MANUFACTURING COSTS:
Functional Elements:
The baby stroller is mainly composed of three materials: Nylon (woven, as fabric) Plastic (injection molded, for plastic parts) Steel (tubing, for frame)
Fasteners are included in the assembly of different components of the strollers.
The stroller would have to be manufactured on an assembly line. The fabric weaving and seat making, the plastic molding and the frame can simultaneously be manufactured in their respective work areas.
Following are the functional parts in our product. They are presented with quantity required and materials, to have an idea of the components in question:
S/No. Parts Materials Quantity Required
1 Wheels Plastic 10
2 Tray Plastic 1
3 Axle Cap Plastic 10
4 Foot Rest Plastic 1 …show more content…
Baby strollers already exist in a competitive market. We are a startup company which is bringing an innovative modification in a product. Therefore, the two important factors we have considered are production capacity and costs.
We have chosen most of the components to be built at our own facility. Since we have a long term strategy to penetrate the market, we need to reduce our material costs by in-house manufacture of most components. However, we have considered a few components not worthy of in-house manufacture as they are cheap and easily available in the market. We already have to pay inventory costs for our facility establishment; therefore, we will purchase material and some components in bulk to reduce costs.
One important consideration, on which we had lots of discussion, was about the decision to make or buy the plastic parts of our product. To make these parts in-house we need to procure the injection molding machine and the molds. For getting these parts from outside sources, we need to have a constant supply chain for these parts and often the cost of tooling and molds for injection molded parts is
Functional Elements:
The baby stroller is mainly composed of three materials: Nylon (woven, as fabric) Plastic (injection molded, for plastic parts) Steel (tubing, for frame)
Fasteners are included in the assembly of different components of the strollers.
The stroller would have to be manufactured on an assembly line. The fabric weaving and seat making, the plastic molding and the frame can simultaneously be manufactured in their respective work areas.
Following are the functional parts in our product. They are presented with quantity required and materials, to have an idea of the components in question:
S/No. Parts Materials Quantity Required
1 Wheels Plastic 10
2 Tray Plastic 1
3 Axle Cap Plastic 10
4 Foot Rest Plastic 1 …show more content…
Baby strollers already exist in a competitive market. We are a startup company which is bringing an innovative modification in a product. Therefore, the two important factors we have considered are production capacity and costs.
We have chosen most of the components to be built at our own facility. Since we have a long term strategy to penetrate the market, we need to reduce our material costs by in-house manufacture of most components. However, we have considered a few components not worthy of in-house manufacture as they are cheap and easily available in the market. We already have to pay inventory costs for our facility establishment; therefore, we will purchase material and some components in bulk to reduce costs.
One important consideration, on which we had lots of discussion, was about the decision to make or buy the plastic parts of our product. To make these parts in-house we need to procure the injection molding machine and the molds. For getting these parts from outside sources, we need to have a constant supply chain for these parts and often the cost of tooling and molds for injection molded parts is