A Sample Economic Model Spreadsheet
The following spreadsheet is an example of an Economic Model. You can share it with your Finance Department if they want to see what one looks like. Of course, I do not recommend you use my format — the best choice for any organization it to use a format that is identical to the financial statements that management uses on a daily basis. People are comfortable with what they know,
Download: DGR Economic Model Format Sample 8-13-12
An Interactive Economic Model
If you want to further develop your intuition about how certain inputs affect life cycle economics you might try out this spreadsheet. It gives you a chance to adjust key assumptions and see how these affect profitability.
Download: DGR Interactive Economic Model 8-14-12
The Principles of Product Development Flow – Chapter 1
Don’t buy the book for somebody who won’t read it. Instead, you can download the first chapter for FREE. Did I mention that small batch sizes reduce risk? (See Principle B4: The Batch Size Risk Principle.)