure justified Emj based
on the estimated probabilities of success:
Nature of Creativity
"And-also" Method
Person A suggests an improvement on the subject under
study; person B agrees, but suggests a further improvement;
this sequential improvement "continues until a sound
solution is reached."
Collective Notebook method
Attribute listing approach
A person lists attributes of an idea or item,
Then concentrates on one attribute at a time to
make improvements in the original idea or item.