Process Choice Steps
BOON SIEW HONDA
1.
The product is HONDA EX5
- Understand the
physical space requirements
1.
Area needed for manufacture
= 1 acre of
production factory
2.
Receiving area for raw
materials
= half acre of
warehouse factory that are connected with the production factory
3.
Shipping area for finished
products
= Supply chain
of BOON SIEW HONDA is an integrated system with the warehouse
4.
Special handling or storage
requirements for the raw materials
= BOON SIEW
HONDA supply chain services will manage the production regarding the material
and products.
5.
Need for flexibility
= The BOON SIEW
HONDA supply chain offers many services that increase the flexibility of the
factory
- Understand the manufacturing needs
1.
Materials
= High grade
material
2.
Time
= 5 hours
(80,000 per yer, and 745 per day)
3.
Equipment
= manual and
automated assembly machine
4.
Labor
= about 150
workers operating the production lines
5.
Flexibility
2.
Know your customer
- Understand
your customer’s needs
1.
Quantity
1 for every
person
2.
Time requirements
= Stock
constantly available
3.
Quality tolerances
= Quality is our
priority
4.
Buying habits
= Target
customer is student and daily workers
5.
Product usage
= Frequently
3.
Know your competition
- Understand your competition’s processes
1.
Speed of output
= 7 hours
2.
Quality of product
= Medium quality
3.
Price of product
Fair, according
to their specification
4.
Company Revenues
= much lower
than our company
5.
Identify strengths &
weaknesses
=strength: establish
company, good after sales services, high reliability product
= weakness:
expensive, high consummation of petrol, fair in quality
6.
Try to find out why they have
succeeded or failed
= their after
sales services can cover the fair quality of the products
4.
Compare the needs of the
product and customer
- Understand the correlations between customer and product needs
1.
Time
= Minimum
product ready time (constantly available stock)
2.
Quantity
= High target
customer varying from teenager (students) to adults (workers)
3.
Quality
= Long lasting
performance can be obtain from the product
4.
Resources
= Supply chain services
manage inventory smoothly
= Dealers are
available nationwide
5.
Decide on your desired revenues
and what the market will support
- Understand your financial requirements and where the product market
is
1.
Price / Margin
= Price: RM 3700
= Cost: RM 2590
= Margin: 30%
2.
Quantity
= 6000 units of
sales per month
3.
Quality
= The quality of
our product is recognize by the customer
6.
Layout all of the data together
- Bring all of
the gathered data together for Break Even Analysis
1.
Establish Total costs
1.
Fixed costs – plant, property,
equipment necessary
= Plant: RM 5,000,000
per month
= Property: RM
1,000,000 per month
= Equipment: RM
3,000,000 per month
2.
Variable costs – time,
materials
= Time: RM 500,000
= Materials: RM
2,000,000
= Labor: RM 1,000,000
TC= 12.5MIL
2.
Establish Total Revenue
1.
Volume: 6600 per month
2.
Price: RM 3700
TR = 24.4mil
