Product Development and Cost Management (Term Paper Sample)

ACC2CAD INDIVIDUAL ASSIGNMENT
Assignment Topic: Product Development and Cost Management
Student Name:
Student ID:
Date:
Word Count: 1000
Table of Contents TOC \o "1-3" \h \z \u Question One PAGEREF _Toc30397629 \h 3Question Two PAGEREF _Toc30397630 \h 4Question Three PAGEREF _Toc30397631 \h 5Question Four PAGEREF _Toc30397632 \h 7Question Five PAGEREF _Toc30397633 \h 7Question Six PAGEREF _Toc30397634 \h 8Question Seven PAGEREF _Toc30397635 \h 8Question Eight PAGEREF _Toc30397637 \h 9Question Nine PAGEREF _Toc30397638 \h 10References PAGEREF _Toc30397639 \h 11
Question One
Product Design, Description and Reason for selection.
Name and Image.
My product will be called Smoke & Fire Alarm detector and its image will be as seen below,
Reasons for selecting this product.
I have decided to produce and design this product because fire has always been a main in many places, starting from private homes, to work places, to schools and other public places. The demand for a proper system that can help detect smoke and fire early enough is on the rise to help mitigate these risks of fire. This is a demand that is not just local but worldwide demanded, (Shinde, et al, 2017). Producing a well functional system that will help in creating a proper alert to people especially in public places where fires are rampant, will help in making high sales turnovers that will in return bring good profits, (Kaplan, and Atkinson, 2015).
The main reason for deciding to produce this product is therefore to benefit from the high demand of such fire system and the huge chunk of funds that entities and government units that deal with disaster management put aside to deal with the fire menace. Hence, the product is assured of increased sales, whether local or international exports to other countries, (Hitomi, 2017).
Question Two
Research and development cost (R&D)
Developing one unit of our product will undertake the following product research and development process;
1 The first phase will be to utilize the basic internal and external factors analysis when deciding on the product. An average of 1.5 hours
2 The second phase will be screen the product idea and giving it a relevant name, an average of 0.5hrs.
3 The third phase will be test the concept by deciding on the colour and modeling it to perfect image design. Average of 1.5hrs
4 The next phase will be to technically develop assemble and test the product. An average of about 3hrs
5 The last phase will be to commercialize through review and perfect pricing. About 2hrs.
Therefore, the Total working hours 1.5 + 0.5 + 1 + 3 + 2 = 8 hours.
The costs will then be distributed as follows,
Smoke & Fire Alarm Development cost

Total Working Hours

8

cost per hour

$ 30

Total cost

$ 240

Question Three
Cost Estimation
Direct Material cost per unit
The following materials will be required to make one unit of the product. Prices have been collected from Amazon, (2020)
Material Type

Amount

LED Flashing light

$ 5

Horn

$ 15

Speaker

$ 10

Smoke detectors

$ 50

Batteries

$ 40

Connecting wires

$ 15

Guard

$ 20

Total