NAVIGATOR WATCH

The
NAVIGATOR WATCH will be boon to those who wants to live life on the edge. It will specifically
complement those who are in adventure and travelling. The specification on which the watch
is designed is as follows:

The LCD display- The age of liquid crystal display has given tremendous opportunity to
manipulate a lot of information that can be displayed at a time. It will enable us to display real-
time display of – Temperature, Altitude, Pressure, GPS data with latitude and longitude of a
particular place. It is water resistant having a synthetic coating.

The Strap of the watch will give it the complete design and will make it look fashionable and
sporty.
On-Board electronic sensors will display the time, altitude, temperature, GPS information,
Pressure at a go. This will be an indispensible gadget for military usages also. GPS device will
be customizable as there will be service providers who will be dealing with the GPS
information upload in the watch.
 WATCH SPECIFICATION
Mass 76 g
Casing Composite
Color options Black + Silver
Battery type Li-Ion

BATTERY
Display type LED
Alarm/clock Yes
Timer Yes
EXTRAS
Altitude alarm Yes

Altimeter/barometer lock Yes

Infra temp controller Yes
Chronograph, stopwatch Yes
Built-in compass Yes
GPS chipset Built-in
GPS resolution 1 meter
GPS-based recording functions Distance, 50 routes, Speed, 25 Tracks, 500 Waypoints
Backlight Yes
NEW PRODUCT DEVELOPMENT
IDEA GENERATION- CREATING OUT OF BOX PRODUCTS

SCREENING

PRELIMINARY DESIGN

EVALUATION & FINAL DESIGN

PROTOTYPE

MARKET TESTING & RAMP UP

 USE OF THE WATCH
The growing enthusiasm of adventure sports has left open a wide area
of sport gadgets that help to engage the enthusiasts more frequently
into challenges. To help them carry on with the sport frequent data
updation regarding the environmental changes is important.
We have found that this watch can also fulfill the needs of military
covert operations that can lead to better operations during night and
jungle warfare.
This watch can find wide application in :
AIR PRESSURE Mountain tracking
WATER PRESSURE Scuba Diving and deep-sea diving

TEMPERATURE Mountain tracking

ALTITUDE Mountain tracking
ON BOARD GLOBAL POSITIONING SYSTEM Globe trotting, Jungle expedition
 MARKET SEGMENTATION

Low cost $50 - $299

Medium cost- $300-$999)
High cost $1000 and above

We are planning to target low and medium cost segment

THE PROJECT
 LOCATION
The location for the plant should be adjacent to the sea port or air-port , so that
logistics cost will be minimized to a great extent. The logistics includes- raw material
purchase, carriage inwards to the factory, warehousing, delivery of finished goods.

We have selected 3 locations for the plant setup- Kolkata, Mumbai, vizag.

LOCATION INVESTMENT FIXED COST VARIABLE COST

(In crore Rs.) (In crore Rs.) (in Rs.)

Kolkata 100 5 3 lakhs

Mumbai 150 6 6 lakhs
Vizag 120 5.5 5 lakhs
 The main factors leading to proper selection of location are :
1.Availability of skills and labour
2.Site cost, amenities available
3.Regional regulations
4.Political, cultural and economic situation

The methodologies that can be implemented for appropriate location

decisions are:
1.Cost-profit-volume
2.Point rating method
3.The transportation method of linear programming
4.Center of gravity method

Here we use the Break-even-point method because it is a start up firm.

 BREAK EVEN POINT
The Break-Even Point (BEP) is the point at which cost or expenses and revenue are
equal: there is no net loss or gain, and one has "broken even. The break-even point
is a special case of target income sales, where target income is 0 (breaking even).

Selling price of each watch – Rs. 8000

Interest on investment - 12%

Solution: Let NA be the number of BREAK EVEN units.

PARTICULARS KOLKATA MUMBAI VIZAG

SELLING PRICE NA* 8500 NA * 8500 NA * 8500

Less : VARIABLE COST NA* 3000000 NA * 6000000 NA * 5000000

CONTRIBUTION(per unit) NA* 1500 NA * 1450 NA * 1550

FIXED COST 100 crore 150 crore 120 crore

 For KOLKATA :-

NA* 8500 = 12% of 5 crore + 3000000

Therefore NA = 1052 units

For MUMBAI :-

NA* 8500 = 12% of 6 crore + 6000000

Therefore NA = 1552 units

For VIZAG :-

NA* 8500 = 12% of 5.5 crore + 5000000

Therefore NA = 1364 units
 Purchasing department
As most of the electronic enhancement is outsourced to be assembled in the watch, hence,
development of proper purchase plans from vendors and on time supply of materials is essential.
The objectives of purchasing department are:-

1. To ensure availability of proper quantities of raw materials

for smoothing function of production
department.
2. To procure materials at reasonably low cost
3. To ensure supply of quality materials.
4. Proper value analysis for the electronic components.

