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Classification of
Research:
• Pure research- undertaken withoutregard for how the knowledgegained will be used.
• Applied research- endeavors to findbasic answers to more or lessspecific problems.
D E V E L O P M E N T
A technical activity concernedwith nonroutine problems whichare encountered in translatingresearch findings or othergeneral scientific knowledgeinto products and processes.
Abilities of a good R & D
manager:
• To speak the language of theresearcher
• To select either projects orapproaches
• To motivate his subordinates
• To do these things with an eyetoward profit
Planning for Research
and Development
Two steps:
1. The determination of the totalbudget amount
2. The selection of specifiedprojects.
Several ways to assists
planning project
budgeting
1. It requires that each projectbe concretely planned and beformally reviewed on adefinite schedule.
2. It helps coordinate researchactivities by:
a. Clearly showing how theactivities within the programare balanced to fulfill thepresent and long range plansof the economy.
b. Encouraging the exchange ofinformation between researchand operating personnel.
Controlling Research and
Development Activities
Truth about researchers:
1. Would rather work under relativelyclose administrative controls.
2. Have urgent need to know preciselywhat management expects of them
3. Exhibit the personal traits foundgenerally in ambitious nonscientificpersonnel
4. Resent being classified as businessfreaks
Four purposes of comparisonBudget vs. Actual Costs
1. To show how much money hasbeen spent and what relationshipthis amount has to the original R& D plan
2. To provide valuable assistance inappraising the R & D program andthe proportion of the companiesresources spent in the variousareas.
3. To assemble and report costswhich can be valuable as abasis for projecting future R &D operations.
4. To enable technical R & Dpersonnel to present a statusor accomplishment report inphysical and qualitative terms.
Organizing the Research
and Development Group
Two basic types of corporatestructure:
The functional and thedivisional
D I V I S I O N A L I Z E D
Organization
There is usually a corporate level officer in charge of the overall research and development activities of the company.
F U N C T I O N A L
Basis
A vice president is in charge ofall research and developmentactivities of the firm.
M A R K E TSOURCES
RAW
IDEAS
SCREENING
COMMITTEE
AP
PR
OV
E
D ID
EA
S
PRODUCT
ENGINEERINGBLUEPRINT
SPECIFICATION
MODELS
PROCESS
ENGINEERING
PROCESSES
TOOLING, LAY-
OUT, ETC.
MANUFACTURING
DEPARTMENT
FINISHED
GOODS
Directing Research and
Development
For strong programs, totalappropriations are determined asfollows:
1. Managers must established ageneral target figure on “howmuch to spend”, guided by thefollowing:
a. Competitive levels of research spending.
b. a predetermined per cent of sales or capital base.
c. Projected rates of return for each project.
d. Growth rate standards.
• 2. Managers must select projects which achieve a proper balance between research which simply protects the profits of present products in existing markets and research which creates technology to open profitable new markets for the company.
• 3. Finally, managers must see that the fundamental research program is active in those scientific areas.:
a. Where basic technological break through is most likely to influence the operations of the company.
b. Where knowledge is needed for the further developmental and applied research.
DEVELOPMENT
MNGR.
SERVICES
MANAGER
PERSONNEL
LIBRARY
PATENTS
MAINTENANCE
VICE PRES. R & D
RESEARCH
MANAGER
SUB-
DEPTS.SUB-DEPTS.