PLM - part I + conception

Product lifecycle management Members of the group no. 6: Sylwia Pawlaczyk 199813 Julia Njoga 232138 Magdalena Zuk 205222

Monaday, 13:15 tutor: Dr inz. Mariusz Cholewa

Members of the group: ❖ Sylwia Pawlaczyk 199813 ❖ Julia Njoga 232138 ❖ Magdalena Żuk 205222

Brand name

“Easy Monday Morning”

Part I

Easy Monday Morning-cup with alarm clock and fresh, hot coffee

Easy Monday Morning includes: Manufactured by our company:

Provided from suppliers: -alarm clock -panel buttons and display -charger (cable) -preheating system -temperature sensor -mixing system

-mixing head -cover1 to prevent from spilling -mug body -spigot

Rules of work Alarm clock on the cup can be set to beep anytime. Available settings are allowing to pick preferable temperature of the coffee. Proportions of the coffee are chosen by user - cup uses any ingredients that are put into system.Two minutes before planned alarm, worming system starts to heat up the water and once preferable temperature is achieved, releases the product (eg. coffee). Mixing system is turned on as fast as ingredients are in the water. In the moment of the exact alarm, user can drink his favourite drink.

Target and demand target group - students or working people age 16-60, men and women, people who are interested in new technologies. And every minute in the morning is priceless

Components descriptions Alarm clock- manufactured by ON-TIME company, who is specialised in timers, alarm clock devices, it is possible to choose alarm sound from 5 different alarms, you can set main hour of wake up and 2 sleeping? alarms

Panel buttons and display- display has 1,8” and kit of color buttons, which help you to set hour of alarm, set temperature of your morning drink or made some preparing drink program (for example: heat water to 100C, then wait until temperature is 70C and put tea leaves inside or just heat water to 100C and put ingredients of coffee inside).

Charger - simple charger produced by CHARGE YOURSELF company same as one used for mobile phones. Micro usb and standard USB end, and socket adapter. It is part of set, but any other universal charger can be used to charge the cup.

Components descriptions Preheating system - simple system made by HEATING SYSTEMS company, starts work with some timer, which work program is based on program designed with panel buttons and display Temperature sensor - few millimeters long chip that is programmed to cooperate with preheating system (produced also by HEATING SYSTEMS company). Chip is programmed to send the information to preheating system either to start or to stop working. Mixing system - manufactured by LAGUTE company is a small, universal part that can be used in many different devices. Small engine needs minimum energy to activate the windmill. Activation can be programmed to react on anything chosen by client for example alarm clock. Engine is programmed by supplier according to customer demands.

Component description (Manufactured components) spigot - small plug that is connected with cover 1 body by pivot. Ergonomic shape ensures prevention from spilling the coffee. Cover1 body to prevent from spilling - cap is made from different material than other parts of mug, it is polymer material which is more harder and have better mechanical properties, still having the same excellent temperature resistance. Cap prevent you from spilling your hot drink, which is really important in the morning. Cap contain also 1 seal which makes your mag totally dense. Mug body - made from advanced, temperature resistant polymer material, extra layer of material gives the assurance of protecting hands from heat and it is also coloured in chosen pattern. mixing head - made of the same material as mug body. Mixing head is designed to mix products quickly and effective.

*All parts of our cap are made from safety materials, with good practical properties (mechanical, esthetic etc.) and have guarantee for 2 years from purchase.

Parameters of product ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖

Max. heating temperature: 100 C The total volume of liquid: 0,7l (contain 0,2l for milk and 0,5l for water) The total volume of milk: 0,2l Charging time: 12h Time of using after full charge: 7 drink preparation processes Display parameters: 1,44” Material of mug: Advanced polymer material Weight of mug: 400g Temperature conductivity: no

Regulations that product has to fulfill ● ● ●

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CE certificate for electronic devices European Union directives “New Approach” Directives that applies to food contact materials such as 2002/72/EC, WE 10/2014, 97/48/EC, WE 10/2011 (a certificate of compliance with EU requirements for food contact) Chamber of commerce Polish Law

Target group - market analysis In the beginning only Polish market is being considered, Easy Monday Morning can send product abroad but all campaigns are being lead in Poland basing on target group in Poland. Population in Poland: 38 478 602 (data GUS 2015) Working-age population: 62,5 % of Population in Poland Target group: Men and Women in the production age, that drink coffee. Target group size: 24 049 127 Considering fact that not everyone would be interested in such technology, and not everyone drinks coffee. After intensive marketing campaign conversion level is estimated around 20%. That means that during whole lifecycle of the product 10% of target group will decide to buy the product. Estimated total sale: 2 404 913 pcs (10% of target group).

Marketing strategy - social media campaigns - especially to reach a target group of young people interested in new technologies. - discount coupons - cooperation with coffee brands, lotteries. - TV / youtube - standard TV advertisement, youtube advertisement. - cooperation with trendsetters

Chanels -Internet - commercials on electronics eshops -Social media - facebook group -Instagram of celebrities -TV- Pani Gadżet, commercials with famous people -Real Time Theater - happenings in shopping malls

Cost estimation -

termic cup - 10 PLN mixing system - 20 PLN screen with buttons panel - 20 PLN heating system - 20 PLN inbound components production - 15 PLN product final assembly - 2 PLN other costs(logistics, packaging, administration etc) - 10 PLN COSTS TO PRODUCE 1 CUP: 97 PLN R&D 1.000.000 marketing campaign - 3.000.000 PLN

cost estimation

production plan · · · ·

Assembly takes 2 hours Every 120 sec one finished good is leaving production line Plant works 5 days a week, 3 shifts. If there was a bank holiday during the weekdays, production is working during weekends to cover days off. In total 480 working hours per month. 10% of total production is considered as waste, backlog, or loss. Line is assembling 30 cups per hour ->

