What to expect – steps, costs, time lines

The following outlines the typical phases of product development including steps, costs, and timelines.  The purpose of this document is to prepare new or potential MicroTools’ customers with a high-level view of how an idea becomes a professionally manufactured product.

While the costs will vary based on project-specific needs, the ranges listed should provide a guideline to the order of magnitude development costs.  Note that not all product aspects shown are needed for all projects.

Introductions

• Who we are, what we do, how can we help you with your project

Non-Disclosure Agreement (NDA)

• Protects your ideas before sharing them with us
• MicroTools has an NDA or we can use one of yours

Initial product meeting

• General scope of your project, your goals, and your product time frames
• Definitions of the general product requirements
• Explanation of the MicroTools’ Agile Methodology
• Presentation of topics included in this document
• Mutual Product Development Agreement
• Planning of next steps

Kick-off meeting

• Changes to overall project budget or timeline
• Discussion of resources and working locations (at MicroTools or onsite)
• Review the proposal
• Review payment plans and invoicing
• Mutual Product Development Agreement
• Plan for initial iteration of development

Product Conceptual Design ($20k – $50k, 2-4wks)

• Produce industrial design concepts (drawing / sketches)
• Create user story boards
• Create user experience profiles
• Market placement / competition analysis

Software/Firmware development iterations ($7.5k/wk for developer & tester, up to $20k – $500k, 3-50wks)

• Prioritize a list of features you want for this product
• Group the top features for this iteration’s release
• Define timeframe
• Development, testing, documentation, release
• Customer feedback, refinements
• Repeat as needed to add desired complexity and features

Circuit board build iterations ($6k/wk for designer, up to $10k – $100k, 2-16wks)

• Part / component selection
• Design schematics
• Design review
• Board layout ($1k – $4k)
• Build x boards ($1k – $4k, 1-6wks)
• Check-out / Test boards
• Make board modifications and/or update schematics or layout
• Repeat as needed (at least 2 board iterations are typical)

Mobile App Development  ($20k – $300k, 3-50wks)

• Design screens, GUI, look-and-feel
• Determine supported platforms (i.e. iOS, Android)
• Specify features and functionality
• Present mock-up screens for review
• Development, testing, release

Connectivity

• Internet access fees (e.g. cellular data plans, $1-2/month per device)
• Provisioning / Setup device accounts with network carrier

Hosted server (Internet Cloud server)

• Server-side software development ($9k/wk per developer & tester, up to $50k – $500k, 3-50wks))
  • Back-end database
  • Front-end web browser access
  • Interfacing with other packages
• Server hosting with maintenance (recurring monthly charges, $500 – $1000)

Enclosure

• Industrial designs (e.g. concept drawings) ($20k – $50k)
• Product prototype model (3D printing)  ($5k – $20k)
• Iterative process
• Low –volume injection prototype “soft” mold  ($5k – $20k)
• Production-volume injection mold  ($50k – $100k)
• Production part costs
• Wiring / cables / external connections

Certifications

• Safety (UL) ($20k – $50k)
• RF (FCC) ($5k – $20k)
• Cell carrier  ($1k – $50k)
• Medical (i.e. FDA) ($50k – $250k)
• Make necessary board/software changes per testing results

Final Testing

• Independent Verification and Validation (IV&V)  ($10k – $250k, 4-12wks)

Manufacturing

• Device assembly (contract manufacturer)
• Board-level tests (software)
• Test harnesses / fixtures (hardware)
• System level testing

Future Phases/Efforts

• Hardware cost reduction
• Hardware component replacement (end-of-life)
• New technologies
• New product features
• Spin-off products

NOTE: all costs typically double for Medical Devices due to regulatory specifications and documentation.