Da Vinci Project Phase 2 BUS 425 The idea behind this project is to make sure you have the necessary understanding of how facilities layout and design works. With that in mind, we will take the product you researched and decide what is the best type of facility to use to build it. You will define and analyze your product category (B2B, B2C, B2G, etc.). You will also analyze products, processes, people, and the product development cycle to fully understand how each intergrates together. You have to understand your supply chain, your customers, your production facilities, and your building plan in order to fully integrate each into the plan. So, what will you deliver? 1. Cover Page in APA format 1.1. Running hand and all group members name 1.2. 1'' Margins, Double spaced 2. What type of facility is appropriate for our product? 2.1. Why? 2.2. What criteria was used? 2.3. Be sure to tell me about the specifications of the product/project as well as how each part fits together. Develop the warehousing, manufacturing, and support processes fully. 3. Which process? (Project, Job Shop, Flow Shop, Continuous flow) 3.1. Why? 3.2. What criteria? 3.2.1. Be sure to include the product life cycle in your analysis. 4. What are the sources of materials? 4.1. Why did you use this source? 4.2. What criteria did you use to select this source? 5. Facility 5.1. Layout 5.2. Flow Chart 6. Supply chain 6.1. Flow chart 7. Reference Page DUE 11/20/15 Essay Information: All theses bullet points need to apply and be incorporated into my article · Cover Page APA · Doubled Spaced · What type of facility is appropriate for our product? · What what criteria · Which process? · Project job shop flow shop continuous flow · Why? · What criteria · What is the source of materials? · Why? · When Criteria · Treat this as a professional Document · Facility · Layout · Flow Chart · Retrench Page · This correlates with my robot project that I posted up on the site so you have a better understanding The umbrella of this article is about my robot project! · Reference page · Additional information will be put up once my professor puts up more information regarding the essay. This is the information of my robot project which the paper is solely based on: BUS 425 Operations Management Da Vinci ProjectE.L Eliza- Educational Intelligence Executive SummaryThe Eliza will be a state of the art teaching educational device that is child friendly. As the wave of new Apple apps and other various educational companies produce these products, our corporation will be the first product delivered to the market that integrates both the educational aspect through a fun and attentioning grabbing youth product. Children's education in the United States is becoming an exasperating issue, children are now more interested in digital media, television, and app games from the iTunes store. We strive to integrate the fun and eye catching attention from these digital media products and .

1. Da Vinci Project Phase 2 BUS 425
The idea behind this project is to make sure you have the
necessary understanding of how facilities layout and design
works. With that in mind, we will take the product you
researched and decide what is the best type of facility to use to
build it.
You will define and analyze your product category (B2B, B2C,
B2G, etc.). You will also analyze products, processes, people,
and the product development cycle to fully understand how each
intergrates together. You have to understand your supply chain,
your customers, your production facilities, and your building
plan in order to fully integrate each into the plan.
So, what will you deliver?
1. Cover Page in APA format
1.1. Running hand and all group members name
1.2. 1'' Margins, Double spaced
2. What type of facility is appropriate for our product?
2.1. Why?
2.2. What criteria was used?
2.3. Be sure to tell me about the specifications of the
product/project as well as how each part fits together. Develop
the warehousing, manufacturing, and support processes fully.
3. Which process? (Project, Job Shop, Flow Shop, Continuous
flow)
3.1. Why?
3.2. What criteria?
3.2.1. Be sure to include the product life cycle in your analysis.
4. What are the sources of materials?
4.1. Why did you use this source?
4.2. What criteria did you use to select this source?
5. Facility

2. 5.1. Layout
5.2. Flow Chart
6. Supply chain
6.1. Flow chart
7. Reference Page
DUE 11/20/15
Essay Information:
All theses bullet points need to apply and be incorporated into
my article
· Cover Page APA
· Doubled Spaced
· What type of facility is appropriate for our product?
· What what criteria
· Which process?
· Project job shop flow shop continuous flow
· Why?
· What criteria
· What is the source of materials?
· Why?
· When Criteria
· Treat this as a professional Document
· Facility
· Layout
· Flow Chart
· Retrench Page
· This correlates with my robot project that I posted up on the
site so you have a better understanding
The umbrella of this article is about my robot project!
· Reference page
· Additional information will be put up once my professor puts

