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Smart Pen Customer Analysis and Market Segmentation

Info: 8553 words (34 pages) Dissertation
Published: 10th Dec 2019

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Tagged: MarketingConsumer Decisions

Group F3

Smart pen

Contents

Creativity and the opportunity

Customer analysis and market segmentation

Customer Analysis.

Market Segmentation

Market Definition

Pest Analysis

Political

Economical

Social Factors

Technological

Major trends in the environment.

Market Potential

Market Demand

Swot Analysis

Product Service Definition and Quality Considerations

Definition of quality

Process design and resource requirement.

Raw materials and resources

Production expertise and equipment

Range of Products

Location strategy

Proximity to customers/marketers

Proximity to Suppliers

Proximity to the Competitors

Ongoing Cost

Layout Strategy

Service spaces

Customer Exposure

Material Handling

Occupational Health and Safety

Supply Chain

Raw Material Handling

Pre-Assembly

Assembly

Shipping

Delivery

Quality Satisfaction (Reviews)

After sales support

Financial plan

Establishment Costs

Running Cost

Investment

Sales Forecast

Balance Sheet

Income Statement

Cumulative Cash Flow

Payback Period

Creativity and the opportunity

Scanning

The heart of the scanner is its detector array: a set of tiny light sensors formed into a line that takes up most of the smart pens length. As it passes over a document, the scanner illuminates the page, and the sensors pick up the image or text as a set of points of light. Rollers on the scanner touch the document and measure the length of the surface over which the scanner passes, allowing the scanner to correctly scale the image. Scanner’s electronic circuitry does the same job a desktop scanner does, converting points of light from the sensors into colour or grey-scale signals before turning the electronic signals into digital data. The circuits assign a number value for every level of grey or red-green-blue colour combination, and store the numbers as digital data files in a mini SD, or transfer directly to the computer.

Auto- printing

The smart pen does not only prints on surfaces, it automatically calibrates the surface when we place it on a surface, by using its inbuilt sensors, to print smoothly. After calibration the smart pen moves on its own by using its micro and durable rotors to move it on the surface and prints with a touch of a button.

The smart pen provides 30 coloured shots and 50 black and white shots, it depends on the quality of the image produced well, whether its standard colour or high definition printout.

Print horizontally and vertically

Normally any printer prints horizontally, but we have embedded a gecko like structure to the micro wheels(rotors) so that I would stick on a vertical surface , this is ideal for printing on white boards (yes the printer can print on white boards as well , erasable and toxic free) and on crates which used on ships and etc. The sensors of this smart pen calibrates always while its moving so if it detect that the pens going to fall while moving vertically the pen would stop immediately and a tension is created by the mini motors inside which enables the wheels to get stick hard enough for the surface that it won’t fall and alarming the user the pen is in destress.

Derivation of the smart pen

We derived the smart pen by two major inventions. One is the portable scanner which is a small bar that can be dragged on a surface to get the image that we require. The second is the handheld printing gun which is used to print on shipping crates and on walls. But all of these devices has an inaccuracy, that’s why we developed this pen to provide the necessary accuracy that is lacking such as scanning the document perfectly without any distortion or broken images, if your using the hand held printing gun sometimes your hand may be shaky or if your printing on a pipe the words or the image may print in a wrong angle, the pen printer provides lot more accuracy and it doesn’t need any user control to operate in automatic mode, it saves time and money and it’s easy to use.

Customer analysis and market segmentation

Customer Analysis.

Currently with technology becoming more advanced by the day, cheaper and more accessible to everyone, most people have the capability to view a document as a softcopy through a digital screen. This advance in technology might make some believe that printouts and hardcopies will become outdated and extinct in the near future. One of the reasons for them believing in this is due to how printouts are taken. In 2017, almost everyone owns their household printers. Taking printouts with these personal printers can be unreliable as it can run into issues with ink cartridge rejection, paper jams, and bad quality printouts at the time of printing. The other problem is that your personal printer isn’t accessible when you leave home and you are required to take printouts of the necessary documents the day before you need them so that you don’t run into the previously mentioned issues while taking the printouts on the day you need them. All this can be solved by getting a laser printer, however not everyone is able to afford it, and people might not have the need for such a powerful printer to take a few printouts occasionally, so buying an office printer can be seen as a waste of an investment. There is a need for a personal portable printer with refillable ink that helps people take printouts easily without much hassle.

