Committed Costs vs. Uncertainty in New Product Development

dc.creatorPhillips, Fred Y.en
dc.creatorSrivastava, R.en
dc.date.accessioned2012-11-04T18:38:06Zen
dc.date.available2012-11-04T18:38:06Zen
dc.date.issued1993-01en
dc.description.abstractDiscusses the nature of committed and determined costs in a new product development project, and quantifies their relationship to project uncertainty. Introduces the concept of product, process, schedule and market (PPSM) intelligence and emphasizes its use for jointly considering marketing and production factors in project evaluation. Uses a discriminate function-based measure of information gain to compare committed cost, incurred cost and information gain over the life of a development project leading to a risk profile that may be constructed from the observed behavior of the firm, without the use of hypothetical lotteries. Shows, using data from two companies, that this cost-risk construct is meaningful and can provide guidance for operational decisions in the new product development process.en
dc.description.departmentIC2 Instituteen
dc.identifier.urihttp://hdl.handle.net/2152/18565en
dc.language.isoengen
dc.publisherIC² Instituteen
dc.relation.ispartofseriesIC² Institute Working Papers;WP-1993-02-01en
dc.subjectoperational analysisen
dc.subjectproduct developmenten
dc.subjectmarketingen
dc.subjectcost-risken
dc.titleCommitted Costs vs. Uncertainty in New Product Developmenten
dc.typeWorking Paperen

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