Product development project direction

Project objectives are also a key element of project definition and set the direction for a product development project. These objectives operate in an environment where trade-offs are necessary, and are often referred to as the triple constraint (Fig. 1). Looking at these... 

In late 1975, Enders et al.156) started a research project directed towards the development of a new synthetic method for asymmetric carbon-carbon bond formation. A new chiral auxiliary, namely the (S)-proline derivative SAMP (137), was allowed to react with aldehydes and ketones to give the hydrazones (138), which can be alkylated in the a-position in an diastereoselective manner 157,158). Lithiation 159) of the SAMP hydrazones (138), which are formed in excellent yields, leads to chelate complexes of known configuration 160). Upon treatment of the chelate complexes with alkyl halogenides the new hydrazones (139) are formed. Cleavage of the product hydrazones (139) leads to 2-alkylated carbonyl compounds (140). 

Virtual companies do not have any technical resource under their direct control and use consultants and other outside agencies to advise on the various stages of the product development. The people managing the company must have very good project management skills to keep the development on track. 

Research and development activities do not, in themselves, produce a salable product. Thus, they cannot directly generate a return on capital outlay. A successful research and development project is one that results in an activity that earns revenue for the company. The life cycle of the revenue from an individual product may be as shown in Fig. 9-26. 

T o set the stage, we are assuming that management has made the affirmative decision to manufacture and sell this new plastic after having been convinced by research that the product is unique and useful, by production that the manufacturing process is feasible and specifications can be met, by control that the new investment will earn adequate return at projected costs and sales volume, and by sales that they can meet the price-volume-time forecast established by their market research, development, and direct sales personnel. 

More difficult to estimate are the amounts required annually for modifications and repairs to the experimental plant. These depend very much on whether new or already proven technologies are being used. The development costs determined in this way do not contain any contributions arising from personnel not directly involved in development, such as management or patent spedahsts. Nor is account taken of unsuccessful developments. It nevertheless seems reasonable to apportion the direct development costs to the product and to allow for the other research and development costs in some other way, for example by means of a general cost provision (see Chapter 6). Although this method only accounts for the costs of successfid development projects, the financial burdens on the product will be relatively high if it must bear all the development costs of the first plant. 

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