OPEN STANDARDS BENCHMARKING PRODUCT DEVELOPMENT MEASURE LIST



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ABOUT APQC's MEASURE LIST The APQC Open Standards Benchmarking measure list concisely lists all of the measures currently available for a specific survey. These measures are organized by research area (A), the survey name (B), and finally by category of measure (C). The list identifies each measure's "metric group ID" number (D), the measure name (E), the formula in english as APQC computes it(f), the formula in question numbers specific to this survey (G), and whether or not the measure is a key performance indicator for its associated process (H). For more information about APQC's Open Standards Benchmarking, please contact us directly on +1-713-681-4020 or visit the APQC Open Standards Benchmarking website on www.apqc.org/osb. 1 of 8 10/19/2015 2015 APQC

ID # NAME FORMULA KPI COST EFFECTIVENESS (31 MEASURES) 100259 Average project cost of existing product/service improvements and extensions from start of design and develop product/service process through support product manufacturing or service delivery process 100273 Average project cost of new product/service developments from start of design and develop product/service process through support product manufacturing or service delivery process Average project cost from the start of the design and develop products/services process through the support product manufacturing or service delivery process for existing product/service improvement projects 193.0450 Average project cost from the start of the design and develop products/services process through the support product manufacturing or service delivery process for new product/service development projects 193.0460 103139 Research and development (R&D) cost per $1,000 revenue Costs of research and development (R&D) / (Total business entity 103616 Total cost of the process "design and develop 103683 Total cost of the process "generate new product/service ideas" per $1,000 revenue 103764 Total cost of the process "support product manufacturing or service delivery" per $1,000 revenue 103926 Total cost of the process "test market for new or revised products and services" per $1,000 revenue 104006 Total cost of the product development function per $1,000 revenue 193.0070 / (193.0050 * 0.0010) Total cost to design and develop 193.0540f / (193.0050 * 0.0010) Total cost to generate new product/service ideas / (Total business entity 193.0530f / (193.0050 * 0.0010) Total cost to support product manufacturing or service delivery / (Total business entity 193.0560f / (193.0050 * 0.0010) Total cost to test market products/services / (Total business entity 193.0550f / (193.0050 * 0.0010) (Total cost to generate new product/service ideas + Total cost to design and develop products/services + Total cost to test market products/services + Total cost to support product manufacturing or service delivery) / (Total business entity (193.0530f + 193.0540f + 193.0550f + 193.0560f) / (193.0050 * 0.0010) 2 of 8 10/19/2015 2015 APQC

COST EFFECTIVENESS (31 MEASURES) 101481 Other cost of the process "design and develop 101489 Other cost of the process "generate new product/service ideas" per $1,000 revenue 101504 Other cost of the process "support product manufacturing or service delivery" per $1,000 revenue 101519 Other cost of the process "test market for new or revised products and services" per $1,000 revenue 101615 Outsourced cost of the process "design and develop 101620 Outsourced cost of the process "generate new product/service ideas" per $1,000 revenue 101628 Outsourced cost of the process "support product manufacturing or service delivery" per $1,000 revenue 101631 Outsourced cost of the process "test market for new or revised products and services" per $1,000 revenue 101680 Overhead cost of the process "design and develop Costs other than personnel, systems, overhead, and outsourced to design and develop 193.0540d / (193.0050 * 0.0010) Costs other than personnel, systems, overhead, and outsourced to generate new product/service ideas / (Total business entity 193.0530d / (193.0050 * 0.0010) Costs other than personnel, systems, overhead, and outsourced to support product business entity 193.0560d / (193.0050 * 0.0010) Costs other than personnel, systems, overhead, and outsourced to test market 193.0550d / (193.0050 * 0.0010) Outsourced cost to design and develop 193.0540e / (193.0050 * 0.0010) Outsourced cost to generate new product/service ideas / (Total business entity 193.0530e / (193.0050 * 0.0010) Outsourced cost to support product business entity 193.0560e / (193.0050 * 0.0010) Outsourced cost to test market 193.0550e / (193.0050 * 0.0010) Overhead cost to design and develop 193.0540c / (193.0050 * 0.0010) 3 of 8 10/19/2015 2015 APQC

