Engineering Management: Extension on USB Memory Stick - Coursework Example

 Extension on USB Memory stick INTRODUCTION The use of memory stick as a device for or method of storing and transferring digital files (information) has been on the rise since it was first launched by Sony in the year 1998 (Sony Corporation 2004). This device along with modern other storage devices such as USB flash disk have replaced the traditional, large and low capacity storage and file transfer devices such as the diskette. Today, they are the devices of choice when it comes to storage of data in mobile phones, digital cameras, and tablets among others. In addition, they are devices of choice when it comes to transferring digital files to from one electronic device to another (between phones, personal computers, and tablets among others). It is noted that when in use, depending on the devices in which they are inserted, it is normally easy to know the amount of remaining space, capacity and used space (Sony Corporation 2004). However, all the information (that is, capacity, used space and remaining space) regarding the device are not normally displaced simultaneously by most of the existing devices. In some cases, the user of these devices has to check for properties in order to access these information. It is, therefore, important that these information are be displayed simultaneously. This paper, therefore, aims at suggesting a product extension with regard to the existing USB memory sticks (extension on USB memory stick) such that the new product would enable the users access information regarding the its capacity, remaining capacity, and used up space. The suggested new features are added without necessary changing the product’s storage capacity and physical appearance. MARKET ANALYSIS Factors to consider while analyzing market of the modified USB memory stick Modifying a product may affect the product’s market either positively or negatively depending on how the customers and consumers of the product perceive the modified product (Chryssides & Kaler 1996). Therefore, while analyzing market of the modified USB memory stick, the following factors are of great importance, and should be considered. i. Market Trends, ii. Customers’ perception, iii. Competitors products, and iv. Market size among others (Chryssides & Kaler 1996) Market Trends Market changes are of great importance when a new or a modified product is introduced into the market. The trends in a market can be sources of opportunities or they may be threat to organizations offering products and services in the market (Cole & Kelly, 2011). These market trends include: economic changes, legal changes, political changes, government regulations, customers’ sensitivity regarding price changes, technological changes, customers demand and desire for variety, and social changes among others (Chryssides & Kaler 1996). With regard to the extension on USB memory stick, no new product is brought into market, it’s the existing product that is being modified such that when the modified memory stick is in use, a screen that shows capacity, remaining space, and used space of the memory stick popes out. Therefore, user will be able to know these features of the product with actually checking the memory sticks’ properties manually. Therefore, the likely market trends with regard to this product include: i. Economic changes ii. Political changes iii. Technological changes iv. Customers’ sensitivity During economic meltdowns or economic problems people tend not to spend on luxuries, and one of those luxuries is USB memory sticks (Smith 1995). Therefore any modification regardless of how good it is will not positively impact on the sales of the product, and therefore consumers may not get the chance the new product features. Therefore, when the extended USB memory stick is being released into the market, economic conditions should be taken into great considerations. Politics normally affect stability of all nations in the world by increasing cases of insecurity such as looting and destruction of property among others (Cole & Kelly 2011). When political temperatures are high, cases of insecurity are also high. Due to this insecurity, distributors are normally not willing to deliver products to customers. Therefore, the modified USB memory stick may not find its way into the market, and finally to the target customers. Market size Another factor that should be considered when analyzing market for the product extension (USB memory stick extension) is market size. The market size (share) of the existing product as well as the targeted market share should be considered. In general market size is normally considered as the current product market volume and potential product market. Market volume (quantity of a product that consumers are willing and able to buy), and is normally dependent on the number of product customers as well as ordinary demands of these customers (Chryssides & Kaler 1996). Information regarding the product market size can be obtained from a number of sources, some of which are stated as below: i. Consumer surveys ii. Government departments such as statics bureaus, and census authorities among others. iii. Data from trade associations iv. Financial data from relevant authorities (governmental or non-governmental authorities). (Chryssides & Kaler 1996) USB Memory market size research data Currently there are billions of memory sticks that are in use throughout out the world, and almost every household in both developed and developing nations has a memory stick. In developing they are mainly used in the storage of digital files for mobile phones. Taking an example of Coventry City, in which according to the 2011 census has a population of approximately 316690 people (Conventry City Council 2012). Also assuming that every