Assignment 3_Sept_2023 (1)

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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).