This need is not yet realized due to people being against the idea of printing after their many experiences with inconveniences of using their personal printers. While digital technology has been advancing at an extremely fast rate in the past few years, printing technology has been fairly stagnant over the past decade. Printers still have extremely expensive un-refillable company manufacture cartridges, and aren’t portable. The product we propose, the “Smart Pen” will solve all these issues by acting as a portable printer with refillable ink cartridges. In addition to solving the many problems of today’s printers it comes with an added scanner which can allow the user to scan a document and copy it onto another.

The Smart Pen is a complete game changer in the field of substrate printing. Substrate printing is printing on material which isn’t paper such as wood, plastic, glass, and fabric. Substrate printing with inkjet printers is difficult to do because the material being printed on has to be sent through a tray in the printer, which is impossible to do with fabric, plastic or glass. Currently, people who don’t own expensive industrial printers, substrate print by image transfer method, where the image is printed onto wax or freezer paper using an inkjet printer, before transferred onto the material. This is a long process which is inconvenient and impractical. The Smart Pen is revolutionary because the printer moves over the material being printed on, which makes substrate printing easy and possible for everyone.

Market Segmentation

  • Who buys the product? – 

This product’s target customers are college students, lecturers and industries. The printer can be used as an industrial printer due to its strong point being substrate printing. It can be used by businesses for fabric and textile printing. The printer is not aimed at people who take a large number of printouts in bulk, but at people who have the need to take a few printouts when they have the need to. People who take a few printouts buy inkjet printers which are really expensive due to its high running costs. The advance in technology has made it harder for ink cartridges to be refilled, forcing customers to pay a high price to buy and original cartridge. If printouts aren’t taken regularly the ink cartridge has a tendency to dry up, reducing the quality of the printouts, or preventing printouts from being taken at all. This makes inkjet print outs highly unreliable. Customers might have to buy laser printers which are far more expensive, as the need for a reliable printer grows. This shows us that there is no perfect reliable printer in the market to satisfy the group of customers, who take printouts occasionally. The Smart Pen, is a printer with refillable cartridges can be greatly cost efficient. In addition to being economical it offers portability and a scanner which makes it the perfect printer to satisfy all the demands for this range of customers.

  • Why do they buy the product?

A college student or a lecturer can take printouts easily right before they need it (before a lecture), conveniently without any issues, when they don’t have access to a regular printer.

  • How do they use the product?

The Smart Pen, can be used as a printer, scanner and a photocopier. A college student could take a printout of learning material, right before a lecture or even during the lecture. If the student was unable to attend a class, he has the ability to scan his colleague’s hand written notes, and transfer it directly to his computer or duplicate the note onto his notebook by printing out the scanned document. It is important to note that one of the strong points of the Smart Pen is substrate printing. The Smart Pen can be used by customers to print their designs on tee shirts, signs on wooden boards or even posters on walls. This makes the Smart Pens one of the most affordable small scale industrial printers in the market.

  • When do they buy the product?

The Smart Pen’s competitors are regular printers, therefore a potential customer has a decision to make between the Smart Pen and a traditional ink jet printer. The decision comes down to 2 main factors being the amount of average printouts taken, and the budget. If the customer doesn’t take a large amount of printouts in bulk often, but wants to have the capability to print documents at ease, buying an office printer would be a waste since it won’t be used to its maximum capability and will have high maintenance costs. The Smart Pen doesn’t have high maintenance costs and won’t have sudden mishaps when the customer needs to take a printout. The Smart Pen is an always available, reliable printer.

