Should We Keep Investing in R&D?

Sure curtail R&D let the competition bear the burden...

Your study seems valid, and for certain, many companies do 'cut backs' in a very illogicial and indiscriminate way.

In one former company, during a 'recession' the ENTIRE 'Advanced Research' group was eliminated. "Foolish," I thought ... and proven correct years later as that major brand has dwindled into a much lower position on the scale of brands. Too bad, in that case, that company didn't more thoughtfully move and adjust staff in a better way as not to totally elimiate that function.

But, that said, it also depends on the circumstances. There are many companies today in very dire straites, and sometimes very severe sacrifices must be made. It's probably not the right time to think about your initial objective of "draining the swamp" when you're up to your arse in aligators. I know one company who has had to make some of these difficult decisions (including wage cuts ... up to 100% in the case of the owner), but I also know that if they survive, they will do all they can to re-estabilsh their former capabilities and directives. Just that sometimes the tough choices have to be made.

It isn't always easy ... I just reduced my engineering staff by about 40%, and juggling folks to stay alive is tough, but I have the task, and we do the best with what we have. There are some 'links' in the chain, that if elimiated ... well ... there is no chain anymore, just a pile of disconnected 'links'.

Kind regards ...

Hello DCaD,

hope you are well?[

You make some good points.

=

GA to you Sir.

With regard to R&D, there is often a blurred area here.

Is it R&D or is it the usual 'testing' we need to do to our product to make sure it is as it was supposed to be?

Take care my friend.

Is it R&D or is it the usual 'testing' we need to do to our product to make sure it is as it was supposed to be?

It's testing, which is part of standard process monitoring that may in turn spin off a process improvement project. It's the basic cost of doing business in your chosen field like a race team has to spend for tires. That should be part of the quote to make the product in the first place just like the cost of elctricity or maintenance. It's called Quality, but I'm sure accounting considers it a waste. You have to determine how close the product actually matches the model and/or print specified on the purchase order and sometimes determining if the model and print even match each other!

Hello markar,

Following on from your post ＃7,...................

I know what you mean. And unless a "Bible Copy" is kept, to make reference to when the same order is repeated, unless you are the one who is making it, there is no reference point?

I used to work to a 'fit'. Now whether that was to the nearest .10 of a mm mattered not. The fact is I was making the product all the time and knew what the overall size should be but, still checked and double checked the product before I sent it to the customer.

It is not rocket science, I just knew what to do. The items I measured and made a copy to fit were a dead fit. Not loose not tight, just right. I do not see how anyone can feel 'proud', (if that is the right word) when they are sending stuff out that is 'near enough'. What happens when the job repeats and you measure from the 'near enough' sample? Well, if another sample is set up and made which is 'near enough', it could be one or two or more mm too long or too short?

Take my friend.

Absolutely!

A few companies have shut down all but R&D due the current economic climate and future incertainty.

Hello all............

I am surprised more companies who make similar items, like for instance DVD players, or 'Bearings' do not combine their R&D!

I would think this to be perfectly valid. Just think how much 'real money' could be saved. And that has to follow onto a saving in the Final cost or Retail Price. Or it should if they were honest and competitive!

"We should actually plan for times like this and have a contingency plan ready for action." For American business, that would be a truly novel approach.

In my experience, accountants first cut maintenance (who needs it if things are bad, we'll catch up later), then they cut R&D (because apparently accountants dont see the need to what is needed to compete in the marketplace). The one place usually not targeted for a RIF is accounting. Oh, and another would be management (basically because they would make an RIF in accounting).

Normally I do not announce a GA.

Sometimes you wonder if stupidity and insanity have any bounds at all.

(We know Greed and corruption don't without intervention.) But you've got to wonder at companies that think that they will survive forever on the original widget.

Loot it, and let it fail is the plan for today.

Still I have to admit that casket companies don't really require all that much innovation and death will increase as a profitable area of investment regardless of innovations.

*R &D is a culture of an organization and not to be directly correlated to the return on investment.

*R&D need not be a specific department with reporting and analytical officers developing data and suggestions to the management.

*R & D goals are to be inherited from the top management, like how to improve ours against competitors- how to bring out a low cost design- what is the strategy of the product after so and so year-how to improve existing efficiency- how to add market value- new additional features implementation etc.

*R & D is a total commitment of the organization in daily work, and the leaders including top management got to nurture this.

* Possible rewarding systems like KAIZEN and an open suggesting and acceptance culture can make organization stronger.

* Performance of set routine works, will lead to boredom and monotony.

* The best way is to trigger people on new ideas and encourage positive plans is by simulation methodology and suitable rewards or asking for a detailed economical way of implementing the idea with expected benefits. That can make suggesting people become more serious and realistic about what they speak about.

*Change and improvement are integral part of organization improvement and R & D activities are saviours for long term health of the company and leaders got to motivate this effectively.

* Well ,cost of R & D it is left for a judicial safe level by critical evaluation.

* An impressive attempt and idea primely originates from the mind first, then comes money. Mere funds alone can not fetch R & D break throughs, but an attitude surely will.