R&D and production

An elementary relation of terms such as research, development and production is related to the product life cycle and is procedurally determined in the description of product realization.

From manufacturer's point of view, the product has 3 different life phases. Preparation (P) Realization (R) Modification (M) It is an everlasting cycle, where output of one phase represents another phase's input.

The preparation phase begins with a "prenatal" product period, when no profit is generated, but the firm invests in complements development and in the enrichment of its intellectual capital.

Based on experience from the development and application activities, the product is defined, developed, verified, certified and put on the market in 4 steps.

The second product cycle phase is the Realization, when the money invested earlier is slowly returning and start generating a profit. This is realized in the following steps: 1) purchase, 2) production 3) sales and 4) service.

The product is in the third Modification phase in the following cases: an enforced production input compensation, a production technology modification; a change of supplier influences the input properties, redefined goals etc.

In fact, the product comes back to the Preparation phase, in which it is innovated and newly placed on the market. The cycle is completed, a new life arises.