3. up more information regarding the essay.
This is the information of my robot project which the paper is
solely based on:
BUS 425 Operations Management
Da Vinci ProjectE.L Eliza- Educational Intelligence
Executive SummaryThe Eliza will be a state of the art teaching
educational device that is child friendly. As the wave of new
Apple apps and other various educational companies produce
these products, our corporation will be the first product
delivered to the market that integrates both the educational
aspect through a fun and attentioning grabbing youth product.
Children's education in the United States is becoming an
exasperating issue, children are now more interested in digital
media, television, and app games from the iTunes store. We
strive to integrate the fun and eye catching attention from these
digital media products and employ an educational aspect into
our Eliza . Unfortunately, many parents will compensate an iPad
or other devices to entertain their children, however we believe
that at Eliza we will develop a learning teaching robot that will
allow the child to interact physically with the product. Our goal
is for the child to learn interactively in a captivating way that
will encourage and motivate children to seek the educational
software from our Eliza Integrating new modern technology
such as LED screen, a self interacting robot, capable of tracking
the child’s progress will allow captivate the child’s attention.
We are a company that is dedicated on providing children with a
fun interactive learning device that will not strip away the
current trend of iPad application game market. The United
States and most western countries operate at a fast pace and this
lack of time has a direct impact on the child’s educational

4. development. According to the National Center for Education
Statistics (NCES), claim that parents who read to their children
outperform academically compared to children who do not. The
NCES also claims that these children are able to count up to 20
or higher (60% vs 44%), write their own names (54% vs. 40%),
and are more capable of reading (77% vs 57%). This is also a
concern for low income families that work multiple jobs that do
not have the time to read for their children. Our product will be
able to aid hard working time constraint parents by having the
Eliza read to them and teach them to read at an early age so that
they can develop greater reading skills. The U.S. Department of
Education states that low parental involvement in a child’s
education leads to a reading score that is 46% below the
average. There is a clear need for a sophisticated teaching
interactive device that will allow these children who do not
receive the parental teaching that they are not capable of
providing their children. We are seeking to partner with large
well established enterprises such as Apple or Google, as they do
not have products in the educational system that is as
interactive as ours. Additionally, Apple and Google have great
teams that are always looking for ways to use their knowledge
and expertise in innovative ways., The partnership with Google
or Apple will aid in our professional research and development,
as well as help establish the quality that are both a part of
Google’s and Apple’s culture and professionalism. The need for
this product is now, the children of today will be the leaders of
tomorrow. It is urgent at this present time to educate our
children around the world to see a brighter future for them.
Education is a tool to furnish one with power, so that he or she
will be one day drive this earth and all of humanity.
EvaluationAfter careful evaluation, our team, Team Da Vinci
has came to the conclusion that our E.I can be made at a price
that will produce earnings for our first quarter. Eliza will be
manufactured through a third party corporation in China, so we
will be outsourcing the production aspect until we are able to
scale and thus produce at a lower cost; as well as pricing our

