1. Improving the world through engineering 1 www.imeche.org/fs FS2011 Presentation Event Business Presentation 2011 Feedback Craig Powers Head Presentation Judge

2. Improving the world through engineering 2 www.imeche.org/fs  How to approach the Formula Student Event  Objectives  How to Prepare ~ what to read  Choice of Role Play  Common Mistakes and Problems  Selecting Content  Summary Agenda

3. Improving the world through engineering 3 www.imeche.org/fs  What is the Presentation Event?  A business presentation, a role play, an act…  Objective  To convince the judges to invest in your race car proposal  Convince the judges that…..  You have a car that is ready for manufacture  you have a sound business case  you have minimised commercial and technical risk  there is profit potential Objectives

4. Improving the world through engineering 4 www.imeche.org/fs Rules & Source Material Source Material o Rules FSAE Rules FS UK Supplementary Rules o Presentation Advice IMechE website / FS Newsletters o Learn to Win seminars Annual event in London, October o FS Question Database Resolve any queries in advance

5. Improving the world through engineering 5 www.imeche.org/fs Role Play Identify who your Audience is Objective A presentation which is Focussed & Precise 2 common scenarios o To Executive of a Manufacturing Company o To Investors, e.g. Venture Capital Company Make sure that the judges are aware of the role play and their role Make sure all topics are addressed no matter what role play you choose

6. Improving the world through engineering 6 www.imeche.org/fs FSAE Rules ARTICLE 4: PRESENTATION EVENT C4.1 Presentation Event Objective – Business Case C4.1.1 The objective of the presentation event is to evaluate the team’s ability to develop and deliver a comprehensive business case that will convince the executives of a corporation that the team’s design best meets the demands of the amateur, weekend competition market, including Sports Car Club of America (SCCA) Solo, and that it can be profitably manufactured and marketed. (See also A.1.2) C4.1.2 The judges should be treated as if they were executives of a corporation.

7. Improving the world through engineering 7 www.imeche.org/fs FSAE Rules ARTICLE 4: PRESENTATION EVENT (continued) C4.1.3 Teams should assume that the “executives” represent different areas of a corporate organization, including engineering, production, marketing and finance, and thus may not all be engineers.

8. Improving the world through engineering 8 www.imeche.org/fs Common Mistakes (1) Venture Capital / Investor Role  Neglect technical details of the car  Neglect the engineering and development of the car  Neglect manufacturing topics Mistakes relating to choice of Role Play Class 1A / Class 2A business scenarios  Risk of overly complex business scenarios  Spend too much time explaining the scenario ~ this loses valuable time and you only have 10 minutes  Same omissions as above ~ technical, engineering, manufacture

9. Improving the world through engineering 9 www.imeche.org/fs Common Mistakes (2) Failure to identify customer and market  Weak market research  No customer requirements  How much is customer prepared to spend ~ lack of target price  Competitors / rival vehicles not identified, including prices  Market volume not explained  Excessive market share assumed Poor business case

10. Improving the world through engineering 10 www.imeche.org/fs FS Supplementary Regs 3.1.8 Business Presentation Event requirements Teams are not required to assume a production rate of 1000 cars per year. It is therefore open to teams to suggest a proposed market size and corresponding manufacturing volume / production run targets. The important element is that teams demonstrate the logic behind their assumption / proposal and are also able to demonstrate that it can support a viable business model for both parties.  Do not assume that a market of 1000 cars per year exists just because of the FSAE / FS rules.  Do not assume that you have 100% market share of a lucrative market...unrealistic

11. Improving the world through engineering 11 www.imeche.org/fs Common Mistakes (3) Poor business case  Unrealistic business case, arising from...  Excessive market volume ~ not tied to market research  Excessive market share (100% ~no rivals !)  Excessive start up costs  Labour costs too high ~ too many managers, not enough technical manufacturing staff  Excessive marketing budgets  Insufficient profit per car

12. Improving the world through engineering 12 www.imeche.org/fs Common Mistakes (4) Too much time spent on one topic  You have just 10 minutes to cover all topics including introduction, agenda, summary.  Spread your time equally between topics, ensure a good balance.  Make sure that you use the full 10 minutes Incorrect balance

13. Improving the world through engineering 13 www.imeche.org/fs Structure Completing the logical flow, …. Concept to Prototype, then Production and Profit Market /Customer Requirements The Prototype Car Design & Development Processes Production Compromises / Manufacturability Manufacturing Marketing, Sales, Support Finance & Commercial Design Goals / Targets Business Proposal

14. Improving the world through engineering 14 www.imeche.org/fs Commercial Risk  Know the market, identify the customer, identify rivals / competitors  Customer Requirements  Set design goals (weight, performance, cost, etc)  Ensure design meets the goals and can be manufactured  Minimise start-up costs & operating costs  Achieve target cost and selling price  Can be manufactured at a rate / volume to suit the market A CAR THAT MEETS THE REQUIREMENTS AND CAN BE SOLD AT A PROFIT …. SOUND BUSINESS CASE Minimising Risk (1) Not necessarily a comprehensive list

15. Improving the world through engineering 15 www.imeche.org/fs Technical Risk  Design Processes (CAD, FEA, CFD, Simulations, etc)  Validation & Testing of Prototype  Designed to aid manufacture / production compromises  Testing Quality & Inspection  Improving through experience Objective : A CAR THAT... WILL PERFORM WELL... CAN BE EASILY MANUFACTURED... WILL BE RELIABLE Minimising Risk (2) Not necessarily a comprehensive list

16. Improving the world through engineering 16 www.imeche.org/fs Avoiding Common Mistakes from 2011  Select the correct role play  Address all required topics including manufacturing and technical details of car  Get the balance right  Don’t spend too long on one topic  Ensure business case is sensible and is linked to market research  Keep it simple Summary

17. Improving the world through engineering 17 www.imeche.org/fs See you next year! Thank you for your hard work Hope to see you at Formula Student next year Good luck!