COST EFFECTIVENESS (31 MEASURES) 101692 Overhead cost of the process "generate new product/service ideas" per $1,000 revenue Overhead cost to generate new product/service ideas / (Total business entity 101707 Overhead cost of the process "support product manufacturing or service delivery" per $1,000 revenue 193.0530c / (193.0050 * 0.0010) Overhead cost to support product business entity 101722 Overhead cost of the process "test market for new or revised products and services" per $1,000 revenue 102895 Personnel cost of the process "design and develop 102926 Personnel cost of the process "generate new product/service ideas" per $1,000 revenue 193.0560c / (193.0050 * 0.0010) Overhead cost to test market products/services / (Total business entity 193.0550c / (193.0050 * 0.0010) Personnel cost to design and develop 193.0540a / (193.0050 * 0.0010) Personnel cost to generate new product/service ideas / (Total business entity 102968 Personnel cost of the process "support product manufacturing or service delivery" per $1,000 revenue 193.0530a / (193.0050 * 0.0010) Personnel cost to support product business entity 103042 Personnel cost of the process "test market for new or revised products and services" per $1,000 revenue 103141 Research and development (R&D) cost related to new product development projects per $1,000 revenue 103143 Research and development (R&D) cost related to product improvements and extensions per $1,000 revenue 193.0560a / (193.0050 * 0.0010) Personnel cost to test market products/services / (Total business entity 193.0550a / (193.0050 * 0.0010) ((Percentage of research and development (R&D) cost related to new product development projects * 0.010) * Costs of research and development (R&D)) / (Total business entity revenue * 0.001) ((193.0150 * 0.010) * 193.0070) / (193.0050 * 0.001) ((Percentage of research and development (R&D) cost related to new product development projects * -0.01 + 1) * Costs of research and development (R&D)) / (Total business entity ((193.0150 * -0.01 + 1) * 193.0070) / (193.0050 * 0.0010) 4 of 8 10/19/2015 2015 APQC

COST EFFECTIVENESS (31 MEASURES) 103252 Systems cost of the process "design and develop product/service" per $100,000 revenue 103284 Systems cost of the process "generate new product/service ideas" per $100,000 revenue 103314 Systems cost of the process "support product manufacturing or service delivery" per $100,000 revenue 103370 Systems cost of the process "test market for new or revised products and services" per $100,000 revenue 103691 Total cost of the process "generate new product/service ideas" per concept (pre-design phase) CYCLE TIME (6 MEASURES) 100381 Average time-to-profitability in months for existing product/service improvement and extension projects 100383 Average time-to-profitability in months for new product/service development projects 103466 Time-to-market in days for existing product/service improvement and extension projects 103476 Time-to-market in days for new product/service development projects Systems cost to design and develop revenue * 0.000010) 193.0540b / (193.0050 * 0.000010) Systems cost to generate new product/service ideas / (Total business entity revenue * 0.000010) 193.0530b / (193.0050 * 0.000010) Systems cost to support product manufacturing or service delivery / (Total business entity revenue * 0.000010) 193.0560b / (193.0050 * 0.000010) Systems cost to test market products/services / (Total business entity revenue * 0.000010) 193.0550b / (193.0050 * 0.000010) Total cost to generate new product/service ideas / Total number of concepts in the predesign phase 193.0530f / 193.0160 Average time-to-profitability in months for existing product/service improvement projects 193.0470 Average time-to-profitability in months for new product/service development projects 193.0480 Average time-to-market in days from the start of the design and develop products/services process until the existing product/service improvement project is ready for sale 193.0410 Average time-to-market in days from the start of the design and develop products/services process until the new product/service development project ready for sale 193.0420 5 of 8 10/19/2015 2015 APQC

