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Old Main Group

Comprehensive management guide for business, including detailed product group information, financials, and market research data. Cost breakdowns, redesign suggestions, and lessons learned. Hands-on experience for students.

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Old Main Group

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  1. KaLee Allen Mike Berry Jen Dronetti Greg Hofmann Charlie Miracola Business Counterparts: Jeff Drobish Mark Leberknight Ashley Tasker Old Main Group

  2. Business Plan • Authored in Spring 2001 • Overreaching instruction for management of business • Detailed information for six product groups • Financials • Market Research

  3. Old Main FinancialsSpring 2001

  4. Old Main FinancialsSpring 2001

  5. Market Research • A survey of 60 people found: • 52% would pay up to $49 • 22% would pay $50to$99 • 15% would pay $100to$149 • 5% would pay $150or greater • The mean suggested price was:$62.50 • (65% of those surveyed were alumni)

  6. New Market Research • Interviews were conducted of five State College retailers The mean retail price suggested was: $156.11 • 115 Surveys were conducted: (70% of those surveyed were alumni) The average suggested price was$132.50

  7. Product Features: IME I • Features Old Main Replica sculpture • Clock in tower where the clock is located in the actual building • Push button activated projecting and retracting lion • One button to make lion come out, one button to retract lion

  8. Estimated Cost: IME I • Total Cost: $100 (not including machining and labor) • Cost of Materials for Old Main: $60 • Total Weight of Structure: about 15 lbs. • Cost per pound of Stock Aluminum: $1.75 • Total cost includes other preparation • Cost of Materials for Lion Mechanism: $40 • Cost of Motor: $25 • Cost of Clock: $7 • Misc. Costs: $8 • Lion Cost: $4 • Total Machining Cost: $350 • Total Machine Hours: 7 hours • Labor Hour Cost : $10

  9. Redesign Sides should not be solid, too much weight Use Box Tubing for sides Redesign Mechanical and Electrical Components Use a less expensive motor Easy to mount motor Possibly Cast Improvements for Future: IME I

  10. Redesign: IME II • Redesign on overall structure • Smaller clock will be incorporated, which will change overall dimensions to look more proportional. • Tower is not as massive as it was, a little more realistic. • Dimensions of pieces helped ease ordering of pieces close to near net shape for ease in machining, which will help reduce cost.

  11. Redesign: IME II • Redesign of Roof • The depth of the structure is now much smaller, making it more 2-D. • This will reduce the weight of the overall building. • Roof is also being done as a combination of more than one piece, an improvement in the process since last semester.

  12. Redesign: IME II • Redesign of Side Pieces • Side pieces will now be made of extruded tube aluminum, greatly reducing the weight of the structure. • With reduced depth, all of the focus now will be on the front of the structure.

  13. Final Cost Breakdown: IME II • Material Cost (per Old Main): $27.98 • Roof: $12.45 • Building (sides, front, back): $3.39 • Tower: $7.30 • Base: $2.50 • Columns (8): $2.47 • Clock: $6.95 • Machine time and Labor: $90 • Total Cost: $125.04

  14. Lessons Learned: IME I&II • How much is actually involved in designing and prototyping a product from scratch • How to combing efforts in group to put out a final product • How to take constructive criticism • Have a better understanding of the design process of a new product

  15. Lessons Learned: IME I&II • How to take a prototype and make changes to improve the machinability of a product. • How to make changes based on cost, i.e. reduce weight, machine time, material cost. • Understanding how to implement changes for manufacturing. • Understanding the target market’s needs and accommodating them through a product.

  16. IME: Why take it? • Presents students with real life situations, i.e. relationships with vendors, communication with business side. • Entails entire creative process from initial stages of brainstorming to final production of product. • Develops skills of working in teams and ability to work towards a consensus. • Hands on experience.

  17. Old Main FinancialsFall 2001

  18. New Financials • Average Cost Per Unit: Number of units:Price: 12 $140.03 18 $134.15 24 $127.59 100 $127.23 200 $126.00 500 $125.27

  19. New Financials • Net Income (after taxes): Number of units: Net income: 12 $1,082.76 18 $1,710.92 24 $2,410.47 100 $10,073.37 200 $20,348.39 500 $49,434.98

  20. New Financials • Absence of expenses: • No depreciation • No licensing • No plant/maintenance

  21. New Financials

  22. Questions/Comments??? Accepting Job Offers

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