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Product Development

01 Product creation planning
01Product designing and product concept
01Product designing and product concept
01 How active is your top management towards product development?
Y Explain some cases of your recent successful product development, which were initiatedby an order of the top management.
N Why not feeling the necessity for development? In case of no product development, any
enterprise may lose the power, being strongly influenced by the principle of productlife cycle .
02 Following the top-down policy, your engineers in charge of product development arechallenging the development so eagerly as to make the most of their competence?
Y Where is the target market？ And what is the technological competence of your company?
N What is the obstacle to eliminate the restricting factors of development?
03 By identifying the market needs, do you make the concept of the product development
clear enough?
Y Listen to their explanation of the organization mechanism how they convert the market
needs to the product concept.
N Why not possible to carry it out? Do you know how your competitors are doing?
04 Has the planned concept been concretely imprinted in the new product?
Y Confirm that the concept is reflected and explained clearly in the sales advertisement.
N Advise that it is necessary to form such a development organization as to be able toreflect the concept of the product.
02 Planning of product development
01 Planning of product development
01 Does the planning of product development include clearly, how much is the price, howmany are sold, and how to sell?
Y Explain the outline concretely.
N Explain it is necessary to make the information based on market research materialized
in the planning, as much as possible.
02 Have you established cooperative relations with every section so that you can proceed
the new product development as scheduled?
Y Let us know the cooperative sections concretely and the number of members participatingin the project.
N Advise that it is not possible to succeed without getting the cooperation of theimportant sections, such as designing, production, purchasing, and quality control.
03 Have you established a system of cooperation with outside organizations which willassist you to cover your technical weak points?
Y For example, do you make the best use of the outside organization such as
TLO(=Technology Licensing Organization), and coordinators effectively?
N Remember any outside organizations who are in a position to supplement your ability,
in order to promote your own development more effectively.
04 Have you secured enough budget and people necessary to develop a new product?
Y As the development expenses are depreciated after the development, the budget shouldbe established as concretely as possible and should be reviewed periodically at thetime of execution.
N For product development, direct material costs, project personnel expenses, andoutsourcing expenses are needed. All of them should be depreciated by the sales ofnew product.

02 Product development
01 Objective of development and information gathering
01 Objective of development and information gathering
01 Are the estimated sales price and the target cost of the new product so definite thatyou can secure a value added per sales unit ?

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Y Check whether after‑service costs of the labor, materials and the like are includedin thetarget cost.
N If the direct target cost doesn t stay within the limit of allowance, it should bedecreased.
02 Do you decide the design quality and target cost for each main component of theproduct?
Y Confirm that cost reduction and quality guarantee are realized at the parts or module
where the function can hardly be separated?
N In comparison with the former product, it is important to point out how the productvalue is improved.
03 Analyzing claim information and complaints from the customers, do you reflect thosefacts in your product development?
Y Make sure how systematically the claim analysis is performed and reflected to theimprovement.
N Advise it is the first step to grasp the market needs by gathering important market
complaints and accumulating them.
04 Do you decide the information items and sources of information necessary fordevelopment of product so that you can collect information efficiently?
Y Check how widely they collect market information. Advise to try to gather information
globally, if possible.
N It is necessary to make it a routine to collect the information of market, clientsand technology, systematically.
05 When the production is made by order, do you hear the evaluation and the request of
the client and make them reflect in the product development?
Y Listen to the requests from the production side as well as those from the clients.
N Pay a careful attention to the request and proposal of both the manufacturing and sales
sides, because a big market may sometimes be opened by this sort of keen requests.
06 Do you try intentionally to collect the latest information both on the sales market and of
the development technology ?
Y Try to form a future image of products to be developed from both technology and market
information, fully utilizing the information technology and the like.
N It is the basis of existence and development of the enterprise to collect every
information periodically.
02 Development of product function
01 Development of product function
01 By clarifying the purpose of use and the function of the whole product, do you insertsome unique functions and charming points in the new product?
Y Confirm that the elements of technology, the technological reliability and the effectof cost improvement are widely built in the product.
N The functional analysis and the value improvement are the most important subjects ofthe product development, so it is desirable to introduce them promptly.
02 Do you quantitatively establish the characteristic value of the quality and the conditionof usage for each main component of the product?
Y Don't you find any part with excessive quality or with excessive function?
N You should enforce the detailed analysis of the market claims immediately.
03 Are you giving weight to the development theme, and controlling the progress after
assigning the target cost for each important function?
Y Counting backward from the last day of production schedule, are you watching thedevelopment schedule?
N Keep in mind that the comparison between the plan and the estimated cost is always
indispensable, and both structure design and production design are planned to flow
concurrently.
04 Do you pay the keenest attention to the critical path of the development schedule?
Y Why critical? Check it on the basis of the schedule.
N In case of important development, it is recommended to form a project team in orderto get enough cooperation from other sections.
03 Idea generation and materialization93

