(280d) Outsourcing Scaleup: Developing Value through Synergistic Collaboration

Process research and development in the pilot plant is an essential part of most new product development programs. However, gaining useful time in the pilot plant is sometimes a challenging prospect since many pilot facilities also serve as small-scale production units and have limited capacity and process capabilities. In order to determine the most efficient way to manage process development activities, many factors should be addressed well in advance of the piloting stage (opportunity cost and prioritization, capabilities and expertise, capital expenditure limitations, confidentiality, corporate constraints, etc). Understanding the relationship between all tangible and intangible issues is key to making appropriate spending decisions. This paper will identify a decision tree tool and examine the precise questions to ask in order to determine which piloting path to take.