cordaid urban challenge 2010

Cordaid Urban Challenge 2010

Challenge No. 3: Diversification

Designing a product

Team 8Nalin SulaymanNabila LaleeDymfi de Bruin Chris Mwanzia VundiMillicent Dorte

Outline

• Introduction

• Problem definition

• Approach

• Business Plan

• Conclusions and recommendations

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Introduction

• Why Challenge No 3?– For having a larger verity of bicycles to suit

different needs

– Should be relatively fast to suit the customers’ needs.

– Able to curry heavy luggage

– Should be able to go through maddy roads

– The bicycle should still be easy to ride on rough roads and hilly terrains

– Be female friendly

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Problem definition

• Focused on the following problems:

–Bad transportation opportunities

–Working conditions

–Financial situation

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Approach

• Our Product– An attachment piece for the bicycle: A cart

• The materials– Wood

– Steel

– Aluminium

– Bamboo

• The design

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Approach

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Source: Own construction

Approach

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Source: Own construction

Approach

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Source: Own construction

Approach

12/9/2010 Team 8 9Source: Radar, Bike. Bikeradar.com

Approach

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Source: http://www.inhabitat.com/wp-content/uploads/totiecoed021.jpg

Approach

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Source: (Treehugger, 2010)

Approach

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Source:http://www.inhabitat.com/wp-content/uploads/totiecoed01.jpg

Business Plan

• The product idea

• Implementation of the product

• Key stakeholder in urban transportsector

• Financial Plan

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The product idea

• Why bamboo??– Quickly growing raw material

– Lightly

– Tensile strength almost so high like steel

– Bonding of CO2

– Sustainability

– in great quantities available (Country of origin)

– low flammability and low energy consumption

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Implementation of the product

• Cooperation with:

– Cycling blue workshop

– Victoria Boda-boda co-operative SACCO office

– Bamboo Trading Company

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Key stakeholder

• Institutional clients (like local government and general government; the community we want to work with)

• Local shops

• Local raw material producers

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Financial Plan

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Category Assumptions Comments

Revenue assumptions

Number of supervisors

Average price per Cart

Average price per Seat

Products sold per year

2

25 $

15$

5000

The 2 supervisors hired at the start of the project will work full-time at the

workshop

This is our estimate price for a cart produced by bamboo

This is our estimate price for a seat produced by bamboo

Due to the fact that there are 16,000 Boda-boda operators in Kisumu we

estimate that we will sold a minimum of 5000 of our products

Costs assumptions

Capital expenditures

Direct material costs per Cart

Direct material costs per Seat

Direct labor costs

Overhead costs per year

40 000 $

20$

10$

???

0

These are our estimated costs, which includes the costs of equipment,

transfer costs (communication, bargaining) and rent costs (room in the

cycling blue workshop)

The direct material costs include the costs of bamboo and manufactured

costs for one cart

The direct material costs include the costs of bamboo and manufactured

costs of one seat

We are waiting for an answer of our Kenyan member, who wants to try to

find that out

We will not have costs like this because we are working with a NGO in the

first years

Note: All costs are estimated!

Overview of costs:

Financial Plan

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Year 0-5 (per year) 6 7

Revenue

Number of products

Price per product (cart)

4000

25$

5000

25$

6000

25$

Total revenue 100000$ 125000$ 150000$

Operational costs

Direct material

Direct labor

Overhead

100000$

18000$

0

100000$

18000$

7000$

100000$

18000$

7000$

Total cash flow 18000$ 0 25000$

Support Cordaid 18000$ 0 0

Overview of the financial plan for a cart:

Note: All costs are estimated!

Conclusions & recommendations

• Conclusions:

– Considering all aspects mentioned a cart seems a good solution

– A cart has been designed to accompany the Boda-boda operators

• Recommendations:

– A seat can be made

– Cooperate with government (waste)

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Thanks for yourattention!!!!

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Questions??

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