BMS SEM V

UNIT – III PART – I

RESEARCH AND DEVELOPMENT IN FOOD INDUSTRY
 RESEARCH AND DEVELOPMENT

DEFINITION –
“SYSTEMATIC ACTIVITY COMBINING BOTH BASIC AND APPLIED RESEARCH AIMED AT
DISCOVERING NEW PRODUCTS OR DISCOVERING NEW KNOWLEDGE FOR IMPROVING THE
EFFECTIVENESS OF EXISTING PRODUCTS FOR THE INNOVATION OF BUSINESS ENTERPRISE.”
 RESEARCH AND DEVELOPMENT
• R&D is considered as a product's conception

• R&D strategy depends on the size of the business or industry.

• In smaller business R&D trends to focus more on product improvement because of budget
and cost limitation.
• Larger business can able to dedicate more time and resources to R&D to introduce new
products as well as improving existing ones.
• R&D differs from company to company, but there are two primary models.
• R&D department being either staffed by engineers and tasked with directly developing
new products OR Staffed with industrial scientists and tasked with applied research in
scientific or technological fields which may facilitate future product development.
•
RESEARCH AND DEVELOPMENT
In general, R&D activities are conducted by specialized units or centers belonging to a
industry.
• It can be also out-sourced to a contract research organization, universities, or state
agencies.
• Universities provide the fundamental and basic research which tend to be more general.
• Universities concentrate on pursuit of knowledge.

• Industrial research focuses more on - ➔ Product development. ➔ New

technologies. ➔ Application of knowledge for commercial purpose.
• “R&D DIFFER FROM THE VAST MAJORITY OF CORPORATE ACTIVITIES
BECAUSE..”
• “IT IS NOT OFTEN YIELD IMMEDIATE PROFIT!!”
• “IT CARRIES GREATER RISK & AN UNCERTAIN RETURN OF
INVESTMENT”
 RESEARCH AND DEVELOPMENT
RETURN OF INVESTMENT
• It is the rate of return of money invested.
• Return of money invested (%) = NET PROFIT * 100 INVESTMENT
R&D AND BUSINESS
● Present day R&D is a core part of the modern business world.
● R&D is of greater importance in business as the level of competition,
● production processes and methods are rapidly increasing.
R&D HAVE GREATER IMPORTANCE AS THE LEVEL OF COMPETITION IN BUSINESS
INCREASES!!!”
•The key to sucessful R&D is to identify the needs and desires of the customer.
•The researchers will need to revisit their research activity regularly as customer
preference frequently change.
THE KEY TO SUCESSFUL R&D IS TO IDENTIFY THE NEEDS AND DESIRES OF THE CUSTOMER.”

• Statistics on organizations devoted to "R&D" may express the state of an industry, the degree of
competition or the lure of progress.
• New product design and development is a crucial factor in the survival of a company.
• This is necessary due to continuous technology change and development as well as other
competitors and the changing preference of customers.
• R&D can be very expensive and the chances of success can be slim, with a relatively low rate of
commercially successful ideas. However, in many industries, a committed programe of R&D is
absolutely essential in order for firms to maintain their competitiveness.
 FUNCTIONS OF R&D

DEVELOPMENT OF NEW PRODUCTS”

● The primary function of R&D is to develop new products, which are essential if the
company is to generate profits in the medium and long term.
● All products have a finite commercial life where new technological developments are
occuring continuously.
MAINTENANCE OF EXISTING PRODUCTS”
● Existing products must be maintained to ensure that they can be produced to
specification.

● For eg: a component required for an existing product may become obsolete.

● When this happens R&D are expected to find an alternative quickly so that production
of the product will not be delayed.
 FUNCTIONS OF R&D
“ENHANCEMENT OF EXISTING PRODUCTS”
● The commercial life of a product may be increased by enhancing it in some way, giving it extra
features, improving its performance, changing its appearance or making it cheaper to produce.
● Many companies enhance their products to keep their product ahead of the competition and
yield large capital.
“INTERFACING WITH PRODUCTION”
● While a new product is being developed, developmental staff and production staff interact to
ensure that the product is manufacturable. The intention is to ensure low cost production and
short production times, while maintaining quality standards.

● The R&D production interface is vital not only it ensure low production costs, but by reducing
production times.

● It should be possible to increase output and therefore income on a monthly basis.

 FUNCTIONS OF R&D
TECHNOLOGY ASPECTS OF REGULATORY COMPLIANCE.
● It is a legal requirement that products used in the community must comply with the relavent
directives.
● The R&D department is primarily responsible for ensuring this case.
“QUALITY”
● A product quality plan is produced for new products as they are developed, principally by R&D
and the quality department.
● The quality plan may allow the customer to return a whole batch of products as a result of a
small number of samples failing the customers quality tests.
● Major role of R&D is the development of fundamental knowledge or enabling technologies.
● R&D provides support to manufacturing, customers and business management.
● R&D development and implement technology.
 MANAGEMENT OF R&D FUNCTION

• Research and development are difficult to manage; researchers do not know in advance exactly
how to accomplish the desired result.
• Proper R&D management is essential for getting - ➔ More creativity. ➔ Higher profit
DEFINITION..
• “R&D management is the discipline of designing and leading R&D processes, managing
R&D organizations, and ensuring smooth transfer of new know-how and technology to other
groups or departments involved in innovation.”
● R&D management can be defined as where the tasks of innovation management meet the
tasks of technology management.
● R&D management covers activities such as basic research, fundamental research,
technology development, advanced development, concept development, new product
development, process development, prototyping, R&D portfolio management, technology
transfer etc.
 Three key practices that can play critical role in R&D Management

• Talk to the customer

• Nurture a project culture,
• Keep it focused.
 HOW TO STRENGTHEN R&D MANAGEMENT IN FOOD,DAIRY & BEVERAGE INDUSTRY..”

