Manufacturing for the other 90%. Poor city people in Kenya may spend 30% of their income on public transportation. Boda-Boda bicycle taxi/messengers fill.

Slides:



Advertisements
Similar presentations
News Rack Enhancement Program Presented to Cities Across the Country Presented by Richard Kitzmann, President Rak Systems, Inc.
Advertisements

What have we done so far??...
September 2011 Supportability : The Difference between Profit and Loss in the Rail Industry Keith Jordan – Hitachi Rail Europe.
Skateboard Safety Gear. Objectives To see if target market wears safety gear when doing possibly dangerous activities To see if there is a market to sell.
Decision Making and Relevant Information
ASM & COAA Adding Value to Alberta Energy Sector projects.
Engineering Economic Decisions
ENTREPRENEURSHIP Chapter 4.
Whatdunnit? The Great Depression Mystery Lesson 30 Presented by Dr. Norman Cloutier Director, UW-Parkside Center for Economic Education Wisconsin Council.
The U. S. Economy: Private and Public Sectors
Engineering Economic Decisions
The Business Cycle Mr. Donecker 10/4/12. Bell Activity Last year, the President said, “Right now, a company can get a tax break for moving a plant over-seas.”
Pass 4 – Financial Aspects Produce a list of your start-up and running costs Produce and explain the start-up budget which includes details of the predicted.
Wheelchair Design in Developing Countries: Redesigning the Trike Frame Fiona Hughes, Gina Policelli, Ashley Thomas, and Jodie Wu; Massachusetts Institute.
Collapsible Bike Eugene Chang. About me I am born in New York City and live in Queens I am Majoring in Product Design I attend Parsons The New School.
Bike Shops Are Cycling Infrastructure Fred Clements Executive Director National Bicycle Dealers Association
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 4 How Businesses Work.
Components of an Automated Manufacturing System
Developing Successful Products Brandon Burton Greg Zankowsky Melina Blundetto.
Bikes. Acquiring necessities… A little guide about buying a bike in the Netherlands and actually embracing using it.
The Significance of the Determination of Employee Contribution
Various methods of calculating price for your product or service
Rishi Savaliya, Mitch Reid, Kelsey Barrera Team ReMaKe.
1. 2 Recap from Marketing Planning What one thing must your business have in order to be a business?
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 13 Cost Management and Decision Making.
Chapter 4 How Businesses Work McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Business Continuity for Facilities Managers Peter Carr FastTrack Solutions Ltd
Fraser White Zac Hannam Andrew Graham Nick Parker Spoke City …Any Distance is Biking Distance.
 BFBI's Profile About BFBI Marketing Sales Tactics Ad. / Promotions _____________ BFBI's Product BZC-A1 Tri-BZC ( Black ) Tri-BZC ( Pink ) Investor Relations.
Gross Domestic Product (GDP)– market value of all final goods and services produced in an economy during a given period, usually a year. In 2009, the GDP.
Ind – Acquire the foundational knowledge of channel management
Chapter 2 Measuring economic activity
Rishi Savaliya, Mitch Reid, Kelsey Barrera.  Define the Problem  Time Management  Survey  Brainstorming  Research  Donation Letters  Existing Solutions.
Size of business Measurement of business size Significance of small businesses Internal growth.
Its a question of size! Research:  What is the biggest company in the World? (you need to justify your answer).
Labor Market in the Global Economy Describe current economy and labor market … and the impact of international competition Explain the effects.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.
Motorcycle with Adjustable Weight Distribution
By Angus and Jayden. Mission Statement Playing sports is a great way to keep children fit, healthy and strong. However sometimes it can be very dangerous.
Firm 5 Mikes Bikes Business Project Simulation Hayley Barile & Jennifer Kerr
What is Economics? Think choices not money!. What is Economics? Economics – how people use their scarce resources to satisfy their unlimited wants.
 Understand the law of diminishing returns  Understand the the different types of cost  Understand the concept of revenue  Understand the concept.
Sectionalism How different are the North and the South?
The dinghy is for sale in a boat shop for $2700 but by paying cash Greg can save 20%. 20% of $ ÷ 100 x 2700 = – 540 = 2160 The cash price.
Operational and Production Aspects of Contemporary Business Chapter Course: BUS 101 Lecturer: NNA.
Differential Cost Analysis
Needs vs. Wants.
Financing the Small Business Dr. Muslim Suardi, MSi., Apt. School of Pharmacy, Faculty of Sciences UNIVERSITY OF ANDALAS.
Presenters: Gala Lawrence Javier Luna April 13, 2011.
CHAPTER 8 Creating the Product
Hang Tight TEAM REMAKE Kelsey Barrera Mitch Reid Rishi Savaliya.
Differential Cost Analysis
BUDGETING 2010.
1.02 ~ ECONOMIC ACTIVITIES AND CONDITIONS CHAPTER 2 MEASURING ECONOMIC ACTIVITY.
Phoenix Suns/DECA Workshop January 26, :30 pm – Senior Director of Marketing Workshop 7:00 pm – Phoenix Suns v. Charlotte – $44 – $59 – Free Gift.
The Second Industrial Revolution America Mechanizes
Long-Run Costs and Economies of Scale Module 56. Behind the Supply Curve.
1.02 ~ ECONOMIC ACTIVITIES AND CONDITIONS CHAPTER 2 MEASURING ECONOMIC ACTIVITY.
Fuji Feather Fixed Gear Bicycles A fixed gear bicycle, or commonly known as a fixie, is a single-geared bicycle that has no freewheel mechanism. The cog.
ACME Beach Cruiser Advertising Campaign Heidi Orton.
 Total startup cash needed  Financial performance of similar business  Overall financial attractiveness of the proposed venture.
 According to the company’s report, IT firms in India reject 90 percent college graduates and 75 percent engineering graduates due to the simple reason.
Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 13 Cost Management and Decision Making.
Manufacturing systems Brian Russell. Exam expectations Issues associated with Manufacturing are regularly tested in the written paper. Questions often.
Nathaniel Watts, Justin Kibler, Angel Hambrecht, Maxine Laroche
(Motorcycle Solutions)
“Cost Driver” (the activity) Owning a car
The Law of Supply and the Supply Curve
The Benefits of Bicycling
Measuring economic activity
Presentation transcript:

