Drop Dead Design Review Two

Larry Kreger JD Miknis Lance Hagerman Nicole Szekeres Josh Matz

Jennifer Zechman Jared Cohen Gene Walsh

Business AffiliatesEngineers

Today’s Agenda

Introduce Final Prototype Manufacturing Mastercam Instructions Bill-O-Materials Gantt Chart Cost Analysis and Business Items Conclusion

Show Prototype

TA-DA!

Manufacturing

Legs Cut template out of

Polypro scrap (already made)

Use template to cut Foamies with razor blade

Manufacturing

Spools Cut template out of tin

can (already made) Use template to make

incisions into spool with soldering iron

Safety considerations: Eye protection Gloves

Manufacturing

Pipe Cut pipe with dremmel

by hand Vise causes distortion

6 inch cuts

Manufacturing

Body Cut Plastic with CNC Fixtured on vacuum

plate One to two per set-up

depending on the size of the vacuum plate

Feed rate of 15 ipm Speed of 4000 RPM

Manufacturing

Outsourced materials Stickers End caps Dowel rod Connector Spacers

New Sticker Source

Can do any shape No die charge for short

runs of < 500 sheets both material & ink

(after printing) waterproof

adhesive backed

Benefits of New Stickers

No manual cutting Same cut guaranteed

every time Saves on labor time &

cost Extremely repeatable

process same sheet same printer

Extra material cost justified by increased durability

Increased quality in product holds up better outside

(i.e. rain, scratches) nice smooth edges

Sticker Testing

Assembly Instructions

Assembly Instructions

Assembly Instructions

Assembly Instructions

Assembly Instructions

Bill of Materials

Materials: One ¼ inch dowel rod for post:---------$0.25 One post connector:--------------------$0.90 One 6 inch piece of copper tubing:-----$0.29 Two plastic spools:--------------------$0.40 Two end caps:--------------------------$0.83 One plastic body:----------------------$0.97 4 Foamies legs :-----------------------$0.19 Two body stickers:---------------------$3.60 3 Spacers:-----------------------------$0.69 Packaging------------------------------$0.11 Manufacturing/Labor--------------------$0.44

Grand Total--------------------$8.67

Gantt Chart

Variable CostsMaterial 1 100 200 500Foamies w/ Printing $0.19 $19.00 $38.00 $95.00Copper Tubing $0.29 $29.00 $58.00 $145.00Dowel Rod $0.25 $25.00 $50.00 $125.00Post Fastener $0.90 $90.00 $180.00 $450.00Caps $0.83 $83.00 $166.00 $415.00Spools $0.40 $40.00 $80.00 $200.00Body $0.97 $97.00 $194.00 $485.00Stickers $3.60 $360.00 $720.00 $1,800.00Possible Spacers/Other Hardware $0.50 $50.00 $100.00 $250.00Packaging $0.30 $30.00 $60.00 $150.00Labor and Machine Time $0.44 $33.28 $66.52 $165.09

Total Material Cost $8.67 $856.28 $1,712.52 $4,280.09Unit Material Cost $8.67 $8.56 $8.56 $8.56

Total Royalties Cost $2.40 $240.00 $480.00 $1,200.00Unit Royalties Cost $2.40 $2.40 $2.40 $2.40

Total Variable Cost $11.07 $1,096.28 $2,192.52 $5,480.09Unit Variable Cost $11.07 $10.96 $10.96 $10.96

Fixed CostsLicensing fee $100First-year licensing fee $100Application fee $50Total Fixed Costs $250

Total Costs $261.07 $1,346.28 $2,442.52 $5,730.09Total Unit Costs $261.07 $13.46 $12.21 $11.46

Cost Analysis

Cost Analysis

Fixed Costs Depreciation Variable Costs Price$250 $0 $11.07 $30

Quanity Revenue Cost ProfitAccounting Break-Even 14 420 404.98 15.02Cash Break-Even 14 420 404.98 15.02Actual First Run Production 48 1440 781.36 658.64

Business Items-Downtown

Interested Stores The Penn State Bookstore, Marilyn Lewis

Initially order 72 and sell for $50 McLanahans, Dick Harpster

Initially order 24 and sell for $29 to $39 SBS and Centre County Visitor Center, Norm Brown

Initially order 500 and sell for $40 University Book Centre, Steve Morris

Initially order 24 and sell for $25

Business Items-Downtown

Net sales downtown per year Low end=1122 units*$17.40=$19,522.80 High end=1134 units*$18.40=$20,865.60

Net sales immediately after production Low end=620 units*$17.40=$10,788.00 High end=620 units*$18.40=$11,408.00

Conclusion

Feasible Design Profitable Positive Market Surveys