Introduction
The smart survival kit was designed based on its productivity, uniqueness and applicability in regard to meeting the specified requirements and JAG requirements. It was designed to ensure that the users had adequate water, food, communication devices and first aid requirements for a period of three days.
The smart survival kit had different compartments that could hold the aforementioned items without running the risk of contamination. The design was also based on non-functional requirements such as durability, portability and user-friendliness.
Project overview
JAG Corporation had its set of requirements regarding the design of the product, its price and the construction process of the proposed product. There were two markets for the product. The primary market consisted of the retailers. The selling price for this market was set at $95 and $85 respectively for wholesalers who were the secondary market.
In addition, it was decided that wholesale buyers such as the military, Red Cross and trip planners would buy the product at a lower price due to the anticipation that they would buy in bulk. The price difference was justified by the fact that wholesalers would buy more products at a go, therefore facilitating sale maximization.
The product was designed to meet the requirements of people under quarantine or in a disaster for an average of 72 hours. It will meet its requirements due to its low price, content (non-perishable items) and its targeted market, which focuses on individuals living in remote areas that are prone to disasters. As such, it will fit the scenario and fit the criteria to satisfactorily address the needs of the targeted users.
There are various differentiated products in the market. However, the price and unique features of the proposed smart survival kit will enable it to compete effectively within the market. In addition, the cost benefit analysis indicates that the product’s design will be a lucrative venture in the selected markets for JAG Corporation.
In regard to the market, this product is applicable to most people in the market regardless of their age, gender, ethnicity and financial status (Esman, 2012). As such, over 70% of people in any given market may need to have such a product at home in case a disaster strikes (San Francisco Department of Emergency management, 2010).
Product Design Features
Features of the Product
There are situations that may force people to stay confined to a particular place for a long period of time (Jobe, 2012). It is from this notion that this product was designed. The survival kit was designed to ensure that such people got what they needed to survive comfortably for at least three days (Maveric, 2012). It has four compartments for holding water, food, basic first aid requirements and a communication device.
The product has the ability to cater for the needs of a broad spectrum of users regardless of their age or gender. The prototype was launched and tested to evaluate its durability, hygiene capabilities and applicability in regard to its ability to meet the specifications set by the JAG Corporation, and those proposed by consumers in the surveys.
With this in mind, the survival kit features include the following:
- Will be portable and comfortable to carry. It will also be waterproof.
- A compartment for first aid.
- A compartment for water storage
- A compartment for light and heating supplies
- Instructions for usage of the Kit, general instructions for crisis procedure, and a radio for means of communication.
- Convenient packaging so that a user can quickly find the necessary item.
Durability
The product will be made out of heavy duty plastic, which is strong and light. This is a product requirement stipulated by the consumers and JAG Corporation due to its durability and reliability.
At the set price, the lifetime expectancy of the product is estimated at 5 years. Most of the items contained in the product will be light weight. As such, the rigid structure of the product will be able to cope with the overall weight of the items without giving in to weight stress.
Weather resistance
The main focus of the product design is to ensure that it protects the contents within from exposure. Since the product will contain essential items needed for survival, the material used in its construction must be able to keep all weather effects on the outside (Ritter, 2001). Heavy duty plastic is effective against water corrosion, heat and cold, which makes it the best material to use in the construction of the survival kit.
Practicality
The proposed design consists of four compartments that pull out like shelves. The outer casing looks like a briefcase and the shelves can only be accessed after opening the top lid. It does not consume much space and its overall size resembles a medium-sized travelling suitcase. This means that one person can carry it comfortably. In addition, it has two hind wheels, which make it easy to transport even to a small person.
The product is also user friendly. The first shelve contains a user’s manual, which describes the contents of the survival kit, the location of each item and “how to use” instructions. This makes it easy to use and less time consuming in regard to wasting time and disorganizing the whole kit. Similarly, the shelves are fitted with trays designed to fit each item in its place. As such, users cannot mix items or misplace them.
Reliability
To guarantee reliability, the product was tested to measure its water resistance capabilities, security and usability. Each test provided positive results. The product and all its contents remained dry after being submerged in water for an hour. Similarly, after dropping the survival kit from a distance of three meters above ground, all items functioned as expected with no malfunctions.
This test was conducted 10 times to ascertain that the results were similar for all positions (6 faces and four corners). In regard to usability, the user’s manual played a significant role in assisting the users find what they required at a given situation. In total, users spent less than five minutes to find the appropriate item for the set scenarios.
Manufacture and Assembly
The manufacturing process will be carried out by workers employed by JAG in a selected workshop. Moulds have been designed and unskilled labor will be used to pour the heavy duty plastic into the moulds. In regard to assembly, skilled labor (an engineer) will be responsible for bringing the parts together.
