Download - The CareFree Cook Project Proposal
The CareFree CookThe CareFree CookProject ProposalProject Proposal
CS 410CS 410Group 2Group 2
Spring 2004Spring 2004
4 May 20044 May 2004
4 May 2004 2CareFree Cook
Team MembersTeam Members
4 May 2004 3CareFree Cook
Problem StatementProblem Statement
Proper monitoring of meat is inconvenient Proper monitoring of meat is inconvenient and cooking can result in inconsistent and cooking can result in inconsistent quality and safety of prepared food.quality and safety of prepared food.
4 May 2004 4CareFree Cook
Problem CharacteristicsProblem Characteristics
• Inconvenience of constant monitoringInconvenience of constant monitoring• Lack of expert cooking knowledgeLack of expert cooking knowledge• Over- or undercooked meatOver- or undercooked meat• Food poisoningFood poisoning
4 May 2004 5CareFree Cook
Solution StatementSolution Statement
Develop an oven control unit that interfaces Develop an oven control unit that interfaces with a meat thermometer to provide accurate with a meat thermometer to provide accurate and consistent cooking results. The user and consistent cooking results. The user inputs collect via a convenient GUI and are inputs collect via a convenient GUI and are used to control the oven to adjust cooking used to control the oven to adjust cooking times and temperatures.times and temperatures.
4 May 2004 6CareFree Cook
Solution CharacteristicsSolution Characteristics
The CareFree Cook will:The CareFree Cook will:• Provide user with pertinent cooking Provide user with pertinent cooking
informationinformation• Allow user interaction via a GUIAllow user interaction via a GUI• Automatically start, monitor and cook the meat; Automatically start, monitor and cook the meat;
shutting oven off at the appropriate timeshutting oven off at the appropriate time• Safeguard consumers from the dangers posed Safeguard consumers from the dangers posed
by foodborne illnessby foodborne illness
4 May 2004 7CareFree Cook
Solution CharacteristicsSolution Characteristics
The CareFree Cook will not:The CareFree Cook will not:• Interfere with the traditional operation of the Interfere with the traditional operation of the
ovenoven• Eliminate food poisoningEliminate food poisoning• Support baked goods other than meatsSupport baked goods other than meats• Retrofit into existing ovensRetrofit into existing ovens
4 May 2004 8CareFree Cook
Management PlanManagement Plan
4 May 2004 9CareFree Cook
Research & Development PlanResearch & Development Plan
Required HardwareRequired Hardware• LCD DisplayLCD Display• Clock/TimerClock/Timer• Thermocouple Thermocouple • Single Board Single Board
ComputerComputer• Digital/Analog Digital/Analog
convertersconverters• Signal ConditionerSignal Conditioner
4 May 2004 10CareFree Cook
Research & Development PlanResearch & Development Plan
Required SoftwareRequired Software• User interfaceUser interface• Database of Database of
cooking times cooking times and temperaturesand temperatures
• Hardware layer Hardware layer controlscontrols
For additional information, see supplemental informationFor additional information, see supplemental information
4 May 2004 11CareFree Cook
Select Type of MeatSelect Type of Meat
4 May 2004 12CareFree Cook
Select Cut of MeatSelect Cut of Meat
4 May 2004 13CareFree Cook
Select Cut of MeatSelect Cut of Meat
4 May 2004 14CareFree Cook
Select TasteSelect Taste
4 May 2004 15CareFree Cook
Input WeightInput Weight
4 May 2004 16CareFree Cook
Select Time to EatSelect Time to Eat
4 May 2004 17CareFree Cook
