It can be argued whether phase 1, product management, is part of the product-family-engineering process, because it could be seen as an individual business process that is more focused on the management aspects instead of the product aspect. However phase 2 needs some important input from this phase, as a large piece of the scope is defined in this phase. So from this point of view it is important to include the product-management phase (phase 1) into the entire process as a base for the domain-engineering process.