Manufacturing for the other 90%

Poor city people in Kenya may spend 30% of their income on public transportation. Boda-Boda bicycle taxi/messengers fill a vital role in Kenyan transportation The Boda-Boda is just a plain bicycle, not well suited to bulky or heavy loads. Worldbike.org set out to make a cargo extension to Kenyan bicycles to improved transportation for the lower class.

Manufacturing for the other 90% The Worldbike “Big Boda” moves the rear wheel back about 15” and provides a heavy-duty rack mostly forward of the rear wheel. The “Big Boda” was designed, prototyped, and tested in the US, then plans and prototypes were taken to Kenya

Manufacturing for the other 90% Worldbike went to Kenya in May 2005 to find mfg facility Chose Kisumu, 3rd largest city w/ significant industrial sector. Recruited project lead in Nairobi through newspaper ad and 250 interviews Leased a workshop from an established metalworking firm that services large machinery for the tea industry.

Manufacturing for the other 90% Spent 3 months refining design, and building jigs and fixtures. Discovered that the local bikes (nicknamed “Black Mambas” for their tendency to hurt their riders) were prone to failure, had brakes that were ineffective with heavy load or rain, and that a low hill-climbing gear was needed but not available.

Manufacturing for the other 90% Solution was emergency foot brake option, identification of the best of the (bad) brand options, and special ordered chainrings. Manufacturing startup problems: –Indian merchants who owned machine shop didn’t trust Kenyans and wouldn’t allow them in the shop. –The American technical lead couldn’t produce the desired 50 Big Bodas, so there wasn’t any inventory until month 6.

Manufacturing for the other 90% In month 8, production was moved to a low- rent district shop run by Kenyans. The new area had many small-scale mfg and repair operations New production shop was a steel furniture mfg that used woven seat pads and backs. Worldbike invested $1000 in tools and safety equipment. The Nairobi-hired project leader was dumped and production shop employees sent out on the Big Bodas for marketing. It took only 7 weeks for second batch of Big Bodas (30 units)

Manufacturing for the other 90% Problems: –Big Boda extensions were strong, Black Mamba bikes were not. Average boda- boda operator spends 300KSH ($5)/month on repairs –market limited to transporters of light, bulky loads (bread, flowers, school children) –better quality bikes must be imported, along with repair parts, so might as well make one-piece Big Boda bike.

Manufacturing for the other 90% Donated Big Bodas were very successful –orphanage saves $5/day in reduced public transportation costs –clinics found Big Boda to make excellent village ambulance (except for weak bike again) Sales of Big Bodas were more difficult, due to necessary high price

Manufacturing for other 90% Costs: –10 man-hours to fabricate and install –cost of materials, labor and overhead is 2200 KSH for extension, or 7000 KSH for complete bike + extension. –modest 14% profit raises price to 2500KSH (US $37) or 8000KSH ($120) for complete bike.

Manufacturing for other 90% Conclusion: –Big Boda is solid, useful product –Unfortunately it doesn’t address the three universal problems faced by Kenyan cyclists: poor brakes on ordinary bikes not geared low enough for hill-climbing poor overall durability (bad bottom brackets, poor tires, soft nuts and bolts, weak forks, bad pedals) –Therefore, Big Boda only offers value in niche markets (light, bulky, high-value loads) –Better bike is needed, either as 1-piece Big Boda or for extension to be added to.

Manufacturing for other 90% Worldbike –A prototype one-piece Big Boda bike was tested in Kenya, and response was fantastic. Half the people who tested in offered to buy it on the spot. Unfortunately, the quality materials used in it are not available in Africa.