Average lead time in months between subsequent product generations for primary products

This measure calculates the average number of months that elapse between product generations for primary products. It is a Cycle Time measure that helps companies analyze the duration (from beginning to end) of the "manage product and service life cycle" process, which manages the introduction and withdrawal of products/services.

Benchmark Data

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Measure Category:
Cycle Time
Measure Id:
105216
Total Sample Size:
723 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are days.

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Average lead time in months between subsequent product generations

Key Terms

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Cycle Time

Cycle time is the total time from the beginning of the process to the end. This includes both time spent actually performing the process and time spent waiting to move forward.

Measure Scope

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Cross Industry (7.2.1)

  • 2.1.2.1 - Develop plan for new product/service development and introduction/launch (16824) - Developing a program and managing a perspective for new product/service introduction and launch.
  • 2.1.2.2 - Introduce new products/services (10077) - Launching revamped product/service portfolio in to the market. Introduction in to the marketplace is done by deploying effective channels for marketing, sales, delivery, and after-sales servicing. Introduce new/revised solution offerings in a concerted effort. Coordinate a cross-functional effort.
  • 2.1.2.3 - Retire outdated products/services (10078) - Removing nonconforming products and services. Withdraw those products/services that do not conform to market realities and are not positioned to take advantage of prevailing opportunities. Coordinate with processing/delivery teams within the organization and key stakeholders in the supply chain. Create mechanisms for continued after-sales servicing, as well as deploy effective public relations efforts in order to preserve the image and goodwill of the organization through the process.
  • 2.1.2.4 - Identify and refine performance indicators (10079) - Attuning the performance measures of products/services to better reflect the revamped portfolio of solution offerings. Revise the parameters used to measure performance, apropos the organization's product/service offerings. (Modify these standards in consideration of the changes made to the portfolio by Introduce new products/services [10077] and Retire outdated products/services [10078].)
  • 2.1.2.5 - Conduct post launch review (11423) - Learning from either a test or a full production run within the consumer market. Companies use this as an opportunity to both test and react to new products, ideas, or innovations based on the initial reaction of consumers on an individual level. Within this process, analytics are used to determine the relative success of a new product offering. Within this process, companies will launch key analytics to test a products acceptance. They will also review market performance and compare to similar products and against the business case or the financial plan. Companies can also measure the effectiveness of their supply chain network, and can apply what is learned from the post launch review to other new products, processes, and procedures to ensure and enhance the product quality.
    • 2.1.2.5.1 - Carry out post launch analytics to test the acceptability in the market (19646) - Measuring the performance of marketing once the product/services are launched. This broadly covers measuring user engagement and product's/service's performance in the market.
    • 2.1.2.5.2 - Review market performance (11424) - Conducting customer and market analysis to review progress and identify opportunities for increasing market position. Track and review product/service response through sales reports, website statistics, direct response from customers, and survey reports.
    • 2.1.2.5.3 - Review effectiveness of supply chain and distribution network (11425) - Determining the performance of supply chain to all departments and logistics from input to shop floor. Seeking performance reviews at each intersection and communication channels. Review effectiveness of supply chain and distribution to check if it is meeting the demands of the various groups and organizations that are concerned with its activities (groups might include customers, partners, suppliers, and vendors).
    • 2.1.2.5.4 - Apply data and analytics to review supply chain methodologies (19647) - Collecting and examining raw data with the purpose of drawing conclusions about that information and correlate gaps and efficiencies to the existing supply chain channels. Apply the information to make better business decisions to the related supply chain methodologies to meet efficiency.
    • 2.1.2.5.5 - Review quality and performance of the product/service (11426) - Identifying the quality and performance of the product/service delivered to customers. Analyze data from the customer feedback, audits, measures of customer satisfaction (such as product quality complaints and recalls), and organizational policies on delivery.
    • 2.1.2.5.6 - Conduct financial review (11427) - Evaluating organization's financial reports and financial reporting processes. Review and document the ROI catered by the product/service delivery to the customer in the market.
    • 2.1.2.5.7 - Conduct new product development process assessment (11428) - Analyzing the steps involved in the development of new product, its effect on existing product, resources, and functions related to the development of the new product until its sale in the competitive market place.