COB 300- PRESENTATION EXAM
QUESTIONS AND ANSWERS
How did we find the growth projection? - Answer-We used page ten from the
Government Census website to determine the original growth projections for our three
target markets. The percent came from the middle section starting from year 2020
(Current, 1996). We multiplied the amount of people in the segment by their respective
percentage, and then divided that number by the total amount of people we are
targeting from 2018.
Why did we use 2.5% for market share and why does it increase over the years -
Answer-since there is limited products like ours in the market (Cialdini, 2014). We grew
to 4.5% in the second 2 years because of our expected growth, and added another 2%
in 2022.
Annual Purchase amount for cushion and cover slip package and covers - Answer-We
are planning on using super soft foam, which has a typical life of 5 years, and we
reduced this amount by 2 years, because this amount does not account for the
extended use that wheelchair users use wheelchairs- every 3 years
1 every year for covers
Why aren't we selling wholesale? - Answer-we didn't think of doing this, but we talked to
tokman and realized it could benefit us so we are going to take that into consideration
Why is retail prices what they are? - Answer-we have a profit margin of 3 so multiplied
the cost by 3
We have a relatively high profit margin in order to help cover costs from the start-up
year and to make a profit.
Why are fixed cost decreasing over the years? - Answer-less advertising and less
interest
Why we are where we are on process map - Answer-b/c we offer more variety than
PURAP and ROHO and change our designs periodically. Our biggest competitor is
PimpMyRide due to their lower prices and increase in variety compared to our other
competitors
Where is our bottleneck and why - Answer-sewing fabric, we need to take our time
outlining the stitches around the fabric- 4 pieces of velco to sew so it takes time
What happens if customer isn't satisfied - Answer-we will offer a free exchange and
include a 15% off coupon for their next purchase
, What is our quality improvement methodology - Answer-TQM- Total Quality
Management -- customer focused, total involvement, constant improvement
Exhibit 8- - Answer-
Reasons for choosing fedex? - Answer-Ground Rate was cheaper-Reach all of our
major areas where we will be shipping
Where are the major areas we will be shipping? - Answer-states like Mississippi,
Louisiana, Arkansas, or Florida due to high retirees and these states are the highest
population with disabilities
Why is the frequency of shipping finished goods every 2 days? - Answer-most cost
effective
How did we come up with our FG produced per hour? - Answer-6757/52/5/8
Why does the capacity increase per year - Answer-Our operation workers will increase
their skills and decrease the time it takes to transition from one product to the next. Also
we will be buying an extra sewing machine and hiring a new operations worker to
handle increased demand in order to increase capacity.
How did we come up with demand and capacity per hour - Answer-demand per hour-
annual projected sales/52/5/8
capacity per hour- take 60 min divide by 4 since that's how long bottleneck is then
multiply by 2 since we have 2 machines
How did we find utilization percent per year - Answer-
Additional resources (beyond your bottleneck) must be allocated appropriately to
support operations. Identify which resources have a significant impact on capacity at
start up and describe why these are appropriate amounts of resources at start up. -
Answer-Having two sewing machines has a negative effect on our capacity for
producing both the coverslip and the cushion, but it is needed to suffice the demand of
just the coverslip at least for the first two years. Our demand is low in the start up year
for both the cover and the cushion so it does not fully utilize the capacity.
Describe adjustments you will make as resource requirements vary with time. Be
specific regarding which key resources (beyond your bottleneck) will be adjusted, when
and how. If you will make multiple adjustments, explain each. - Answer-We will slowly
increase our capacity with the sewing machine by five percent because our operations
workers will become more efficient as the years progress. In the
third year, we buy another sewing machine due to the capacity not being able to
withstand the demand.
QUESTIONS AND ANSWERS
How did we find the growth projection? - Answer-We used page ten from the
Government Census website to determine the original growth projections for our three
target markets. The percent came from the middle section starting from year 2020
(Current, 1996). We multiplied the amount of people in the segment by their respective
percentage, and then divided that number by the total amount of people we are
targeting from 2018.
Why did we use 2.5% for market share and why does it increase over the years -
Answer-since there is limited products like ours in the market (Cialdini, 2014). We grew
to 4.5% in the second 2 years because of our expected growth, and added another 2%
in 2022.
Annual Purchase amount for cushion and cover slip package and covers - Answer-We
are planning on using super soft foam, which has a typical life of 5 years, and we
reduced this amount by 2 years, because this amount does not account for the
extended use that wheelchair users use wheelchairs- every 3 years
1 every year for covers
Why aren't we selling wholesale? - Answer-we didn't think of doing this, but we talked to
tokman and realized it could benefit us so we are going to take that into consideration
Why is retail prices what they are? - Answer-we have a profit margin of 3 so multiplied
the cost by 3
We have a relatively high profit margin in order to help cover costs from the start-up
year and to make a profit.
Why are fixed cost decreasing over the years? - Answer-less advertising and less
interest
Why we are where we are on process map - Answer-b/c we offer more variety than
PURAP and ROHO and change our designs periodically. Our biggest competitor is
PimpMyRide due to their lower prices and increase in variety compared to our other
competitors
Where is our bottleneck and why - Answer-sewing fabric, we need to take our time
outlining the stitches around the fabric- 4 pieces of velco to sew so it takes time
What happens if customer isn't satisfied - Answer-we will offer a free exchange and
include a 15% off coupon for their next purchase
, What is our quality improvement methodology - Answer-TQM- Total Quality
Management -- customer focused, total involvement, constant improvement
Exhibit 8- - Answer-
Reasons for choosing fedex? - Answer-Ground Rate was cheaper-Reach all of our
major areas where we will be shipping
Where are the major areas we will be shipping? - Answer-states like Mississippi,
Louisiana, Arkansas, or Florida due to high retirees and these states are the highest
population with disabilities
Why is the frequency of shipping finished goods every 2 days? - Answer-most cost
effective
How did we come up with our FG produced per hour? - Answer-6757/52/5/8
Why does the capacity increase per year - Answer-Our operation workers will increase
their skills and decrease the time it takes to transition from one product to the next. Also
we will be buying an extra sewing machine and hiring a new operations worker to
handle increased demand in order to increase capacity.
How did we come up with demand and capacity per hour - Answer-demand per hour-
annual projected sales/52/5/8
capacity per hour- take 60 min divide by 4 since that's how long bottleneck is then
multiply by 2 since we have 2 machines
How did we find utilization percent per year - Answer-
Additional resources (beyond your bottleneck) must be allocated appropriately to
support operations. Identify which resources have a significant impact on capacity at
start up and describe why these are appropriate amounts of resources at start up. -
Answer-Having two sewing machines has a negative effect on our capacity for
producing both the coverslip and the cushion, but it is needed to suffice the demand of
just the coverslip at least for the first two years. Our demand is low in the start up year
for both the cover and the cushion so it does not fully utilize the capacity.
Describe adjustments you will make as resource requirements vary with time. Be
specific regarding which key resources (beyond your bottleneck) will be adjusted, when
and how. If you will make multiple adjustments, explain each. - Answer-We will slowly
increase our capacity with the sewing machine by five percent because our operations
workers will become more efficient as the years progress. In the
third year, we buy another sewing machine due to the capacity not being able to
withstand the demand.
