(c3) le petit chef

M9721807 Tiffany Putri

M9721803 Sulistio Handayani

M9721002 Irene Chen

Le Petit Chef

2

Contents

Le Petit Chef

Microwave Industry•Technology•Market•Recent Development of Microwave

Le Petit Product Line

Project Selection and Execution

Le Petit Market Development

Crisis and Dilemma

Solution

BACKGROUND OF MICROWAVE OVEN

INDUSTRY

Microwave Oven History

History 1940…

Radar(Radio detecting and ranging)

1946… Magnetron and Chocolate bar

1947… The first commercial product hit

the market 1952…

The first home microwave model, $1295

5 ½ feet tallOver 750 pounds$5000

5 ½ feet tallOver 750 pounds$5000

Technology of Microwave Oven

The Basic Techonology

Microwave oven uses various combinations of electrical circuits and mechanical devices to produce and control the output of microwave energy for heating and cooking.

Two fundamental sections: Control section High-voltage section

Technology ofMicrowave Oven

Cost structure of a microwave oven as % of total cost

Microwave cost structure

Raw Material 65%

Direct Labor 10%

Indirect Labor 6%

General Overhead & Depreciation

11%

Logistic & Stock Holding

5%

Development 3%

Total 100%

Module & Assembly Costs

Cavity 15%

Power Supply 25%

Microwave System(magnetron, wave-guide)

15%

Door 10%

Controls 10%

Final Assembly 10%

Other 15%

Total 100%

Cost of Grill, Crisp & Control*

40%

*Impact of providing an additional “grill” feature on the cost structure of a basic oven.

Over 40%

Scale-sensitiv

e

Scale-sensitiv

e

The level of sophistication of a microwave oven

Recent Developments

Combi-Ovens A combination of microwave and other cooking

modes to provide a variety of options. Steaming, browning and grilling

Accessories Allowed users to cook specific types of food

Intelligence Fuzzy logic

New control technique Improve the ease of use and performance of

microwave ovens

BACKGROUND OF LE PETIT CHEF

Introduction

Sales

Product Mix Turnover by geographic region

Strategy

Differentiated through Technical innovation Performance features

Combi-ovens Combined cooking modes of grilling and convection

heating with microwave cooking. Pull marketing strategy

Exclusive recipes Created a strong brand image

Innovation design and high performance Diversify into manufacturing other high-end

countertop appliance.

Operating structure

High conformance quality Reliable order deliveries Low costs Strong control over suppliers Heavy investment in R&D Inter-functional coordinate and cooperation

Organization Structure

Marketing

Manufacturing

Sales R&D

CEO

CFO

FinanceAdmin

PRODUCT LINE MAP

Liberte

25L

Liberte

25L

GrandeLiberte

35L

Compacte

Liberte20L

Liberte

Ultigril

25L

1990 1991199

2199

4199

3

1995 1996

2000

1999

1998199

7

Egalite

Deluxe

35L

Egalite

Deluxe

20LEgalit

e Delux

e25L

Egalite

Crousty

20L

Egalite

Crousty

35L

Egalite

Crousty

35L

Egalite

Grande

35L

Egalite Compa

cte20L

Egalite

25L

Egalite

25L

LiberteElectoniq

ue35L

Egalite Uno20L

Egalite Uno35L

Egalite Uno25L

LiberteElectoniq

ue20LLiberte

Electonique25L

LiberteUltigril

20L

LiberteUltigril

35L

UltigrilElectoniq

ue20LUltigril

Electonique25LUltigril

Electonique35L

LiberteRotesori

20L

LiberteItalia20L

LiberteItalia25L

LiberteRotesori

25L

LiberteItalia35L

LiberteRotesori

35L

PROJECT SELECTION & EXCUTION

Project Selection

Project Execution

Cross Functional Working Group

The project plan included the NPV Analysis, a project Charter, the Detailed sequence of project activities split into a number

of different phases separated by clear decision points for reviews by the head of other departments.

LE PETIT MARKET DEVELOPMENT

Recent Market Development

Low end mid range segment

Price Decline

The Crisis

Propose Microwave Oven

New Intelligent

Line of

Microwave

“Fuzzy

Logic”

Cost

Reducti

on of

Egalite

and

“Creat

e Low

end

Fratern

ite Line

New,

Original

design of

low cost,

Low end

Fraternite

line

Develop

“Liberte

Express

” quick

heating,

more

powerful

megatro

n

Add larger cavity to Liberte

line

306 personNPV

7,000,00018 months

72 PeopleNPV

20,000,00012 months

180 PeopleNPV

10,000,00018 months

24 PeopleNPV

15,500,0006 months

30 PeopleNPV

14,400,0006 months

On Going Project

Gagne’s Dilemma

Propose Project On going Project

Price and Visible Feature Differentiation are paramount in today’s market

Cost Reducing sound like to trim Mercedes-Benz down to make Fiat

Problem in Product Planning Activity Too many projects overall. Too many derivative projects( v.s Platform

project). Overcommitted resources. Inappropriate skill mix in R&D. Little top-down input to project generation

(the focus being on bottom-up suggestion). Dealing with potentially radical disruptive

technology trends.

Things to Consider

Solution

Solution …..

Opinion from our classmates Hai

Depend on the NPV, I may choose the highest one. But we still need to know more detail and information about the projects.

Silvia---The fourth and the second projects If we just consider about numbers, such as NPV, human resources and time to complete the project, I may choose the fourth

project. Depend on the strategy, considering about time limited. The company can choose the second project to create a new market.

Luz---The second project Because of NPV, people and time, the second is the best one. In another way, Asian market is another chance, because of

Asian people may think the brand from Europe is kind of luxury. It will be another chance to create low end market. Combine on going project for product design and product modification

Pipe---The fourth and the first projects The choices is base on the company strategy, if I could choose one of the project, then :

Short term strategy: The fourth project Long term strategy: The first project

Henky---The fourth project To think about why people use microwave oven, one important reason is they want to save time. So the performance is

important, project 4 enhance the speed of cooking. Marketing department always focus on low price, good quality, they can sale easily. R&D department want to create unique, high quality product. Focus in product design for the on going project.

Bodhi--- The first project NPV is just a prediction, it’s only project prediction. We can not just look at the NPV in deciding which project to go on. I rather

choose first project which is fuzzy logic as it is a new innovation in the market and this is very important for company which its operation based on the innovation to be able to compete in the market. It might give lower NPV but company can be a market leader for the technology

We can not stop the on going project and we have new project thus we can use heavy weight model to link each other project.

LE PETIT CHEF BY : MIP’S ANGEL

THANK YOU FOR YOUR ATTENTION