5. product at a lower price. We will need to hire outside qualified
programmers to write the software for the educational teaching
program. There will need to various software engineers,
technical engineers, educational consultants, and later factory
labor in order to manufacture the product. The main parts of the
product will consist of High Density Polyethylene, the skeleton
will be constructed from aluminum, the adaptable “skin” for the
robot will be produced from fabric and outsourced to a
specialized company. Most of the product will consist of heavy
hardware that be constructed by our group of outside engineers.
These parts include multiple screws of various sizes, led light
fixtures, USB connection ports, power voltage circuit boards as
well as other bolts and screws needed to construct the product.
Lithium ion batteries, a wireless module, several motors, pin
cables, USB cables, rivets, touch screen LED, and other
hydraulics parts are all necessary for production. The total cost
of the bot will be $684.90 and we will be producing 10,000
units in our first year to break even which will give us sales of
$6,849,000. We expect that software engineers will be needed
for six months and will cost $40,000. Assembly will cost us
$40.00 a bot at $10.00 an hour with an assembly time of four
hours for each bot. That will total at $38,400 with two
assemblers working on one unit. Expected warehouse and office
space is estimated to be $24,000 a year. Utilities will cost us
$2400 a year. Furnishing the office with essential furniture will
cost us $6,000. Miscellaneous funds will cost us $100,000,
shipping will cost us $20,200. Therefore, we estimate that we
will need a starting capital of $7,080,000. Our target price for
the product is $1,200 per bot. By selling 10,000 units of our
inventory we will have $12,000,000 in revenue which will incur
in $4,946,200 in profits. Therefore, giving us a 70% return on
investment. Our variable cost will be $6,849,000 and our total
fixed cost with all expenses added in will cost us around
$204,800. Our projected profits equal $4,949,200. We
calculated a break even point of 395 units which we calculated
by ($1200-684.90)/$204,800=397.50 So we calculated a break

6. even amount of $477,111.24. We will have to sell our entire
inventory in order to meet the margins for the first fiscal year,
however we believe that as our operation scales we will be able
to lower production cost, in house more of the manufacturing,
and thus price our product at a lower cost. However this is a
common trend with newly developed innovation products when
they first emerge onto the market. The iPhone is a perfect
example of this economic trend. Our team believes that we will
be able to maintain margins as long as our first two fiscal years
are profitable. Additionally our product fits into an industry that
is booming as children’s learning products are always in interest
especially in economies with great consumer GDP such as the
United States. Of course as time progresses and the next
generation of Eliza comes to market, we will have to adapt to
the consumers demand for newer and more innovative ideas.
However, as a company that primarily focuses on knowledge we
are ready for the task of innovating and leading the path
towards teaching children through a valuable and memorable
experience. Operational Costs
After careful evaluation and research, parts can be purchased
for assembly from various manufacturers allowing us to focus
on marketing, customer service and delivery of our product.
After reaching economies of scale we will be able to lower cost
by eventually producing our own parts.
Parts: Per unit
Opencm 9.04 Arduino- $19.20 (x1)
BT-210 Wireless Module- $87.90 (x1)
LB-040 Lithium Ion Battery- $9.90 (x2)= $19.80
XL-320 Servo Motor- $21.90 (x16)= $350.40
XL-320D Servo Motor- $21.90 (x1)
3 Pin Cable (11x8, 13x6, 16x2)- $1.50 (x16)= $24.00
USB cable- $0.50 (x1)
Rivet’s (284)- $21.90
SPU-5- $0.90 (x8)= $7.20
SPL-2b2- $0.90 (x14)= $12.60
SPO-5- $1.10(x14)= $15.40

7. STR-20- $0.20(x2)= $0.40
SPD-3b3- $0.90(x2)= $1.80
SPD-3b5- $0.90(x6)= $5.40
SPD-7v4- $0.90(x4)= $3.60
SPD-3b7- $0.90(x2)= $1.80
SPD-4b5- $0.90(x2)= $1.80
LBB-040- $1.40(x4)= $5.60
STL- $0.90(x1)
DMF-F01- $3.90(x1)
DMF-B01- $4.30(x1)
DMB-B02- $4.25(x1)
DMF-B06- $2.30(x2)= $4.60
DMF-B07- $1.40(x2)= $2.80
DMF-B03- $2.10(x2)= $4.20
DMF-B04- $2.30(x4)= $9.20
DMF-B05- $2.50(x2)= $5.00
Touch LED screen= $44.95
Cost of Bot= $684.90 (10,000 units/first year= $6,849,000)
Cost of Programmer (with 6 months of contract programming)=
$40,000 (contract work)
Expected Assembly Labor Hours= (at $10 an hour at 4 hrs/bot
or $40.00 a bot) = $38,400 (2 Assemblers at 19,200/each/year)
Warehouse/Office Rent= $24,000/year
Electricity= $2400/year
Office Furniture= $6,000
Miscellaneous= $100,000
Shipping= $20,200
Recommended starting capital of = $7,080,000
Recommended Bot retail Sale Price= $1,200/Bot
If we sell all 10,000 of our inventory we will have $12,000,000
million in revenue which will incur $4,946,200 in profit. This is
a 70% return on investment.
Break Even Analysis
E.I. Eliza has a selling price per unit of $1,200, and we are

