the concept of production
input - process - output
production methods including:
management of the production process
use of research and development for:
inventory control techniques
Management of the Production Process
Use of research and development for:
Research and Development
Research refers to investigating the unknown, such as new products of processes.
Development involves using research findings to create products that might be commercialised. Development can also mean improving existing processes or products, i.e. improvements in process innovation and cost reducing innovation.
The Purpose of Research and Development (R&D)
The purpose of (R&D) is to provide continual advancement (e.g. modifications or improvements to existing products) and to launch new products to satisfy customer needs.
The Role of Research and Development (R&D)
New product design and development is more often than not a crucial factor in the survival of a company.
In an industry that is changing fast, firms must continually revise their design and range of products. This is necessary due to continuous technological change and development as well as other competitors and the changing preference of customers. Without an R&D program, a firm must rely on strategic alliances, acquisitions, and networks to tap into the innovations of others.
What is involved in R&D? Hoang p 598
R&D involves conducting extensive research into new products, their designs, testing and development of prototypes (trial or test products). Only the most promising ones are considered for commercialisation (successfully bringing a new idea to market). However, the R&D process can be extremely lengthy and drain the resources of a business. For example, pharmaceuticals spend hundreds of millions of dollars each year on R&D. Hoang p 598
Nevertheless, R&D can be vital to an organization's long-term...