hold has 2.3 people, according to the same census (2011 census), the number of households in Coventry is approximately 137692 (Conventry City Council, 2012). The market size for the existing memory stick is 137692 people. This means that least number of memory sticks, based on the argument that every household has owns a USB memory stick. Importance of carrying out market research Carrying out of market research is of great importance to both the existing product and the modified product. It is through the market research that the needs and concerns of customers are identified (Chryssides & Kaler 1996). It also enhances making informed decisions with regard to addressing the issues and concerns of the customers. It is also through the market research that new opportunities are identified. In summary, market research would help collect data that may be important in the following aspects of the modified product as well as proper decision making process for tacking the concerns of the customers (Chryssides & Kaler, 1996). With regard to the data collected regarding the market of USB memory stick it was identified that the existing USB memory sticks do not offer customers certain functionalities such as displaying the above mentioned information (that is, information regarding the disks’ remaining spacing, capacity and used space) simultaneously. Therefore, adding these innovative features to the memory stick would cement its market share as well as increase its market share. Therefore, the company which would take this innovative idea seriously has chances of invading into the market share of its competitors while at the same time cementing its market share. Market research also enables organizations collect data with regard to perceptions of the customers to modified product. For example, modifying a product involves more costs as compared to the original product; therefore, these costs must be passed down to customers. Therefore, collecting customers’ opinions and perceptions with regard to the proposed price may enable the manufactures have some knowledge on whether the product price will be accepted by consumers, and its possible consequences on the sales and market share. COSTS AND BUDGET REQUIREMENTS Providing extension on USB memory such that consumers are able to access the above mentioned three information simultaneously involves a lot money. Some of the costs that may be associated with the improvement of this product may be as explained below. Variable and Fixed Cost that may associated with USB memory stick extension Modifying the existing USB memory stick would involve certain costs; these costs may be variable or fixed. The fixed costs are those costs that do not change with respect to the quantity of the products being produced and sales of the product that is being produced (Cole & Kelly 2011). The fixed costs that are expected associated with the process of modifying the existing USB memory stick by integrating a software that that will pope out showing the information regarding include: i. Costs involved in the acquiring machinery that will be used in the manufacture of the new memory sticks. ii. Insurance costs associated with the production of the modified USB memory stick iii. Salaries that will be paid to the Employees of the manufacturing company. iv. Costs associated with accounting. v. Rent associated costs. vi. Utility associated costs (Chryssides & Kaler, 1996) Variable costs on the other hand are those costs that constantly vary with respect on the amount of products being produced, and include: i. Cost associated with obtaining raw materials. ii. Supply chain associated costs. iii. Advertisement costs. iv. Hourly wages of the casual employees who will be involved in the manufacture of the new USB memory stick (Smith 1995) Importance of knowing fixed and variable costs in early project life It is important to know both the variable and fixed costs that will be associated with modification of the product. Considering fixed costs will enable management know those costs that cannot be done away with provided that production of the product, whether modified or original, is going on (Smith 1995). These costs must be incorporated in the budget, and in this case they include: rent, employee salaries, equipment and machinery costs, and accounting costs among others. Analyzing global financial market During economic meltdowns or economic problems people tend not to spend on luxuries, and one of those luxuries is USB memory sticks. During economic meltdowns businesses do not do well; therefore analyzing global market condition before the modified product is released into the market (Chryssides & Kaler 1996). The best option is not to release a new or a modified product into the market during financial meltdowns. Proposed Project Budget consideration The proposed budget should take into consideration all the costs that will be associated with the modification of the product. These costs may include the following: Costs associated with the development of the popping up window software, Administrative costs, Advertising costs, Distribution cost, and Production costs. It is important that cost of production be adjusted accordingly since the existing USB memory stick will be modified so as to be compatible with the software being developed. The main activities that will be involved in this project may include: i. Project initiation ii. Project planning iii. Execution iv. Controlling v. Closure As compared to other stages of the project the initiation costs less and should be allocated the least amount of money. The execution phase of the project is the most important, and should be allocated the biggest chunk of the money. Table 1: Proposed cost of developing the product Number Proposed activity or Product to be included in the budget 1. Software