8. forecasting to sell around 10,000 units in the first year of
operation. That allows for a total revenue of $12,000,000. With
that being said, our cost per unit of E.I ELiza is approximately
$684.90, selling $10,000 units, our total variable cost will be
$6,849,000. Our projected fixed cost based on the cost of a
programmer, the expected labor cost, our warehouse, electricity,
miscellaneous and shipping cost, gives us a total fixed cost of
$204,800. All in all, our projected profits equals a whopping
$4,949,200 in the first year. This gives us a break even point of
398 units found by ($1200-684.90)/$204800=397.5. Our break
even amount in dollars, totals $477,111.24.
Material Availability
From my research for the material availability of High Density
Polyethylene, I have found a supplier from Mainland Shandong
China. The skin, torso, and head is made out of High Density
Polyethylene. From my research for the material availability of
Aluminum, I also found a supplier who can manufacture the
Aluminum in Shanghai China. United States customs regulate
whether or not to tax imported goods, including Aluminum. The
Aluminum comes in the form of powder, so it can be easily
molded when the robot is being assembled in the United States.
It makes it a lot easier to mass produce the robots with this type
of Aluminum form. The process of obtaining the materials takes
several steps to be completed. Also China’s postal service is
considered the cheapest and the most economical, but
apparently the slowest. It can take as long as 180 days, and the
fastest delivery is in 3 days. Both products could be shipped
using China post. License or Patents
The educational material will belong to a library that the
parent can set for the lesson the child needs to learn. The
courses can be separately purchased and will enable the parent

9. to choose between all the programs available, giving the
possibility to purchase an expensive program or an inexpensive
one using still the same device to play it.The way the robot
operates overall, it will be patented as a whole idea as it has not
been produced before. The unique interactive feature and
Presence Awareness (Sensory system that locates objects and
people). Due to the high cost of the components of this product,
the first model will feature the inner parts purchased from
already existing robots and their manufacturers in order to not
have to face the costs of a factory set up right in the first stages
of the company. Therefore we will have to pay the patent fees to
the owners but will not need the upfront cash that the factory
would need. Once the company has reached a stage where it has
gained revenue and produced within expectations, we can think
of producing the components ourselves and revise our design to
create patents for our unique product. We are going to patent
the way the movement and screen works and also the coding
that connects the parts with each other electronically. That is
going to ensure that it is more difficult for the potential future
competitors to use the concept.
The sensors that we are going to use are patented with the
number D740,145.
Due to the fact that the robot skins are something not currently
offered in the market we wanted to create a patent for it but
outsourcing it.
The operating system should be more basic in the first model
and therefore will require a programmer to create it. In the
future the device is upgradable therefore the insertion of
Apple’s softwares or a creation of a custom software is within
the possibilities.
The outer shell will be of a very smooth skin-like structure that
covers the robot with a flat, smooth aluminium piece. The voice
program of the robot will initially be a created by the
programmer and a patent will be placed on it. It will feature a
male or female option in the settings to further customise it. If a
partnership with apple will occur Another element and patent

10. that will be created by the hired programmer is the internet
network access and the security systems. The robot with an
independent access to the house wifi will be a patent, as no
other robot of this kind has that feature. The touch screen will
be very similar to a tablets and the feature of having a course
library available will also be patented. The network will be
purposely missing the location systems in order for the robot to
not be trackable ensuring the safety of the child.
Appendix
Break Even Analysis Financial Cost Sheet Signature Lines
References
First time here? Let us help you find your bearings. (n.d.).
Retrieved October 11, 2015, from http://www.uspto.gov/
About Us. (2009, January 19). Retrieved October 8, 2015, from
https://www.schoolzone.com/about-us
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