How To Pick a Project
Chemical & Engineering News · 1959
MAXIMIZE . . . minimize . . . optimize." Conversation in Washington, D. C, revolved around "ize" words. The occasion: The Operations Research Society of America was holding its 15th national meeting. Among questions discussed: What projects will make us the most money with the smallest investment? Picatinny Arsenal's Sidney Sobelman, like others, uses a model to get answers. Soheiman, a chemist, designed his for picking product development projects. It starts like this: z = pT — ct where a is the product value or decision-making factor, p the average net profit a year, T the market life of the product, c the average development cost a year, and t the vears of development needed. Translated into words, z is the total net profit ("pay-off") minus total development cost. It's the hasis, Sobelman says, on which management would decide to start or forego a development project. Definitions. Sobelman defines product development as all activities ...