Average project cost of existing product/service improvements and extensions from start of the 'design and develop product/services' phase through the 'support product manufacturing or service delivery' phase
This measure calculates the average cost of an existing product or service improvement/extension project from the time it starts as an idea up through its initial set of commercial runs, which are monitored by new product/service development (NPD) personnel to collect the data that would lead directly into [new/existing product/service improvement/extension]. Along the way, activities might include assigning product resources; determining specifications; building prototypes; and in-house testing. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "develop and manage products and services."
Benchmark Data
25th | Median | 75th |
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Compute this Measure
Units for this measure are dollars.
Average project cost from the start of the 'design and develop product/services' phase through the 'support product manufacturing or service delivery' phase for existing product/service improvement projects
Key Terms
Cost Effectiveness
Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.
Median
The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.