Total cost to perform the process group "govern and manage product/service development program" as a percentage of total function cost

This measure calculates total cost to perform the process group "govern and manage product/service development program" as a percentage of total cost to perform the function "develop and manage products and services". Total cost is the sum of personnel (compensation/benefits), systems (direct and/or allocated), overhead (direct and/or allocated), other internal, and outsourced costs. The Process group "govern and manage product/service development program" includes [Supervising the complete product/service program from innovation until its commercial success. Meeting the customer demand and expectations. Conduct further development and innovation pertaining to business goals.]. The Function "develop and manage products and services" includes [Governing and managing the product/service development program, generating and defining new product/service ideas, and developing products and services.]. This Supplemental Information measure is intended to help companies evaluate additional variables related to the process group "Perform governance and program management".

Benchmark Data


Sorry! Not all users have access to all of our resources.

Want to unlock access to all of our resources?

Learn about Membership Arrow with stem

Measure Category:
Supplemental Information
Measure ID:
Total Sample Size:
1,081 All Companies
25th Median 75th
- - -
Key Performance Indicator:

Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are percent.

Back to Top

Percentage of total cost to perform the function "develop and manage products and services" allocated to the process group "govern and manage product/service development program"

Key Terms

Back to Top

Total cost for a process, process group, or function consists of the following five components.

Internal/In-house operating cost consists of the first four components (personnel, systems, overhead, and other).

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

Systems Cost

Systems costs include all expenses, paid or incurred, in conjunction with:
Computer hardware or computer software acquired by the organization or provided to the organization through service contracts.

Any related costs to process, service and maintain computer hardware or computer software. The costs of providing and maintaining services for each applicable process (e.g., computer system(s) processing (CPU) time, network/system communication charges, maintenance costs for applications and data storage). This includes the costs related to LANs, WANs, etc. This does not include one-time costs for major new systems developments/replacements. Consultant fees should not be included in depreciation of new system implementations. Include only those costs that occur more than six (6) months after implementation, as normal system maintenance costs. Any systems cost (e.g., maintenance) which is outsourced to a third party supplier should be captured in the separate cost category labeled outsourced cost.

Systems cost should include all salaries, overtime, employee benefits, bonuses or fees paid to full-time, part-time or temporary employees or independent contractors who perform services relating to computer hardware, computer software, processing or systems support.

Overhead Costs

For the purpose of this study, provide the total actual overhead costs for the year related to the specified process. These are costs that cannot be identified as a direct cost of providing a product or a service. Include the primary allocated costs such as occupancy, facilities, utilities, maintenance costs, and other major costs allocated to the consuming departments. Exclude systems costs that are allocated, since these will be captured separately as systems cost.

Other Cost

Other costs are costs associated with the specified process, but not specifically covered in personnel cost, systems cost, overhead cost and outsourced cost in this questionnaire. These other costs include costs for supplies and office equipment, travel, training and seminars. Include the cost of telephones, except for that portion captured in systems cost.

External/Outsourced Cost

In determining outsourced cost, include the total cost of outsourcing all aspects of the specified process to a third-party supplier. Exclude one-time charges for any type of restructuring or reorganization. Outsourced costs should also include costs for intracompany outsourcing (i.e., reliance on a shared services center or other business entity).

Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

Measure Scope

Back to Top

Cross Industry (7.3.1)

  • 2.1.1 - Manage product and service portfolio (10061)
    • - Evaluate performance of existing products/services against market opportunities (10063)
    • - Confirm alignment of product/service concepts with business strategy (10066)
    • - Prioritize and select new product/service concepts (10074)
    • - Plan and develop cost and quality targets (10073)
    • - Specify development timing targets (10075)
    • - Plan for product/service offering modifications (10076)
  • 2.1.2 - Manage product and service life cycle (10067)
    • - Develop plan for new product/service development and introduction/launch (16824)
    • - Introduce new products/services (10077)
    • - Retire outdated products/services (10078)
    • - Identify and refine performance indicators (10079)
    • - Conduct post launch review (11423)
      • - Carry out post launch analytics to test the acceptability in the market (19646)
      • - Review market performance (11424)
      • - Review effectiveness of supply chain and distribution network (11425)
      • - Apply data and analytics to review supply chain methodologies (19647)
      • - Review quality and performance of the product/service (11426)
      • - Conduct financial review (11427)
      • - Conduct new product development process assessment (11428)
  • 2.1.3 - Manage patents, copyrights, and regulatory requirements (19985)
    • - Conduct mandatory and elective reviews (19941)
    • - Review infringement of patents and copyrights (16826)
    • - Determine patent and copyright needs (16827)
    • - Define product technical documentation management requirements (19697)
    • - Manage regulatory requirements (12771)
      • - Train employees on appropriate regulatory requirements (12772)
      • - Maintain records for regulatory agencies (12773)
      • - Manage regulatory submission life cycle (12776)
  • 2.1.4 - Manage product and service master data (11740)
    • - Manage materials master lists (11741)
    • - Manage bills of material (11742)
    • - Manage routings (11743)
    • - Manage specifications (11744)
    • - Manage drawings (11745)
    • - Manage product/material classification (11746)
    • - Develop and maintain quality/inspection documents (11747)
    • - Maintain process specification data (11748)
    • - Manage traceability data (11749)
    • - Review and approve data access requests (11750)