Start CookingStart Cooking
4 May 2004 18CareFree Cook
Evaluation PlanEvaluation Plan• Phase 0Phase 0
• Research FeasibilityResearch Feasibility• Phase 1Phase 1
• Develop DocumentationDevelop Documentation• Manufacturer PrototypeManufacturer Prototype• Generate BudgetGenerate Budget
• Phase 2Phase 2• Assemble Hardware/SoftwareAssemble Hardware/Software• Develop DatabaseDevelop Database• Integrate SystemIntegrate System
• Phase 3Phase 3• Enter Out-Year ProductionEnter Out-Year Production
4 May 2004 19CareFree Cook
Marketing PlanMarketing Plan
Major Appliance Manufacturer Profile:Major Appliance Manufacturer Profile:• A proven performer in range oven technologyA proven performer in range oven technology• An extensive research and development An extensive research and development
departmentdepartment• An established market share in the major An established market share in the major
appliance industryappliance industry• A strong vision and marketing strategy that A strong vision and marketing strategy that
complements our productcomplements our product
4 May 2004 20CareFree Cook
Marketing PlanMarketing Plan
Manufactures and markets a full line of major Manufactures and markets a full line of major appliances and related products, primarily for appliances and related products, primarily for home usehome use
www.whirlpoolcorp.comwww.whirlpoolcorp.com
4 May 2004 21CareFree Cook
Whirlpool’s Current Whirlpool’s Current Oven Range TechnologyOven Range Technology
PolaraPolaraTMTM
Marketing PlanMarketing Plan
4 May 2004 22CareFree Cook
Marketing PlanMarketing Plan
• Nearly 50 manufacturing and technology research Nearly 50 manufacturing and technology research centers worldwidecenters worldwide
• Markets Whirlpool, KitchenAid, Brastemp, Markets Whirlpool, KitchenAid, Brastemp, Bauknecht, Consul and other major brand names Bauknecht, Consul and other major brand names to consumers in more than 170 countriesto consumers in more than 170 countries
• Whirlpool is the largest supplier of major Whirlpool is the largest supplier of major appliance to Sears, Roebuck and Company under appliance to Sears, Roebuck and Company under the Kenmore brandthe Kenmore brand
www.whirlpoolcorp.comwww.whirlpoolcorp.com
4 May 2004 23CareFree Cook
Market Share ComparisonMarket Share Comparison
0
2
4
6
8
10
12
Net Sales(In Billions)
1999 2000 2001 2002
Year
Maytag
Whirlpool
Source: Maytag and Whirlpool 2002 Annual Reports
4 May 2004 24CareFree Cook
Marketing PlanMarketing Plan
Whirlpool’s Mission Whirlpool’s Mission Statement:Statement:
““Every Home… Every Home… Everywhere. With Everywhere. With Pride, Passion and Pride, Passion and Performance.”Performance.”
www.whirlpoolcorp.comwww.whirlpoolcorp.com
4 May 2004 25CareFree Cook
Marketing PlanMarketing Plan
Interest Rate Forecast
0123456789
10
2000 2001 2002 2003 2004 2005
Years
Inte
res
t R
ate
Fixed-rate
ARMs
Prime Rate
4 May 2004 26CareFree Cook
Marketing PlanMarketing Plan
• New home sales New home sales are growing, are growing, promoting growth promoting growth in major appliance in major appliance salessales
New Home Growth
700
800
900
1000
1100
1200
1300
Dec-99 Jun-00 Jan-01 Jul-01 Feb-02 Sep-02 Mar-03 Oct-03 Apr-04
(in thousands)
http://www.nahb.orghttp://www.nahb.org
4 May 2004 27CareFree Cook
Marketing PlanMarketing Plan
Design Center Concept: Design Center Concept: New Home TechnologiesNew Home Technologies
• June 2003June 2003• 32 Builders 32 Builders • Major SuppliersMajor Suppliers
• Whirlpool Corp.Whirlpool Corp.• Masco Corp.Masco Corp.
