The CareFree Cook Project Proposal

The CareFree CookThe CareFree CookProject ProposalProject Proposal

CS 410CS 410Group 2Group 2

Spring 2004Spring 2004

4 May 20044 May 2004

4 May 2004 2CareFree Cook

Team MembersTeam Members


Problem StatementProblem Statement

Proper monitoring of meat is inconvenient Proper monitoring of meat is inconvenient and cooking can result in inconsistent and cooking can result in inconsistent quality and safety of prepared food.quality and safety of prepared food.


Problem CharacteristicsProblem Characteristics

• Inconvenience of constant monitoringInconvenience of constant monitoring• Lack of expert cooking knowledgeLack of expert cooking knowledge• Over- or undercooked meatOver- or undercooked meat• Food poisoningFood poisoning


Solution StatementSolution Statement

Develop an oven control unit that interfaces Develop an oven control unit that interfaces with a meat thermometer to provide accurate with a meat thermometer to provide accurate and consistent cooking results. The user and consistent cooking results. The user inputs collect via a convenient GUI and are inputs collect via a convenient GUI and are used to control the oven to adjust cooking used to control the oven to adjust cooking times and temperatures.times and temperatures.


Solution CharacteristicsSolution Characteristics

The CareFree Cook will:The CareFree Cook will:• Provide user with pertinent cooking Provide user with pertinent cooking

informationinformation• Allow user interaction via a GUIAllow user interaction via a GUI• Automatically start, monitor and cook the meat; Automatically start, monitor and cook the meat;

shutting oven off at the appropriate timeshutting oven off at the appropriate time• Safeguard consumers from the dangers posed Safeguard consumers from the dangers posed

by foodborne illnessby foodborne illness


Solution CharacteristicsSolution Characteristics

The CareFree Cook will not:The CareFree Cook will not:• Interfere with the traditional operation of the Interfere with the traditional operation of the

ovenoven• Eliminate food poisoningEliminate food poisoning• Support baked goods other than meatsSupport baked goods other than meats• Retrofit into existing ovensRetrofit into existing ovens


Management PlanManagement Plan


Research & Development PlanResearch & Development Plan

Required HardwareRequired Hardware• LCD DisplayLCD Display• Clock/TimerClock/Timer• Thermocouple Thermocouple • Single Board Single Board

ComputerComputer• Digital/Analog Digital/Analog

convertersconverters• Signal ConditionerSignal Conditioner


Research & Development PlanResearch & Development Plan

Required SoftwareRequired Software• User interfaceUser interface• Database of Database of

cooking times cooking times and temperaturesand temperatures

• Hardware layer Hardware layer controlscontrols

For additional information, see supplemental informationFor additional information, see supplemental information


Select Type of MeatSelect Type of Meat


Select Cut of MeatSelect Cut of Meat


Select Cut of MeatSelect Cut of Meat


Select TasteSelect Taste


Input WeightInput Weight


Select Time to EatSelect Time to Eat


Start CookingStart Cooking


Evaluation PlanEvaluation Plan• Phase 0Phase 0

• Research FeasibilityResearch Feasibility• Phase 1Phase 1

• Develop DocumentationDevelop Documentation• Manufacturer PrototypeManufacturer Prototype• Generate BudgetGenerate Budget

• Phase 2Phase 2• Assemble Hardware/SoftwareAssemble Hardware/Software• Develop DatabaseDevelop Database• Integrate SystemIntegrate System

• Phase 3Phase 3• Enter Out-Year ProductionEnter Out-Year Production


Marketing PlanMarketing Plan

Major Appliance Manufacturer Profile:Major Appliance Manufacturer Profile:• A proven performer in range oven technologyA proven performer in range oven technology• An extensive research and development An extensive research and development

departmentdepartment• An established market share in the major An established market share in the major

appliance industryappliance industry• A strong vision and marketing strategy that A strong vision and marketing strategy that

complements our productcomplements our product



Manufactures and markets a full line of major Manufactures and markets a full line of major appliances and related products, primarily for appliances and related products, primarily for home usehome use

www.whirlpoolcorp.comwww.whirlpoolcorp.com


Whirlpool’s Current Whirlpool’s Current Oven Range TechnologyOven Range Technology

PolaraPolaraTMTM




• Nearly 50 manufacturing and technology research Nearly 50 manufacturing and technology research centers worldwidecenters worldwide