Market Definition

Our company falls into Oligopolistic competition, as the market is only dominant by few large firms. The product consists of variety of buyers, that seller who trades over the product differentiation rather than the market price. The product range occurs as we differentiate the technical usage of the product we provide to customers. For instance, a customer who purchase our product to use in an academic environment, professional use or in the industry will have a range of product options to purchase. Below shown is the PEST analysis of our product.

Pest Analysis

Political

  • The potentiality of an increase in the cost of the pen due to increase in the assembly parts due to an increase in government taxes and tariffs.
  • The ability to affect the labour cost due to any changes in labour law.
  • Also exports may incur an additional cost depending on the respective countries duty laws.
  • May need to abide by the continuous changing environment laws to meet up with standards of sustainability issues, environmental issues like taking measures to reduce the carbon footprint.

Economical

  • Change in interest rates may affect our firms cost of capital which might lead to limitations within the business expansion.
  • Increase in exchange rates may cause an increase in the imported parts and will result in an increase on the assembling cost, which will result in an increase in the manufacturing cost,  and also will affect the global market sales.
  • Also inflation within the economy might be a huge factor to consider when we are focusing on aftermarket sales that are in demand.

Social Factors

  • The measures taken to ensure the safety and wellbeing of our employees and customers.
  • The management process in which labours are hired for jobs like considering the work experience, willingness to work independently and their age.
  • The product is focused at a multi-age market, and accordingly safety is concerned for safe use.

Technological

  • The change in the technology is has the main and direct impact on our product.
  • The smart pen is a new technical product, and close monitoring and upgrade of the product in relation to the advancement of the technology is the key to dominate the market.

Major trends in the environment.

  • Products used to manufacture are ecofriendly. (pen parts and cartridges)
  • Products used to manufacture has least carbon footprints
  • The pen and cartridges are recyclable.

Market Potential

The product has a considerable volume and will be marketed at an introductory price of $100 and eventually will have an increase in the market share with added technology.

The current analysis has configured that it costs $60 for the manufacturing and other costs, and a net profit of $40 is targeted at the first stage.

Market Demand

The smart pen printer/scanner is an introductory technical product and expected to have a growing customer demand over time.  Initially, the market may experience a stability with buyers’ reluctance to invest on an introductory product. Eventually, expected to have more individual buyers entering the market after experiencing the convenience and the advantages of the product usage.

Swot Analysis

STRENGTHS

Our products provides versatile usage for different jobs, and different ink cartridges to support the activity.

Customers can select the type of ink cartridge that suits their current job:

The product is offered with a variety of built in features to accommodate

Our unique selling promotions is gains 50% off on two ink cartridges upon purchase of the product.

WEAKNESS

The product is marketed at a higher cost and could be highlighted as above the average market.

Negative first impression by the public, such as performance, price, location and quality of the product.

Some customers might find our product as less customizable.

If there’s a faulty in the device it has to be taken to the main headquarters to be fixed or posted by mail, as the current technicians might not know how to repair certain devices.

For some people smart pen isn’t something they can afford due to its lacking no. of shots per cartridge

OPPORTUNITIES

The new technology.

The cartridges uses ink that is non-toxic and environmental friendly.

Reduces human effort and to improve accuracy.

In the future apps would design for this device so that the smart pen could be programmable to create unique printing style for developers.

THREATS

Brand loyalty between popular market holders and its user friendliness.

The limited operational hours on a fully charged battery.

This device can be misused by certain people to produce unwanted images or writings in buildings (such as graffiti on a bank )

Developing objectives

The objectives are to be targeted in search of customers’ desires of the Smart Pen Printer. It’s been clearly highlighted in the initial product presentation that the product based on high tech field, and it’s subjected to develop consistently. Therefore, the product will be promoted at an introductory price of $100 in expectation to have upgraded featured models with a different price range to be selected from the open market. The product is advertised on websites and on name boards besides the roads to propagate the demand.

Further, as a sideway market “aftermarket” services to be operated with an incurred service charge. This in return operates as a marketing objective when selling the product.  In addition, the product is given exposure to its versatility by introducing variety of ink cartridges depending upon the usage and the print surface. In addition, the product is proposed to be manufactures base in China subjected to low manufacturing cost and subsidized costs, and the product is marketed globally.

