User Needs is an activity which includes market analysis, needs analysis, product definition and strategic planning. For commercial organizations, the focus of this activity is primarily on identifying the features of products that increase customer value. For the DoD, the focus is on identifying the features of the mission that are critical for combat superiority. Improvements that should be performed by the design activity are an outcome. Statistical process control is applied to the production step while product technology is applied to define and improve the materials.
Materials are tangible items used in the production activity.
The production activity changes with the introduction of new materials. Materials that support a family of applications are software assets. These assets are more than just a library of reusable components. Each cycle through the production system is an opportunity to refine these assets. The production system concept is useful in explaining the sources of differences between software job shops and software factories.