• Markets Whirlpool, KitchenAid, Brastemp, Markets Whirlpool, KitchenAid, Brastemp, Bauknecht, Consul and other major brand names Bauknecht, Consul and other major brand names to consumers in more than 170 countriesto consumers in more than 170 countries

• Whirlpool is the largest supplier of major Whirlpool is the largest supplier of major appliance to Sears, Roebuck and Company under appliance to Sears, Roebuck and Company under the Kenmore brandthe Kenmore brand



Market Share ComparisonMarket Share Comparison

0

2

4

6

8

10

12

Net Sales(In Billions)

1999 2000 2001 2002

Year

Maytag

Whirlpool

Source: Maytag and Whirlpool 2002 Annual Reports



Whirlpool’s Mission Whirlpool’s Mission Statement:Statement:

““Every Home… Every Home… Everywhere. With Everywhere. With Pride, Passion and Pride, Passion and Performance.”Performance.”




Interest Rate Forecast

0123456789

10

2000 2001 2002 2003 2004 2005

Years

Inte

res

t R

ate

Fixed-rate

ARMs

Prime Rate



• New home sales New home sales are growing, are growing, promoting growth promoting growth in major appliance in major appliance salessales

New Home Growth

700

800

900

1000

1100

1200

1300

Dec-99 Jun-00 Jan-01 Jul-01 Feb-02 Sep-02 Mar-03 Oct-03 Apr-04

(in thousands)

http://www.nahb.orghttp://www.nahb.org



Design Center Concept: Design Center Concept: New Home TechnologiesNew Home Technologies

• June 2003June 2003• 32 Builders 32 Builders • Major SuppliersMajor Suppliers

• Whirlpool Corp.Whirlpool Corp.• Masco Corp.Masco Corp.

• Provide New Home Buyers Provide New Home Buyers With An Array Of OptionsWith An Array Of Options

• Finance Options Into Cost Of Finance Options Into Cost Of HomeHome

Source: BIG BUILDER Magazine Publish Date: Source: BIG BUILDER Magazine Publish Date: 2003-08-202003-08-20

New Home Growth

700

800

900

1000

1100

1200

1300

Dec-99 Jun-00 Jan-01 Jul-01 Feb-02 Sep-02 Mar-03 Oct-03 Apr-04

(in thousands)

http://www.nahb.orghttp://www.nahb.org



Potential SalesPotential Sales• 1,106,000 new home sales 1,106,000 new home sales

in January 2004 according in January 2004 according to NAHB to NAHB

• A target goal of 2.5% A target goal of 2.5% would yield 27,650 in would yield 27,650 in CareFree Cook range CareFree Cook range ovens for the month of ovens for the month of January aloneJanuary alone

Potential Sales of CFC with only2.5% Market Penetration

(ranges sold)27,650

1,106,000

New Home Sales

Potential CFC Sales


Competition MatrixCompetition Matrix

Convenient Convenient CookingCooking

Oven Oven Cooking Cooking ResultsResults

Integrated Integrated Meat Meat

ThermometerThermometerProgrammable Programmable

CookingCookingProgrammable Programmable

DatabaseDatabase TemperatureTemperature

Traditional Gas & Traditional Gas & Electric Range Electric Range

OvensOvensNONO

Dependent Dependent On CookOn Cook

NONO NONO NONOUser Preset User Preset

TempTemp

Microwave Microwave OvensOvens

YESYES *Inconsistent*InconsistentSelected Selected ModelsModels

YESYES NONONone (Power None (Power

Level)Level)

Carefree Cook Carefree Cook Integrated OvenIntegrated Oven

YESYES ConsistentConsistent YESYES YESYES YESYESCPU CPU

ControlledControlled

*source: http://www.whirlpool.com/shopguide/microwaves.htmls *source: http://www.whirlpool.com/shopguide/microwaves.htmls


Potential MarketPotential MarketWhat increase in overall oven price would

you pay for this feature?