Moreover, initially the product is introduced as a personal use day to day product which is later has the lateral capability of transforming to an industrial tool for more distinctive purposes.

Product Service Definition and Quality Considerations

The Smart Pen is a revolutionary product that brings a feature which no other personal printer is able to do, which is portable printing. The printer has a physical form comparable to a simple pen, with the ability to print. It has nozzles on the side of the printer allowing it to print on the material it is moved across. Sensors on the pen calibrate the surface allowing automated movement with a set of wheels.

Since, this printer moves over the material being printed on instead of moving the material through the printer, it introduces the whole new concept of personal substrate printing. Textile, wood, glass and plastic printing is all possible using this technology.

The main problem with present day printers is the inconsistency and inefficiency of personal printers such as ink jet printers. In today’s world majority of the work is done through soft copies, with the occasional use of hard copies. However, hard copies are not obsolete, but spending a large amount of your budget on a printer such as a laser printer would not be worth it since you would not be using the laser printer to its maximum potential. The problem with personal printers such as ink jet printers, is how inconsistent they can be with their performance. The printer might not be able to take occasional printouts periodically since the ink can dry up preventing printouts from being taken. Another problem is the cost of running an ink jet printer. While the printer itself costs a low charge in comparison to an industrial printer such as a laser printer, the cost of running it is very high. With the advance in technology, printer manufacturers have improved the detection of refilled ink cartridges, and restraining the printer being compatible with them. This forces customers to pay a high price for the premium original cartridges which are un-refillable and have a short life span of a few months.

The Smart Pen fixes all of these issues, by being the perfect printer for the perfect price. It comes at an affordable introductory price of seventy dollars, which fits right in the market, as ink jet printers cost about the same, while the laser printers cost several times more. The product has refillable ink cartridges making them far more economical and efficient. It also has the additional feature of scanning, which makes the Smart Pen a multi-functional printer which comes at a price of a normal printer which is unable to scan.

This product is aimed at college students, as they will use the innovative feature of portability of the Smart Pen the most. Students usually study using their laptops which means that they won’t be taking hardcopies that often, however will have a need for them when submitting reports, or printing out lecture notes since studying material off hardcopies is preferred to a digital screen. This product also has the potential market segment of small textile companies as this product would make textile printing far easier and cheaper.

The product range could be extended to accessories which can be used with the Smart Pen. The substrate printing ink cartridges with the special, thicker ink has to be bought separately, along with the special Gecko wheels, which allows the printer to move across vertical surfaces. The product range could further be extended to future versions of the Smart Pen which would be released after the introduction of the first Smart Pen. The newer versions of the pen would have innovative features which would make the customers upgrade to the latest version such as a camera, and projector. The additional feature of the camera would allow photos taken from it to be printed instantly, and the projector in combination with the scanner would allow documents scanned to be projected onto a screen.

Definition of quality

The quality of the smart pen is perspective and is dependent on the customer’s priorities or expectations of what the smart pen is capable of.

  • Efficiency – The normal ink cartridges can print up to a total of 100 pages which is sufficient for a regular user.  A user who requires a larger number of printouts can buy the XL ink cartridge which will allow a greater number of pages to be printed. The cartridges are also refillable which increases the efficiency of the Smart Pen by a greater deal. This makes the printer efficient in an economical manner. However, to make it efficient it also should be able to take quick printouts and scan quickly. This is achieved by automating the entire movement of the pen by using wheels on the pen. This speeds up the entire process of taking printouts.
  • Quality of PrintoutsThe quality of the printouts taken with the printer would also be a high priority for customers like textile marketers, who require high quality images to be printed on the material. The Smart Pen would be able to print at a rate of 600 dots per inch which is the standard quality of an ink jet printout.
  • Reliability The printer is portable, which means that it is battery powered. The lifespan of the battery would last roughly 50 printouts and can be charged easily via a standard USB-C cable. It will have the fast charging feature allowing it to charge the entire battery quite quickly. Printouts could also be taken while the smart Pen is plugged into a power source, saving battery power.
  • Life SpanIt is self-explanatory that customers would expect the product to last a certain period before eventually breaking which is inevitable for any product. The Smart Pen is made from strong premium materials, and have many safety features integrated into the system to prevent it from breaking easily, or preventing an accident occurring, like the pen falling over.
  • PriceWhen customers buy a product, it is important to everyone that the money spent was worth it. The Smart Pen comes at the price of a moderate ink jet printer but provides far more features than a simple ink jet printer ever could, it is well worth the budget spent on it.

