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A functional prototype A "practical model" is essentially the same thing as a "functional prototype." Both terms refer to an early version of a product or system that has been designed and built in order to test its functionality, performance, and usability. By using this type of model, designers can identify any issues or flaws before moving on to full-scale production, saving time and resources in the long run. In summary, a practical model or functional prototype is a crucial step in bringing an idea to life.