Old Main

Members:

KaLee Allen

Mike Berry

Jen Dronetti

Greg Hofmann

Charlie Miracola

Redesign

Manufacturing MethodFront Face

Bolt a 2’ x 3’ piece of 1/8” thick aluminum on table

Will be getting 4 sheets of this aluminum for one order

• Will be able to get 16 faces and 11 back pieces per sheet

Manufacturing Method (cont.)Side Pieces

Will be using rectangular tube aluminum 1.5” wide x 3” deep, 1/8” thick

Will be getting six 4’ pieces, which will be cut from there

Use a box fixture and machine 4 sides at once.

• Need to make this fixture.

Will be able to get 95 Old Mains from this 24’ tube.

Manufacturing Method (cont.)

RoofThe bottom plate is 5.5”x3.125”

The top plate is 5.25”x2.875”

Both plates are 0.375” thick

The only machining to be done will be with a cut-off saw and a slight finishing pass

There will only be 2 cuts per plate, making this a relatively simple process

The Cost per Old Main will be $8.18

Manufacturing Method (cont.)

Triangular RoofInitial Stock is 1.25” x 1.25” x 6’ solid square 6061 AluminumCut into 12” sections using bar feederCut each 12” section in half (diagonally) on band saw using 45 degree wedges for guidanceMount 12” triangular sections in rotary vise on machining centerCut off 4 individual roof components using 1/8” end mill

Manufacturing Method (cont.)

TowerThe tower will be machined on the 5-axis machining center

The machining will be completed in three portions (top, middle, base) and then assemble with the columns

Cost Breakdown

Front Face and Backwill be able to produce a total of 66 faces and 44 backs from total sheet.

Total sheet cost is $118

Cost per Old Main will be $2.28.

SidesWill be able to produce 95 Old Mains from one 24’ tube.

Cost of tube is $67.50

Cost per Old Main is $0.71 or $0.35 per side (two sides per Old Main).

Cost Breakdown (cont.)

Roof (Sheet)Will buy a 4”x6’x0.375” of 6061 Al from McMaster Carr for $49.10

From this size, we can make the two plates for 6 Old Main roofs

The Cost per Old Main will be $8.18

Roof (Triangular)Will be able to get 12 roofs per 6’ length.

Piece of 6’ length costs $51.24.

Cost per Old Main is $4.27

Costs Breakdown (cont.)

TowerThe top portion will be a 1” square stock and 2.5” long

• Will be able to produce 24 of this component

• Each 6’ section costs $40.75

Cost per Old Main will be $1.70

The middle section will be 1.25” square stock and 2” long

• Will be able to produce 28 of this component

• Each 6’ section costs $51.24

Cost per Old Main will be $1.80

Cost Breakdown (cont.)

Tower (cont.)The base will be 2.25” square and 0.5” long

• Will be able to produce 10 of this component

• Each 1’ section costs $38.10

Cost per Old Main will be $3.80

The columns will be 0.125” and 1.6” long

• Will be able to produce 5 sets of 8 columns each

• Each 6’ section will cost $1.63

Cost per Old Main will be $0.36

Total Cost of Tower per Old Main will be $7.30

Cost Breakdown (cont.)Base of Structure

Going to outsource all wood working from Houts.Will use pine as base

• 1’ x 6’ piece of 1” thick pine board.

• Will be cut into 12” x 5” sections

• Will get 12 Old Mains per board.

Cost per board is $8.06.$32 per hour is cost of labor and machining. Houts estimates 0.5 hour machine time.Stain will cost $0.50 per Old Main

Cost per Old Main is $2.50

Final Cost BreakdownMaterial Cost (per Old Main): $27.98

Roof: $12.45Building (sides, front, back): $3.39Tower: $7.30Base: $2.50Columns (8): $2.47