development costs 2. Hardware and Hardware upgrade related cost 3. Advertising and promotion related costs 4. Distribution and Supply related costs 5. Labour associated costs 6. Insurance related costs 7. Other costs Project Sources of Funds Funds must be available to fund the project; otherwise, this project of extending the existing USB memory stick may not go on as scheduled. Organization that is involved in the extension on the product may fund its project or through borrowing and/or loans (Cole & Kelly 2011). At times taking loans as the source of money for funding this may expensive due to the fact that interest rate that may be involved. COMPARISON OF THE PROPOSED MANUFACTURING PROCESS The possible manufacturing processes that the modified product may undergo may include: i. Jobbing ii. Cell designs iii. Man assignment (Smith 1995) Jobbing In the jobbing manufacturing method all the manufacturing activities are normally performed by one person (the same individual), and in this case the next manufacturing process is only started after the previous manufacturing process is completed (Smith 1995). In addition, this production process, individuals who are multi-skilled. And in this case jobbing would mean that both software development and the development of memory stick hardware would be done by single individual and/or single machinery. This is not technically possible but may be the cheapest due to the fact few individuals would hired to accomplish this task. Therefore, in this case jobbing manufacturing method would be not efficient, and the quality of the product being produced may be questioned. Cell design The design manufacturing method can simplify manufacturing process, and reduce production lead time. This will consequently reduce the cost of modifying the USB memory stick (Murugan, 2005). The different methods of that can be used generate the final USB memory stick Creative thinking and Critical thinking Creative thinking The first stage in coming with the extension of USB memory stick was creative thinking. The creative thinking enhanced an idea of modifying the product so as increase the consumer’s experience; thereby cementing the product’s place in the market (Cole & Kelly 2011). That is, it is through creative thinking that innovative way of making an extension on USB Memory stick was enhanced. That is, creative thinking enhances innovation, and innovation enhances extension on the USB memory stick. Critical thinking Critical thinking can also play an important part in the modification USB memory stick since it is the critical thinking of the management that can approve or reject the extension of the USB memory stick (Cole & Kelly 2011). CAD and CATIA After the idea of making extension on USB memory stick has been approved by the management, the process of designing the memory stick so as to in-cooperate the proposed changes begins. The produced can be designed by CAD software such as AutoCAD or by CATIA. AutoCAD may be used to design the electronic circuit while the CATIA may be used to generate the three dimensional features of the memory stick (Murugan 2005). Prototype model and solid modeling The prototype model should be designed and solid modeled then released into the market to get the views and perceptions of the customers. The figure shown below shows a solid model of the prototype. It was modeled using CATIA design software. Figure 1: solid model of the protype (the rectangular box on top is the proposed screen) Supply Chain Management After the modified memory stick has been manufactured, it must reach the customers, and process by which it can reach the customers or consumers is through supply chain. The supply chain may include: manufacturers, wholesalers, retailers and finally to consumers. The path through which the product reaches the clients (supply chain) should be well managed; otherwise the modified USB memory stick may reach the final consumer (Mangan, Lalwani, & Buthcer 2008). Ethics and sustainability issue that may affect the extension on USB memory stick The modified product should make meaning to the consumers, it is to be accepted by the consumers; otherwise it will be rejected. It is unethical to invest lots of money on modifying a product that would be rejected by customers. It would be unethical to spend lots of money on products that would not pay the amount of money spent on them. Also, the modification process should employ sustainability since the environment in which we live has been extremely destroyed, and needs sustainable ways of doing things; otherwise the environment would continue to be deteriorated. CONCLUSION The current USB sticks do not offer consumers a wide range of experience; for example consumers find it hard to access information on remaining space, capacity and used space simultaneously. Therefore, in order to enhance the consumer experience with regard to this product it important that an extension is made on USB memory stick such that one can access all the above information through a pope in all electronic devices. References Chryssides, G., & Kaler, J., 1996. Essentials of Business Ethics. Oxford: McGraw-Hill Book Compan. Cole, G. A., & Kelly, P., 2011. Management Theory and Practice. London: Cangage Learning. Conventry City Council., 2012. Demographical Data. Conventry: Conventry City Council. Mangan, J., Lalwani, C., & Buthcer , T., 2008. Global Logistics and Supply Chain Management. Boston: John Wiley & Sons. Murugan, M., 2005. Manufacturing cell design with reduction in setup time through genetic algorithm. Journal of Theoretical and Applied Information Technology, pp.76-97. Smith, G. S., 1995. Managing to Succeed: Strategies and Systems for Manufacturing Businesses. Hemel Hempstead: Prentice Hall. Sony Corporation., 2004. Memory Stick Standard. Tokyo: Sony Corporation. Read More