In Figure 1 common marketing terms for the life-cycle are shown behind the product flow to give reference to a market viewpoint of product life:

• For the producer: Product Introduction, growth, maturity, decline, withdrawal
• For the Consumer: Consumer Reach, Intrigue, Initiate, Convert, Retain, Advocate

From the Consumer's POV the major reason for purchasing is to ensure that the price paid for a product is fair and reasonable for the performance and functionality of the product.   From the Producer's POV the major responsibility is to ensure that the fit-for-purpose, consumer support and cost to the producer are fair and reasonable.

The PD phase as shown in the Producer flow in Figure 1 is where we'll find opportunities for designing-in sustainable cost management without creating systemic problems elsewhere in the organization and future product management.  These costs can be minimized as much as feasible during the definition, design and development of the product and its production and support processes.  Notice that the PD stage extends into the Product Validation, Pre-Production & Process Validation and Product Marketing stages.  Thus, input from the production, marketing and financial groups is absolutely necessary for the cost minimization efforts during PD.

We will identify controllable, tangible and systemic PD–related cost drivers that exist within the general flow of Figure 1 and suggest methods for reducing the impact of the cost drivers on the Whole 'Product life' costs.

The 30,000-foot (9144-meters) view of Whole 'Product life' cost drivers can be summed up in the following lists for each of a company's operational entities.  PDinfluenced cost drivers that product developers can deal with during the development process are indicated by the bullet .   Non-PDinfluenced cost drivers are identified by the bullet ; whereas these are beyond the scope of this article, they may certainly impact ultimate product costs and should be examined by other corporate groups.

The development and support requirements over the lifetime of different product types utilize different business elements: e.g., service businesses are usually resource and process dependent, 'back office' transaction processes are usually automated and heavily depend on computer systems or communications equipment and medical products are usually highly regulatory and marketing dependent.  So, what follows needs to be taken within the context of the type of product you have in mind.  In general:

...where the cost goal is to minimize the Total Cost of Producer such that revenue is maximized and support costs are minimized, while optimizing the Total Cost of Owner such that fair value is appreciated.