Each business should have one major focus to be able to develop and satisfy the market needs. Obviously this focus is the customer. It does not matter who the customer is defined as he/she has to be defined for each company in a different way. The main thing is that all efforts are addressed to the customer. Every company sells products or services to customers so from a quality assurance point of view it is crucial to develop products in reference to market needs or customer needs respectively. This is the focus for the assignment. A general guideline for an efficient product development process should be created with the overall objective – customer centric product development combined with an improved internal workflow.
Anderson et al (2006, p. 1) states that customer value proposition is one of the most widely used terms in business in recent years. So it is important that a company is able to help customers understand the superior value of the products or service offered. Under pressure to keep costs down, customers may only look at the price and so it is important to think about the customer value proposition but also the comparison to the competitors of a specific market environment. This should flow into this assignment as well. Another problem of product development is that in many companies it is rather influenced by opinions of different sales people then by facts and figures. According Annacchino (2007, p. 101) a lot of companies tend to make a mistake at the product definition step, so that the customer is not really involved in the product development process. In reference to the definition of customer-defined needs there are different ways:
• A company can use direct customer surveys to solicit feedback and to obtain information in a direct manner.
• Another way is a focused group discussion which allows multiple-person input and prompted discussion to generate ideas.
• A third possibility is a suggestion system and communication platform for customers and stakeholders.
Table of Contents
1. Introduction
2. Situation analysis in reference to product development
3. Improvement ideas in reference to product development
3.1. Product development committee
3.2. Customer requirements
3.3. Requirement specification
3.4. Competitor analysis
3.5. Kick-off-Meeting – KOM
3.6. Project management
3.7. FMEA
4. Implementation and maintenance of the new process
5. Bibliography
5.1. Books
5.2. Internet
Objectives and Core Topics
The primary objective of this assignment is to develop a practical, general guideline for an efficient product development process that prioritizes customer centricity. The author aims to reconcile the necessity of meeting market and customer needs with the requirement for optimized, sustainable internal workflows to reduce development loops, minimize costs, and shorten time-to-market.
- Customer centricity as the foundation for product success
- Integration of interdisciplinary project management
- Systematic identification and minimization of risks via FMEA
- Optimization of internal communication and workflow efficiency
- Alignment of product development with target prices and market requirements
Excerpt from the Book
3.7. FMEA
Schubert (1993, p. 7) states that a FMEA is a summary of considerations within a product development process. The major difference is that with a FMEA this takes place on a systematic and documented basis. A FMEA is usually conducted in a new product development process, product changes, essential production process changes, quality problems or essential organisation changes.
Bohn (2003, p. 7) states that beside Quality Function Deployment, Failure Tree Analysis, Design of Experiments, Poka Yoke, Statistical Process Control, the FMEA – Failure Mode and Effect Analysis – is one of six Quality Management tools.
According Bohn (2003, p. 9) the FMEA is an approach to identify certain risks systematically. It is also a cause and effect analysis to detect risks and set necessary actions within a product development process, construction or system planning. The sense is to identify possible failures, the effect and the causes of the failures. It is important to analyse the real causes and not only other effects. Bohn (2003, p. 13) furthermore defines three different areas:
• Occurrence: how possible is it that the failure occurs. Usually assessed between one (low) and ten (high).
• Detection: how possible is it that the failure is detected. Usually assessed between one (low) and ten (high).
• Severity: difference in the functionality from a customer’s perspective. But not customers but also security risks and statutory provisions. Usually assessed between one (low) and ten (high).
Summary of Chapters
1. Introduction: This chapter highlights the critical importance of focusing on the customer to satisfy market needs and introduces the goal of establishing an efficient, customer-centric development process.
2. Situation analysis in reference to product development: The author discusses common pitfalls in product definition and outlines methods—such as surveys and focus groups—to ensure the customer is truly involved.
3. Improvement ideas in reference to product development: This chapter presents a practical guide for implementing an efficient process, covering key elements like committees, requirements, analysis, and project management.
3.1. Product development committee: Defines the role of a cross-functional committee in aligning potential products with corporate strategy.
3.2. Customer requirements: Emphasizes the necessity of extensively collecting requirements to minimize costly development loops later on.
3.3. Requirement specification: Describes the preparation phase for the kick-off, ensuring that technical and market-related goals are clearly defined.
3.4. Competitor analysis: Explains how examining competitors helps identify unique selling propositions (USPs) and establish comparative values without simply copying others.
3.5. Kick-off-Meeting – KOM: Focuses on the establishment of an interdisciplinary team to define project foundations and set initial milestones.
3.6. Project management: Discusses the necessity of disciplined project plans to manage complex tasks, budgets, and responsibilities effectively.
3.7. FMEA: Details the Failure Mode and Effect Analysis as a systematic tool for identifying and mitigating risks within the development process.
4. Implementation and maintenance of the new process: Examines how to successfully introduce the new process, measure its performance, and secure long-term sustainability through continuous improvement.
5. Bibliography: Lists the academic and practical sources used for the development of the provided guidelines.
5.1. Books: A collection of referenced professional literature regarding product development and management.
5.2. Internet: References to digital sources including business journals and technical articles.
Keywords
Product development, Customer centricity, Market needs, Customer requirements, Project management, FMEA, Risk management, Efficiency, Quality assurance, Target price, Competitor analysis, Innovation, Process optimization, Sustainability, Customer satisfaction
Frequently Asked Questions
What is the core focus of this work?
The work focuses on creating a practice-oriented guideline for implementing a customer-centric product development process while simultaneously improving internal organizational workflows.
What are the central thematic fields addressed?
The document covers customer requirement analysis, interdisciplinary project management, competitor positioning, risk mitigation through FMEA, and the implementation of continuous improvement processes.
What is the primary objective or research question?
The objective is to create a guideline that ensures product development is strictly aligned with customer requirements and target prices, thereby reducing time-to-market and increasing overall efficiency.
Which scientific methods are utilized?
The author utilizes a synthesis of management literature and practical experience to propose a structured development process, applying established tools like FMEA and project planning methodologies.
What is addressed in the main body of the text?
The main body details the operational stages of product development, starting from the formation of a development committee and collection of requirements to the execution of the FMEA and project management strategies.
Which keywords characterize this paper?
Key terms include product development, customer centricity, FMEA, project management, process optimization, and market-driven requirement analysis.
Why is the "Product development committee" considered a crucial first stage?
It ensures that potential products are discussed from multiple perspectives—sales, marketing, technical, and purchasing—before significant resources are invested, aligning them directly with the company's strategy.
How does the author propose to handle risks in the development process?
The author advocates for the FMEA (Failure Mode and Effect Analysis) as a systematic, documented approach to identify, assess, and minimize risks based on occurrence, detection, and severity factors.
- Quote paper
- Mag.(FH) Sasha Petschnig (Author), 2008, Customer centric product development, Munich, GRIN Verlag, https://www.grin.com/document/112403
