Risk-taking is central to value creation in product development.”

„By prioritizing, we choose to service one project before the other. In general, it is best to delay the project with a low cost of delay. This suggest that we should not prioritise on the basis of project profitability, but rather on how this profitability is affected by delay.“ (p 14)

„The speed of feedback is at least two orders of magnitude more important to product developers than manufacturers. Developers rely on feedback to influence subsequent choices. Or, at least, they should. Unfortunately our current orthodoxy views feedback as an element of an undesirable rework loop. It asserts that we should prevent the need for rework by having engineers design things right the first time.“ (p 19)

„Economic choices must be made continuously. It is important to consider the timing of the economic trade-offs that we make in product development. We do not make a few, big, predictable trade-offs at the start of our development process. Instead, we make many small trade-offs, at random times, throughout our development process.“(p 37)

„Queues delay feedback, and delayed feedback leads to higher cost.“ (p 58)

„Many supermarkets cross-train check stand operators to perform other tasks. These stores monitor the size of queues at check stands. As soon as they have more than three customers in line, they open up a new check stand. When queues are cleared, they close the extra check stand. This is a highly effective way to provide quality of service in the face if uncertain demand. “ (p 75)

„The Diffusion Principle: Over time, queues will randomly spin seriously out of control and will remain in this state for long periods…We simply cannot rely on randomness to correct the problems that randomness creates.“ (p 76-79)

„Product development creates economic value by producing the recipes for products, information, not by creating physical products. If we create the same recipe twice, we’ve created no new information, and consequently, no economic value. If we wish to create value, it is necessary, but not sufficient, to change the design. But changing the design introduces uncertainty in outcomes. In fact, we must introduce uncertainty to add value in product development. Risk-taking is central to value creation in product development.“ (p 86)

„Unfortunately, most companies do a far better job of communicating their successes than their failures. They carefully document successes, but fail to document failures. This can cause them to repeat the same failures. Repeating the same failures is waste, because it generates no new information. Only new failures generate information.“ (p 94)

„In product development, fast feedback also provides disproportionate economic benefits because the consequences of failures usually increase exponentially when we delay feedback. Each engineering decision acts as a predecessor for many subsequent decisions. The number of dependent decisions generally grows geometrically with time. Consequently, as single incorrect assumption can force us to change hundreds of later decisions. When we delay feedback, rework becomes exponentially more expensive. With accelerated feedback, we can truncate bad paths before they do significant economic damage.“ (p 114)

The Principles of Product Development FLOW. Second Generation Lean Product Development. Donald G. Reinertsen, 2009, Celeritas Publishing.

We provide our insights through quotes directly taken from books, articles, videos, info graphs and other media. We do not add, comment or reflect on the topics highlighted or represent the media in its intentions or as a whole. We hope to inspire you to dig deeper, discover and fall in love with your own eureka moments.

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