1. RoboVac a UTC Corp. Power Generation Engineer Juan Gamarra
Electrical Systems Engineer Diego Molina
Electrical and Software Engineer Jetmir Palushi
Market Research & Development Raymond Perez
Industrial Design and Testing Eng. Joseph Seborowski
Diego
The above slide shows the team member’s names and titles.

2. Project Description - Technical
Omni directional - Programming
Cleans efficiently - Coordinate Tracking, Dust detection
Infrared sensors – Stair Prevention
Bumpers – Cost effective
Wireless – Self Charging
Reshape – Wall corners
Jetmir
Identify and design an autonomous robot that will assist people at home who are too busy for daily or weekly floor cleaning, especially for family’s with children. In particular for the elderly who live by themselves and do not have the strength or ability to clean. Robotic vacuum cleaners in the market are expensive and inefficient in terms of cleaning time and cleanness. The goal is to design an Omni directional platform with infrared sensors, wireless sensors, bumpers, dirt detection system, reshape, and four bristle brushes on every side to improve the cited cleaning performance problems
The team has broken down the project into four essential categories to reach the overall goal of a better cleaning robot. Those four categories are shape, sensors, suctions and battery.

3. Project Description - Business
Key Business Goals
Environmentally friendly
Be the leader in economic robotic vacuum cleaners
First prototype to be released in mid April
Product introduced in fourth quarter December 2007
Capture 20% of robotic vacuum cleaner sales by 2009
First product serves as a platform for high end robotic vacuum cleaners
Include a two year full warranty with every vacuum sold
Primary Markets
New robotic vacuum cleaner users
Middle – class families ($25,000-$100,000)
Average size homes (2300 sq. ft.)
Secondary Markets
Existing robotic vacuum cleaner motor
Professional cleaning services
Schools, businesses
Upper class families ($100,000 – unsp.)
Assumptions and Constraints
New product platform
Self charging
Self docking
Infrared system
Wireless system
Some devices and parts will be manufactured outside of the United States to meet the sales objective
Jetmir
Fundamentally the key business goal for this project is to own most of the market for robotic vacuum cleaners. Some of the internal business descriptions are the company would like to see a much more environmentally friendly, inexpensive robotic vacuum cleaner.
In most cases the robotic vacuum cleaners dissipate more dirt than they accumulate. The company is trying to stay away from the thinking process of all the other robotic vacuum cleaner companies. Most of their business descriptions seem to show the more accessories you can add on the robot the more it can sell. However more and more people are starting to notice there flaws and starting to buy the vacuum cleaners that can actually clean. The company is trying to be the Toyota of the robotic vacuum cleaners; dependable, durable, warranted, and efficient.
If these goals are accomplished the long term goals will soon follow. For example the company predicts with the right research and development the robot can capture 20% of the market within its first 5 years.

4. Make or Buy Matrix Item Business function: Outsource In house 1
(Buy from others)
In house
(Make by yourself) 1
Conduct market research, preliminary design X 2
Research and Development (R&D) 3
Product / process / service testing: alpha, beta 4
Licensing technology FROM others
N.A. 5
Fabricate components 6
Develop software 7
Assemble components (final assembly) 8
Test final assemblies, pack and ship 9
Distribute product / process /service to customer 10
Provide after-sales service (training, adjustment, repair, replacement, refund)
Joe
In order to meet all of the business goals some of the business functions will have to be outsourced. Unfortunately the cost of manufacturing in the United States is not appealing to start up company like Robovac, so most of the manufacturing will be done over seas. In turn the some of programming, the fabrication and after-sales services will have to be outsourced.

5. Assemble, Marketing Distribution
Outsource vs. Own
Own
Out Source
R&D
Licensing
Manufacture
Components
Assemble, Marketing Distribution
Customer Service
Joe
As seen in the previous slide most the research and almost all of the development will be done in house. The manufacturing however will be outsourced.
Repairs
Customer

6. What Business Am I In? Robotic cleaning solutions Cost effective
Quality
Highly functional
User friendly
Heavy-duty cleaning
All size rooms (up to 500 sq. ft.)
Juan
The overall business goal of the company is to create a cost effective robotic vacuum cleaner. Hence the business that RoboVac is in is a cost effective, quality, highly functional, user friendly, heavy duty, versatile machine. Cost effective because a lot of the robotic vacuum cleaner companies are starting to get outrageous with their prices. For example Electrolux charges over a $1000 dollars to do exactly the same thing a $500 robotic vacuum cleaner does. The quality of these vacuums cleaner seemed to be limited to a little over a year based on the customer reports. Most robotic vacuum cleaner companies charge a base price for the unit and then once the extras get to be added on the device because unaffordable for the customer; for example irobot charges over $60 dollars for a quick rapid charger. The Robovac will come equipped with all of the essential plus the desirable add-ons which the customers communicated. Most of all we would like to some heavy duty cleaning because none of the robotic vacuum cleaners clean well.