• Provide New Home Buyers Provide New Home Buyers With An Array Of OptionsWith An Array Of Options
• Finance Options Into Cost Of Finance Options Into Cost Of HomeHome
Source: BIG BUILDER Magazine Publish Date: Source: BIG BUILDER Magazine Publish Date: 2003-08-202003-08-20
New Home Growth
700
800
900
1000
1100
1200
1300
Dec-99 Jun-00 Jan-01 Jul-01 Feb-02 Sep-02 Mar-03 Oct-03 Apr-04
(in thousands)
http://www.nahb.orghttp://www.nahb.org
4 May 2004 28CareFree Cook
Marketing PlanMarketing Plan
Potential SalesPotential Sales• 1,106,000 new home sales 1,106,000 new home sales
in January 2004 according in January 2004 according to NAHB to NAHB
• A target goal of 2.5% A target goal of 2.5% would yield 27,650 in would yield 27,650 in CareFree Cook range CareFree Cook range ovens for the month of ovens for the month of January aloneJanuary alone
Potential Sales of CFC with only2.5% Market Penetration
(ranges sold)27,650
1,106,000
New Home Sales
Potential CFC Sales
4 May 2004 29CareFree Cook
Competition MatrixCompetition Matrix
Convenient Convenient CookingCooking
Oven Oven Cooking Cooking ResultsResults
Integrated Integrated Meat Meat
ThermometerThermometerProgrammable Programmable
CookingCookingProgrammable Programmable
DatabaseDatabase TemperatureTemperature
Traditional Gas & Traditional Gas & Electric Range Electric Range
OvensOvensNONO
Dependent Dependent On CookOn Cook
NONO NONO NONOUser Preset User Preset
TempTemp
Microwave Microwave OvensOvens
YESYES *Inconsistent*InconsistentSelected Selected ModelsModels
YESYES NONONone (Power None (Power
Level)Level)
Carefree Cook Carefree Cook Integrated OvenIntegrated Oven
YESYES ConsistentConsistent YESYES YESYES YESYESCPU CPU
ControlledControlled
*source: http://www.whirlpool.com/shopguide/microwaves.htmls *source: http://www.whirlpool.com/shopguide/microwaves.htmls
4 May 2004 30CareFree Cook
Potential MarketPotential MarketWhat increase in overall oven price would
you pay for this feature?
20.7%
8.6%3.4%
16.4%
50.9%
0
0.1
0.2
0.3
0.4
0.5
0.6
Would Not Buy $50-$100 $100-$200 $200-$300 $300+
227 people surveyed
4 May 2004 31CareFree Cook
Phase 0: ConceptionPhase 0: ConceptionMajor DeliverablesMajor Deliverables
• Team FormationTeam Formation• Initialization of ProjectInitialization of Project• Feasibility of ProjectFeasibility of Project• Milestone Study of ProjectMilestone Study of Project• Return-of-Investment StudyReturn-of-Investment Study• Budget Development of PrototypeBudget Development of Prototype• Cost Analysis of PrototypeCost Analysis of Prototype• SBIRSBIR• Final Approval PresentationFinal Approval Presentation• Website DevelopmentWebsite Development
4 May 2004 32CareFree Cook
Phase 0: ConceptionPhase 0: ConceptionOrganization ChartOrganization Chart
4 May 2004 33CareFree Cook
Phase 0: ConceptionPhase 0: ConceptionScheduleSchedule
Full WBS in SupplementalFull WBS in Supplemental
4 May 2004 34CareFree Cook
Phase 1: Proof of ConceptPhase 1: Proof of ConceptMajor DeliverablesMajor Deliverables
• Develop Requirements ListDevelop Requirements List• Acquire Materials/ResourcesAcquire Materials/Resources• Develop PrototypeDevelop Prototype• Integrate Prototype into OvenIntegrate Prototype into Oven• DocumentationDocumentation• SBIR Proposal (Phase II)SBIR Proposal (Phase II)
4 May 2004 35CareFree Cook
Phase 1: Proof of ConceptPhase 1: Proof of ConceptOrganization ChartOrganization Chart
4 May 2004 36CareFree Cook
Phase 1: Proof of ConceptPhase 1: Proof of ConceptScheduleSchedule
Full WBS in SupplementalFull WBS in Supplemental
