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

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Introduction
Operations section
How to produce your product or service and run your business
The status of the development of a product or service
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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
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4. 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
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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
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6. Facilities and Equipment
Identify facilities and equipment
Describe how acquired (purchase, lease)
Facilities of business partners
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7. Operations Strategy and Plans
Strategy issues
Working with partners
Approach to quality control
Production control
Inventory control
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8. Product or Service Development Plan
Development status and tasks
Challenges and risk
Costs
Intellectual property
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9. Development Status and Tasks
Describe the present state of the development of your product or service
Product conception
Prototyping
Initial production and full production
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Prototype
A prototype is the first physical depiction of a new product
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Prototype Testing
Prototype and usability testing measures the product’s ease of use and user’s perception of the experience
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Challenges and Risks
Detail any major design and development challenges and risks that will be involved in bringing your product or service to market
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Costs
Budget for remaining design and development work
Costs of labor
Material
Consulting fees
Prototyping
Usability testing
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14. Intellectual Property
Patents, trademarks, copyrights, or trade secrets secured relative to the products you are developing
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15. Intellectual Property
Intellectual property is any product of human intellect that is intangible but has value in the marketplace
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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
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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
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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.
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