Two universal characterizations of this methodology are the quantity of the product to be produced & distributed and the complexity of the product's functionality, regulatory compliance, manufacturability and serviceability. The gauges of these two characterizations are manifested by the relationships of their associated Cost Categories.

The first step is the most difficult since it requires substantive engineering, manufacturing, marketing and financial knowledge to determine how the product's Cost Categories fit within the Quantity-Complexity matrix (Figure 1). The relationships in this matrix indicate which costs are more or less important for a product of a certain complexity and production level. Since the weighting of each cost category in the matrix is experiential, one may be able to rationalize different weightings depending upon the product, market and corporate philosophy. Be that as it may, the model is still useful and will guide the allocation of funds and effort.

In this step anticipate how the new product is to be designed, marketed, replicated, distributed, supported and how and when it will reach end-of-life.