Process design and resource requirement.

The smart pen is a unique device which reduces lot of human efforts which the scanner and the printer cannot provide. It is the combination of the printer and the scanner in to a pen but even has more advanced capabilities than a normal printer or a scanner.

Raw materials and resources

The printer

This is a laser based printer which uses compressed powder cartridges. The printer contains a small strip of micro laser filaments that fires light to the powder layer in order to create a pattern of the image (the powder contains high charged negative ions which is attracted to the plated and it becomes neutral when the laser fired at it), thus reducing using a moving cartridge in order to achieve this technology. The laser strip is our design and it is also created by us using 3D printing technologies, we considered not outsourcing the laser strip to other companies to produce since we don’t want any other companies to produce our product. The printer is power by Li-ion batteries which is rated as 6000mAH. The strip of filament of the laser is replaceable in case if damages occurs. The printer calibrated the surface by using the gyroscopic sensor in order to print smoothly on to the surface. The heat levels of the printer is calibrated by the thermostat and it is use to calibrate the heat levels of the printer in order to maintain a working temperature of the pen without causing it to burn up.

Powder injector

Since the powder is highly compressed we use two 6v 3A micro- motor from both corners of the laser strip to inject the powder on to the plate. The injection system is controlled by the main chip of the circuit programmed for the right timing while printing.

The Main board

The circuit of this pen is derived from the printer so to achieve this kind of technology we have to compress that big size Circuit board of a printer that can be fixed inside of this pen. So we designed the circuit board and partnered up with Intel to produce a Nano chip which is compatible with our micro circuit board. The Main Board consists of internal transmitting chips which enables Wi-Fi connectivity and Bluetooth connectivity.

Scanner

The scanner use the optical light sensor which converts points of light from the sensors into colour or grey-scale signals before turning the electronic signals into digital data. The digital signals is being processed inside the chip which is created by Intel that produced the image. The light sensor is being supplied by the Newmark Company. For this scanner to work we have to designed a collection or light sensors and optical sensors stacked together in a bar like structure in series so that it will scan the document with precision without missing any details. The scanned document can be exported into different file size that is customized by users’ requirements.

The micro-wheels

The function of the micro-wheels are to move the smart pen along the axis and it must be durable. So we use a high tensile rubber wheels that can absorbs even the highest compression. We have coated a gecko coating which enable to stick on surface such as when printing on walls, the material we use is carbon nanotubes which is light weight and inexpensive if we order in bulk. These are research done in Georgia institute of technology which we also have researched and applied to our wheels.

The coating

The coating is the curved of the pen, this is one of the vital part of the pen since it must protect all the electronics inside, and therefore it needs to be durable and lightweight as well. We use alloyed aluminium for the structure of the pen supplied by aerospace metals (ASM), we give the design for the company and they use 3D printing technology to create the mould of the pen and coat it with carbon fibre on the top and bottom layer to make it stronger.

Cartridges

The cartridges that are used for the smart pen is based on compressed powder cartridges that can print black and white or colour. Our cartridges are unique than others since it is it very small, inexpensive, environment friendly and durable. It is our own design and it’s supplied by Roger Industries. The material we use is alloyed lightweight aluminium and strong enough to withstand the compressed powder. The head of the cartridge has a small pin which quite easy to inject in to the pens printing system. The cartridges are in two parts for the pen one for left side and for the right side of the pen since we eliminate internal tubing and wanted direct contact with the motor and the compressed cartridges which reduces pluming up of ink and increase timing of injection for the print to be accurate.

