1. 1 U of M Materials Science Seagate Design Group Alan Bagwell Tony Lindert Loc Nguyen Greg Rayner Industrial Mentor: Dr. Vince Engelkes Faculty Advisor: Prof. C. Daniel Frisbie

2. Outline Project Recap Timeline – Phase 1: Research and Design – Phase 2: Laboratory Testing – Phase 3: Implementation – Phase 4: Project Lifespan Cost Analysis Summary 2

3. Project Goal and Solution Main Goal: Reduce transducer RMS roughness from 10 Å to 2 Å Project Solution: Chemical Mechanical Processing / Nanogrinding 3 On the advanced lapping process in the precision finishing of thin-film magnetic recording heads for rigid disc drives, Jiang, 2003

4. Solution Summary Fixed Abrasive Lapping – 50 nm polycrystalline spherical diamond particles embedded in tin-bismuth grooved plate – Plate charging time of 8 hours Slurry Composition – Ethylene glycol with 6% colloidal silica (30% SiO 2, 10 nm) – Benzotriazole corrosion inhibitor (2g/L) – Polyoxyethylene ether surfactant (5 vol%) – Organic pH regulators such as NH 4 OH to achieve a pH of 10 4

5. Phase 1: Research & Development 4 months of design and planning No physical testing at this stage Team financing: $104,000 5

6. Phase 2: Lab Testing 6 months of small-scale testing and quality control Seagate laboratory used for testing – no associated equipment costs Assumption: Seagate’s machines for the current lapping processes will fit our process 6

7. Phase 2 Costs Engineers$156,000 Slider bars$96,000 Slurry$2577 Diamond particles$1872 Laboratory usage$288,000 Miscellaneous$100,000 Total Cost$644,449 7

8. Phase 3: Implementation 6 months to reach full-scale production 50% failure rate on all heads Seagate produced 182 million hard drives in 2008 Average of 6 heads per drive Additional charging time on our process requires 1060 extra machines 8

9. Phase 3 Costs Engineering Salary$156,000 Labor$900,000 New Machines$106,000,000 Slurry$214,625,000 Diamond particles$70,090,000 Total Cost$391,770,000 9

10. 10 Phase 4 Costs (Project Lifespan: 3 years) CategoryCost Per YearTotal Cost (million) Engineering Salary$312,000$0.94 M Labor$1,800,000$5.40 M Slurry$429,250,000$1,287.75 M Diamond particles$140,180,000$420.54 M Total Cost$571,542,000$1,714.63 Million

11. Cost Summary Net Present Worth Adjusted (i = 10%) Phase 1 (4 months)$104,000 Phase 2 (6 months)$644,449$624,316 Phase 3 (6 months)$391,770,000$361,869,000 Phase 4 (3 years)$1,714,630,000 (over three years) Year 1: $503,352,000 Year 2: $457,593,000 Year 3: $416,993,000 Total$2.11 billion$1.74 billion 11

12. Gantt Chart 12

13. Cost Analysis 13

14. Cash Flow (Net Present Value- adjusted for 10% interest) 14 YearCost (Million)Additional Revenue (Million) Cash Flow (Million) 0$3630 1$50455924725 2$45840678335 3$417295810876

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16. Summary Proposed design will increase storage density by 100%. Net present cost of project for 4 years and 4 months is $1.74 billion Net present revenue from project is projected to be $12.6 billion Break even point is 1 year and 5 months Net cash flow after 4 years is $10.9 billion 16