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CONCORDIA UNIVERSITY
GINA CODY SCHOOL OF ENGINEERING AND COMPUTER SCIENCE
DEPARTMENT OF MECHANICAL
INDUSTRIAL AND AEROSPACE ENGINEERING
MIAE 380- PRODUCT DESIGN AND DEVELOPMENT
Professor(s) : Dr. Ashok Kaushal and Dr. Gabriel Taraboulsi
ASSIGNMENT 3
Note : Please provide all references for any data/facts used for the assignment
Question 1
You are developing a product that will mainly benefit owners of single detached houses.
You conclude that you can capture 10% share of the market, in Quebec first and
eventually the whole of Canada. Estimate the market size and your share for the
province
of
Quebec
and
Canada?
(20 Marks)
Market Share = Total Company Sales / Total Industry Sales
From the data collected by the Canadian government [3] we can learn the estimated number of
potential customers in every province For single-detached houses representing 45.4% of Quebec Occupants, we can calculate that the number
of houses to be equal to 1,603,374 and this can represent the market size.
Thus, for 10% of the market in Quebec the total Estimated Market Share in Quebec is 160,337 houses.
Approximately 160,000 houses.
And for 10% of the Market in Canada, By using the data from [3] that 14,072,080 houses are occupied private dwellings, and single-detached
houses represent 55.6% of that.
Thus, the Market size = 14,072,080 x 55.6% = 8,184,365 houses
And for a market share of 10%, we can calculate that market share = 8,184,365 x 0.1 = 818,437 houses,
approximately 820,000 houses.
Question 2
Identify five (5) modular products that you use daily and explain what makes them
modular?
-Electric toothbrush
-Car
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-Computer
-PS5
-Controller
They are all modular products because they are divided into smaller parts called modules. These parts
can be independently created, modified, replaced, or exchanged with other modules.
(5 Marks)
What are the advantages and disadvantage of a modular products?
The advantages of modular products are the simplicity and reusability for a product family or platform.
The other advantages are that by dividing products into modules, the production process of multiple
modules can happen at the same time which reduces the production time. The disadvantages are that
new technologies are limited because the product needs to be compatible with it in order for that
specific module to be replaced. Another disadvantage is that when a certain module breaks down, it can
be really expensive and complicated to replace It therefor It becomes and con.
(15 Marks)
Question 3
You are tasked to test multiple concepts of a stroller for babies. The designs are at their
early phase List the survey formats that are commonly available to test a product in the
concept testing phase and briefly explain the benefit of each one.
Recommend the format that you will use and justify your choice. (20 Marks)
Survey Format
Benefits
Online Surveys
Online surveys are cost-effective and can
reach a large audience quickly. They allow respondents to provide feedback at their convenience, making it a flexible option [1].
Personal Interviews (face to face)
Interviews enable in-depth conversations and the observation of participants' reactions. It allows for a deeper understanding of their thoughts and preferences [1].
Focus Groups
Focus groups bring together a diverse set
of participants for group discussions. This
format encourages interaction and the exchange of ideas, providing insights into different perspectives [1].
Prototype Testing
Having physical prototypes for hands-on testing can provide direct, tangible feedback. Participants can interact with the product, helping to identify usability issues and preferences [1].
Observational Studies
Observational studies involve watching participants use the product in a natural
setting. This format provides insights into user behavior and identifies potential design flaws that may not be apparent through self-reporting [1].
Phone Interviews Phone interviews offer a more personal touch than online surveys. They allow for open-ended questions and clarifications, fostering a deeper understanding of respondents' opinions. [2]
Choice: Online Surveys
In the context of testing multiple concepts of a baby stroller in the early phase, we chose
to employ online surveys as a survey format. Online surveys offer a broad reach, efficiently collecting diverse opinions from a large audience, with the potential for honest
and unbiased feedback due to participant anonymity [1]. This method is cost-effective and time-efficient, enabling the rapid gathering of data from a substantial number of respondents. Additionally, the convenience of online surveys allows participants to engage at their own pace, potentially increasing the overall response rate. The quantitative nature of the data collected through online surveys provides valuable insights into trends and preferences, aiding in the identification of key features that resonate with the target audience. Overall, the use of online surveys as a standalone method is well-suited for obtaining a broad understanding of user opinions and preferences during the early concept testing phase of baby stroller development [1].