4 May 2004 37CareFree Cook
Phase 1: Proof of ConceptPhase 1: Proof of ConceptBudgetBudget
EACHYEARLYSALARY DAYS
SALARYCOST
Project Manager 1 $63,821.00 106 $26,019.00Hardware Engineer 1 $40,470.00 48 $7,471.00Software Engineers 2 $41,358.00 91 $28,951.00Budget Manager 1 $43,356.00 12 $2,001.00Database Engineer 1 $39,187.00 7 $1,055.00Preliminary Total $65,497.0040% Overhead $26,199.00
Total Personnel $91,696.00
Unit Cost Units
ExtendedCost
Oven $1,000.00 1 $1,000.00Workstation $1,000.00 6 $6,000.00Components* $182.00 1 $182.00Misc. & Cables $50.00 1 $50.00
Total Hardware $7,232.00
Total Personnel Costs $91,696.00Total Hard Resources Costs $7,232.00
Total Phase 1 Budget $98,928.00*see Supplemental for complete breakdown of costs**extended costs are rounded to nearest dollar
PERSONNEL
REQUIRED HARD RESOURCES
PHASE 1 BUDGET SUMMARY
4 May 2004 38CareFree Cook
Phase 2: Prototype DevelopmentPhase 2: Prototype DevelopmentMajor DeliverablesMajor Deliverables
• DocumentationDocumentation• CareFree Cook DevelopmentCareFree Cook Development
• System DesignSystem Design• SoftwareSoftware• Hardware AssemblyHardware Assembly• Database AssemblyDatabase Assembly• System TestingSystem Testing
• MarketingMarketing• FundingFunding• WebsiteWebsite
4 May 2004 39CareFree Cook
Phase 2: Prototype DevelopmentPhase 2: Prototype DevelopmentOrganizational ChartOrganizational Chart
4 May 2004 40CareFree Cook
Phase 2: Prototype DevelopmentPhase 2: Prototype DevelopmentScheduleSchedule
Full WBS in SupplementalFull WBS in Supplemental
4 May 2004 41CareFree Cook
Phase 2: Prototype DevelopmentPhase 2: Prototype DevelopmentBudgetBudget
EACHYEARLYSALARY DAYS
SALARYCOST
Project Manager 1 $63,821.00 164 $40,256.00Hardware Engineer 1 $40,470.00 134 $20,858.00Software Engineers 2 $41,358.00 116 $36,904.00Budget Manager 1 $43,356.00 82 $13,674.00Marketing Manager 1 $61,189.00 110 $25,888.00Marketing Assistant 1 $35,598.00 110 $15,061.00Customer Support 1 $23,127.00 160 $14,232.00Technical Writer 1 $35,941.00 20 $2,765.00Quality Assurance 2 $48,212.00 100 $37,086.00Lawyer 1 $77,535.00 120 $35,785.00R&D Manager 1 $46,287.00 54 $9,613.00Web Designer 1 $35,000.00 40 $5,385.00Chef 1 $43,019.00 86 $14,229.00Database Engineer 1 $39,187.00 88 $13,263.00Preliminary Total $284,999.0040% Overhead $114,000.00
$398,999.00
Unit Cost Units
ExtendedCost
Workstation $1,000.00 9 $9,000.00Freezer $4,000.00 1 $4,000.00Food $5,000.00 1 $5,000.00Components $182.00 1000 $182,000.00Assembly of Components $2.00 1000 $2,000.00Misc. & Cables $50.00 10 $5,000.00
$207,000.00
Total Personnel Costs $398,999.00Total Hard Resources Costs $207,000.00Total Phase 2 Budget $605,999.00
*extended costs are rounded to nearest dollar
PERSONNEL
REQUIRED HARD RESOURCES
PHASE 2 BUDGET SUMMARY
4 May 2004 42CareFree Cook
Phase 3: ProductionPhase 3: ProductionMajor DeliverablesMajor Deliverables
• PurchasingPurchasing• StaffingStaffing• Preparation of Production FacilitiesPreparation of Production Facilities• Production and Out YearsProduction and Out Years
4 May 2004 43CareFree Cook
Phase 3: ProductionPhase 3: ProductionOrganization ChartOrganization Chart
4 May 2004 44CareFree Cook
Phase 3: ProductionPhase 3: ProductionScheduleSchedule
Full WBS in SupplementalFull WBS in Supplemental
4 May 2004 45CareFree Cook
Phase 3: ProductionPhase 3: ProductionBudgetBudget
EACHYEARLYSALARY DAYS
SALARYCOST
