Fall 2012- Global Manufacturing
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This document proposes a customizable smartwatch called MyWatch. It would allow for [1] customized appearances with different colors, styles and materials, [2] multiple functionalities like GPS, heart rate monitoring and music playback through interchangeable modules inserted into the watch band, and [3] easy wireless charging. A reconfigurable manufacturing system is proposed using modular and convertible equipment to produce a variety of watch designs. Initially targeting the health and outdoor enthusiast markets, the financial plan projects sales of 100,000 units in year two with revenues reaching $60 million by year five. Customer benefits include extensive customization options, a two-year warranty and opportunities to improve the watch over time.
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Fall 2012- Global Manufacturing
- 1. My Watch: Personalized Watch Group 8: Aniruddha Mysore Srinath, Huanyi Shui, James Buquet, Narasimha Swamy, Yuhao He
- 2. Introduction
- 3. Introduction • Customized Appearance • Fashion Style and Colors • Multiple Functions • Insert all functional chips into the watch band • Easy for Charging • Solar Cell • Wireless • USB wire
- 4. Watch Appearance Design Band Material: Plastic, Leather, Stainless steel Band / Case Color: white, black, red, yellow, purple, green, blue… Case Shape: Rectangle and Circle with 30 or 35mm diameter
- 5. Basic Models GPS (location, speed, displacement) Heart Rate Monitor Music Player & Bluetooth Outside temperature Heart Rate Monitor Body temperature UV indicator on face Emotion sensor: face color changes
- 6. Basic Models GPS (location, speed, displacement) UV indicator on face Tidal info: location-dependent Flashlight Outside temperature Altitude GPS (location, speed, displacement) Music Player: headphone jack & Bluetooth World time Automatic time keeping
- 7. Optional Functions GPS Music Player Heart Rate Monitor UV Indicator on Face Flashlight Outside Temperature
- 8. Strategy & Non-strategy Component Strategic components Non-strategic components Arm band Materials: Plastic, leather, Watch case structure stainless steel, glass, paint, Firmware copper Mechanical connection Electric modules: chips Electrical communication (processors, GPS, sensors) connection Batteries LCD display
- 9. Initial Target Market Share 0.1% of the Digital Watch Market i.e. about 100,000 watches per year
- 12. Reconfigurable System Customization • Product families: Watch shapes and metal wrist bands • CNC Milling Machines • Product family: Different microchips are placed inside of wrist bands • Robotic Assembly
- 13. Reconfigurable System • Modularity • Material removal (CNC machines, plastic sawing, leather sawing) • Microchip assembly • Material joining (welding, gluing, and stitching) • Watch Assembly • Extra (plastic molding, laser engraving, painting) • Convertibility • New watch shapes and styles • New wrist band materials • New functionalities - Add in parallel to existing system • Integrability • Conveyors and mobile carts
- 15. The MyWatch Business Model
- 16. Competitive Advantage • Differentiation from Competitors • Huge variety of combinations • Ordering experience • Create watch online or in store • Customization • Broad selection and personalization • Fits the customer’s desires and needs Images borrowed from Casio Computer Co., Ltd. And Movado Group
- 17. Business Strategy • Product Scope • Rationale : the scope of multi functional watch is huge. Current products have very little customizability • Main strategy- offering customers with customizability and choices • Target market • Athletes, health conscious people, business professionals, outdoor activates enthusiasts
- 18. Market Analysis • Primary sources • Alibaba • World watch production statistics • TARGET Price band • $150-$500 • Target market share: • 0.1% of the Digital Watch Market (i.e. about 100,000 watches per year)
- 20. 60% 60% ~75% But ! - Loss of jobs Consider on a case-by- - Long term loss of skill sets case basis - Higher Operational risk
- 21. The MyWatch Financial Plan
- 22. Financial plan- Best case Scenario 2013 2014 2015 2016 2017 2018 2019 No. of units sold (nos) 50000 100000 110000 120000 130000 140000 150000 Sales Price ($) $ 350 $ 350 $ 350 $ 400 $ 400 $ 400 $ 400 Total Revenue revenue ($) $ 17,500,000 $ 35,000,000 $ 38,500,000 $ 48,000,000 $ 52,000,000 $ 56,000,000 $ 60,000,000 $ Fixed cost ($) $ 2,767,000 $ 2 ,767,000 2,767,000 $ 2,767,000 $ 2,767,000 $ 2,767,000 $ 2,767,000 ~ Variable cost ($) $ 8,750,000 $ 17,500,000 $ 19,250,000 $ 24,000,000 50000 $ 28,000,000 $ 30,000,000 Cost Total cost ($) $ 11,517,000 $ 20,405,350 $ 22,017,001 $ 26,905,351 $ 28,767,002 $ 30,905,352 $ 32,767,003 Profit $ 5,983,000 $ 14,594,650 $ 16,482,999 $ 21,094,649 $ 23,232,998 $ 25,094,648 $ 27,232,997 $70,000,000 Cost Variable cost ($) Cost Fixed cost ($) Revenue Total revenue ($) Profit $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 2013 2014 2015 2016 2017 2018 2019
- 25. Relationship Dynamics Improve Sell the the product product Analyze Collect customer customer feedback feedback Customer Benefits
- 26. Customer Support, Information & Insight Market • Online survey survey • Market analysis • Follow-up Customer satisfaction feedback • Sales analysis • Telephone Customer support support • Free two-year warranty Customer Benefits
- 27. Pricing Structure New MyWatch • Customized appearance & functionality • $150-500 Warranty • Free two-year warranty • Extended lifetime warranty $50 Improve After Sale • New watch body $50-100 • New watch band $50-300 Customer Benefits
- 29. Management & Organizational Structure
- 30. Any Questions? Thank you
Editor's Notes
- This system can manufacture to meet customer’s customization requirements.Two product variants are shown. One is a metal watch with leather wrist band, the other is a plastic watch with a plastic wrist band.
- - *Customization - the design of system or machine flexibility limited to just a product family, thereby obtaining customized-flexibilityThey have similar geometric features and shapes, the same level of tolerances, require the same production processes, and are within the same range of costCan use same tools on CNC machines to make different watch cases and different metal bands
- Modularity - the compartmentalization of operational functionsIntegrability - the ability to integrate modules rapidly and precisely by a set of mechanical, informational, and control interfaces that enable integration and communication into units that can be manipulated between alternate production schemes to achieve the most optimal arrangement*Convertibility – the ability to easily transform the functionality of existing systems, machines, and controls to suit new production requirementsSystem level conversion includes integrating new machines and extending reach of gantries to expand the range of a system functionality to produce new parts.Example: New band material can be implemented in parallel to the current system
- *Scalability - the ability to easily modify production capacity by adding or subtracting manufacturing resources (e.g., machines) and/or changing the reconfigurable components of the systemScalabilityExtra floor space for:Machining toolsPainting resourcesAssembly tools and workersAdded floor space for scaling-up production capability