e-Razor, Incorporated After four years as a new start-up, e-Razor has expanded i
ID: 414162 • Letter: E
Question
e-Razor, Incorporated
After four years as a new start-up, e-Razor has expanded its line of programmable razors to include both linear and rotary models, as well as women’s and teenagers’ versions. Programming is simply done by the user through icons that adjust the speed of the cutting head, adjust the distance from the skin (to avoid ingrown hairs or give the sexy look of a day’s growth), activate the trimmer, and so on. All the razors use the same electronics module to keep costs down. e-Razor is now planning their budget for next year, including their investment in razor re- search, development, and product improvement, as well as investments in their production process to improve quality and lower costs. Eight projects have been proposed for top management’s consideration, as follows:
A. Marketing would like to see the programmable functions extended to stay ahead of the competition, which might involve a new electronics module, the brain of the razor. Projected cost: $25,000.
B. Manufacturing believes a mixed-model flow line would reduce costs and improve quality at the same time. To a large extent, the same production equipment as currently used in their job shop process could be reconfigured for the line and only a few new items would be needed. Projected cost: $11,000.
C. Marketing would also like to see the programmable feature extended to other health/ beauty products, such as hair dryers, facial saunas, and such. Projected cost to investigate and report: $16,000.
D. Sales has received feedback from customers that an engineering modification to the razor head allowing the razor to be used in the shower would make it much more useful. The production process would need to be modified somewhat. Projected cost: $9000.
E. Engineering has been evaluating a new user interface that would allow many new functions to be easily added. Moreover, it is faster and easier for the user to program. The current production process can be used. Projected cost: $17,000.
F. A consultant in chemistry who has been investigating the properties of tiny strands of cut hair for the firm believes there may be a way to keep the shaving head clean without opening the head enclosure and emptying or rinsing the head—a distasteful task for most people. Such a change would substantially change the production process. Projected cost: $22,000.
G. Sales has had inquiries from customers about whether a cheap, limited-use version of the razor is available for business trips and vacations. A new production line would be required. Projected cost: $28,000.
H. Along the same line, customers have asked if a purely battery-driven (nonchargeable) razor is available. This would primarily involve a change in the type of battery being used; the production process would be only slightly affected. Projected cost: $8000.
I need a Justification for this case. ( 1 Page)
Explanation / Answer
Answer: E-Razor, Incorporated
After four years as a new start-up, e-Razor has expanded its line of programmable razors to include both linear and rotary models, as well as women’s and teenagers’ versions. All the razors use the same electronics module to keep costs down. E-Razor is now planning their budget for next year, including their investment in razor re-search, development, and product improvement, as well as investments in their production process to improve quality and lower costs. Eight projects have been proposed for top management’s consideration.
We need to work out the justification for E-Razor project.
The E-razor is the organization which is restarting its business as a new start up. The organization is planning to finalize the budget so that the listed eight projects of improvements can be implemented to achieve the desire improvements in the E-Razor organization in the research, development, product improvements and improvements in the production setup to improve quality by reducing waste and lower the cost.
The identified improvement projects are categorized in below categories
· Marketing Improvement Projects
· Sales Improvement Projects
· Engineering Improvement Project
· Production set up improvement Projects
Justifications for the E-Razor project are as below:-
· These identified improvement projects look to be reasonable for the organization point of view to advance the E-Razor organization in the market.
· Since the E-Razor organization is starting up in the new market, it will be essential and important for the organization to start in the market with best featured product and effective marketing approaches so that the product gets high survival probability in the market.
· This project improves the product features which will be helpful in pulling and attracting the consumers in the market.
· The engineering improvements will help to advance the product in its class. Thus this project will help to have the “best in class” product in the market.
· The production set up improvement project helps in optimizing the production processes, thus reducing the wastes, and improving the product quality which will improve E-Razor brand in the market.
· The sales related projects are essential as they are improving the customer pains and customer concerns over the product, thus it will help to imprve the customer promoters in the market for the product.
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