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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Prototypes per Product

The total number of prototypes developed divided by the number of new products in development over the same period of time.

KPI Type : Quality

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Idea Generation Expense as a Percentage of Product Development Expense

The expense incurred by the Idea Generation function (across all products) divided by the total expense incurred by the Product Development Department over the same time period, as a percent...

KPI Type : Cost

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Product Development Cost Breakdown: Idea Generation

The expense incurred during the Idea Generation phase 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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Idea Generation Employees as a Percentage of Total Product Development Employees

The number of employees working within the Idea Generation (or 'innovation') function divided by the total number of employees working within the Product Development Department, as a percent...

KPI Type : Organizational

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KPI's & Data 

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Ideas Generated per Idea Generation Employee

The total number of product ideas generated over a certain period of time divided by the number of employees working within the Idea Generation/Innovation function.

KPI Type : Productivity

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KPI's & Data 

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Cycle Time: Business Case to Feedback

The number of business days required to receive feedback from management after the formal presentation of a new product idea, from the time the idea is presented until feedback from manageme...

KPI Type : Service

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KPI's & Data 

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Cycle Time: Concept to Business Case

The number of weeks required to develop and document a new product concept, from the time concept development begins until a formal business case for the new product is created.

KPI Type : Service

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Frequency of Formal Concept Reviews

The average number of business days elapsed between formal submissions of a product concept (typically done to determine the product's viability and priority) over a certain period of time.

KPI Type : Quality

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New Idea Storage Time

The number of years unscreened ideas are kept within the company's idea database for further examination.

KPI Type : Quality

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New Product Kill Rate: Idea to Approval

The number of new products that are 'killed,' or prevented from being further developed, during the phase between idea generation and idea approval, divided by the total number of products r...

KPI Type : Quality

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KPI's & Data 

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Percentage of Concepts Selected for Development

The number of product/service concepts selected for further development divided by the total number of product/service concepts explored 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 Ideas Stored in the Idea Database

The number of ideas collected and stored in a database for future reference divided by the total number of new product/service ideas pitched over the same period of time, as a percentage.

KPI Type : Quality

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KPI's & Data 

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Product Development Time Breakdown: Idea Generation

The amount of time (typically measured in days) that a new product spends in the idea generation 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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Total Expense per Product Development Employee

The total expense incurred by the company over a certain period of time divided by the number of employees working within the Product Development Department.

KPI Type : Cost

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KPI's & Data 

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Total Expense: Product Development

The total expense incurred by the Product Development Department (across all products) 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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Total Expense: Product Development Life Cycle

The total expense incurred by the Product Development function (labor, benefits, occupancy, etc.) during a single product's lifecycle, from ideation to post-launch.

KPI Type : Cost

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KPI's & Data 

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Unit Cost: Product Launch

The total cost of bringing new products to market (including the expense incurred through all stages of product development) divided by the total number of products launched over the same pe...

KPI Type : Cost

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KPI's & Data 

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Activity Checklist: Product Development

A yes/no metric indicating whether the following functions are carried out within the Product Development Department: needs and wants exploration, idea generation, concept development, busin...

KPI Type : Organizational

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KPI's & Data 

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Employees per Product Development Team

The total number of employees working within the Product Development Group divided by the number of active Product Development teams.

KPI Type : Organizational

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KPI's & Data 

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Management Levels: Product Development

The total number of management levels, or layers, in the Product Development Department.

KPI Type : Organizational

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KPI's & Data 

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Organizational Structure: Product Development

A yes/no metric indicating whether the Product Development Group is centralized (all employees in a single location) or decentralized.

KPI Type : Organizational

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KPI's & Data 

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Span of Control: Product Development

The average number of employees working within the Product Development Group reporting to each Product Development manager.

KPI Type : Organizational

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KPI's & Data 

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Total Employees: Product Development

The total number of employees working within the Product Development Group at a certain point in time. Employee headcount may be segmented by functional area (i.e., Engineering & Design, Ide...

KPI Type : Organizational

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KPI's & Data 

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Products Developed per Product Development Employee

The total number of new products developed (including both products that were and were not brought to market) over a certain period of time divided by the number of employees working within...

KPI Type : Productivity

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KPI's & Data 

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Average Number of Product Development Milestones

The average number of milestones, or stage gates, that are formally established to measure the progress of new product development projects

KPI Type : Quality

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Frequency of Product Development Reporting

The average number of business days elapsed between submissions of formal reports by the employees working within the Product Development Group during the product development life cycle.

KPI Type : Quality

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KPI's & Data 

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New Product Development Milestone Attainment

The number of milestones during the product development process that are met by the pre-determined date divided by the total number of established milestones for a particular product develop...

KPI Type : Quality

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KPI's & Data 

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New Product Kill Rate

The number of new products that are killed, or prevented from being further developed, prior to launch (i.e., at any phase of the product development life cycle) divided by the total number...

KPI Type : Quality

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Number of Pre-Launch Product Tests Required

The total number of formal screenings, or tests, a product must pass before manufacturing scale-up and market launch can begin.

KPI Type : Quality

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KPI's & Data 

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Number of Product Development Teams

The total number of new Product Development teams working for the company at a certain point in time.

KPI Type : Quality

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