A scalp massager has made it easy for an individual to clean up his/her own scalp without another person’s help. Messaging is a good way of relieving and managing stress. Pressure is usually applied at the end of the nerves during the massaging process. Due to the pressure inserted on the nerves, endorphin is released which increases pressure and relievers stress. Scalp messaging devices are automated and electrically powered or manipulated manually.
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However, they provide the users with pleasure and relief regardless of the power source that has been applied. Using a scalp massager is very beneficial to human health because it increases the rate at which blood circulates in the body. Increase in flow of blood improves the growth of follicle hair, which in turn leads to growth of new and more hair. Relaxing Suds Incorporated is a new established firm that produces and sells Head scalp massager. The firm operates in the U.S. and seeks report on required materials and information and costs to be incurred in the production of the head massager. This paper examines required materials and estimated costs for the manufacture of head scalp massager.
Identify the equipment that will be needed
The required equipment for the manufacture of head scalp massager is Plastic mold, circuits, o rings/seals, pumps, heaters
Identify the skills or knowledge that will be needed
Scalp massaging is an important exercise to every individual because of the expected outcome such as relaxation and stress relief. Therefore, the equipment used for achieving the scalp massage must meet the intended objective. The personnel manufacturing the scalp massaging and shampooing devices must:
- Be a qualified electrician with experience in assembling electric devices.
- Possess knowledge of scalp massager devices and their functioning. In addition, the employees need to have various massage techniques such as rotary, petrissage, friction and effleurage
- The individual should be in a position to select and handle scalp-massaging equipment so that he/she can be able to demonstrate to the client when needed.
- The ideal candidate must be able to follow safe and hygienic working conditions.
- The person must be able to provide aftercare client advice. This is important to the firm in the sales and marketing section.
- Lastly, interpersonal and communication skills are vital.
Identify the materials or information that will be needed
The materials needed for the manufacture of the Head Scalp Massager includes an electric component, battery, battery casing, heating function, massaging coils in addition to the equipments. In addition to these materials, the firm requires knowledge and expertise on the manufacturing processes, customer needs and demand, the device existing market and the competitors to the company.
Identify the sources for materials or information that will be needed
The employees of Relaxing Suds Incorporated would be required to posses various skills and information on the manufacture of the head massager devise. The source of the information for employees and the firm would range from books and articles found both in print format and electronically. The firm could also capitalize on the knowledge employees have gained in their training on head and scalp massaging. Therefore, such training institutions could provide the firm with the latest knowledge on the head massager equipments in the market and their manufacturing processes. Lastly, the firm could obtain information from research and survey firms that collect customer and company information. Customer information is necessary and would act as feedback to the company concerning the effectiveness of the firm’s device.
The materials used to manufacture the head massage device could be bought from various dealers. There are different dealers of Plastic mold, circuits, o rings/seals, pumps and heaters that will act as suppliers to the firm. Books for information could be obtained from bookshops while market surveys could be bought from the relevant survey companies.
Determine what alternate methods can be used to produce your product
Currently, the head massager is produced by assembling the required products. Alternatively, Relaxing Suds Incorporated could opt to manufacture the product requirements itself and then assembling them into the finished product. For instance, the firm could opt to manufacture the Plastic mold, circuits, o rings/seals, pumps, heaters. This alternative method calls for the firm to purchase raw materials from different sources. However, this strategy might increase the cost of manufacturing overheads and lead to increased price of the head massager compared to the competitors of the firm.
Identify the materials (and their costs) that will be involved
The required materials and their estimated costs for one unit are as illustrated in the table below.
|Item||Cost Estimate ($)|
Identify the labor costs that will be involved
The labor costs involved in the firm are as indicated n the table below. The costs are estimated salaries of employees per month. The number of estimated company employees is 100 employees.
|Employee titles||Salary Estimates ($)|
|Junior employees (estimated No. 100)||7,000|
Estimate the overhead costs (rent, utilities, maintenance, managerial, etc.) that will be involved
|Overhead Costs||Cost ($)|
Estimate equipment and license costs (if needed because of patent infringements) that will be needed
The patenting and licensing costs in the U.S depends on the complexity of the technology involved in the development of a product. The complexity of the equipment ranges from simple, relatively simple, minimally complex all the way to highly complex. The manufacture of head massager could be categorized as relatively simple and therefore, the licensing costs could be estimated to be $7,000.
Determine the per unit cost
Unit costs are established by adding all variable costs and fixed costs and dividing the figure with the output. The firm estimates to manufacture 100 head massagers per month.
Estimated total costs for all massagers = 100*$60 = $60,000
Total Costs = Labor costs + overhead costs + material costs
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TC = $67,000 + $25,000 + $60,000 = $152,000
Unit Cost = TC / output
Unit Cost = $152,000/$100 = $1,520.