What happened to this project? What are the factors that contributed to Revcon’s failure to get the product it wanted? For each factor, discuss what might have been done differently.

Revcon Products manufactures valves for controlling the water level in industrial tanks. It had concentrated on products for the construction industry (valves for newly installed tanks) but now wanted to move into the much larger and more lucrative replacement market. Whereas annual demand for new valves is about 100,000, it is about 1 million for replacement valves. The company envisioned a new valve, the Millennium Valve, as a way to gain a share in the tank-valve replacement market. Revcon’s objective was to design and produce the Millennium Valve to be of superior quality and lower cost than the competition. Revcon decided to outsource the development and design of the new valve. It prepared an RFP with the following objectives and requirements:
Product objectives:
• Innovative design to distinguish the Millennium Valve from competitors’ valves.
• Price competitive but offer greater value.
Market (user) requirements:
• Ease of installation • Non-clogging • Quiet operation • Ease in setting water level • Adjustable height.
Revcon sent the RFP to four design companies and selected Welbar, Inc., primarily based on it being the lowest bidder. Welbar’s proposal was written by its sales and marketing departments and revised by senior management but with no input from industrial designers, engineers, or anyone else who would work on the project. Welbar had no prior experience with industrial water valves, but its sales team saw Millennium as an opportunity to earn profits and align with a major equipment manufacturer. The marketing department prepared time and cost estimates using standard tasks and work packages from proposals for old projects.