This document provides a business plan for a company that produces a GPS-based speeding catch device installed in vehicles. The plan includes a vision to improve road safety, an analysis of the automotive electronics industry, identification of government and insurance customers, and description of the product and low-cost focused strategy. Key parts of the plan are processes for manufacturing the device and testing its functionality, as well as inventory, quality control, and data analysis systems to support the business operations.
This document provides a business plan for a company that produces a GPS-based speeding catch device installed in vehicles. The plan includes a vision to improve road safety, an analysis of the automotive electronics industry, identification of government and insurance customers, and description of the product and low-cost focused strategy. Key parts of the plan are processes for manufacturing the device and testing its functionality, as well as inventory, quality control, and data analysis systems to support the business operations.
This document provides a business plan for a company that produces a GPS-based speeding catch device installed in vehicles. The plan includes a vision to improve road safety, an analysis of the automotive electronics industry, identification of government and insurance customers, and description of the product and low-cost focused strategy. Key parts of the plan are processes for manufacturing the device and testing its functionality, as well as inventory, quality control, and data analysis systems to support the business operations.
Name Qi Zhou NetID qzho020 Group Number: 373 Website Link: http://infosys1102014fsgroup373.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Nicholl Friday 11am Time Spent on Assignment: 15 hours Word Count: 1343
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2 SPEEDING CATCH DEVICE INTRODUCTION Speeding is a common problem all over the world. The result of speeding can be fatal. It is a big cause for car accidents and many people die from it each year. The truth is that many people like to go over speed limit when driving. So we design and produce a device which is pre installed into cars to monitor the speed when people drive, as the car goes over a speed limit, the device is going to send the information to the police so that they will iusse the driver a speed ticket. 3. BUSINESS SECTION 3.1 Vision Provide affordable and effective solutions to stop speeding whenever and wherever and improve the on road safety in NZ. 3.2 Industry Analysis: Automotive Electronics Industry Industry: Automotive Electronics Industry. It is in the Automotive Electronics Industry which to produce and sell auto electronic devices, such as GPS, reversing sensor etc. Force: High/Low: Justification: Buyer power: High Industry is highly relied on Automotive industry, one of the major buyers are vehicle manufacturers such as Toyota. They are large, powerful enterprises that usually have their own plants (Wikipedia) for electronic parts production or they have subsidiaries or sub-contracted companies which produce electronic parts for
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3 them (Marklines). Many companies can produce and sell the automotive electronic devices. As the search result shows that there are more than 1,000 companies in NZ related to Auto Electronics products (Yellow page, 2014). Supplier power: Low Supply for this industy are computer software, network or satellite services, electronic parts and components. There are so many suppliers they can choose from not only in NZ but also in overseas. For example, there are more than 100 companies in NZ that provide computer software development services (Yellow page, 2014). Threat of new entrants: Low Although it is unlike the Automobile industry which is highly capital and labour intensive, there are still some requiements and standards the companies have to comply with. For example, to be a Tier1 supplier of those OEMS (SGS, 2014). And there is a complex automotive food chain: foundries, chip vendors, RTOS/tool companies, and apps developers included (Yoshida, 2014). So I would say the threat is relatively low. Threat of substitutes: Low There is not really anything substitute in-vehicle electronic devices. The increasing cusomer demands for functionality and personalisation of cars push the car manufacturers to consider digital compenents as more important (IBM, 2004, p.13).
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4 Rivalry among existing competitors: High There are so many NZ and international brands, such as Bosch, and Pioneer (Automotive News, 2013). So the rivalry is high. Overall attractiveness of the industry: The industry is not bad as the market is large and substitutes are little, although rivalry is high. 3.3 Customers and Thei r Needs My customers can be local government that want to change their residents diving behaviours and the isurance companies who want to study on their customers and evaluate risks (Tuttle, 2012 and Vedantam, 2012). 3.4 The Product and Service Our product is a GPS based speeding catch device which is installed into cars in order to capture information, monitor speed, and send information when eligible. By using this information, police can issue speed tickets effectively and isurance companies can rate their premium accordingly. The related government agencies can also use this information evaluate the trends and statistics about on road safety. 3.5 Suppliers and Partners My two suppliers are the companies who supply electronic parts, and network providers. E.g. Mongoose NZ (2014) who provides the GPS system, and Anything Electronic (2014) who produces parts and accessories in different sizes for different types of cars. My partners can be distributors and channels which deliver the product to the end users, the drivers. For example, if the government is going to require the installisation of the divice, then VTNZ and AA can be my partners as they can recommand our brand. Some car manufacturers who help on research and development of new technologies and innovations can be my partner as well. For example, Pioneer (2014) collaborates with Chevrolet and GMC.
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5 3.6 Strategy: Focused Low Cost I would use a Focused Low Cost strategy as this business is aiming to focus on speeding related products and provide designed and customised solutions to fit in different areas and different situations such as local speed limit, regulations and legislations and so on. Although the end user may be car drivers however the buyers may be local government or insurance companies. So it is good to be low cost to make sure that it can be widely accepted and installed. The overall strategy is therefore Focused Low Cost. 3.7 Value Chain Activity: Make the Product The most important value chain activity for this business is Make the Product. Make the product is essential for this business as our vision is to provide effective solutions to improve the on road safety in NZ in long run and our strategy is focused low cost. Hence it is required us to be flesible and customised according to different customer needs and changing environment. Besides, since it is a in car electronic it is our responsibility to make sure each device works accurately and is safe and reliable so that help our customers to meet their objectives. 3.8 Business Processes 3.8.1. PRODUCT MANUFACTURI NG PROCESS Because our vision is to provide effective solutions for stop of speeding, so make the product is our top one value chain activity, to achieve that, we need a well designed product manufacturing process to ensure we create the appropiate products for our customers.
