Product Development KPIs, Metrics & Benchmarks

KPIs & Metrics to Measure and Manage Product Development Performance

Product Development

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KPI's & Data 

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Percentage of New Products Meeting Revenue Target

The number of new products that meet or exceed their target revenue goals for a certain period of time divided by the total number of new products launched in the last three years, as a perc...

KPI Type : Quality

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KPI's & Data 

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Percentage of Products Eliminated Due to High Production Cost

The number of products that were eliminated because of a failure to meet the final product price target (i.e., the product costs too much to develop and manufacture) divided by the total num...

KPI Type : Quality

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KPI's & Data 

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Percentage of Products with Profit Margin Goals

The number of new products launched with defined profit margin goals divided by the total number of new products launched over the same period of time, as a percentage.

KPI Type : Quality

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KPI's & Data 

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Percentage of Sales Force Trained on New Products

The number of employees within the company's sales force that are formally trained on a new product prior to its launch divided by the total number of employees within the company's sales fo...

KPI Type : Quality

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KPI's & Data 

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New Product Operating Income as a Percentage of Total Operating Income

The dollar amount of operations-related income (EBIT) generated from products or services introduced to the market over the last three years divided by the total dollar amount of operations-...

KPI Type : Revenue

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KPI's & Data 

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New Product Profits as a Percentage of Total Profits

The dollar amount of profits (revenue minus expenses) generated from products introduced to the market in the last three years divided by the total dollar amount of profits generated by the...

KPI Type : Revenue

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KPI's & Data 

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New Product Revenue as a Percentage of Total Revenue

The dollar amount of revenue generated from products introduced to the market in the last three years divided by the total dollar amount of revenue generated by the company over the same per...

KPI Type : Revenue

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KPI's & Data 

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Packaging Cost as a Percentage of Total Product Cost

The cost of packaging for a single unit (materials, assembly, etc.) divided by the total cost of producing a single unit of the same product, as a percentage.

KPI Type : Cost

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KPI's & Data 

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Product Development Cost Breakdown: Product Packaging Development

The packaging design and development expense incurred for a single new product divided by the total expense incurred throughout the product development life cycle (up to product launch), as...

KPI Type : Cost

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KPI's & Data 

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Product Packaging Expense as a Percentage of Product Development Expense

The expense incurred by the Product Packaging function divided by the total expense incurred by the Product Development Department over the same period of time, as a percentage.

KPI Type : Cost

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KPI's & Data 

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Unit Cost: Product Packaging

The total cost of product packaging (package materials, assembly, etc.) divided by the total number of units packaged over the same period of time.

KPI Type : Cost

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KPI's & Data 

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Total Expense: Research & Development

The total expense incurred by the Research and Development function over a certain period of time. Total expense includes labor, benefits, occupancy, and technology costs.

KPI Type : Cost

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KPI's & Data 

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Products Tested per Product Testing Employee

The total number of products tested over a certain period of time divided by the number of employees working within the Product Testing function.

KPI Type : Productivity

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KPI's & Data 

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Cycle Time: Prototype to Testing Report

The number of business days required to complete the product and market testing phase within the product development life-cycle, from the time the product and market testing phase begins unt...

KPI Type : Service

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KPI's & Data 

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New Product Kill Rate: Prototype to Testing

The number of new products that are 'killed,' or prevented from being further developed, during the phase between prototype development and prototype testing/approval, divided by the total n...

KPI Type : Quality

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KPI's & Data 

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New Product Kill Rate: Testing to Scale-Up

The number of new products that are 'killed,' or prevented from being further developed, during the phase between prototype testing and manufacturing/production scale-up, divided by the tota...

KPI Type : Quality

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KPI's & Data 

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Product Development Time Breakdown: Product Testing

The amount of time that a new product spends in the product testing phase divided by the total time required to bring that product to market, as a percentage.

KPI Type : Quality

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KPI's & Data 

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Cost of New Product Failure

The total expense incurred through researching and developing products that fail at some point prior to full-scale launch divided by the number of products that failed at some point prior to...

KPI Type : Cost

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KPI's & Data 

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Product Development Cost Breakdown: Research & Development

The expense incurred during the Research & Development phase for a single new product divided by the total expense incurred throughout the product development life cycle (up to product launc...

KPI Type : Cost

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KPI's & Data 

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Research & Development Expense as a Percentage of Product Development Expense

The expense incurred by the Research & Development function divided by the total expense incurred by the Product Development Department over the same time period, as a percentage.

KPI Type : Cost

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KPI's & Data 

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Research & Development Expense as a Percentage of Total Expense

The expense incurred by the Research & Development function divided by the total expense incurred by the company over the same period of time, as a percentage.

KPI Type : Cost

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KPI's & Data 

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Product Development Expense as a Percentage of Revenue

The expense incurred by the Product Development Department divided by the total revenue generated by the company over the same time period, as a percentage.

KPI Type : Cost

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KPI's & Data 

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Packaging Automation Rate

The amount of packaging-related work (measured in minutes) that is automated or mechanized divided by the total amount of work time devoted to product packaging over the same period of time,...

KPI Type : Productivity

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KPI's & Data 

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Product Repackaging Rate

The total number of packaged products requiring repackaging (due to poor packaging quality and/or non-compliance) divided by the total number of products packaged over the same period of tim...

KPI Type : Quality

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KPI's & Data 

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Cycle Time: Packaging

The number of minutes required to package a single finished product, from the time the product has been produced until when the product has been completely packaged.

KPI Type : Service

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KPI's & Data 

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Percentage of Packaging Outsourced

The number of products manufactured by the company that are packaged by a third-party vendor divided by the total number of products manufactured over the same period of time, as a percentag...

KPI Type : Organizational

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KPI's & Data 

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Product Development Time Breakdown: Research & Development

The amount of time that a new product spends in the research and development phase (between idea generation and prototype testing) divided by the total time required to bring that product to...

KPI Type : Quality

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KPI's & Data 

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Research & Development Employees as a Percentage of Total Product Development Employees

The number of employees working within the Research & Development function divided by the total number of employees working within the Product Development Department at the same point in tim...

KPI Type : Organizational

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KPI's & Data 

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Product Testing Employees as a Percentage of Total Product Development Employees

The number of employees working within the Product Testing function divided by the total number of employees working within the Product Development Department at the same point in time, as a...

KPI Type : Organizational

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KPI's & Data 

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Requirements Creep

The number of requirements that were identified and added to the product specification after product development began divided by the total number of product requirements defined over the sa...

KPI Type : Quality

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