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The development of new products must be planned on the basis of a long-term evaluation of customer requirements, financial analyses and the growth targets of the Group.
All research and development projects must be properly managed. Product function, cost price and the keeping of time schedules and budgets are important parameters.
The Grundfos Business Development Centre is responsible for building up and expanding the technological readiness within areas of priority. The research and development function shall utilize the latest available knowledge.
In principle, research and product development shall take place centrally. Small research and development departments may be established in individual companies when justified by special circumstances and after approval by the Group Management.
The research and development function shall concentrate its efforts on the development of products in accordance with the business concept of the Group.
With regard to function, quality and price, the products must contribute towards ensuring that the Group will continue to be a trendsetter within its range of products.
Existing products must be continuously analysed in order to improve functions, quality and cost-effectiveness.
In all product development and improvement Grundfos will endeavour to develop the most energy-saving and cost-effective products. The integration of electronics should always be considered.
Product development shall follow the common project process for integrated product development and will normally be carried through by cross-functional teams under one common project manager.
The separation of the technology development and product development will ensure short development times and fixed time schedules. New products shall always be developed on the basis of known technology.
Where possible, the products shall be designed with re-use or recycling in view. It must be possible to dispose of both the product and the packaging in a safe way.
Product design is an important element in the Grundfos brand. The product design will be maintained and improved through a common design policy.
It is important to ensure that Grundfos’ know-how within product development and production processes is not made available to unauthorised persons.
The Group will primarily develop its own purpose-built machines and equipment whereas standard production equipment shall be purchased. The design of the above equipment must be coordinated with the research and development function.
The development function shall aim at obtaining a high degree of added value. The product design and construction must contribute to low total costs including low service costs. Stainless steel is a characteristic Grundfos feature and should be used as engineering material as far as justified by technical and financial considerations.