New Product Development Process
Following the tollgate method, new products go through five stages in the development process to lead a team to develop an idea into a product that will satisfy the delights of the customer, while meeting financial objectives.

Each stage requires input from staff members of the product, operations, marketing, finance, sales and administration departments of the company. This unique multi-functional examination and understanding of the new product ensures the best possible climate for success.

The Tollgate Approach
The development of new products and their introduction into the marketplace is potentially one of the most rewarding and profitable ventures that a company can undertake. Development of new products and improvement of existing products are vital to maintaining or strengthening a company's position in the world market.

However, new product development is also potentially one of the most frustrating and costly decisions that a business can make. The time and energy required to develop new products are expensive, highly political, and often drain resources from existing products.

It is this dichotomy, inherent in developing virtually any new product, that inspired the creation of the tollgate approach to new product development. Application of this method greatly increases the opportunity for reward and profit while substantially reducing frustration and unnecessary cost.

The tollgate approach to new product development is a disciplined system which ensures that all requirements to bring the new product to the market are met along the carefully controlled and highly structured road down which the product travels from vision to production. Both the steps to be taken and those responsible for each action are clearly delineated in advance and understood by all.

Following the tollgate method, new products go through five stages in the development process on their way to the market. Each stage requires input from staff members of the product, operations, marketing, finance, sales and administration departments of the company. This unique multi-functional examination and understanding of the new product ensures the best possible climate for success.

Stages of Development

• Manage the Fuzzy Front End
  This is the earliest stage in the new product development process. A customer need is identified and a number of concepts are brought forward. Since there are usually a large number of ideas, they undergo preliminary screening relative to both customer need and technical feasibility to determine the ones with the best potential. Conceptual designs are created and the market attractiveness is quantified.
• Prototype Stage
  Ideas which pass the initial screenings move into the prototype phase. Usually several concepts are selected for customer testing and acceptance. Design engineers develop the specifications and then design and build the prototypes. They are then subjected to market testing, primarily by the use of customer focus groups. Initial production plans, marketing plans, patent protection and financial projections are formulated during this stage.
• Pre-Production Stage
  Using data gleaned from the prototype, a product is selected for manufacture. This stage is the transition from design engineering to manufacturing engineering, which shifts the focus to cost elimination in the building process. The entire manufacturing process is developed in detail, driving the creation of costs and budgets for the project. Comprehensive marketing and sales plans are put into place.
• Ramp-Up Stage
  The product moves from testing into manufacturing. The appropriate production volume is created to put the product into the marketplace. Marketing and sales plans are finalized, costs are reviewed and advertising and sales budgets developed. Distribution and inventory stocking profiles are finalized. The initial production is moved through the supply chain.
• Launch Stage
  After the various development phases, the product is introduced into the marketplace. Supply and distribution lines are in operation. Feedback from customer sales is evaluated in incorporated into production and marketing plans

After a product has completed these five stages and is into the market, it moves into a transition phase in which it is reviewed and modified in response to changes in market conditions, new technology and the like. This phase continues for the life of the product.