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Current products can be modified using a completed Product Development project. This can be used to improve a product to more closely meet the changing needs of a segment. Alternatively a modification may be used to introduce a redesigned product that has the same physical characteristics but has been re-engineered to simplify production and reduce unit prime cost.
Product Development Projects
To modify a product, you must first have completed a product development project for it. Product development projects take one year to complete. As product development projects do not always succeed in producing a design which meets your specifications, you will want to review the results of the development project before modifying the product.
In situations where finished goods exist for a product that is modified the obsolete stocks are automatically dumped at prime cost.