LCD screen

The low powered LCD which is touch screen and is on top of the smart pen which has a simple user interface such as start, Bluetooth, stop etc. We wanted to keep the user interface of the screen simple since it’s mostly operated or commanded by mobile device or PC, which reduces the buffer for  the chip so that it would run smoothly without having any print delays.

Heat absorption

This is a laser based printer and it is used in a micro scale so heat is going to produce in the smart pen, and if the heat overdue it may damage the circuit board, so beneath the layer of the laser strip we applied a thin layer of cooling gel which is mostly used in desktop computer CPUs for cooling, it is comparatively cheap and only thin layer is used

Software

We designed the software on two platforms, one for the mobile and one for the PC. The App is free of charge and planning to market the app on Apple store, google market, etc. The software will be readily update and if bugs needed to be fixed they can simply update by going through our site or enable automatic updates.

Untitled

Figure 1 Smart Pen Control System

Production expertise and equipment

Technology Parts required Expertise Equipment
Body ASM  tubes Technician Insertion tool used by technicians
Cartridges Compressed powder cartridges Operator Arm robot controlled by computer
Printer Micro laser filament plate Technician High end 3D printer
Gyroscopic sensor Technician Soldering Iron , screw driver, computer, multimeter, magnifying glass ,small pliers, safety mask, sanitation chamber
Thermostat Technician Soldering Iron , screw driver, computer, multimeter, magnifying glass ,small pliers, safety mask, sanitation chamber
Li-ion batteries Labour Soldering Iron , screw driver, computer, multimeter, magnifying glass ,small pliers, safety mask, sanitation chamber
chip Technician Soldering Iron , screw driver, computer, multimeter, magnifying glass ,small pliers, safety mask, sanitation chamber
Powder injector Technician Soldering Iron , screw driver, computer, multimeter, magnifying glass ,small pliers, safety mask, sanitation chamber
The Main board Technician Soldering Iron , screw driver, computer, multimeter, magnifying glass ,small pliers, safety mask, sanitation chamber
Scanner optical light sensor Technician Soldering Iron , screw driver, computer, multimeter, magnifying glass ,small pliers, safety mask, sanitation chamber
Micro-wheels Labour Soldering Iron , screw driver, computer, multimeter, magnifying glass ,small pliers, safety mask, sanitation chamber
Display LCD screen Labour Soldering Iron , screw driver, computer, multimeter, magnifying glass ,small pliers, safety mask, sanitation chamber

Table 1 Product expertise and Equipment

Range of Products

Products Estimated

Production Volume

Smart Pen Cartridges
Item Function Item Function 40000
A4 size pen 21×27 Print Area
A3 size pen 30×42 Print Area 10000
white board ink powder Erasable 15000
Paper ink powder Permanent ink 10000
Rubber ink powder Water proof 1000

Table 2 Rang of Products

Location strategy

Proximity to customers/marketers

Initially, out product will not be a high-volume production. However, in order to keep the production cost low we will consider selling our product to distributors in bulks. In this manner, it minimizes interactions and the needs for the representative to reach factory. Orders can be conducted over the phone or email/ website orders so our only reason for seeking a location in close proximity to our customers to minimize the logistical expenses.

Proximity to Suppliers

Most of parts or inputs will be fairly high, such as the chipboard, sensors, and batteries. They all be bought from suppliers. Control system via the main chip board will be pre-programmed by technicians at the factory with alliance to apple ink and google tech, so the smart Pen only needs to be assembled. This may inker high transportation cost, as they need to be imported and exported on trucks or logistically. Direct access to main roads is preferred to minimized transit times, so that the cost. Ideally, being located close to suppliers and sourcing inputs are suggested.

Proximity to the Competitors

This is a Niche market, being close to competitors would be a great asset as information would be easier to obtain to analyse and compete with new products to achieve the hierarchy of the market.

