Idea Generation/Innovation
The idea generation office works in cooperation with the R & D and is in charge of detecting market issues and finding ways to surmount the said problems.
Related: Innovation Analyst, Innovation and Design Manager, Product Innovation Manager, Innovation Strategist, Director/Manager of Business Innovation.
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- Customer Integration – A yes/no metric showing whether the new concept development procedure has a built-in feature intended to request, gather, and organize direct feedback and interactions with clients into deliberation.
- Average Time from Idea Submission to Feedback – The average number of business days between the submission of a concept and resulting feedback from management and product development authority.
- Market Potential – An approximation of the possible amount of money that could be generated on merchandise or service, considering client population, competition, and average purchase price.
- Product Life-Cycle Cost – The total cost of new product management all through the life cycle (conceptualization, research & development, planning, engineering, testing, launch, post-launch).
- Percentage of Concepts Selected – The percentage of merchandise/service ideas explored over the last calendar year that were chosen for further improvement.
- Formal Review of Concepts – Yes/No KPI showing whether an idea is officially filed for analysis so as to verify its sustainability and priority.
- Idea Tracking – A yes/no metric showing whether there is a directory in use to gather and regulate ideas/concepts.
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Research and Development
The R & D office is in charge of examining product requirements, restrictions, intellectual property opportunities and constraints, technical specifications, and other conditions relevant to developing a new concept or product.
Related: Market Research Analyst, Research Associate, Research Director & Developer
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- R&D Expense as a Percentage of Total Revenue – The amount of expenditure allotted to research & development as a percentage of the total profit earned by the firm during the same term.
- Requirements Creep – The percentage of requirements that were determined and added to the product specification after the initial description and selection of the original product specifications.
- Cost of Failure – Expresses the average expense related to the research & development of merchandise that is unsuccessful at some instance during the conceptualization or research & development phase.
- R&D Expense as a Percentage of Total Expense – Expresses the amount of research & development expenditure (labor, fixed cost) as a percentage of the firm’s total expenditure across all departments.
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Engineering and Design
The product design office works together with the R & D and the market research team to pinpoint the purpose of the product or service and to create a solution that meets market demand.
Related: Product Design Engineer, Development Engineer, Product Engineer, Product Development Engineer.
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- Number of Prototypes Developed – The number of prototypes created during the product development life-cycle before the product is approved and introduced to the market.
- Time to Market – The amount of time from the idealization of new merchandise up to the time the product is ready for purchase by the people.
- Number of Prototypes Accepted – The number of prototypes created during the product development life-cycle that were chosen for high-volume production.
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Product Management
The product management office is responsible for supervising all areas of product development throughout the life span of the good or service.
Related: Product Manager, Director of Product Management, Product Support Manager.
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- Percentage of Revenue Generated by New Products – The percentage of the company’s total profit that is produced by goods developed internally and introduced to the market within the past 3 years.
- Training of Marketing and Sales Team – A yes/no metric showing whether the product management crew officially trains sales and marketing staff on new product description and details.
- Breakeven Time – The amount of time required to regain the full expenditure of developing a new product by means of revenue produced by sales.
- Product Life-Cycle Cost – The total cost of new product management all through the life cycle (conceptualization, research & development, planning, engineering, testing, launch, post-launch).
- Marketing Penetration – The number of clients who purchased a particular brand or segment of product or service during a particular term as a percentage of the total market population.
- Average Revenue per Customer – The average profit produced by one client relationship for a particular merchandise or service over a determined time period.
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Product Testing
The product testing office makes sure that the product being produced is in accordance with the defined internal or regulatory specifications
Related: Product Testing Analyst, Quality Assurance Engineer, Testing Specialist
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- Frequency of Formal Product Quality Audits – The average amount of time passed between official product quality assessment during the product development life cycle.
- Post-Launch Defect Tracking – A yes/no metric showing whether the product testing team actively monitors the number (and kind) of post-launch errors reported by clients
- Duration of Product Testing Phase – The average span of the product and market testing stage within the product development life cycle (categorize this KPI by business and product type for a feature-by-feature analysis)
- Product Testing Criteria Prioritization – An ranking of elements that are taken into account during pre-launch testing of the prototype: quality management, packaging, client observations, regulatory requirements, the efficiency of production, and market behavior)
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Product Packaging
The packaging office is responsible for the supervision of all areas of product packaging. The office works in cooperation with R & D to study, build, assess, and verify new packaging designs.
Related: Packaging Coordinator, Packaging Technician, Packaging Operator, Production Superintendent, Packaging Designer.
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- Cost of Packaging as a Percentage of Total Product Cost – The value of product packaging (components, arrangement) for one item as a percentage of total expenditure on producing that unit.
- Product Protection – The number of goods that are spoiled during transportation or storage as a percentage of total goods transported/stored.
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Product Launch Review & Analysis
The product launch review and analysis team is responsible for assessing previous and future product launches.
Related: Product Launch Analyst, Product Analyst, Product Business Leader, Product Consultant.
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- Customer Acquisition Cost (CAC) – The average expense of earning a new client for a particular merchandise or service over a determined time period, including promotion, market research, and client incentives or rewards programs.
- Net Promoter Score (NPS) – A metric (200 point scale; – 100 to +100) to calculate client loyalty. NPS detects the possibility of a client recommending a firm’s products or services to a contact.
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Product Quality & Safety
The product quality office is in charge of inhibiting errors in the manufacturing process.
Related: Product Quality Analyst, Product Quality Engineer, Quality Assurance Analyst, Customer Product Quality Engineer.
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- Percentage of Defective Units Produced – The number of items with damages as a percentage of total items generated over a specified time period.
- First Pass Yield (FPY) – The percentage of items that pass the manufacturing or production procedure without any alterations or adjustments for damages.
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Product Specialist Job Responsibilities
- Acquiring advanced technical knowledge and commercial aspects of business for assigned products.
- Conduct market research & collect competitors’ data.
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- Develop & conduct product/application training for inside sales, outside sales, technical team, customers, etc.
- Drive sales efficiency by ensuring appropriate product knowledge for each salesperson.
- Ensure efficient marketing communication to external customers (both current and prospects) and communicates the value proposition of the offer to the end customers.
- Ensure efficient marketing communication to sales teams.
- Ensures customer satisfaction by proactively addressing and answering customer queries.
- Maintaining a customer database, product SOP, product certifications, and other details related to the product.
- Offer product recommendations based on the application/technical specifications.
- Participate in trade shows, exhibitions and support event activities.
- Support the sales team by providing marketing material related to the product.
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The suite of product development Key Performance Indicators (KPIs) are designed to measure the optimal functioning and success of the organization’s ability to develop new products from conception to production. The product development department is a key part of any manufacturing concern, for, without products, the organization has no reason for existence. Therefore, the key performance areas that must be measured include the product ideation and innovation, prototype research and development, engineering and design, and end-to-end testing and quality control.
Real-time KPI tracking provides the Product Development Manager with statistics to identify negative short-term trends before they spiral out of control.
