21. The Market Analysis

In the case of sequential new product concept analysis is carried out before substantial work related to the preparation of the prototype and series of trial. In the case of an integrated approach of the production development the financial analysis is carried out much earlier. It should be one of the first actions that are taken immediately after the detailed identification of new product.

On the basis of calculations, market and economic arguments it can determine the continuation or cessation of work on the further development of the new product’s concept.

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22. Performance Index

Performance Index is a tool which purpose is to assist in the monitoring of processes. It assumes that the process is comprised of several factors, which have different effects on it. Factors ought to be evaluated in order to manage the process effectively, moreover, one should give an appropriate hierarchy and monitor their progress. This method is also used to make a decision which is dependent on many conditions.

Its advantages are as follows:

  • simplification of data by giving them the measurable value,
  • exclusion of the subjective factor,
  • simultaneous monitoring of many factors,
  • easy to use,
  • taking into account all the parameters.

Application of this method consists of the following steps:

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