01 Idea generation and materialization
01 Do you utilize the method such as brain storming so that you may generate as manyideas and hints as possible?
Y Check whether any cross talks with people from the different fields are made.
N Advise that any frank cross talks with specialists from different fields would generate
more ideas and hints.
02 In materializing a plan, do you respect any ideas and hints? Moreover, do you
evaluate and judge the performance and characteristic from both sides of quality andcost?
Y Listen to their explanation how they materialize ideas and hints to form structure
design and production design.
N Advise that any ideas and hints may dedicate originality to the product, and that theevaluation both from quality and cost must devote credibility to the product.
04 Creation of blueprint and specification manual
01 Creation of blueprint and specification manual
01 Does the test of prototype progress as scheduled, and doesn't the delay of this test
influence the timing of publishing the drawing?
Y Make sure whether the following process regularly receives necessary information.
N Drawings and information related to critical path should be transmitted to thefollowing process, with priority, and a recovery plan is important in case of delay.
02 Are the design specifications imprinted in the drawings prepared after deep
consideration of the processing and assembling ability of the following processes?
Y Confirm that purchase goods quality and suppliers ability are well considered in thedesign specifications?
N Besides your own production processes, even moulds, jigs, tools, set up time, yieldof materials at the suppliers must be taken in account.
03 Are the product concept and planning principle clearly built in and materialized in thedesign and specification?
Y Check whether any limit sample is prepared even for the visible test of artistic design.
N Advise that a new product should express some appealing points of usage.
04 Do you make full use of CAD(computer-aided design), CAM(computer-aidedmanufacturing), CAE(computer aided engineering) to speed-up your productdevelopment and to increase your efficiency in designing?
Y Is your software a standard and new version, so that your subcontractors may use it?
N Put a stress that promotion of information technology, particularly utilizing good
soft wares, is inevitable in order to strengthen the enterprise constitution and tocope with internationalization.

03 Evaluating new product01 Trial manufacturing and quality evaluation
01 Trial manufacturing and quality evaluation
01 Do the equipment ability and the worker’s skill in processing and assembly lines copewith the product in the trial manufacturing stage?
Y Just ask whether they can find better method of higher productivity?
N Request to start again from the designing stage, as the ability and your production
skill were totally neglected.
02 Has the sample been made as scheduled, and has it satisfied with the designed quality
characteristic value?
Y Can you assure it within dispersion?
N How about to change your way of thinking, if you really want to assure the quality?
03 Did you find some defects in the drawing and the specification through the trial
manufacturing? Can you conduct countermeasures and improvement?
Y Check that the countermeasures are adopted from the improvement plan of the members
who are the experts to solve the problems.
N Best policy is to keep the schedule. It is necessary to put a priority to solve multiple
defects.
04 Have you been successful in trial manufacturing test, by achieving the trial targets ofperformance, quality characteristic, and function?