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6 Start Manufacturing Received an order Check the inventory level of raw materials Is there enough inventory? Send an order requisition NO Make the product YES Has enough quantity made for the order? NO End of product making Warehouse Warehouse Inventory Ordering System Inventory Ordering System Send product for testing YES
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7 3.8.2. FUNCTIONALI TY TESTING PROCESS This process is after making the device, check the functionality of each device, make sure the device is working properly and accurately. It is one of the fundemantal testing steps for effective products. Start functionality testing Send device to test Connect device to vehicle simulator Set test values on simulator Is power on? YES Send back to Manufacturing department NO GPS working properly and speed calculated correctly? NO Send to warehouse ready for sell YES End of testing Quality Control System Quality Control System Quality Assurance Department
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8 3.9 Functionalities 3.9.1. PRODUCT MANUFACTURING PROCESS Identify what products needed to produce Produce the products 3.9.2. FUNCTIONALI TY TESTING PROCESS Check the functionality of devices Identify functionality faults 3.10 Systems
3.10. 1. INVENTORY ORDERING SYSTEM The inventory ordering system looks after inventory checking, order creation, and invoice processing and all the different processes. To have this system we are able to source cheap and quality parts, make sure our raw materials at a desired level, so that we can make required products to achieve and follow our vision. 3.10. 2. QUALI TY CONTROL SYSTEM The quality control system consist product functionality testing and other testing steps to assure the quality of the products meet our standards and customers requirements. In order to provide our customers effective solutions to solve speeding problem, and in long run to improve the on road safety, the products must be functioning and reliable. 3.10. 3. DATA ANALYSI S SYSTEM Data analysis system is also important for us, as we need to do product designs and a range of testings, those works require us to deal with a great quantity of data. The data analysis system transforms data to a more visible way so that we can gether useful information faster, which means reduce data latency and increase data analysis efficiency. This is essential for ongoing evaluating, correcting and improving our products so that they fit in the dynamic environment.
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9 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Make the Product 1. Product manufacturing process 1. Identify what products needed to produce.
2. Produce the products. Inventory ordering system
Transaction processing system
2. Functionality testing process 1. Check the functionality of devices.
2. Identify functionality faults. Quality control system
Data analysis system Decision support system
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10 CONCLUSION In conclude, our company will focus on speeding catch devices and ontiniously design and improve our products to meet our vision, which is to offer New Zealanders a better on road experience. By implimenting those systems such as inventoring ordering, product manufacturing and quality control, we are able to reduse the cost, increase productivity and improve satisfaction of our customers. We are confident that we are going to be sucessful on our focused low cost strategy and gain significant market share in the speeding control auto electronics field.
REFERENCES
Anything Electronic. (2011). About us. Retrieved May 24, 2014, from http://www.anythingelectronic.co.nz/aenz/index.php?main_page=page&id=16&zenid=0f6 38a7ed1799bd0ff2c4e3a5db5b4cc
Automotive News. (2013, June 17). Top suppliers. PWC. Retrieved from http://www.autonews.com/assets/PDF/CA89220617.PDF
IBM Business Consulting Services. (2004). Challenges for the automotive industry in an on demand environment. Seven areas of strategic action. New York, U.S.A: Author. Retrieved from from ftp://ftp.software.ibm.com/software/plm/de/challenges_automotive.pdf MarkLines. (n.d.). MarkLines Home/Top 500 suppliers/Company list. Retrieved May 24, 2014, from http://www.marklines.com/en/top500/ALL/ Mongoose NZ. (2014). Products/GPS vehicle trackers & M-TRAK webserver. Retrieved May 24, 2014, from http://www.mongoose.co.nz/ Pioneer Electronics. (2014). Corporate connections. Retrieved May 24, 2014, from http://www.pioneerelectronics.com/PUSA/Corporate+Connections SGS New Zealand. (2014). OEM requirements - Auto electronics. Retrieved from May 24, 2014, from http://www.sgs.co.nz/en/Automotive/Electrical- Components/Multimedia/OEM-Multimedia/OEM-Requirements-Auto-Electronics.aspx Tuttle, B. (2012, June 27). Want to stop drivers from speeding? Pay them. Time. Retrieved from http://business.time.com/2012/06/27/want-to-stop-drivers-from-speeding-pay- them/
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11 Vedantam, S. (2012, June 21). GPS study shows drivers will slow down, at a cost. National Public Radio. Retrieved from http://www.npr.org/2012/06/21/155454615/gps-study- shows-drivers-will-slow-down-at-a-cost Wikipedia. List of Toyota manufacturing facilities. (n.d.). Retrieved May 24, 2014, from http://en.wikipedia.org/wiki/List_of_Toyota_manufacturing_facilities Yellow Pages New Zealand. (2014). Auto electronics in New Zealand. Retrieved May 24, 2014, from http://yellow.co.nz/new-zealand/auto- electronics?what=Auto+Electronics&where=new-zealand Yellow Pages New Zealand. (2014). Computer software development in New Zealand. Retrieved May 24, 2014, from http://yellow.co.nz/new-zealand/computer-software- development Yoshida, J. (2014, May 20). Functional safety critical for autonomous cars. Freescale teams up with Neusoft and Green Hills. EE Times. Retrieved from http://www.eetimes.com/.
Operations Management in Automotive Industries: From Industrial Strategies to Production Resources Management, Through the Industrialization Process and Supply Chain to Pursue Value Creation