Segment ProductAge Curren

t Age

Nano (High + Trad) Positioning, price , age & MTBF - Hybrid 1 Maintain .75-1.25
product
Elite (Trad + Low) Age, price, positioning, MTBF - Hybrid with 0 Try to keep less than .5
almost equal importance
Core (Perfor + Trad) Price, then age, reliability - almost have to 2 Maintain 1.5-2.5
give importance to all factor
Thrift (Size + Low) Price, then reliability, position. 3 Maintain 2.5-3.5
Not much of age

Notes - 1st step to enter TQM

2nd Step - R&D

 Age Price Current Margin Propose Ideal Position
after price d Price
Rev
tain .75-1.25 20% 28-40 27% Pfmn 10.5 - Size 7. 35%

o keep less than .534% 30-42 24% Pfmn 12.5 - Size 9. 22%

tain 1.5-2.5 20% 20-32 46% Pfmn 8.6 - Size 11. 16%

tain 2.5-3.5 10% 14-26 55% Pfmn 6.5 - Size 13. 15%
Rd1 Rd2 Rd3 Rd4 Reliability

18,000-24,018%

20,000-26,020%

16,000-22,018%

14,000-20,020%
1500 for better output per process
Better to connect 2 process that gives similar output. Eg CPI & CCE reduces labour & material cost

Business Process Initiatives

Initiative Labour Material Sales Budget Demand Increase
CPI Dec Dec
JIT - vendor Dec
QIT Dec
CSS Inc Inc
Concurrent Eng
UNEP Gree Prog Dec Inc Inc

TQM Initiatives
Initiative Labour Material Sales Budget Demand Increase
Benchmarking
QFD Inc Inc
CCE Dec Dec
GEMI/TOEM Dec Dec
R&D Cycle Time Admin Overhead

Inc

Dec

R&D Cycle Time Admin Overhead

Dec
Dec
Segment Ideal Age

Nano (High + Trad) Positioning, price , age & MTBF - 1 20%

Hybrid product
Elite (Trad + Low) Age, price, positioning, MTBF - Hybrid 0 34%
with almost equal importance

Core (Perfor + Trad) Price, then age, reliability - almost 2 20%

have to give importance to all factor

Thrift (Size + Low) Price, then reliability, position. 3 10%

Not much of age

R&D Cost Round1

1556
Notes Current Age after Rev Ideal Position
Age

Rd1 Rd2 Rd3 Rd4

Maintain .75-1.25 Pfmn 10.5 - Size 7.5

Try to keep less than .5 0.5 Pfmn 12.5 - Size 9.5

Maintain 1.5-2.5 Pfmn 8.6 - Size 11.4

Maintain 2.5-3.5 Pfmn 6.5 - Size 13.5

It may Change
based on exam data
 Rd1 Rd2 Rd3 Rd4 Reliability

35% 11.1 & 6.7 18,000-24,000 18%

22% 13 & 9 14.1 & 8.1 20,000-26,000 20%

16% Revise considering the age factor 16,000-22,000 18%

15% 14,000-20,000 20%

Work on reliability
Segment Ideal Age

Nano (High + Trad) Positioning, price , age & MTBF - 1 20%

Axe Hybrid product
Nano 2 (High + Trad)
Elite (Trad + Low) Age, price, positioning, MTBF - Hybrid 0 34%
Art with almost equal importance

Core (Perfor + Trad) Price, then age, reliability - almost 2 20%

Ace have to give importance to all factor

Thrift (Size + Low) Price, then reliability, position. 3 10%

Ant Not much of age
Notes Current Age after Rev Ideal Position
Age

Rd1 Rd2 Rd3 Rd4

Maintain .75-1.25 Pfmn 10.5 - Size 7.5

11.3 & 6.4

Try to keep less than .5 0.5 Pfmn 12.5 - Size 9.5

Maintain 1.5-2.5 Pfmn 8.6 - Size 11.4

Maintain 2.5-3.5 Pfmn 6.5 - Size 13.5

It may Change
based on exam data
 Rd1 Rd2 Rd3 Rd4 Reliability

35% 11 & 8 18,000-24,000

22% 13 & 9 14.1 & 8.1 20,000-26,000

16% Revise considering the age factor 16,000-22,000

15% 5.5 & 4.5 14,000-20,000

18%

20%

18%

20%
Work on reliability
Segment Age Current Age
Age after
Rev

Nano (High + Trad) 1 Maintain .75-1.25 20%

Elite (Trad + Low) 0 Try to keep less than .5 34%
Core (Perfor + Trad) 2 Maintain 1.5-2.5 20%
Thrift (Size + Low) 3 Maintain 2.5-3.5 10%

WORST Case - Marketing

BEST Case - Production

With Pre and Post and CSS method

Next
Year Demand
Market for next
Industry Growth year(Uni CSS - Ref
Segment Demand Segment Growth (Units) ts) Last colum
Thrif 5,104 11.00% 561 5665 13
Core 6681 10.00% 668 7349 32
Nano 3651 14.00% 511 4162 56
Elite 3479 16.00% 557 4036 58
NA 0 0.00% 0 0 4
NA 0 0.00% 0 0 18
CSS-Round1
Thrif 30 33 44 39
31 27 42 40
18 18 37 25
13 18 43 32
6 9 10 8
5 10 11
7 20 11
27 12 22
26 15 11
4 11
 13 5
Revision Round1