Clock: $6.95Machine time and Labor: $90

Total Cost: $125.04

Costs of Goods SoldOld MainCost of Goods Sold

Piece UnitsPrice per unit 1 2 5 8 100 200 500

Variable CostsTwo Sides 95 $0.71 $67.50 1.42 3.55 5.68 71.05 142.11 355.26Front / Back 66/44 $2.68 $118.00 118.00 118.00 118.00 354.00 590.00 1,416.00Roof (Triangle) 14 $3.66 $51.24 51.24 51.24 51.24 409.92 768.60 1,844.64Roof (Flat Plate) 6 $8.18 $49.08 49.10 49.10 98.20 834.36 1,668.72 4,122.72Base 12 $2.98 $35.76 35.76 35.76 35.76 321.84 607.92 1,501.92Tower Part I 28 $1.83 $51.24 51.24 51.24 51.24 204.96 409.92 922.32Tower Part II 24 $1.70 $40.75 40.75 40.75 40.75 203.75 366.75 855.75Tower Part III 10 $3.81 $38.10 38.10 38.10 38.10 381.00 762.00 1,905.00Columns 5 $2.47 $12.35 12.35 12.35 24.70 247.00 494.00 1,235.00Clock 1 $6.95 $6.95 13.90 34.75 55.60 695.00 1,390.00 3,475.00Machining 3 hrs $90.00 $90.00 180.00 450.00 720.00 9,000.00 18,000.00 45,000.00Total Variable Costs $124.97 $591.86 $884.84 $1,239.27 $12,722.88 $25,200.02 $62,633.61

Total Fixed Costs $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Total Costs $591.86 $884.84 $1,239.27 $12,722.88 $25,200.02 $62,633.61

Avg Cost per unit $295.93 $176.97 $154.91 $127.23 $126.00 $125.27

Market Survey

Age Group % PSU Status % Gender %Level of

Education %

Centre County

Resident %PA

Resident %

under 18 0% Student 12% Male 50% Grade School 0% Yes 8% Yes 8%18-24 18% Alumni 72% Female 50% High School 18% No 92% No 92%24-30 6% Other 16% College 56%

30-45 16%

Masters Degree

or Higher 26%45-60 54%60+ 6%

Most Likely to Purchase %

SuggestedWindrusher

Price Avg

SuggestedDesk Set

Price Avg

SuggestedAcrylic Clock Avg

SuggestedOld Main

Clock Avg

SuggestedJewelery

BoxPrice Avg

Windrusher 10%

Mean Suggested

Price $21.10

Mean Suggested

Price $58.00

Mean Suggested

Price $39.50

Mean Suggested

Price $159.60

Mean Suggested

Price $46.02Paw Desk Set 20%Acrylic Clock 24%

Old Main 40%Jewelery Box 6%

Market Survey Summary

Product Analysis

Demographic Information

Old Main Sensitivity and Break-Even Analysis

Old MainSensitivity Analysis

Scenario Unit Sales Cash Flow Net Present Value

Base Case 5 $462.00 $563.35Worst Case 2 $112.00 $136.28Best Case 8 $762.00 $928.96

100 $10,193.00 $12,423.00200 $20,457.00 $24,932.00500 $49,514.00 $62,475.00

1000 $88,113.00 $125,000.002000 $89,358.00 $250,080.005000 $227,984.00 $625,250.00

Old MainBreak-Evens

Accounting Break-evenQ=(FC+D)/(P-v )Q=0/(250-137.33)Q=0

Because we have no fixed cost or depreciation, we only have to cover variable costs to break even. Therefore our breakeven points for both the accounting and cash flow methods are zero.

Cash Break-evenOCF=(P-v )*Q-FC0=(250*137.33)*Q-0Q=0

Retailer Results

1 2 3 4 5 MeanWindrusher $30 $12-$30 $50 $40 $50 $35.33

72/yr 12-24/yr 36-48/yr 500/yr 144/yr 119/yr

Jewelry Box $40 $25-$35 $80 $60 $70 $51.67

42/yr 12/yr 24/yr 72/yr 36-48/yr 39/yr

Desk Set $60-$75 $45-$50 $70-$80 $90 $120 $73.75

50/yr 3/yr 24/yr 72/yr 48-72/yr 45/yr

Old Main $75-$125 $125-$180 $100 $150-$200 $200-$250 $156.11

36/yr 3/yr 12/yr 144/yr 25-30/yr 42/yr

Acrylic Clock $40-$50 $50 $100 $50 $100 $65.00

40-50/yr 3-6/yr 12/yr 48/yr 75-100/yr 42/yr

1 Lion’s Pride, Steve Moyer2 University Book Center, Karen Hirshon3 McLanahan’s, Dick Harpster4 The Student Bookstore , Norm Brown5 The Penn State Bookstore , Marilyn

Questions/Comments