Old Main Group KaLee Allen Mike Berry Jen Dronetti Greg Hofmann Charlie Miracola Business Counterparts: Jeff Drobish Mark Leberknight Ashley Tasker

Business Plan Authored in Spring 2001 Overreaching instruction for management of business Detailed information for six product groups -Financials -Market Research

Old Main Financials Spring 2001

Market Research A survey of 60 people found: 52% would pay up to $49 22% would pay $50 to $99 15% would pay $100 to $149 5% would pay $150 or greater The mean suggested price was: $62.50 (65% of those surveyed were alumni)

New Market Research Interviews were conducted of five State College retailers The mean retail price suggested was: $ Surveys were conducted: (70% of those surveyed were alumni) The average suggested price was $132.50

Product Features: IME I Features Old Main Replica sculpture Clock in tower where the clock is located in the actual building Push button activated projecting and retracting lion One button to make lion come out, one button to retract lion

Estimated Cost: IME I Total Cost: $100 (not including machining and labor) Cost of Materials for Old Main: $60 Total Weight of Structure: about 15 lbs. Cost per pound of Stock Aluminum: $1.75 Total cost includes other preparation Cost of Materials for Lion Mechanism: $40 Cost of Motor: $25 Cost of Clock: $7 Misc. Costs: $8 Lion Cost: $4 Total Machining Cost: $350 Total Machine Hours: 7 hours Labor Hour Cost : $10

Improvements for Future: IME I Redesign Sides should not be solid, too much weight Use Box Tubing for sides Redesign Mechanical and Electrical Components Use a less expensive motor Easy to mount motor Possibly Cast

Redesign: IME II Redesign on overall structure Smaller clock will be incorporated, which will change overall dimensions to look more proportional. Tower is not as massive as it was, a little more realistic. Dimensions of pieces helped ease ordering of pieces close to near net shape for ease in machining, which will help reduce cost.

Redesign: IME II Redesign of Roof The depth of the structure is now much smaller, making it more 2-D. This will reduce the weight of the overall building. Roof is also being done as a combination of more than one piece, an improvement in the process since last semester.

Redesign: IME II Redesign of Side Pieces Side pieces will now be made of extruded tube aluminum, greatly reducing the weight of the structure. With reduced depth, all of the focus now will be on the front of the structure.

Final Cost Breakdown: IME II Material Cost (per Old Main): $27.98 Roof: $12.45 Building (sides, front, back): $3.39 Tower: $7.30 Base: $2.50 Columns (8): $2.47 Clock: $6.95 Machine time and Labor: $90 Total Cost: $125.04

Lessons Learned: IME I&II How much is actually involved in designing and prototyping a product from scratch How to combing efforts in group to put out a final product How to take constructive criticism Have a better understanding of the design process of a new product

Lessons Learned: IME I&II How to take a prototype and make changes to improve the machinability of a product. How to make changes based on cost, i.e. reduce weight, machine time, material cost. Understanding how to implement changes for manufacturing. Understanding the target market’s needs and accommodating them through a product.

IME: Why take it? Presents students with real life situations, i.e. relationships with vendors, communication with business side. Entails entire creative process from initial stages of brainstorming to final production of product. Develops skills of working in teams and ability to work towards a consensus. Hands on experience.

Old Main Financials Fall 2001

New Financials Average Cost Per Unit: Number of units:Price: 12$ $ $ $ $ $125.27

New Financials Net Income (after taxes): Number of units: Net income: 12$1, $1, $2, $10, $20, $49,434.98

New Financials Absence of expenses: No depreciation No licensing No plant/maintenance

New Financials

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