Recently I finally read one of the most important books regarding product development and economics The principles of product development flow by Donald G. Reinertsen.

I can highly recommend reading that book as it explains the fundamentals of economics for product development. One learns about:

  • critical problems with current product development
  • basic economics to consider like cost of delay and life cycle profit
  • queues and what parameters are most important to consider
  • ways to manage capacity utilization properly
  • the aspect of variability in product development vs. lean production
  • the importance of proper batch size management
  • how to sequence topics
  • work in progress handling
  • flow control
  • fast feedback and finally
  • decentralized control

As there are so many aspects covered I started summarizing my key takeaways that I share with you today with the following presentation. Please take it as a teaser to read that book – the presentation just covers some aspects.

Download the presentation

I hope it helps you on your journey towards achieving product development flow. Have fun using the presentation!