20.7%

8.6%3.4%

16.4%

50.9%

0

0.1

0.2

0.3

0.4

0.5

0.6

Would Not Buy $50-$100 $100-$200 $200-$300 $300+

227 people surveyed


Phase 0: ConceptionPhase 0: ConceptionMajor DeliverablesMajor Deliverables

• Team FormationTeam Formation• Initialization of ProjectInitialization of Project• Feasibility of ProjectFeasibility of Project• Milestone Study of ProjectMilestone Study of Project• Return-of-Investment StudyReturn-of-Investment Study• Budget Development of PrototypeBudget Development of Prototype• Cost Analysis of PrototypeCost Analysis of Prototype• SBIRSBIR• Final Approval PresentationFinal Approval Presentation• Website DevelopmentWebsite Development


Phase 0: ConceptionPhase 0: ConceptionOrganization ChartOrganization Chart


Phase 0: ConceptionPhase 0: ConceptionScheduleSchedule

Full WBS in SupplementalFull WBS in Supplemental


Phase 1: Proof of ConceptPhase 1: Proof of ConceptMajor DeliverablesMajor Deliverables

• Develop Requirements ListDevelop Requirements List• Acquire Materials/ResourcesAcquire Materials/Resources• Develop PrototypeDevelop Prototype• Integrate Prototype into OvenIntegrate Prototype into Oven• DocumentationDocumentation• SBIR Proposal (Phase II)SBIR Proposal (Phase II)


Phase 1: Proof of ConceptPhase 1: Proof of ConceptOrganization ChartOrganization Chart


Phase 1: Proof of ConceptPhase 1: Proof of ConceptScheduleSchedule



Phase 1: Proof of ConceptPhase 1: Proof of ConceptBudgetBudget

EACHYEARLYSALARY DAYS

SALARYCOST

Project Manager 1 $63,821.00 106 $26,019.00Hardware Engineer 1 $40,470.00 48 $7,471.00Software Engineers 2 $41,358.00 91 $28,951.00Budget Manager 1 $43,356.00 12 $2,001.00Database Engineer 1 $39,187.00 7 $1,055.00Preliminary Total $65,497.0040% Overhead $26,199.00

Total Personnel $91,696.00

Unit Cost Units

ExtendedCost

Oven $1,000.00 1 $1,000.00Workstation $1,000.00 6 $6,000.00Components* $182.00 1 $182.00Misc. & Cables $50.00 1 $50.00

Total Hardware $7,232.00

Total Personnel Costs $91,696.00Total Hard Resources Costs $7,232.00

Total Phase 1 Budget $98,928.00*see Supplemental for complete breakdown of costs**extended costs are rounded to nearest dollar

PERSONNEL

REQUIRED HARD RESOURCES

PHASE 1 BUDGET SUMMARY


Phase 2: Prototype DevelopmentPhase 2: Prototype DevelopmentMajor DeliverablesMajor Deliverables

• DocumentationDocumentation• CareFree Cook DevelopmentCareFree Cook Development

• System DesignSystem Design• SoftwareSoftware• Hardware AssemblyHardware Assembly• Database AssemblyDatabase Assembly• System TestingSystem Testing

• MarketingMarketing• FundingFunding• WebsiteWebsite


Phase 2: Prototype DevelopmentPhase 2: Prototype DevelopmentOrganizational ChartOrganizational Chart


Phase 2: Prototype DevelopmentPhase 2: Prototype DevelopmentScheduleSchedule



Phase 2: Prototype DevelopmentPhase 2: Prototype DevelopmentBudgetBudget


SALARYCOST

Project Manager 1 $63,821.00 164 $40,256.00Hardware Engineer 1 $40,470.00 134 $20,858.00Software Engineers 2 $41,358.00 116 $36,904.00Budget Manager 1 $43,356.00 82 $13,674.00Marketing Manager 1 $61,189.00 110 $25,888.00Marketing Assistant 1 $35,598.00 110 $15,061.00Customer Support 1 $23,127.00 160 $14,232.00Technical Writer 1 $35,941.00 20 $2,765.00Quality Assurance 2 $48,212.00 100 $37,086.00Lawyer 1 $77,535.00 120 $35,785.00R&D Manager 1 $46,287.00 54 $9,613.00Web Designer 1 $35,000.00 40 $5,385.00Chef 1 $43,019.00 86 $14,229.00Database Engineer 1 $39,187.00 88 $13,263.00Preliminary Total $284,999.0040% Overhead $114,000.00

$398,999.00

Unit Cost Units

ExtendedCost

Workstation $1,000.00 9 $9,000.00Freezer $4,000.00 1 $4,000.00Food $5,000.00 1 $5,000.00Components $182.00 1000 $182,000.00Assembly of Components $2.00 1000 $2,000.00Misc. & Cables $50.00 10 $5,000.00