7. Primary and Secondary Customers
Customer Needs
Primary and Secondary Customers
New robotic vacuum cleaner users
Unhappy robotic vacuum cleaner users
Middle – class families ($25,000-$100,000)
1.7 million potential US customers (8% of market)
Total Market Share
Year 1 = 150,000
Year 2 = 180,000
Year 3 = 216,000
Year 4 = 259,200
Year 5 = 311,040
Juan
Unlike most if not all robotic vacuum cleaner companies aim to produce the most technologically advanced robot instead of meeting its customer needs. Market research was the first priority for RoboVac. Instead of spending millions of dollars on what the company thinks is best for the customer, customer surveys and online research was performed.
First a target customer was set. The customers the company would like to target are new robotic vacuum cleaner users and unhappy robotic vacuum cleaner users, middle class families, average size homes, and supply all of the United States and some parts of Europe. The total market share at the end of year one will be around 8-10% with a steady 20% growth every year.

8. Competitor Analysis Diego
Lentek RV01 IntelliVac - Priced at $70, the RV01 is probably most notable for its affordability. It features a sweeper attachment for hardwoods and has four built-in cleaning patterns (random, spiral, perimeter and "z") that it uses for each room. Lentek claims this ensures complete floor coverage. This model is only meant for hardwoods and low-pile carpet.
iRobot Discovery More expensive and more helpful than the Roomba Red ($150 MSRP), the 4210 model costs about $280 and comes standard with the self-charging base station that calls the robot home. It takes less than three hours to charge, has a larger dust bin than previous models and will clean a single area for as long as you want it to.
iRobot Roomba Scheduler - At $320, the Scheduler is iRobot's current top-end robotic vacuum, although everything that makes the Scheduler the Scheduler is available for purchase as add-ons for some of the other Roomba models. This model lets you set cleaning cycles in advance. You can tell it to clean for 40 minutes every Tuesday and 80 minutes every Saturday and adjust the schedule at will using the remote control.
Kärcher RC The RC3000 costs about $1,500 and features some pre tty cool capabilities. For one thing, not only does it find its way back to the charging station, but it also empties its own dust bin while it's there. It only takes about 15 minutes to fully charge, and a full charge gets you about 60 minutes of continuous cleaning. Once it recharges, it heads back out again to pick up its cleaning where it left off. The RC3000 also has a quiet mode.
Electrolux Trilobite EL520A - At $1,800, the Tribolite is at the top end of the robotic cleaning spectrum. It uses sonar to navigate and can easily avoid almost any type of obstacle. You can program it to clean at specific times and choose between three cleaning modes. The Tribolite creates a map of the room it's cleaning and calculates a cleaning path that will maximize coverage. It recognizes doorways by way of little magnetic strips that you apply, and it uses them to keep itself in the room you want it to clean. When it runs out of power, it returns itself to the charging station and resumes cleaning once it's rejuiced.

9. Patent Analysis Existing Patents Potential Patents
Autonomous Robotic Vacuum Cleaner
Method and system for robot localization and confinement
Area coverage with an autonomous robot
Potential Patents
Wireless Transmitter
Algorithm
Unidirectional Movement
Overall Rank of Intellectual Properties = Average
Ray
Autonomous Robotic Vacuum Cleaner - Shai Abramson, Shalom Levin, Ran Zaslavsky
2) Method and system for robot localization and confinement - Jones, Joseph L.; Mass, Philip R. 3) Area coverage with an autonomous robot - Peless, Ehud; Abramson, Shai; Friedman, Ronen; Peleg, Ilan;

10. Risk Analysis of Venture
Ray
New Product and existing market in year 0 is medium to high risk because this is the first product for this company, customer may question reputability. However, the market for semi-autonomous robotic vacuum cleaner have escalated consistently over the last 5 years. Because of the rate of escalation the product will be very low risk after 5 years.
-Conclusion: New Product and existing market in year 0 is medium to high risk because this is the first product for this company, customer may question reputability. However, the market for semi-autonomous robotic vacuum cleaner have escalated consistently over the last 5 years.

11. Finances – Summary FoMs
Finances - Summary of FoM
Values
MARR
15%
IRR
33.78%
NPV
$20,161,065
Payback in years
3.75 yrs
Diego
The minimum acceptable rate of return is the minimum return on a project a manager is willing to accept before starting a project, given its risk and the opportunity cost of foregoing other projects.
In order to get an accuarte MARR you must calculate for the present worth and at the end of 3.75 years the present worth should be 0.
Conclusion: Excellent

12. Venture Capitalist
Promise 8% return (more likely to be in the area of 15-20%)
Market has shown a growth of 20% every year
Financial Model predicts an IRR a little over 33%
Payback period is within reason
Risk vs. Reward
Ray
Robovac will promise major investors at least 8% return on their stock within the first three years. Robovac believes this can be done because of the market research completed. Also the financial models supports the estimated figure of merits. The risk vs. reward is very promising.

13. Lesson Learned
General understanding of the robotic vacuum cleaner market
Impact of engineering economics
Manageability
Design for manufacturability
Marketability
HOW TO SELL YOUR PRODUCT!!!!
Juan