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The relationship between system theory and the product design, the process of product development has been described. It compared the merits and demerits of serial and parallel product development processes and, with the guidelines of system theory, put forward and analyzed the planning actions and corresponding necessity existed in the indistinct initial phase in product development process. It also analyzed the optimizing effect of planning actions in product design & development process. Thus, it obtained the model of product design & development process based on system theory so as to clarify the indistinct initial phase, shorten product development time and, improve the effectiveness of enterprise's product development.