• World-class practices related to strengthening the management of R&D concern four areas:
Improving the selection of R&D projects.
• Strengthening the R&D management processes.
• Establishing productive relationships with outside groups. Improving the infrastructure of the
R&D organization.
 IMPROVING THE SELECTION OF R&D PROJECTS
• The key to improving the selection of R&D projects is developing a discipline or framework within
the R&D organization for how R&D projects are selected.
• A number of R&D organizations have successfully implemented formal project selection
processes that help ensure that the best ideas are pursued.
• For example, one food-processing R&D organization uses a graph to highlight the relative risks
and rewards of possible R&D projects.
• In a food industry the R&D organization has developed an R&D project selection process that
consists of evaluating all R&D proposals first in terms of one of four categories - ➔ Product
quality improvements. ➔ Productivity improvements in manufacturing. ➔ New product or
market developments. ➔ Exploratory R&D and also.
• The review teams also evaluate all of the R&D proposals in terms of: ➔ Whether they involve low,
medium, or high risk. ➔ Whether they could be completed in the short, medium, or long term. ➔
Whether they would have low, medium, or high impact.
 STRENGTHENING THE R&D MANAGEMENT PROCESSES

• Strengthening the R&D management processes can include improving R&D project planning,
identifying the long-term technical capabilities needed within an R&D organization, improving the
design of products, and setting higher standards related to carrying out technical work.
 ESTABLISHING PRODUCTIVE RELATIONSHIPS WITH OUTSIDE GROUPS

• Most R&D organizations in food-processing and beverage companies are still learning how to
work effectively with groups outside the R&D organization as well as outside the company itself.
• Working productively with outside groups, however, depends only partially on being able to
recognize one’s technical limitations.
• To work productively with outside groups also requires such other abilities as being able to build
trust, to listen to and accept alternative viewpoints, and to work cooperatively over an extended
period of time with groups that have different goals.
• An R&D organization of a food-processing company has a well- defined practice of using another
type of outside expert—a technical consultant—to solve practical problems.
 IMPROVING THE INFRASTRUCTURE OF THE R&D ORGANIZATION

• The infrastructure of an R&D organization involves the various systems that support the day-to-
day work.
• A common element in many of these systems is the creation and transfer of information within an
R&D organization.
• For example, an R&D project management system can help everyone in an R&D organization gain
a better understanding of what is being done.
• A computer information system, on the other hand, provides a way in which all R&D people—
particularly R&D people at a variety of sites—can exchange information.
 CRITERION FOR THE SELECTION OF R&D PROJECTS

There has been considerable work on systems for selecting R&D projects.

Such approaches generally evaluate existing project in order to recommend supporting the best projects and
downscaling the rest.

The R&D management evaluate project based on the criteria such as

• “QUANTIFYING THE PROBABILITY OF A PROJECT BEING TECHNICALLY AND COMMERCIALLY

SUCCESSFUL.”

• “IF THE PROJECT WERE TECHNICALLY SUCCESSFUL, ARE THE RESULTS LIKELY TO BE USED?”
• “IF THE RESULTS OF THE PROJECT ARE SUCCESSFULLY IMPLEMENTED, HOW MANY EXTERNAL
(PAYING) CUSTOMERS ARE LIKELY TO USE IT?”
• “WHAT ARE THE KEY DIMENSIONS ON WHICH THE TECHNOLOGY PROMISES TO DELIVER VALUE
TO THE COMPANY?”
• “QUANTIFYING THE BENEFITS OF THE PROJECT IF IT IS SUCCESSFUL..”

• “IF THIS PROJECT IS NOT IMPLEMENTED, WHAT OTHER TECHNOLOGIES, IF ANY, WILL THE COMPANY
IMPLEMENT INSTEAD? HOW WILL THIS LIKELY ALTERNATIVE PERFORM ON THE KEY DIMENSIONS?”
 TECHNOLOGY DEVELOPMENT PROCESS”

● It is the process by which technology is generated or developed by various entities.

● In some countries technology is mainly generated by government owned research
institution, universities and other bodies with a lesser contribution coming from
private sector.
● In some technology is mainly developed by private sector.
● Technology development depends upon the technology strategy of the organisation
or enterprise.
The technology strategy of the organization sets the direction of technology
development in the organization and to some extent also influence technological
strategies of competitors as well.
● At organizational or enterprise level, generation of technology is both individual and
group activity, but its management is solely on organizational responsibility.
● Technology through a process of creativity, innovation and invention.
 QUESTIONS
• Define research development?
• Brief note on research development?
• Brief note on function of research development?
• Short note on key practice of research development?
• Short note on IMPROVING THE SELECTION OF R&D PROJECTS?
• Short note on TECHNOLOGY DEVELOPMENT PROCESS?