$207,000.00

Total Personnel Costs $398,999.00Total Hard Resources Costs $207,000.00Total Phase 2 Budget $605,999.00

*extended costs are rounded to nearest dollar

PERSONNEL

REQUIRED HARD RESOURCES

PHASE 2 BUDGET SUMMARY


Phase 3: ProductionPhase 3: ProductionMajor DeliverablesMajor Deliverables

• PurchasingPurchasing• StaffingStaffing• Preparation of Production FacilitiesPreparation of Production Facilities• Production and Out YearsProduction and Out Years


Phase 3: ProductionPhase 3: ProductionOrganization ChartOrganization Chart


Phase 3: ProductionPhase 3: ProductionScheduleSchedule



Phase 3: ProductionPhase 3: ProductionBudgetBudget


SALARYCOST

Project Manager 1 $63,821.00 YEARLY $63,821.00Budget Manager 1 $43,356.00 YEARLY $43,356.00Marketing Manager 1 $61,189.00 YEARLY $61,189.00Marketing Assistant 1 $35,598.00 YEARLY $35,598.00Customer Support 10 $23,127.00 YEARLY $231,270.00Quality Assurance 1 $48,212.00 YEARLY $48,212.00Lawyer 1 $5,000.00 YEARLY $5,000.00R&D Manager 1 $46,287.00 YEARLY $46,287.00Technical Consultants 2 $150.00/hr 180 hrs $27,000.00Preliminary Total $534,733.0040% Overhead $213,893.00

$748,626.00

PERSONNEL


Schedule RecapSchedule Recap



Project Budget RecapProject Budget Recap

Initial Production (Units) 100,000Initial Selling Point $225.00Production Cost $191.49Profit per Unit $33.51Initial Cost of 100,000 Units $19,149,000Number Sold to Meet Cost 85,107

PROFIT (100,000 Units) 3,351,000$

** Production costs include Hardware and Salaries per Component

Profit Analysis


Break-Even AnalysisBreak-Even Analysis

00


Risk Management PlanRisk Management Plan

1.1. Social acceptanceSocial acceptance

2.2. Limited resourcesLimited resources

3.3. Costly componentsCostly components

4.4. Limited primary Limited primary marketmarket

LIKELIHOOD

1, 2

3

8 6 4

55

12, 13 10, 11 9 7

CONSEQUENCE*Order of risk severity is read diagonally from top to right. See the supplemental section for in depth analysis of all risks and the proposed mitigating actions.


Risk MitigationRisk Mitigation

Social acceptanceSocial acceptance• Likelihood: High (5)Likelihood: High (5)• Consequences: Severe (5)Consequences: Severe (5)• Mitigation: Mitigation:

• Easy and intuitive interfaceEasy and intuitive interface• Advertising campaign emphasizing convenience and health benefitsAdvertising campaign emphasizing convenience and health benefits

Limited resourcesLimited resources• Likelihood: High (5)Likelihood: High (5)• Consequences: Severe (5)Consequences: Severe (5)• Mitigation: Mitigation:

• Pursue funding from government agenciesPursue funding from government agencies• Obtain capital investment from Whirlpool or another major Obtain capital investment from Whirlpool or another major

manufacturermanufacturer


Risk MitigationRisk Mitigation

Costly componentsCostly components• Likelihood: Above Average (4)Likelihood: Above Average (4)• Consequences: Severe (5)Consequences: Severe (5)• Mitigation:Mitigation:

• Protect LCD from heat, grease and damageProtect LCD from heat, grease and damage• Design probe for ten-year lifespanDesign probe for ten-year lifespan

Limited primary marketLimited primary market• Likelihood: Above Average (4)Likelihood: Above Average (4)• Consequences: Severe (5)Consequences: Severe (5)• Mitigation:Mitigation:

• Fashion control unit to mesh easily and seamlessly with existing modelsFashion control unit to mesh easily and seamlessly with existing models• Ensure per unit price is competitive with other convenience accessoriesEnsure per unit price is competitive with other convenience accessories


ConclusionConclusion

• The required technology exists and is The required technology exists and is readily availablereadily available

• The required resources are minimal and can The required resources are minimal and can be acquired in a timely mannerbe acquired in a timely manner

• The societal objections can be overcome The societal objections can be overcome though advertising and exposure to the though advertising and exposure to the productproduct


The EndThe End

Documents

The CareFree Cook Project Proposal