Business Scenario

Business Scenario

Scenario ;
Product and Price
Following your conversation with Bill you have realised that you need to think seriously about your product. You have had some advice from an experienced engineering manager who told you.

“In designing an engineering product the project engineer must also be able to cost it. He/she must ensure that when it is manufactured there will be sufficient margin above the direct costs of assembly, labour and bought in materials to pay for the indirect employees and overheads of the company as well as generate a profit. The project engineer should be able to calculate a minimum selling price for the new product that will meet these criteria………… Remember that in the real world, selling price bears no relation to production cost, it is the market that ultimately sets the price it is prepared to pay for a product.” (A Lamming)

So how much will your product cost to produce?
How can you minimise production costs?

Learning Outcomes
Following this PBL cycle you should be able to:

o Explain what is meant by the terms
o minimum selling price
o margin
o overheads
o indirect labour
o Calculate the costs associated with materials and assembly of your product.
o Discuss the contribution of ‘overheads’ to product cost.
o Discuss methods for assessing the cost of overheads for your product.
o Explain the contribution of fixed costs and variable costs and their relationship with production volume and unit production cost.

Resources
Library Catalogue
Engineering Management (Mazda, Addison Wesley) or similar

Internet
http://www.is4profit.com/
www.startinbusiness.co.uk
www.bbc.co.uk/learning/subjects/business_studies.shtml
http://news.bbc.co.uk/1/hi/business/
www.businesslink.gov.uk/bdotg/action/home?&domain=www.businesslink.gov.uk
www.smallbusiness.co.uk
www.startups.co.uk

Scenario 4 22/10/15 Product and Marketing

Last week you received some advice from an experienced engineering manager about estimating a ‘minimum’ selling price for your product. You have done some research and you feel reasonably confident about estimating this figure. However his final words to you have given you food for thought.

“Remember that in the real world, selling price bears no relation to production cost, it is the market that ultimately sets the price it is prepared to pay for a product.” (A Lamming)

You decide to pay him another visit.

You I understand what you are saying, but how can I find out what the market is prepared to pay?

Manager As I said, it’s the market that decides how much you can sell your product for. If you can’t sell above minimum price, and sell enough, then there is no point in being in the business. Have you done any market research?

You Well, err, no. I’m not really sure where to start.

Manager It’s all about customer needs and their perception of your product. It’s also about customer numbers and finding ways of getting them to want your product. In the longer term you need to think about product life-cycle. I think one of the first things you should do is find out about the five P’s.
Learning Outcomes

Following this PBL cycle you should be able to:

o Discuss the significance of Market Research.
o Outline various methods of market research and assess their relevance to your enterprise.
o Explain how pricing affects customers’ perception of your product.
o Explain how pricing affects sales and consequently profits.
o Explain the significance and application of the five P’s in the context of marketing.

Resources

Library Catalogue

Small Business Guides
How to start and run your own Business etc
Marketing and Sales etc

Internet
www.startinbusiness.co.uk
www.bbc.co.uk/learning/subjects/business_studies.shtml
http://news.bbc.co.uk/1/hi/business/
www.businesslink.gov.uk/bdotg/action/home?&domain=www.businesslink.gov.uk
www.smallbusiness.co.uk
www.startups.co.uk

Scenario 5 05/11/15 Product Design Specification
Having carried out some extensive market research you have come to some decisions about the current requirements for your product and the direction of its future development. For the benefit of all involved in the design and manufacturing process you have decided to produce a detailed Product Design Specification (PDS).

Guidance notes

A PDS specifies what is to be designed rather than how the design will be implemented so it is usually drawn up before design commences. (Before the product exists)

Learning Outcomes

Following this PBL cycle you should be able to:

? Draw up a Product Design Specification for an electronic product
? Discuss the benefits of using a PDS.

Resources

Library Catalogue

Search under Product Design Specification

Internet

http://www.bbc.co.uk/schools/gcsebitesize/design/resistantmaterials/designanalysisevaluationrev3.shtml

http://www.jensen-consulting.co.uk/blog/writing-a-product-design-specification/

http://www.open.edu/openlearn/science-maths-technology/engineering-and-technology/design-and-innovation/design/manufacturing/content-section-1.5

Scenario 6 19/11/15 Environmental Issues
Manufacturing businesses must comply with all relevant environmental legislation when carrying out their operations. There are particular issues around the manufacture of electronic devices which includes the use and ultimate disposal of, the materials included in the product and those used to facilitate production.

In order to meet your obligations you have decided to implement an EMS which meets the requirements of ISO 14001.

Guidance notes

Remember you do not necessarily have to solve the problem described. You do, however, need to understand and be able to explain how you would approach the problem.
Learning Outcomes

Following this PBL cycle you should be able to:

? Explain the relevance of: ISO 14001, WEEE and RoHS.
? Discuss the impact of environmental regulations on electronic manufacturing in general and your operation in particular.
? Formulate an environmental plan to ensure compliance in your manufacturing process.

Resources

Library Catalogue
Search under green electronics etc.

