Why Have a Lab Portion?

Why Have a Lab Portion? • Multiple choice exams • Learning styles – learning by doing • Project helps with these skills • Research, problem solving, logic application • Cross-functional thinking, professional writing • Presentation skills, team work, project mgt. • Thinking on your feet, quantitative tools • What will this do for you?

ISQS 3344 Lab ProjectPart 1

Part 1 Goals • Overall objectives • Outline corporate and business strategies • How strategies support market niche • Forecast production requirements • Discuss production capacity strategy

#1 – Mission Statement • What type of business or class of products • Who will customers be (demographic) • Organizational values • Future path of organization (specific products)

#2 – Customer Benefit Package • Concept development • Detailed description of product (diagrams, pictures, etc.) • Define CBP….Attach CBP diagram • Break even timeline (details later)

#3 – Strategy Development • Environmental scanning market niche • Customer and Market requirements for your product – • What does it take to get you into the market? • Order Winners – what convinces the customer to buy? • Competitors and other threats – Who are they and how to overcome

#4 – Business/Corporate Strategies • What will you compete on? • Cost • Time • Innovation • Quality • Flexibility • What core competency enables you to compete? • How do you maintain/support your core competencies?

#5 - Product Design • Preliminary design and testing - stages • Final Design – raw materials and equipment required to manufacture

#6 - Forecasting • What company and why? • Past 5 years data from this company • Attach linear regression formula and graph • Attach table of next 5 years forecast for company selected • Pick and defend a % of their forecasted sales for your 1st five years sales • Attach table of your 5 year forecast

#6 cont. Checking Forecasts • Select POTENTIAL (example only – hasn’t happened yet) sales for next 5 years • Attach Calculation of MAD and Tracking Signal • Explain meaning of results • Discuss relevancy of seasonality • Attach 1st year as a seasonal forecast if appropriate

# 7 - Break Even Analysis • Describe breakeven analysis • Attach fixed cost (annualized for 5 years), variable costs, and sales price per unit • Attach breakeven analysis calculated in units • Attach breakeven timeline based on your forecast

#8 - Production Capacity • Discuss production capacity for next 5 years in comparison to demand forecast • Defend amount of safety capacity • Describe expansion plans if necessary

Part 2

Part 2 Goals • Select production facility location • Select production layout type • How process will work • Value Chain • Incorporation of JIT

#1 - Location Analysis Steps • Brief summary of product • Support choice of at least 2 potential locations • What factors are relevant • Defend factor weights • Tie in 1 factor to core competencies or competitive priorities

#1 cont. - Factor Rating Analysis • Rate each location and defend rating • Summary of decision • Picture of facility

Factor Rating

#2 - Value Chain • Gaining a customer • Keeping a customer

#2 cont. • Describe supply chain • Supply chain diagram • What parts of your supply/value chain affected location decision

Pre- and Postservice View of the Value Chain #2 #3 #4 (Raw mtls. + manufacturing + customers) #1 #5 Supply Chain

Supply Chain Example

#3 - Manufacturing Process Selection • Process, product, or hybrid (which part product and which process) • Support process type decision • Tie in competitive priorities or core competencies

#5 - Process Layout Diagram • Describe how it works • Space • Output • Example

* * Cutting Receiving Supplies Shipping 10 x 12 15 x 15 15 x 15 * * Bending Storage Storage Storage 10 x 12 8 x 10 x 4 8 x 10 x 4 8 x 10 x 4 * Cloth Fitting * * Assembly Nuts and Bolts * * Final Packaging 10 x 10 Inserting 5 x 6 * 10 x 8 Cloth Fitting 12 x 10 10 x 12 10 x 10

# 6 - JIT Usage • At least 3 components - discuss • Team concepts – how utilized

Why Have a Lab Portion?