CYCLE TIME (6 MEASURES) 100664 Cycle time in days from start of design and develop product/service through completion of test market product/service for existing product/service improvement and extension projects 100665 Cycle time in days from start of design and develop product/service through completion of test market product/service for new product/service development projects PROCESS EFFICIENCY (12 MEASURES) 101238 Number of FTEs in the product development function per $1 billion revenue 101985 Percentage of existing product/service improvement and extension projects launched on budget 101987 Percentage of existing product/service improvement and extension projects launched on time 102308 Percentage of new product/service development projects launched on budget 102310 Percentage of new product/service development projects launched on time Cycle time in days from the start of the design and develop products/services process through the completion of the test market products/services process for existing product/service improvement projects 193.0390 Cycle time in days from the start of the design and develop products/services process through the completion of the test market products/services process for new product/service development projects 193.0400 Number of FTEs who develop and manage products and services / (Total business entity revenue * 0.000000001) 193.0510 / (193.0050 * 0.000000001) Percentage of existing product/service improvement projects launched on budget 193.0490 Percentage of existing product/service improvement projects launched on time 193.0430 Percentage of new product/service development projects launched on budget 193.0500 Percentage of new product/service development projects launched on time 102526 Percentage of revenue from product/services launched in the past year 193.0440 Percentage of revenue from products/services launched in the last 12-month reporting period 100996 Number of FTEs for the process "design and develop product/service" per $1 billion revenue 193.0190 Number of FTEs who design and develop revenue * 0.000000001) 193.0520b / (193.0050 * 0.000000001) 6 of 8 10/19/2015 2015 APQC

PROCESS EFFICIENCY (12 MEASURES) 101028 Number of FTEs for the process "generate new product/service ideas" per $1 billion revenue 101069 Number of FTEs for the process "support product manufacturing or service delivery" per $1 billion revenue 101150 Number of FTEs for the process "test market for new or revised products and services" per $1 billion revenue 102407 Percentage of product/service development projects launched as commercial products/services annually Number of FTEs who generate new product/service ideas / (Total business entity revenue * 0.000000001) 193.0520a / (193.0050 * 0.000000001) Number of FTEs who support product business entity revenue * 0.000000001) 193.0520d / (193.0050 * 0.000000001) Number of FTEs who test market revenue * 0.000000001) 193.0520c / (193.0050 * 0.000000001) Percentage of new product/service development projects that are commercially launched 193.0180 103125 Ratio of the total numbers of projects to pre-design concepts Total number of projects / Total number of concepts in the pre-design phase SUPPLEMENTAL INFORMATION (2 MEASURES) 102458 Percentage of R&D cost related to new product development projects 193.0170 / 193.0160 Percentage of research and development (R&D) cost related to new product development projects 102460 Percentage of R&D cost related to product improvements and extensions 193.0150 (100 - Percentage of research and development (R&D) cost related to new product development projects) (100-193.0150) 7 of 8 10/19/2015 2015 APQC

About APQC's Open Standards Benchmarking APQC is the steward of the open standard benchmarking content. Content is developed and reviewed by various subject matter experts. Participation in APQC's Open Standards Benchmarking is complimentary for APQC Enterprise Members. APQC Functional Members can benchmark in their functional membership at no cost. By participating, you will receive a detailed table comparing your responses with those of your peers. In essence, you ll get a row-by-row comparison of your responses versus those of your peers. The data tables will feature your answers as well as indicate the high, median and low performance ranges. Past participants have used open standards benchmarking research reports to set baselines for process improvement projects, to build a business case for new initiatives, to prioritize high-impact opportunities, and even to validate success or return on investment from efforts. For more information, call +1-713-681-4020 or visit www.apqc.org/osb. 8 of 8 10/19/2015 2015 APQC