Lean product development aims to design products with cost control while maintaining quality. It involves assessing expenses, using resources efficiently, and managing tasks and procedures. The goal is to generate profits for the business with minimal investment.
Lean product development is a term that applies to various strategies used to design products using the highest level of cost control possible, while still achieving an acceptable level of quality. Just as lean manufacturing focuses on making these goods as cheaply as possible, this approach to the creative aspect of product development seeks to control the costs of all aspects of the research and development phase. Lean Product Development (LPD) starts with creating the initial product idea, continues through the design phase, and continues through to building a prototype and field testing the result.
The goal of lean product development is to research and develop new products as cost-effectively as possible. With this approach, care is taken to assess any expense associated with the project and seek to manage each task using all available resources to best advantage. Employing lean principles in the development process does not mean choosing to avoid expenses when they are essential to the development effort, but focuses on qualifying each expense to ensure that the overall effort is required to efficiently develop a product that is likely to generate profits for the business.
Using a lean product development mindset means making the most efficient use of all available resources, including management and manpower. Managers must be well educated in how to evaluate the tasks and procedures used in the development process. This includes working with purchasing to locate and secure developmental raw materials that will aid in the creation and testing of a prototype without incurring a large expense. Likewise, lean product development involves judicious and productive use of labor to manage the design phase of the new good, as well as creating and launching a field study to test the product’s prospects. Doing so means that the company has a minimal investment in the design of the product and is able to absorb the cost should the final stages of the development process reveal that the item is unlikely to be as in demand as expected.
Like using lean methods for production, shipping, marketing, and other essential tasks in operating a business, lean product development makes it easy to allocate sufficient resources to the process and keep the activity within that budget. Under the best of circumstances, the effort allows development to proceed with minimal impact on the company’s financial status and sets the stage for possibly generating a sizable profit when the developed good actually goes into production and is marketed to consumers.
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