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    04 05 Case Study Instructions

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    wolfdrobe

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    04 05 Case Study Instructions

    Uploaded by

    wolfdrobe
    7 views4 pages

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    7 views4 pages

    04 05 Case Study Instructions

    Uploaded by

    wolfdrobe

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 4

    Product Design and Development Case Study

    PRODUCT DESIGN AND DEVELOPMENT

    CASE STUDY

    BACKGROUND
    You are group of ambitious young graduates who are keen to go into business initially
    in your home market but with the possibility for expansion into global markets. All
    you need is a world beating product idea! And that’s the problem. So far you have
    failed to come up with a viable product! Your potential financial backers are losing
    patience and have given you until the end of the week to come up with an exciting and
    lucrative business proposition. At the end of the week you must deliver a presentation
    to you backers of your product idea and business model. You backers will expect a
    clear presentation of the market need that you are addressing, how your product solution
    works and especially important, what are the costs and expected returns on any
    investment in your business. Only the best will get financial backing but remember,
    your backers are hard-nosed business people who don’t like having their time wasted
    on ill thought out rubbish …!!!

    TASK
    Each team must establish a real need that can be potentially satisfied by a physical
    product. Your product may include software / phone apps etc but must not be
    solely an “App”. When you have your product solution you must then determine
    the likely start-up costs for your business, the potential market size, the expected
    cost of manufacturing your product, its potential selling price relative to any
    similar or competing products product cost and hence the break even point and
    the expected commercial value. All this must be presented in a PowerPoint
    presentation to your backers.

    The teams are effectively in competition as it is recognised that only a few proposal
    will get backing during these difficult times.

    The final presentation, of 10 minutes duration, should emphasise the competitive


    advantages of your presentation but should include hidden slides that show how you
    used Pugh’s selection matrix and other aspects of the course ‘process’.

    TIME SCALE

    A number of meetings have been arranged during the week to undertake the study and
    prepare the presentation for delivery to your backers. The final presentation will be at
    the end of the course. (Usually the last formal session of the module.)

    Page 1
    Product Design and Development Case Study

    Suggested agenda for the PDD case study meetings

    Case Study 1 Expected Output Search for a Market and a Product idea

    Review information & establish your plan for the meetings

    Clear identification of Gap in the market i.e. an issue or opportunity that is not
    currently filled by an existing product.
    Clear Identification of Target Customer – you cannot justifiably design a
    commodity. It may be your product becomes a commodity but it must be designed for
    a target market even if this target market is quite large.
    Mood Board (if time permits) – once you have identified your target market it is time
    to create your product personality. The market size, product sector classification and
    target market will determine the influence on the product design of either the
    ‘products’ personality or the customer personality. It may be the product and the
    customer personality and one in the same or it may be that the product is just to
    appeal to a broader customer personality.
    By the end of the first case study you should have created a clear, precisely worded
    statement of the need you are addressing and clear description of the types and
    expected numbers of potential customers. Working with your primary customer
    group you should write a list of customer requirements for the product.

    Case Study 2 Expected Output Project proposal, design specification and


    target setting and concepts

    Working with various idea generation techniques, develop a range of concepts that fulfil
    the requirements identified in case study 1. You should aim for at least five different
    concepts. You should aim wherever possible to create diagrams showing how the
    product functions and styling sketches of what the product will look like to the
    customer.

    Case Study 3 Product concept selection

     Check whether there are any further design ideas since the last session.
     Use a concept development technique such as ‘Pugh’ reduce the number of
    design ideas under consideration.
     Determine whether the first round of ‘Pugh’ has led to any further new or
    combination design alternatives.
     Repeat the selection process to identify the final design idea.
     If any time remains move on to the next session’s work!

    Page 2
    Product Design and Development Case Study

    Case Study 4 Finalise the design


     Confirm the final product choice, refine and finalise the design.
     Create enhanced diagrams and sketches of the final design.
     Consider design protection approach.
     Check that customer and market needs are satisfied. (Ref.: Design brief)
     Finalise material choice & develop startup and manufacturing costs. (NB
    Deciding to ‘Outsource’ manufacture does not allow you to avoid calculating
    the expected manufacturing costs as you will still need to know whether your
    suppliers per product costs are reasonable!)
     Determine your break even point and the expected commercial value of your
    initial product
     Develop a project plan for your new product introduction process.
     Create a business model canvas to show how you plan to make money from
    your product

    Case Study 5 Project review

     Finalise work not completed in the previous session


     Consider expansion of market penetration and future growth etc.
     Finalise your PowerPoint presentation and email final presentation to the course
    tutor

    Cost assumptions for the CDM case study

    To help provide an equitable basis for the development of the various project proposals,
    a basis for costing is provided.

    Piece Price/Market Considerations

    Home market should be considered the main target. Export markets can also be
    considered however, prices should be assumed to be 10% less than achievable in the
    home market and transport costs/import duty etc. will cost approximately 10% of the
    product cost.

    Capital Costs

    1. Machines - Use the internet to determine the cost of any machine tools needed for
    manufacturing your product in-house. Assume that the machine(s) will be written off
    in 5 years on a straight line basis and, for simplicity, an interest rate of 10% on a bank
    loan to purchase.
    2. Tooling if injection moulding, pressing, forging etc- Assume purchased tooling at a
    cost of £5,000 - £35,000, dependent upon the complexity of the tool and the number of
    impressions. Costs are per tool. (The simplest single cavity injection moulding tool
    would be around £5,000.)

    Revenue Costs

    1. Tooling refurbishment - Allow for £5,000 per tool, every 1,000,000 shots.
    2. Premises (If needed) - Assume £25/square foot/month as a nominal rental cost.

    Production Costs

    Page 3
    Product Design and Development Case Study

    1. Labour - Assumption is that labour is easily available with minimal recruitment costs.
    You should allow a flat rate of £20/hour per person to include all employment costs
    such as national insurance and pension contribution.
    4. Overheads - Assume 100% on material and labour costs.

    Case study final presentations


    During your final meeting, you should finalise a powerpoint presentation of 10 minute
    duration. (As there is limited time available, it is suggested that presentation materials
    should be developed during the ongoing meetings.)
    The presentation should include hidden slides (i.e. slides that are not shown during the
    live presentation) that document the progress of the team during the week, including
    use of Pugh’s selection matrix. These can be based on photographs or scans of group
    paperwork and only have to be reasonably neat and legible.

    The final presentation should include:-

    1. The full names of all group members on the first slide


    2. The market need and customer requirements
    3. Sketch(es) of the final design plus, if appropriate, a model.
    4. Method for design protection.
    5. Business case: including Business Model Canvas, Cost/Benefit analysis.
    Existing assets or alternative investments? Price / market share / value
    proposition, channels to market.
    6. Management: Proposed management process to be adopted. Overall NPI project
    plan.
    7. Tools and techniques to be applied. – Think back to the lessons learnt for
    theLean NPI game.
    8. Future opportunities. Proposed plan to enhance market share, enter new markets
    etc.

    Page 4

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