The shelves will be fitted in their respective locations and the hinges screwed at the lid. The kit will use a standard padlocking mechanism to facilitate safety.
Maintainability and Safety
The product will have low maintenance requirements as a result of the material used in its construction. Heavy duty plastic does not require paint or cleaning agents regularly. Similarly, it is resistant to corrosion and rust. However, users can wipe the product with a dump cloth or vacuum it as desired.
In regard to safety, the product has two grappling hooks that can be used to attach it on given surfaces. Similarly, the base of the product will be covered with a rubber mat, which will prevent it from sliding or damaging delicate surfaces.
Design Optimization
The final product was decided upon after careful evaluation of various design concepts. Different elements from previous design concepts were combined to produce a product that meets the needs of the targeted consumers satisfactorily.
We have also considered the trade level qualifications of the workers who will manufacture and assemble the product. As such, the design is simple and practical to various consumers. One of the components that were rejected due to impracticality was a deck of playing cards. However, it was omitted due to the fact that people would not think about playing cards while facing a disaster.
Business Plan
Budget
The product will be sold at a retail price of $95. It is projected that the first batch will consist of 4,000 products, which must be sold within a period of one and a half years. Production of the products will require qualified engineers (@ $ 150 per hour), skilled labourers (@ $70 per hour) and unskilled labourers (@ $ 30 per hour).
Production Prototype Costs
The cost of producing a functional prototype was set at $40. The total cost of the prototype was $30, thereby falling below the budget.
Estimated fixed costs
In order to produce the first batch of 4,000 survival kits within the specified period, the fixed costs will consist of wages and salaries for the whole duration. Estimated variable costs
We have reserved $250,000for variable costs such as utilities and delivery costs. Production of the product will be done indoors. Therefore, it is unlikely that the process will be distracted by environmental factors.
Breakeven Analysis
Components Costs
Equating to 30% of the purchase price of $30
0.3*$30= $10
Total cost of all 4,000 components= 10*4,000= $40,000
Development, Manufacturing Costs & Whole Sale Distribution (overheads and revenue)
Salaries
General overhead costs will be included within the charge-out costs of employing the workers. Below are tables showing the number of hours and personnel required to work each day and the expected output and cost within the set period.
Table 1: Employee hours
Table 2: Expected productivity
Summary of Payments made to working staff
Table 3: Summary of Payments
Expected Lifetime of the Product= 5 years
Production Investment = $20,000
Development Costs= $302,400
Fixed Costs = development cost + production investment= [322,400]
Total Cost for 4,000 units sold over one and a half years= $322,400 + 4,000*$10= $362,400
Income for a sale price of p dollars is Income= i= 4,000 *$P
Revenue = Total cost at breakeven point
4,000*$P = $362,400
Final Sales Price, p= $90.6
Estimation of Sales Volume
Expected volume of 9,000 over 4 years
Q= number of units sold= 36,000
Profit = total income – total costs = Q*90.6 – (362400 +Q*10) = 36,000*90.6 – (362,400+36,000*10) 3,261,600-722,400= $2,539,200
Breakeven Point = Fixed Costs/(Unit Selling Price – Variable Costs
1,289,600/ (815,400 – 250,000) =2.2 years
Sensitivity
The graph below shows that the product sale is highly volatile because it is extremely sensitive to fixed costs and costs per unit. This can be evidenced from the closeness of the two lines, which indicate that the volatility of the product is highly unstable. The graph should look like this:
Fig. 1: Break even analysis and sensitivity analysis by 2 years
The red line will be the price per unit (label as 90.6). The black line will be labelled 10*362400. Units of product will be 2262 per year for four years
Basically, the graph will look like the one in the sample it is only that i do not have the software to draw it but these instructions will help you draw it then you can delete all the information in yellow
Conclusion
There are situations that may force people to stay confined in one place for a long period of time. This product will enable such people survive the situation in a comfortable manner. The design specifications of this product will ensure that the workers at JAG are able to manufacture and sell it easily.
Recommendation
The profit that will be made through this product should be used to develop market and sell a more sophisticated product. This is because such a product never runs out of demand but may be outcompeted by new products developed by rival companies.
References
Esman, I 2012, Online Survey Results. Web.
Jobe, J 2012, The Big WHY for 72 Hour Survival Kit Items. Web.
Maveric, M 2012, Preparing your 72-Hour Emergency Survival Kit. Web.
Ritter, D 2001, Equipped to Survive: 72 Hour Emergency Kit. Web.
San Francisco Department of Emergency management (SFDEM) 2010, Are you Prepared? Web.