Group Assignment GE Cooking Stove Group 4 Suman Singh, Biao Su, Zhe Xu, Po-Han Shih

GE Cooking Stove Project Objective : To build a new cooking stove for General Electric within 8 months with a budget of $10M, that has all the latest state of the art features of a cooking stove, meets all the federal regulations of the United States and is available to consume both the power sources – gas as well as electricity. High-level Schedule Estimate: –Initiation: July 4 th week, 2013 –Planning: Aug. 3 rd week, 2013 –Market Research: Oct. 1 st week, 2013 –Design: Dec. 1 st week, 2014 –Prototype: Jan. 4 th week, 2014 –Testing: Feb. 2 nd week, 2014 –Review: Feb. 3 rd week, 2014 High-level Cost Estimate: –$5.675M (Initiation – $25K, Planning - $75K, Market Research – $500K, Design - $2M, Prototype - $2M, Testing - $500K, Review - $75K, Contingency – $500K) 2

GE Cooking Stove 3 Business case: There exists an enormous untapped opportunity to produce and supply cooking stove to General Electric. General Electric can use its distribution networks, brand image (of providing high quality goods) and skilled marketing network to distribute the products. The following are the demand drivers of the business –High Price of Gas –Ease of Use with both Gas & Electricity –Environment Friendly –Cost Effective through lower running cost and higher shelf life.

GE Cooking Stove Our Unique Selling Proposition (USP) –Innovative Technology –Possible Usage of the Existing Supply Chain Management of GE. –Expertise & Experience. Some notable features of the stove –Dual Fuel source for cooktop and oven (Gas (Natural Gas, Propane) & Electricity) –Induction variant for Electric stove –Multiple Design features (Freestanding, Slide-in and Drop-in) –Multiple sizes to accommodate different kitchen sizes (30” with 6 burners & 24” with 4 burners) –Multiple cooking oven preferences (Conventional, convection and auto conversion feature) –Multiple cooktop surface (Ceramic and glass); Scratch proof surface with No drip raised to prevent boil-overs. –Auto-shutoff feature to prevent fires –Touch Screen controls and metallic knobs –Multiple finishes – Steel, black, white and ability to change the surface with different shades matching kitchen cabinets with self cleaning feature. –Back illumination for controls and Warming drawer –Programmable features accessible from iphone/android apps –EPA’s Energy Star Certified 4

GE Cooking Stove Advantage accruing to General Electric. – Opportunity to establish its name in the Gas Stove Market. – Huge market Size – Leverage of its brand and Supply Chain Management – Lower Cost and consequent Higher Margins – Opportunity of Cross Selling. 5 The Business Case Presents a Win-Win Situation for all.

GE Cooking Stove Priorities Explanation: The launch of the stove by March 2014 is the highest priority to garner larger market share and pre-empt the advantage of NewGen Stove launch by cookers corporation. The scope has been defined in close coordination with market research team, but it can be enhanced and cost can exceed a little, to meet the timelines. 6 ScopeTimeCost Constrain Enhance Accept ElementPriority Time1 Cost4 Scope2 Quality3

Responsibility Matrix 7 DeliverablesDesignManagementProductionTestingQADeliveryManufacturing Approvals Stove design Stove specifications Final design First product Product inspection Product tests Production Customer feedback Responsible 2 Support 3 Consult 4 Notification 5 Approval

GE Cooking Stove: Communications Plan 8

GE Cooking Stove Major Deliverables: –Project plan –Design Specifications –Prototype –Test plan –Lessons Learnt & Project Closure 9

GE Cooking Stove Limitations & Exclusions: –Procurement of parts will be handled by Procurement group –Any advancement in the federal regulations and standards will be handled in later releases of the product 10

GE cooking Stove Deliverables for Project 11

GE Cooking Stove High level Cost estimate for Project 12

GE Cooking Stove Stakeholders 13

Risk Register Risk Statement% PE % PI Est. $ Amt. of mp. EMV Exp. Loss Est. Dur. Sch. Loss Exp. Sch. Loss Risk: The time allocated to fix the defects after testing may be insufficient. Impact: The quality of product may be impacted causing loss of faith and rework from $100K to $500K..751-$500K-$375K-15 d d Risk: The estimates for development may be inaccurate by 1 to 3 weeks. Impact: The product launch may be delayed from 1 to 3 weeks at a cost to the company from $1M to $2M $2M-$396K-15 d-3 d Risk: The procurement of parts may be delayed. Impact: The product launch may be delayed from 1 to 3 weeks at a cost to the company from $1M to $2M $2M-$325K-15 d-2.5 d Risk: The testing may not complete as per schedule. Impact: The project’s schedule may be delayed by 5 days at a cost to the budget of $100K..31-$100K-$ d-1.5 d Risk: There may be compatibility issues between apps and stove. Impact: The project’s schedule may be delayed by 1 to 2 weeks at a cost to the budget from $100K to $200K $200K-$ d-1.25 d 14 Contingency Reserve for Budget: $500K; Contingency Reserve for Schedule: 25 days. Legend: PE = % Probability of the Risk (example 30%); PI = % Probability of the Impact (example 40%) Estimated $ Amount of Impact = Estimate the cost of the impact should it occur; EMV / Expected Loss = Column (A)*(B)*(C) Estimated Duration of the Schedule Loss = Estimate the number of weeks that the schedule will be delayed should the impact occur Expected Schedule Loss = Column (A)*(B)*E

GE Cooking Stove Success criteria: Launch of the cooking stove prototype by Mar with fewer than 5 major defects and with in ±5% of budget allocated. Approver : VP- Appliance Products 15