Orangeaid New Product Development Case

The project setup process can determine the success of a new product project. Project setup requires a good conceptual grasp of the product concept, a generic project schedule and resource management template for new product development, and an understanding of how to develop a baseline schedule and keep it flexilble throughout development. New product development, although by definition uncertain and risky in its direction and final performance, must be controlled from the beginning of product concept through good setup tools. A new product development project can be kept flexible, but it should not be out of control. Costs and time are controlled through the process. The entire rollout process, the way companies plan to design and deliver a new product, should be documented in the front-end through a Gantt chart and resource management scheme grounded in the original work breakdown structure of the product. Table 3-10 shows a typical work breakdown structure and baseline schedule for a new product in Microsoft Project—let's call it ORANGE-AID, a new carbonated drink being introduced by a Fortune 100 company that is new to the business and seeking new market opportunity. The company is willing to take on a high risk to penetrate the market, but it has built in a number of go and no-go decisions at the end of each phase—through project reviews—to control advancement of the product through to final marketing.

Notice that the design project concept, research concept, and design packaging, proceed in sequence, moving toward the development of a strategic plan. In this case the strategic plan is not the business plan, but rather the product

TABLE 3-10 New Product Development
Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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