13.0
5.5
8.5
11.0 9.0
14.5
12.0
8.0 26000
20000
22000
24000

Ant(Thrift) 9-Jun-19 6
Ace(Core) 30-May-19
5
Axe(Nano) 26-Apr-19 4
Art(Elite) 15-May-19 5
Price Current Margin Propos Ideal Position Rd1 Rd2 Rd3
price ed
Price

28-40 27% Pfmn 10.535%

30-42 24% Pfmn 12.522%
20-32 46% Pfmn 8.6 16%
14-26 55% Pfmn 6.5 15%

Mkt
When is Share(Po
Revision st
happeni Revision)
(By
ng.
(mention default
Balaji try
the
month in to
numeric capture
2% -
als)
Market Mkt assumed
Share Share(Pr ) Inventor Inventory Inventor Inventor Existing
Calculati e Worst y - (1 y(2 y(3 Inventor
on Revision) Case 15days Month) Months) Months) y
13.27% 13% 6 16.27% 418.26 17.4275 34.85498 69.71 104.565 758
18.82% 19% 5 21.82% 755.985 31.4994 62.99872 125.997 188.996 47
22.40% 22% 4 24.40% 493.907 20.5795 41.15894 82.3179 123.477 264
26.98% 27% 5 28.98% 567.883 23.6618 47.32361 94.6472 141.971 216
2.21% 2% 0 4.21% 0 0 0 0 0 0
9.94% 10% 0 11.94% 0 0 0 0 0 0
Rd4 Reliability Industr Next Yr Next yr Potential Mrkt Rev .Dt
y Gr. Deman Share
Deman Rate d
d

18,000-218% 7387 9.9% 8118.31 13.0% 14.0% 15th Marc

20,000-220% 8960 12.6% 10089 16.7% 17.7% 15th Jan
16,000-218% 2554 16.9% 2985.63 14.3% 16.3% 20th Mar
14,000-220% 1995 20.9% 2411.96 16.5% 18.5% 18th July

Best For Best For Best For Best For

Producti Producti Producti Producti
on(15 on(1 on(2 on(3Mon
Days Month Months ths
Inventor Inventor Inventor Inventor
y) y) y) y)
-322.313 -304.885 -270.03 -235.175 500
740.484 771.983 834.982 897.981
250.487 271.066 312.225 353.384
375.545 399.207 446.531 493.854
0 0 0 0
0 0 0 0
Pre. Post. Pre. Post. Worst Invento Invento Best Openin Prod.
Revisio Revisio Revisio Revisio case ry Plcy ry Case g Schd
n Mnths n Mnths n - n- Invento
Wrst Wrst ry
Case Case
3 9 260.231 840.746 1101 60 180.986 1282 189 1093
1 11 138.481 1614.51 1753 60 288.164 2041 39 2002
3 9 105.274 359.993 466 30 38.3014 504 40 464
7 5 228.971 183.375 413 30 33.9452 447 78 369
Max.
Capacit
y

1800
1400
900
600
Awarness & accessibility - 1/3rd of that specific value of previous year will reduce

Accessibility - $1500 it increase by 36% 36 48.96

Awarness $1500 it increase by 37% 36 49.32

With $1500 additional the rating will increase by another 36% for both - investment $1500 per product

Awarness - Invest seperately for specific product

Accessibility - Can be shared for that segment

PRODUCTION
Production - BEST Case

Buy capacity - Incase of introducing the product or even the 2nd shif is not sufficient
Sell capacity where units required is less than that of actual capacity - Significant difference

Automation rating will reduce labour cost

Every increase in 1 level will increase the cost by $4 per UNIT
Labour cost reduces by 10%
Try in those products where volume is more

Recrutting spend - $5000

1000,2000 for low skills and 5000 for high skills
Training hours - 80hrs max (4 people can do 20 hours each)
This will reduce the 2nd shif timings and thus increase the productivity index ratio
If EPS is negative don’t pay divident
Still if you pay due to your over confident money will deducted from your account, also share holders wont get the money - DO

Debt - Current debt - short term loan - Interest is less

Bonds - 10yrs life time - we can decide interest

For EG,
110S2021
11 - Coupon rate - Interest
2021 - Due date
Face value is the amount to be paid

Maintain leverage value bet' 1.8-2.8 = (Debt + Equity) / Equity

Credit rating increases will reduce 0.5% of interest of short/current debt

holders wont get the money - DON’T TRY THIS
Dividend Yield Formula (With Example)
The formula for dividend yield is:

Dividend Yield = Annual Dividend / Current Stock Price

For example, let's assume you own 500 shares of Company XYZ, which pays $1.10 per share in annual dividends. If the current

$1.10 / $12.00 = .0916 = 9.2%

Note that there is an inverse relationship between yield and stock price. For example, if the stock price rose to $15,

In order to sell a product at a profit the product must be priced higher than the total of what it costs you to build the unit, plus
last year the broad cost leader Chester had an Elite product Cozy. Use the Inquirer's Production Analysis to find Cozy's producti
carrying costs. Assume period expenses and overhead total 1/2 of their production cost. What is the minimum price the produ
period expenses, and overhead?
annual dividends. If the current stock price is $12.00, then using the formula above we can calculate that the dividend yield on Company X

f the stock price rose to $15, the yield would be $1.10/$15 or 7.3%. The 500 share investment would be worth $7,500 (vs. $6,0

costs you to build the unit, plus period expenses, and plus overhead. At the end of
n Analysis to find Cozy's production cost, (labor+materials). Exclude possible inventory
is the minimum price the product could have been sold for to cover the unit cost,
he dividend yield on Company XYZ stock is:

uld be worth $7,500 (vs. $6,000 originally) but the yield on the investment would fall from 9.2% to 7.3%.