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Y Check who declared theGoalof the trial manufacturing.
N Why not having another meeting with sales people to discuss about quality level requiredby the market.
05 Is a measure to cope with PL (product liability) issue fully inserted in theproduct design?
Y Confirm that the specialists on the issue are also involved.
N Give careful consideration of making less possibility of problem occurrence, in caseno accident
could not be fully guaranteed.
06 Do you have a management system for the industrial property such as patent andutility model? Does your new product not conflict with any patent of other companies?
Y An intra‑office idea proposal should be recommended to encourage as well as an active
patent acquisition.
N Emphasize the importance of skill and know‑how, making full use of public wisdom.
07 Is an environmental consideration made, when selecting parts and materials?
Y Confirm they consider to economically reduce the environmental load more than ever.
N Study a possibility to recycle the materials which are substantially used, both from
ecology and from economy.
02 Evaluating cost and marketability
01 Evaluating cost and marketability
01 Does the total estimated costs of materials, parts , processing, and assembly at mass
production satisfy the target cost ?
Y Make sure whether they prepare the future cost improvement schedule, anticipating themarket price competition would be more intensified.
N Recommend to re‑study the measures of cost reduction, item by item.
02 Are all expenses of manufacturing, factory management, administration and sales
within the budget?
Y Confirm a future improvement (for example, the productivity improvement of the indirectsections) is planned to start?
N Advise that, in the case of new product, one method is to fix the value added of thefirst year be X%, and that of the second year be Y%.
03 Does the value added which is “ selling price minus direct material and labor costs”
meet with the target scheduled at the beginning of the development?
Y Identify how they anticipate the value added of this new product at every stage ofits
product life cycle.
N Recommend to study every cost reduction by way of improving yield and labor efficiency,
and saving expenses, which can be handled by themselves.
04 Are the development expenses, equipment costs, and mould costs so adequate thatthey can be recovered or depreciated by the expected sales amount of the new
product?
Y Especially confirm the life of newly made mould.
N Recommend to start studying how to convert new equipment and mould to some different
purposes.
05 Are the samples made at trial manufacturing well accepted by the market users? Orhave you received some complaints to modify or to improve?
Y You should appreciate those market reactions.
N Recommend to be as sensitive to the market reactions as possible at the stage of trial
sales, so as to catch any complaints as quickly as possible.
06 Have you held a mid-way conference of product development, for the purpose forrelated departments of development, designing, production (including purchasing,outsourcing, mould, jigs and tools, test, inspection, sales and services) to reachunanimous understanding and to make necessary adjustments?
Y Check every adjustment concerned with the schedule (sales and service kick‑off),
quality and costs.
N Suggest carrying out the conference at latest when the mass production is starting.
(so that any materials requiring long lead time can be arranged well ahead, for example)

04 Production system and sales system
01 Establishing production system95

01 Establishing production system
01 Have you solved problems on function (quality, characteristic, performance) anddifficulties on operation (handling, operation, maintenance)?
Y Let them illustrate typical examples they solved.
N Make the unsolved matters clear, so that they may discuss how to solve.
02 Is it possible for your own technology and suppliers’ ability to produce the newproduct?
Y Check that bothability table
andQC tableof your all production lines,including suppliers
lines, are prepared.
N Instruct to grasp the present production capacity (efficiency, yield, unit material,machine hour rate, etc.)of each production line.
03 Your internal and external production system on material procurement, component
parts, processing, inspection, test, and so on, is well prepared and maintained?
Y Just check every department, including every supplier, has the production manual.
N Establish every in‑and‑out production system possible to conduct production, some how.
04 Are the inspection tools, testing equipments, etc. well maintained for the purpose ofquality assurance?
Y Check the operation manuals are carefully prepared.
N Be careful not to forget to check the quality, even by a substitution characteristics,of the most important items.
02 Establishing sales system
01 Establishing sales system
01 As a result of full cooperation between marketing and production departments, is thesales forecast as scheduled?
Y As a representing characteristic, make sure that the marketing target (region, sex,age, profession, etc.) is clear enough.
N Explain the importance of building up a realistic and feasible marketing policy,
through the trial sales to the monitors before sales kick‑off.
02 Are the sales materials such as product catalogues, user manuals, guidebooks for
optional parts well prepared?
Y Check whether their explanation refers to any consideration on PL.
N Minimum materials for sales promotion should be prepared, by consulting the sales toolsof the competitors.
03 Are the after sales service manuals, replacing parts, etc. well prepared?
Y Make sure that their contents refer to consider both the environment problems andindustrial waste disposals?
N Minimum preparation of main replacing parts, after‑sales service procedures, and claim
information routes should be made at the time of the sales kick‑off.
04 Do you collect the market information regularly after the beginning of sales?
Y Confirm the market information is collected concretely, and is utilized to improve
the present product and moreover to create a new one.
N Even if the information route is limited, be sure to grasp the facts in the market
to feedback.

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