Scribd Logo
Unggah

Selamat datang di Scribd!

  • B8 - GPS To Go

    Diunggah oleh

    Biranchi Prasad Sahoo
    106 tayangan7 halaman
    GPS-to-Go wants to leverage its expertise in GPS technology from government contracts to enter the consumer market dominated by Garmin. However, GPS-to-Go faces high manufacturing costs and engineering challenges that could delay its product launch. It must decide whether to use its parent company's factory, build a new factory, or engage a contract manufacturer to produce its new GO I, GO II, and GO III GPS devices on time and at a cost that will ensure commercial viability. Contract manufacturing in China could help GPS-to-Go achieve breakeven sales volumes sooner but quality control may be difficult to manage from a distance.

    Deskripsi Asli:

    GPS

    Judul Asli

    B8_GPS-to-Go

    Hak Cipta

    © © All Rights Reserved

    Format Tersedia

    PPT, PDF, TXT atau baca online dari Scribd

    Apakah menurut Anda dokumen ini bermanfaat?

    Apakah konten ini tidak pantas?

    Laporkan Dokumen Ini
    GPS-to-Go wants to leverage its expertise in GPS technology from government contracts to enter the consumer market dominated by Garmin. However, GPS-to-Go faces high manufacturing costs and engineering challenges that could delay its product launch. It must decide whether to use its parent company's factory, build a new factory, or engage a contract manufacturer to produce its new GO I, GO II, and GO III GPS devices on time and at a cost that will ensure commercial viability. Contract manufacturing in China could help GPS-to-Go achieve breakeven sales volumes sooner but quality control may be difficult to manage from a distance.

    Hak Cipta:

    © All Rights Reserved
    Unduh sebagai PPT, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    106 tayangan7 halaman

    B8 - GPS To Go

    Diunggah oleh

    Biranchi Prasad Sahoo
    GPS-to-Go wants to leverage its expertise in GPS technology from government contracts to enter the consumer market dominated by Garmin. However, GPS-to-Go faces high manufacturing costs and engineering challenges that could delay its product launch. It must decide whether to use its parent company's factory, build a new factory, or engage a contract manufacturer to produce its new GO I, GO II, and GO III GPS devices on time and at a cost that will ensure commercial viability. Contract manufacturing in China could help GPS-to-Go achieve breakeven sales volumes sooner but quality control may be difficult to manage from a distance.

    Hak Cipta:

    © All Rights Reserved
    Unduh sebagai PPT, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    dari 7

    GPS-to-Go Takes on

    Garmin
    Section B, Group
    8
    Akshay Gadpayle
    16/017
    Arpan Mondal 16/006
    Akshay Nigam 16/302
    Amit Kumar Das 16/305
    Rohit Koolwal
    16/333
    Marwan O Dahab
    IE/16/31

    Case Facts
    GPS-to-Go is a subsidiary of Global GPS
    Manufacturer of cutting-edge Global Positioning System
    (GPSS) for complex air traffic control and logistics systems
    Command a plethora of IP rights, patents
    Used to serve typical five to 10 year cost plus government
    projects
    Now wants to leverage the knowledge to dominate the
    consumer market with premium priced and feature rich GPS
    units
    Garmin is the market leader with TomTom, Megallan as
    other big players in consumer GPS market car-mounted
    devices, factory-installed units, cell phones etc.
    CAGR in USA through 2013 to be 20 %to 24%

    Problem
    Engineer centric company with elaborate
    product development process at Global
    Unorganized large project teams
    Tendency to allow schedule slips of days, weeks
    or even months
    Optimistic vision of the CEO
    Initially carve out a small niche with one-of-a-kind
    features
    Build brand awareness over time
    Overtake Garmin at the top
    3
    Unit Manufacturing cost much higher than Target cost beyond
    commercial viability

    Production Alternatives
    Leverage parent Globals factory
    Create a new factory
    Contract manufacturing
    Planned simultaneous launch of GPS-to-Gos new
    portfolio
    GO I GPS ($100-$249)
    GO II GPS ($250-$349)
    GO III GPS ($350-$499)
    Operations was more of a job shop than any kind
    full-blown production system. Skilled workers with
    technologically advanced equipment to assemble
    and test units

    GO I GPS
    Strict deadline had been set for Launch before CES
    (Consumer Electronics Show)
    Bill of material after the prototypes made
    Volume purchases of common electronic component
    to cut costs
    Lack of common parts and less expensive
    components not allowed exacerbated the cost
    Redesign is not feasible at this time so close to launch
    Go-to-market with the current and redesign
    simultaneously to achieve target cost
    5

    Loaded with features which are years ahead of


    competition

    Contract Manufacturing
    Fixed manu OH
    $20,00,
    cost
    000
    Per Unit cost
    volume goal
    200000 units
    Manufacturing cost
    Contract Manu.
    Contract Manu.
    summary
    Goal
    (US)
    (China)
    10000 20000 30000 40000 50000 10000 20000 30000
    Volume goal
    0
    0
    0
    0
    0
    0
    0
    0
    118.4 116.2
    RM
    85
    125 122.5 120.7
    333
    833
    125 122.5 120.7
    Labor
    Direct
    14
    30 28.25 26.8 25.15 23.55
    7.5 7.06
    6.7
    Test
    10
    25 24.25 23.6 22.88 22.18 6.25 6.06
    5.9
    Variable Manu OH
    cost
    12 27.5 26.25 25.2 24.02 22.87 6.88 6.56
    6.3
    Total variable manu
    201.2
    190.4 184.8 145.6 142.1
    cost
    121 207.5
    5 196.3
    8
    8
    3
    8 139.6
    Fixed manu OH
    cost
    10
    20
    10 6.67 $5.00 $4.00
    20
    10 6.67
    $227. $211. $202. $195. $188. $165. $152. $146.
    Total UMC
    $131.00
    50
    25
    97
    48
    88
    63
    18
    27
    Channel price

    Margin

    40000 50000
    0
    0
    118.43 116.28
    3333
    333
    6.29
    5.72

    5.89
    5.55

    6.00

    5.71

    136.44 133.43
    $5.00 $4.00
    $141.4 $137.4
    4
    3

    $187.49
    30.1% 21.3% 12.7% -8.3% -4.3% -0.7% 11.7% 18.8% 22.0% 24.6% 26.7%

    Breakeven 500000 units in for US contract


    manufacturing

    Thank You

    Anda mungkin juga menyukai