Ongoing Cost

At this stage, most of the ongoing cost will be on labour and material imports. However, ground supplies for the operation for the factory will also be accounted for the manufacturing cost. These costs are directly proportional the supply and demand of the product.

Layout Strategy

Flow of information: The Layout that will be best suited to the product is a process/oriented layout, where it is a high-tech production. This will be located in a warehouse; however, each set of task will be grouped.

Service spaces

There will be 6 departments in the factory;

  1. Office -orders are prepared
  2. Materials Storage – raw materials and inputs are delivered
  3. Pre-assembly and programming of modules
  4. Main assembly of smart Pen
  5. Testing
  6. Shipping

FLOOR PLAN.png

Figure 1 Sketch

 

Customer Exposure

Customer exposure will be at low as most of the orders could be primarily conducted over the phone or through online, this will minimize the amount of customers entering the factory.

Material Handling

Row materials delivered on site through a separate entrance, and the site will have multiple loading base. This design to ensure that it would not interrupt the production process. Store rooms are located close to the loading base to minimize the need to move material around.

Occupational Health and Safety: The main occupational health and safety regulatory concerns are those that are in relation with assembly lines and machinery use. The connection between the laser printer jet and the main chip board to connect to the use interface requires high magnet interaction and electronics.

Occupational Health and Safety

This will require OH&S awareness as combination of electronics and high magnetic fields could be catastrophic. Consideration of obligatory OH&s standards that needs to be followed while importing, exporting and storing materials. Further, office safety issues will also be of high importance. In addition, a first aid station will be in place, which facilitates: I wash, burn all, defibrillator first aid kit. Also, safety gear including shoes, gloves, eye protection will be mandatory at work premises.

Supply Chain

Figure 2 Supply Chain Flow

Raw Material Handling

The Smart Pen is built from pre-made that are purchase from various suppliers. Each part is ordered and delivered to the Smart pen factory where they are then stored ready for assembly. In order to build the Smart Pen the techniques requires multiple parts, these include.

Part Supplier
Metal tubes Aero Space Metal Pvt Ltd
Micro laser filaments Company Based manufacturing
Gyroscopic sensor Newmark Company
Thermostat Newmark Company
The main board/ Nano chip Intel
Powder injector Gema Industries
Optical light sensor Newmark Company
Light Sensors Newmark Company
Micro-wheels Georgia institute of technology
Software Apple Inc. & Google tech
LCD screen AU Optronics
Compressed powder cartridges Roger Industries
Li-ion batteries Panasonic Electronics

Table 3 Parts suppliers

In order to manufacture the smart Pen as efficiently and effective as possible, higher quality suppliers that have higher experience in speedy distributions have been selected. The parts are assigned to be ordered every fortnight to achieve pre-organised production achievements.

In addition, the parts are ordered and obtained from the most cost reasonable corporations to minimise the manufacturing cost while retains its best quality to enhance the revenue.

Pre-Assembly

The parts received at the SP Technologies factory then undergoes a mandatory quality and performance examination before it’s been transferred to the assembly. The advanced nature of the Smart Pen requires the products to be built by hand by expert technician. A technicians are employed in a shift basis to pre-assemble the parts for manufacturing. Then the pre-programmed main board are synchronised with the automatic wheels and the sensors for an operational check prior to assembly. Afterwards, the parts are positioned methodically in trays for step by stem assembling process.

Assembly

The assembling technicians attach all the categorised component such as micro laser filaments, gyroscopic sensor, filament tube, powder injector, optical light sensor, micro-wheels, the Main board, chip, the main board and the LCD screen.

Testing

The product undergoes intense testing for the quality standards and performance by the operating technical staff. This is mainly be done manually for careful examination for any faulty of the product.

Shipping

The packaging boxes are to be outsourced and ordered form MCL & Co. The folded boxes are to be received in pallets which made into boxes for packaging. The box is designed with appropriate spacing for the Smart Pen, cartridges and the Charger. The packed smart pens are then packed in bulk boxes and stored for delivery with recorded inventory by a storekeeper.

