What is product life cycle?

We always hear about the product life cycle in manufacturing and marketing. But What is the product life cycle?

The product life cycle is the duration of the product from an idea to the end of the product’s life. Which include designing cycle, manufacturing cycle, and sale cycle. Since there is a cycle, then there is a time limit for the product you are planning to manufacture. The product’s life cycle is 100% and if you divide the time percentage between 3 cycles, it will be 33.33% for each cycle.

So, if you want to extend your sales cycle, what do you need to do? You need to shorten your manufacturing cycle or designing cycle. Let’s take this example, you have an idea for a product and your product’s life cycle is 12 months. So each cycle is 4 months. Let's say you shorten your design cycle from 4 months to 2 months. Then you add 2 months from your designing cycle to your sale cycle which will be 6 months

Now you have more time to sell your product.! But what if you can shorten your manufacturing cycle to 2 months? Now you’ll  have:

Design cycle 2 months

Manufacturing cycle 2 months

Sale cycle 8 months

The sale cycle has increased to almost 66.6% which means you have 66.6% of your product lifetime on sale cycle.

I am sure now you understand the benefits of a shorter design and manufacturing cycle will benefit your company.

Keep in mind that the opposite is true. Which means if your designing cycle and manufacturing cycle take more than 4 months for product cycle then you will end up with less sale time for your product.

Of course, products are different from each other but this is an example of an easy and simple product.

In the next podcast ,I will go over specific benefits of the product short cycle.

See you next podcast.

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