Question 4
You want to estimate the manufacturing cost of a galvanized tie plate available at Home
Depot with the specifications listed below:
Figure 1: Simpson Strong-Tie TP 3-1/2 inch x 9 inch 20-Gauge Galvanized Tie Plate | The
Home Depot Canada
The tie plate is 3.13”x9” and has a thickness of 0.04”. It has 41 holes for nails. You can
produce 550 pieces/hour. The tooling cost is $250k. The press cost is $160/hr. This is
an automated process, and the setup cost is negligible.
Estimate the manufacturing cost for the tie plate for : (ignore the cost of galvanization)
a)
100K pieces
b)
1 M Pieces
c)
10 M Pieces
Assume any missing data and justify your assumption(s
) (40
Marks)
Some of the assumptions we have considered during calculating are:
Tie Plate is manufactured using steel.
Cost of steel per pound is $0.42.
Density of steel per pound is 0.283 lb/in³
Overhead cost is 20% of total manufacturing cost for any number of units sold.
The cost per unit remains the same.
Category
Definitions
Material Cost
The cost of steel used to make the tie plate. The cost vary based
on market price.
Tooling Cost
Given $250k fixed cost amortized over the number of pieces
produced.
Press Cost
Given $160 per hour
Overhead Costs
Includes utilities, maintenance, indirect labor, and more. We will
assume a certain percentage of the total manufacturing cost for
overhead.
Quantity
The cost per unit can decrease with the increase in quantity due to
economies of scale.
a)
Category
Calculations
Results / unit
Material Cost
V = 3.13” x 9” x 0.04”
W = 1.1268 x 0.283
M.C = 0.3189 x 0.42
$0.13393
Tooling Cost
T.C = 250000/100000
$2.5
Press Cost
P.C = 160/550
$0.291
Overhead Costs
20% of manufacturing cost
$0.585
Quantity
100,000
$3.5098 * 100,000
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Total Manufacturing Cost
$350,980.86
≈ $351k
b)
Category
Calculations
Results / unit
Material Cost
V = 3.13” x 9” x 0.04”
W = 1.1268 x 0.283
M.C = 0.3189 x 0.42
$0.13393
Tooling Cost
T.C = 250000/1,000,000
$0.25
Press Cost
P.C = 160/550
$0.291
Overhead Costs
20% of manufacturing cost
$0.076786
Quantity
1,000,000
$0.46072 * 1,000,000
Total Manufacturing Cost
$460,717.74
≈ $461k
c)
Category
Calculations
Results / unit
Material Cost
V = 3.13” x 9” x 0.04”
W = 1.1268 x 0.283
M.C = 0.3189 x 0.42
$0.13393
Tooling Cost
T.C = 250000/10,000,000
$0.025
Press Cost
P.C = 160/550
$0.291
Overhead Costs
20% of manufacturing cost
$0.089968
Quantity
10,000,000
$0.5398 * 10,000,000
Total Manufacturing Cost
$5,398,086.47
≈ $5.4 million
According to the calculations, we can see that the tooling cost reduces as the number of
units manufactured increases. While the material & press cost are fixed for any number
of units. Economies of scale are observed when more units are manufactured. The net
profit increases as more units are sold in the market.
References
[1]
I. Brace, Questionnaire design: How to plan, structure and write survey material
for effective market research, 4th ed. London, England: Kogan Page, 2018.
[2]
Tucker, C. & Lepkowski, J. M. Telephone survey methods: Adapting to change.
Advances
in
Telephone
Survey
Methodology
1–26
(2007).
doi:10.1002/9780470173404.ch1
[3] S. C. Government of Canada, “Census in briefdwellings in canadacensus in
briefdwellings in Canada,” Census in Brief: Dwellings in Canada, Census year
2016,
https://www12.statcan.gc.ca/census-recensement/2016/as-sa/98-200-
x/2016005/98-200-x2016005-eng.cfm
(accessed Nov. 22, 2023).
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