Product (or Service) Development Plan Chapter Nine Operations Plan and Product (or Service) Development Plan Dr. Bruce Barringer University of Central Florida 9-1

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Introduction Operations section How to produce your product or service and run your business The status of the development of a product or service Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Operations Plan How your business will be run and how your product or service will be produced Operating model and procedures Business location Facilities and equipment Operations strategy and plans Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Operations Model and Procedures Objective Fully understand operational details of launching and running your business How inventory will be stored Production cycle Bottlenecks Seasonal production loads Quality control Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Business Location Geographic location of business Proximity to labor force Closeness to suppliers Access to transportation Access to international shipping alternatives Proximity to customers Access to favorable state and local tax rates Access to economic incentives Proximity to high-quality community Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Facilities and Equipment Identify facilities and equipment Describe how acquired (purchase, lease) Facilities of business partners Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Operations Strategy and Plans Strategy issues Working with partners Approach to quality control Production control Inventory control Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Product or Service Development Plan Development status and tasks Challenges and risk Costs Intellectual property Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Development Status and Tasks Describe the present state of the development of your product or service Product conception Prototyping Initial production and full production Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Prototype A prototype is the first physical depiction of a new product Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Prototype Testing Prototype and usability testing measures the product’s ease of use and user’s perception of the experience Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Challenges and Risks Detail any major design and development challenges and risks that will be involved in bringing your product or service to market Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Costs Budget for remaining design and development work Costs of labor Material Consulting fees Prototyping Usability testing Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Intellectual Property Patents, trademarks, copyrights, or trade secrets secured relative to the products you are developing Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Intellectual Property Intellectual property is any product of human intellect that is intangible but has value in the marketplace Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Trade Secret A trade secret is any formula, pattern, physical device, idea, process, or other information that provides the owners of the information with a competitive advantage in the marketplace Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall Patents Patents are expensive ($5,000 to $50,000) and must be applied for within one year of when the product is first offered for sale, put into public use, or is described in any printed publication, such as a concept statement, or the right to file a patent application is forfeited Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall

Copyright ©2009 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright ©2009 Pearson Education, Inc.  publishing as Prentice Hall