Page 86 - Design for Six Sigma a Roadmap for Product Development
P. 86
Product Development Process and Design for Six Sigma 61
Products
Core Operation
Impetus/ Concept Design Production Sale/
ideation development service
BUSINESS PROCESS
BUSINESS MANAGEMENT
SUPPLIER MANAGEMENT
INFORMATION TECHNOLOGY
Figure 3.1 Business processes and products.
Cost
Product development Profit
Product value and production
system
Time
Figure 3.2 Economic model of product development and
production system.
process, and we can derive the following specific performance metrics
for product development processes.
3.2.1 Product development
performance metrics
Product value. Product value is the most important performance met-
ric. Unfortunately, it is a lagging performance metric, which means
that we won’t know it exactly before the launch of the product. It can
be ultimately measured by the total profit generated by this product.
It should be proportional to the product total sales volume. However,
the product value is related to many factors, which include
1. How well the voices of the customers are captured and deployed: If
we develop a hit in the marketplace, this product will generate a lot
of profit.