We have selected a number of vendors for the purchase purpose and

have shortlisted the following vendors on the following criteria’s and also
the list vendors to supply digital component
COMPONENT VENDOR
Digital altimeter Sunroad technology
ltd. (China)
a. To deliver on time as per order Digital barometer Chihuahua Clock
b. To deliver as per quality specification &Watch Co., Ltd
c. To supply material at as low a price as possible GPS tracking device Shenzhen V-sun
d. Capability to meet emergency orders Electronics Co. Ltd
Infra red temperature Innomax
detector systems(Taiwan)
 PRODUCTION PLANNING
Working Hours 9:00 AM to 6:00 PM ( 10 hrs)

THE process flow of production of the Navigator Watch

A B C

D E F G H I J K
 Work Description Immediate Time (hour)
Element Predecessor
A Distribution of Raw Material None 6
B Body Molding A 1
C Strap fitting B 1
D Painting of body A 1
E Fitting in Time D 0.5
synchronization module
F Fitting GPS module E 1
G Fitting electronic Altimeter F 2
H Fitting infrared temp. device G 1.5
I Install of Digital Barometer H 2
J Connecting all components I 3
to LCD display
K Quality check and display J,I,H,G,F,E 4
check
 MANUFACTURING CAPACITY PLANNING
1. Mapping the demand projection of all the styles to
the available production capacity CAPACITY PLANNING-BASIS
2. As some of the components are bought from
vendors, the company will maintain what it calls its
'supplier network planning' (SNP). Through a portal for
its vendors, orders can be placed keeping lead-times in CONTINUO
mind. Vendors will upload information daily on this US FLOW
portal, helping the company keep track of the TYPE
production in real time. MA SS
3. He demand for each watch variant will be matched PRODUCT
with the capacity within each of the company's ION TYPE
manufacturing shops, as well as those of its vendors. In
case the two do not fit advantageously, the forecast will
BATCH
get modified till a concrete production plan emerges.
TYPE
4. Reduce the idle time of machines and doing parallel
projects in the machine that will reduce the idle time
JOB-SHOP
and more utilization of capacity.

OUTPU T/PRODU CT VARIETY

In case of the DATA WATCH as the operations volume is relatively high and the output variety is relatively low, continuous flow
type of production can be employed.
 DOVETAILING OF PLANS
PLAN III

PLAN
II

TIME

Dovetailing of plans is thus necessary for attaining operational efficiency. From the table, it is evident that plan III is most
economical. However the production plan has to be in sync with the market forecasts. It is to be noted that if delay in
delivery is a very important factor and might result in loss of business then the company has to follow Plan I. This is where the
trade-off lies.
 AGGREGATE PLANNING
Production planning in intermediate range less than a year for the company is as follows:

Optimal combination of production rate

example: no of watchnavigators produced per unit of time

Work force level

example: workforce needed for the strap manufacturing facility or for assembling and packaging

Inventory in hand
example: no of electronics that the watch needs
Relevant costs in aggregate planning
 
Basic production costs
fixed costs
variable costs
direct and indirect labour costs

Cost associated with change in production rate

hiring and laying off, working in single or multiple shifts
training cost
over time and under time cost
inventory holding cost
back-ordering costs

Aggregate Planning is very vital for a company. It defines a company’s production rates, workforce levels
and inventory position with respect to market demand and available capacity. It balances the market
demand and the production rate of the organization.
 
 FACILITY LAYOUT

The facility layout designed for the watch manufacturing plant has
been done to keep in mind the best utilization of space and
resources. As it is watch manufacturing so, we have decided to give
it a Product-layout design. Because in product –layout machines are
arranged according to the progressive steps by which a product is
made.

The advantages derived from it are:

1. it will reduce our cost of materials handling
2. it requires less floor space per unit of production
3. It helps to avoid better production control and production
bottlenecks can be avoided
Layout of Plant
QUALITY CONTROL
ZERO DEFECTS PROGRAMME
The principles of the methodology are four-fold :
Every product or service has a requirement : a description of what
the customer needs. When a particular product meets that
requirement, it has achieved quality, provided that the
Quality is conformance to requirements requirement accurately describes what the enterprise and the
customer actually need.

Defect prevention is preferable to The second principle is based on the observation that it is
nearly always less troublesome, more certain and less
quality inspection and correction expensive to prevent defects than to discover and correct
them.

Zero Defects is the quality standard The third is based on the normative nature of
requirements: if a requirement expresses what is
genuinely needed, then any unit that does not meet
requirements will not satisfy the need and is no good.

.Quality is measured in monetary Phil Crosby believes that every defect represents a cost,
which is often hidden. These costs include inspection
terms – the Price of time, rework, wasted material and labor, lost revenue
and the cost of customer dissatisfaction. When properly
Nonconformance (PONC) identified and accounted for, the magnitude of these
costs can be made apparent, which has three advantages:
1.cost-justification
2.measure progress
3.Decisions analysis
 OPERATION CONTROL
Here we have two parts firstly the proposed design and secondly the
acceptable design which will be approved after undergoing all the steps
The proposed design:
The first step would include estimating the manufacturing
cost. this includes estimating the cost of all the components
for the original product as well as the equipments needed
to produce it(include prices)

The manufacturing cost can be segregated into three parts

a) Reduce cost of components-the aim of the manufacturer

should be to produce a quality product at a minimum cost

b) Reduce cost of assembly- the assembling of the product

includes attaching the groove –in strap and the dial

Standard product design is to be done in watch manufacturing

For the watch to be manufactured we wil use:- Product focused system
Standard product design
Product to stock policy
 START

RAW MATERIAL SORTING FOR MANUFACTURING PROCESS

ARRANGING MAKING THE WATCH CASING AND

THE PAINTING THE BODY OF THE WATCH
ELECTRONIC
COMPONENTS

CHECKING THE
COMPONENTS FOR
QUALITY
SPECIFICATION
ASSEMBLING THE COMPONENTS IN THE WATCH
AND FIXING THE COMPONENTS TO THE LCD
IF “NO”
DISPLAY PANEL

MARKETING AND
PACKAGING AND QUALITY CHECK AND QUALITY ASSUARANCE
SHIPPING THE
WATCHES AS PER LABELLING THE WATCHES
ORDER