Delivery

The product that is packaged to prevent damage are now transported to various distributors around Australia. Transportation requires multiple drivers in multiple trucks that consume petrol, require servicing and insurance. All these variable costs must be considered in the price of this product. Range of products

Quality Satisfaction (Reviews)

Customers are privilege to access and review any inconvenience, inconsistency or unsatisfactory condition suffered from former and existing customers before purchase. In addition the product is sold with one year of one to one replacement warranty on technical issues.

After sales support

After sales support and services are mainly to be operated online with one to one customer support line. Parts and accessories could be purchased online at a reasonable cost to be collected from a nearest dealer. A guided software reset or a user assistance guidance is provided at no cost for the users.

Figure 3 Distribution and Marketers

A factory supervisor and a store keeper will be employed to oversee supply, manufacturing and overall performance of the factory and deal with any issues that arise throughout the production and shipping process.

Initially, a manager and an accountant is to be employed to oversee the overall performance of the company, human resource issues and the finances. In addition, a sales and marketing representatives are appointed in order to accumulate multiple distributers and wholesalers.

In future the assembly line is to be automated to minimize labour contribution and maximize the production to achieve the demand.

Financial plan

The proposed financial plan for the SP technologies is based upon different types of expenses such as marketing expenses, production expenses, purchasing cost, personnel expenses along with the financial and administrative expenses estimate the cost of our business, the sales required to overcome theses and the profit or revenue generated from business.

Establishment Costs

The initial proposed expenses plan required for the establishment of the business is tabulated as below.

Type of Expenses Breakdown of Expenses Cost
 

 

Marketing

Printed handouts/Broachers 500.00
Business cards 150.00
Signboards/Magazine Adds. 1,000.00
Newspaper/ web based advertising 1,500.00
Company T-shirts/Uniforms 800.00
Total 3,950.00
 

 

 

Construction

Factory 45,000.00
Cafeteria 5,000.00
Office space 25,000.00
Assembly belts 5,000.00
Loading docks 5,000.00
Stores 5,000.00
Washroom 10,000.00
Total 100,000.00
 

 

 

 

 

 

Purchasing

Raw Materials 10,000.00
Assembly Tools 10,000.00
Lifting machines/forklifts 10,000.00
Standby Delivery vehicle 40,000.00
Assembling machines 4,000.00
Crates /Racks 1,000.00
Air conditioner/fans and lamps 2.000.00
Furniture (office and cafeteria) 10,000.00
Computers 2,000.00
Ramps 10,000.00
Maintenance equipment 3,000.00
CCTV 1,000.00
Total 103,800.00
 

Financial

Insurance 1,000.00
Licenses 3,000.00
Total 4,000.00
TOTAL ESTABLISHMENT COST 211,750.00

 

Running Cost

Type of Expenses Breakdown of Expenses Cost
Water 100.00
Electricity 800.00
Monthly Maintenance 150.00
WIFI/Telephone 200.00
Restock 1,300.00
Packing Material/ Boxing 1,000.00
Delivery Hires 1,000.00
Total 4,550.00
General Manager 2,000.00
Assembly Technicians 1500.00
Accountant and office staff 2400.00
Labour and Store keeper 3,200.00
2 Drivers 800.00
Security 800.00
Total 10,750.00
TOTAL RUNNING COST/MONTH 15,250.00

Investment

Shareholders Investments
Jaynga Rajapakse 85,000.00
Gavith  Fernando 85,000.00
Chamaka Nanayakakra 40,000.00
Dineth Gunawardana 40,000.00
TOTAL 250,000.00

Sales Forecast

Product Unit Sales Forecast (Volume ) Income
A4 Printer 150 13 1,950.00
A3 printer 200 5 1,000.00
Permeant cartridge 10 35 350.00
White board cartridge 20 26 420.00
Wood cartridge 20 11 220.00
TOTAL WEEKLY SALES 3,940.00
TOTAL MONTHLY SALES 15,760.00

Balance Sheet

Income Statement

Cumulative Cash Flow

Payback Period

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