Internet

http://emea.bsi-global.com/Environment/Overview/index.xalter
http://www.quality.co.uk/iso14000.htm
http://www.netregs.gov.uk/netregs/sectors/287867/287938/?version=1&lang=_e
Scenario 9 21/01/16 Design for Test 2
Following your initial investigation into test equipment and its use you have become aware that increasing use of VLSI and SMT technology means that not all component faults can be detected with an In Circuit Tester. To improve this situation you have been advised to consider how effective testing can be achieved by making provision at the design stage. In particular you should:

? Partition complex circuits to reduce testing effort.

? Maximise access to inputs and outputs of complex devices so that the ICT can exert control and observe effects.

You already know that not all faults can be detected with one tester, hence your investigation into ICTs, MDAs and FTs. However, test equipment and its ongoing use cost money and it is important that testing is carried out economically as well as effectively. To specify capacities for your different testers will require more than knowledge of your overall unit throughput. You need to develop a test strategy that takes into account the effects of yield and ‘fault spectrum’ as well as purchase and running costs.

Guidance notes

Remember you do not necessarily have to solve the problem described. You do, however, need to understand and be able to explain how you would approach the problem.

Learning Outcomes

Following this PBL cycle you should be able to:

? Explain why design should take into account testing requirements.
? Discuss the use of partitioning to reduce test effort required.
? Describe methods for ensuring controllability and observability when designing circuits for test.
? Design an optimum test configuration (with equipment capacities) given information about product yield and fault spectrum.

Resources

Library Catalogue

? Automatic Test Equipment Brindley
? Testing Digital Circuits B.R.Wilkins
? Advanced Simulation &Test Methodologies for VLSI Russel & Sayers
? IEEE Standard 1149.1
? The Low Cost Board Test Handbook Craig Pynn
? Strategies for Electronic Test Craig Pynn
? Digital Board Testing Bennets
? Design to Test Turino

Internet
http://www.checksum.com/analyst_ft.html

Other

DFM Lecture Notes on UniLearn

Scenario 10 28/01/16 Design for Automation
It is said that 75% – 90% of manufacturing costs for an electronic product are determined at the design stage. You have, therefore decided to adopt a design for automation (DFA) philosophy for the mass production of your electronic product. Initially you have decided to research the following parameters:

? Part Compliance
? Modularity
? Standard Tooling
? PCB issues regarding insertion/onsertion and component fixing
? SMD issues
? Assembly methods
? Interconnection
? Solderabilty and soldering methods for differing component types

Following your investigation you intend to apply relevant techniques to the manufacture of your product.

Guidance notes

Remember you do not necessarily have to solve the problem described. You do, however, need to understand and be able to explain how you would approach the problem.

Learning Outcomes

Following this PBL cycle you should be able to:

? Explain why electronic design should take into account the manufacturing process.
? Discuss the concepts of part compliance, modularity and standard tooling.
? Discuss relevant PCB issues with regard to component type and automated assembly
? Choose appropriate interconnection methods
? Choose appropriate assembly methods and soldering techniques for use with differing component types.
? Justify the above choices.

Resources

Library Catalogue

o Electronics Manufacturing Processes
Landers

o Surface Mount Technology for Concurrent Engineering and Manufacture.
F. Classon

o Electronic Instrument Design
K R Fowler

o Electronic Product Design
T Ward, J Angus
Internet

http://www.emtonthenet.net/
http://www.dynamixtechnology.com/index.htm

Other

DFM Lecture Notes on UniLearn

Scenario 11; Product and Reliability
Recently you had a discussion about marketing with an experienced engineering manager. This week you have decided to raise another issue that has been at the back of your mind.

You I am thinking about providing some sort of guarantee and repair service for our product. What do you think?

Manager How reliable is your product?

You What do you mean?

Manager Well, for example out of every one thousand you produce how many will fail in say, the first 3 or 6 months? What do you think your product’s ‘bathtub curve’ will look like?

You Its what curve? I have no idea! We haven’t made many yet. How can I reliably estimate something like that?

Manager You have a point of course. Until you have been producing your product in large numbers for some time you can’t be absolutely sure. It’s important that you have some idea, however. Remember it costs you money to replace or repair your product under any warranty you provide or under your legal obligations. If your product is unserviceable it may be inconvenient or costly for your customer. If your product develops a reputation for unreliability your reputation and sales will suffer!

You So I need to estimate the reliability of my new product so I can estimate the probable costs of unreliability? I can see that but I still have no idea where to begin.

Manager Well you can start with the components and their reliabilities. You can consider the way they are connected together and all the possible failure modes, their respective probabilities and their severity. You need to find out about product reliability and something called FMEA or FMECA.
Learning Outcomes

Following this PBL cycle you should be able to:

o Explain the term Reliability in the context of product design and manufacture.
o Discuss the effects of reliability on product pricing and customer perceptions.
o Explain the ‘bathtub’ curve and its applicability to product design, manufacture and the provision of warranties.
o Carry out an FMEA or FMECA on your electronic design/product.

Resources

Library Catalogue

Search under Reliability, Product Reliability, Manufacturing Reliability, Engineering Management etc.

Internet
http://www.npd-solutions.com/fmea.html

http://www.fmeainfocentre.com/

http://www.relexsoftware.com/resources/overview.asp

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