Project Manager 1 $63,821.00 YEARLY $63,821.00Budget Manager 1 $43,356.00 YEARLY $43,356.00Marketing Manager 1 $61,189.00 YEARLY $61,189.00Marketing Assistant 1 $35,598.00 YEARLY $35,598.00Customer Support 10 $23,127.00 YEARLY $231,270.00Quality Assurance 1 $48,212.00 YEARLY $48,212.00Lawyer 1 $5,000.00 YEARLY $5,000.00R&D Manager 1 $46,287.00 YEARLY $46,287.00Technical Consultants 2 $150.00/hr 180 hrs $27,000.00Preliminary Total $534,733.0040% Overhead $213,893.00
$748,626.00
PERSONNEL
4 May 2004 46CareFree Cook
Schedule RecapSchedule Recap
Full WBS in SupplementalFull WBS in Supplemental
4 May 2004 47CareFree Cook
Project Budget RecapProject Budget Recap
Initial Production (Units) 100,000Initial Selling Point $225.00Production Cost $191.49Profit per Unit $33.51Initial Cost of 100,000 Units $19,149,000Number Sold to Meet Cost 85,107
PROFIT (100,000 Units) 3,351,000$
** Production costs include Hardware and Salaries per Component
Profit Analysis
4 May 2004 48CareFree Cook
Break-Even AnalysisBreak-Even Analysis
00
4 May 2004 49CareFree Cook
Risk Management PlanRisk Management Plan
1.1. Social acceptanceSocial acceptance
2.2. Limited resourcesLimited resources
3.3. Costly componentsCostly components
4.4. Limited primary Limited primary marketmarket
LIKELIHOOD
1, 2
3
8 6 4
55
12, 13 10, 11 9 7
CONSEQUENCE*Order of risk severity is read diagonally from top to right. See the supplemental section for in depth analysis of all risks and the proposed mitigating actions.
4 May 2004 50CareFree Cook
Risk MitigationRisk Mitigation
Social acceptanceSocial acceptance• Likelihood: High (5)Likelihood: High (5)• Consequences: Severe (5)Consequences: Severe (5)• Mitigation: Mitigation:
• Easy and intuitive interfaceEasy and intuitive interface• Advertising campaign emphasizing convenience and health benefitsAdvertising campaign emphasizing convenience and health benefits
Limited resourcesLimited resources• Likelihood: High (5)Likelihood: High (5)• Consequences: Severe (5)Consequences: Severe (5)• Mitigation: Mitigation:
• Pursue funding from government agenciesPursue funding from government agencies• Obtain capital investment from Whirlpool or another major Obtain capital investment from Whirlpool or another major
manufacturermanufacturer
4 May 2004 51CareFree Cook
Risk MitigationRisk Mitigation
Costly componentsCostly components• Likelihood: Above Average (4)Likelihood: Above Average (4)• Consequences: Severe (5)Consequences: Severe (5)• Mitigation:Mitigation:
• Protect LCD from heat, grease and damageProtect LCD from heat, grease and damage• Design probe for ten-year lifespanDesign probe for ten-year lifespan
Limited primary marketLimited primary market• Likelihood: Above Average (4)Likelihood: Above Average (4)• Consequences: Severe (5)Consequences: Severe (5)• Mitigation:Mitigation:
• Fashion control unit to mesh easily and seamlessly with existing modelsFashion control unit to mesh easily and seamlessly with existing models• Ensure per unit price is competitive with other convenience accessoriesEnsure per unit price is competitive with other convenience accessories
4 May 2004 52CareFree Cook
ConclusionConclusion
• The required technology exists and is The required technology exists and is readily availablereadily available
• The required resources are minimal and can The required resources are minimal and can be acquired in a timely mannerbe acquired in a timely manner
• The societal objections can be overcome The societal objections can be overcome though advertising and exposure to the though advertising and exposure to the productproduct
4 May 2004 53CareFree Cook
The EndThe End