720 / day

720 * 10% (waste) = 648 pcs / day (a full-fledged product) 648 * 20 (working days) = 12 960 / month (a full-fledged product) 2 404 913 (final target group size ) / 12 960 (amount produced in 1 month) = demand)

185,56 (months of

Profit estimation According to the market analysis demand should be constant for next 371 months. Price of one cup assembly is: 97 PLN Price for one cup is: 170 PLN

(marge 175%)

Per each cup company makes: 73 PLN of profit. Considering constant demand in a month, all produced goods will be sold. 170 PLN (price of one piece) * 12 960 PLN Tax ( income tax in Poland 23%): 0,23 * PROFIT: 2 203 200 PLN –

(amount produced in a month) =

2 203 200 PLN

2 203 200 PLN = 506 736 PLN (amount of tax every month).

1 200 000 PLN (costs) – 506 736 PLN (income tax) = 496 464

PLN

when company will start earning money ●

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Considering that one time, factory setup costs was 20 mln PLN it will take around 40 months to pay back the investment. After 7 years investment will be fully paid (half of monthly profit covers bank interest) for and after that time there will still be 8 years of constant demand to cover.

Competitors analysis ★ termic cups producers ★ coffee machines producers ★ vending machines producers ★ popular coffeehouses

why are we better Our cup is as small as thermic cup but it is a coffee machine, that can make a coffee picked by user in prefered time. There is no doubt of freshness (usual problem with office vending machines). Price is higher than average termic cup but it is smaller than coffee machine and in long term use cheaper then buying coffee in vending machines. Cleaning the cup is easier than cleaning coffee machines and cup is reusable - environmentally friendly not like vending machine plastic cups.

Competitor (SWOT) STRENGTHS

WEAKNESSES

- cup is an innovative idea, it connects few previous ideas into one product.

-company is now brought in Poland so success of the product is determined by

mainly by Polish society. -it is a product that can make customers morning easier. - Product is quite expensive so target group is slightly limited by it. -in the moment of introducing product to the market we are the monopolists producing cup with this set of functions. -despite fact that company is quite new in the market, it has clear and strong ethical values and statements. It is also known as good employer.

-The organisation headquarter is located in Poland so, production and sale is determined by Polish law. (sanitary, electrical regulations) -Cup can be used for any hot drink but it is dedicated for coffee so customers that are not coffee users might not feel attracted to this idea.

OPPORTUNITIES

THREADS

-big market size, product can be attractive for any coffee user, either people that drink coffee at home, work, vending machines users or even coffee shops clients.

-Policy of healthy life, talking about the the harmful effects of coffee and tea on the human body

-growth of middle class, people are buying expensive, trendy products more often. -recently tradition of drinking coffee is trendy - coffee sales increase 25% in next 5 years.

-In the cup there is a possibility of making coffee, but there is no option of doing coffee from fresh beans. It is possible some competitors will develop that kind of product and will take away some target

Part II - FIRST CONCEPTION

SKETCH of OUR IDEA ‘Easy Monday Morning’ contain: -

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COVER 1 provide from spoiling with spigot COVER 2 with capsules (for milk, sugar etc.) connecting with STAND by Bluetooth module MUG with mixing head in its bottom STAND with mixing, heating and all electronic modules USB CABLE to charging by charger or devices with usb module like laptops or notebooks

AutoCAD drawings

1 2 3 4 5

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spigot pivot cover 1 body rubber cover 2 with capsules

6 - mug body 7 - mixing head

AutoCAD drawings

8 - heating system 9 - screen with control system 10 - stand body 11 - power system 12 - mixing system 13 - USB cable

Process - INFORMATION WORKSTATIONS

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casting

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injection

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hand grinding

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smoothing

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internal coating

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external coating

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COMPONENTS MANUFACTURED IN OUR COMPANY

MACHINES

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casting machine for plastics injection molding machine + the relevant injection forms (for every component)

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quality control ●

MUG BODY

spraying machine (for internal & external coatings)

cleaning

SPIGOT

smoothing machine

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pivot

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rubber

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bearing

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heating system

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screen with control

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COVER BODY

COMPONENTS FROM OTHER COMPANY

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MIXING HEAD

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system

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stand body

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power system

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mixing system

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USB cable

COVER 1 BODY - process plan

SPIGOT - process plan

MUG BODY - process plan

MIXING HEAD - process plan

A S S E M B L Y - assembly units (a.u.) A.U. 1.1

SPIGOT

A.U. 1 (COVER)

RUBBER

A.U. 2 (MUG)

MUG BODY

A.U. 3 (STAND)

STAND BODY

PIVOT

COVER BODY

BEARING

A.U. 1.1

MIXING HEAD

SCREEN WITH CONTROL SYSTEM

MIXING SYSTEM

POWER SYSTEM

HEATING SYSTEM

USE of ‘EASY MONDAY MORNING’ A.U. 1 (COVER)

USING:

A.U. 3

USB CABLE

A.U. 2 (MUG)

A.U. 2

A.U. 3 (STAND) USB CABLE

A.U. 1

MODIFICATION during DESIGNING - During designing and creating 3D model appear some modification. - Modifications are connected with construction, in order to easy manufacturing and assembling - Final version of PART II of our project is placed in PROedims system (production process, drawings, 3D model)