What is The Rate Of New Product Introduction?
The Rate of New Product introduction refers to how rapidly new products can be introduced to the marketplace based on design, development and manufacturing ramp up times.
How Do You Calculate The Rate Of New Product Introduction?
Get the total amount of days when your 5 newest products were planned, developed & launched. (The more, the better)
Add them with one another then divide it by 5. (Divide by how many products were added with one another)
Product 1 was developed from July 2, 2020 & was launched in July 4, 2020 = 2 Days
Product 2 was developed from July 5, 2020 & was launched in July 8, 2020 = 4 Days
Product 3 was developed from July 9, 2020 & was launched in July 13, 2020 = 4 Days
Product 4 was developed from July 14, 2020 & was launched in July 20, 2020 = 6 Days
Product 5 was developed from July 20, 2020 & was launched in July 21, 2020 = 1 Day
In this case, I add the total number of days it take to develop a new product with one another: 2 + 4 + 4 + 6 + 1 = 17 days
I divide them by how many they are.
17 / 5 = 3.4
Rate of New Product Introduction by Days = 3.4 Days