Final Assignment

Problem 16.2

Many consumer items today are designed in the United State and manufactured over-seas where labor costs are much lower. A middle range athletic shoe from a name brand manufacturer sells for $70 in the U.S. The shoe company buys the shoe from an off-shore supplier for $20 and sells to the retailer for $36. The profit margin for each unit in the chain is: supplier-9%, shoe company-17%, retailer-13%. Estimate major categories of cost breakdown for each unit of chain. Do this as a team problem and compare the results for the entire class.


Estimation of the major categories of cost breakdown for each unit in the chain:

Production labor                                 $2.75
Materials                                                 $9.00
Rent, equipment                                  $3.00
Supplier’s operating profit              $1.75
Duties                                                        $3.00
Shipping                                                   $0.50
Cost to shoe company          $20.00

Research and development                 $20.50
Promotion and advertising                  $4.00
Sales, distribution, admin.                   $5.00
Company’s operating profit                 $6.50
Cost to retailer                           $36.00

Retailer’s rent                                      $20.00
Personnel                                              $15.00
Other’s                                                    $15.00
Retailer’s operating profit             $20.00
Cost to consumer                        $70.00

Problem 16.4

A manufacturing of small hydraulic turbines has the annual cost data given here. Calculate the manufacturing cost and the selling price for a turbine.

Raw material and component costs                           $2150 000

Director labor                                                                         950 000

Direct expenses                                                                       60 000

Plant manager and staff                                                    180 000

Utilities for plant                                                                   70 000

Taxes and insurance                                                            50 000

Plant and equipment depreciation                               120 000

Warehouse expenses                                                          60 000

Office utilities                                                                         10 000

Engineering salaries (plant)                                             90 000

Engineering expenses (plant)                                          30 000

Administrative staff salaries                                           120 000

Sales staff, salaries and commissions                          100 000

Total annual sales : 60 units

Profit margin :15%


Fixed Cost Taxes and insurancePlant and equipment depreciation

Warehouse expenses

Office utilities

Engineering salaries (plant)

Engineering expenses (plant)

Administrative staff salaries (G & A Expenses)

Sales staff, salaries and commissions (G & A Expenses)

    $50 000.00120 000.00

60 000.00

10 000.00

90 000.00

30 000.00

120 000.00

100 000.00

Total $   580 000.00
Variable Cost Raw material and component costsDirector labor

Direct expenses

Plant manager and staff

Utilities for plant

$   2150 000.00950 000.00

60 000.00

180 000.00

70 000.00

Total $   3410 000.00 
Total Cost (Manufacturing Cost) Fixed cost + variable cost($580 000.00+ $3410 000.00) $  3990 000.00
Tax and Insurance Tax     $50 000.00
Production Cost Production cost/Quantity    $66 500.00
Cost per Unit (Cost per unit + estimated profit 15%     $76475.00
Selling Price per Unit (Total cost + Profit)=$  3990 000.00+$598 500    $4588500.00

2.2. Product Design Development

Taking a projector as the model product to be developed. This product will undergoes the product design development phases as to come out with a new innovation of a projector. More reliable, flexible and creative in design.

Here is a diagram that summed up the process of product design development.

Phase 0: Planning

The planning should be done before the approval of the product, discussion need to be done among team members to plan, it is usually done in two steps, 1st is a quick investigation and scoping of the project to determine the possible markets and wheters the product is in align with the corporate strategic plan.

Phase I: Concept Development

Here we will considered the differents ways the product and each subsystem can be design. The development team takes what is known about the potential customer collected info from Phase 0, adds its own knowledge and fashions this into a carefeul crafted product design specification. This will determined the needs and wants of the customer.

Phase II: System Level Design

Here, the functions of the product are examined, leading to the division of the product into various subsystems. The form and feature of the product will start to take shapes, for this reason it is called the embodiment design. Selection are made for materials and manufacturing processes. At this stage the marketing is more likely to have enough informations to set a price target for the projector designed.

Phase III: Detail Design

The projector design is then brought to the state of a complete engineering description of a tested and producible product. Missing information is added on the arrangement, form, deminsion, tolerances, surface properties, materials, and manufacturing of each part in the product. Here, that result to specification of our projector for each it special purpose part that is to be manufactured.

Phase IV: Testing and Refinement

The designed projector prototype is then tested, marketing peoplework on developing promotional materials for the product launch using the intended production system. By the end of this pahse a major review is carried out to determined whether the work has been done in quality way and whether the developed projector is consistent with the original intent.

Phase V: Production Ramp Up

After going through with all the phases, in final phase of Production ramp-up, manufacturing operation begin to make and assemble the product using the intended production system. Early products produced during this phase are supplied to selected customers and studied carefully to find any defects.

to summed up the whole flow of the work in producing this product:-

The Use of Old Newspaper

Old newspapers can take a lot of space. You can take them to the recycler or you can use them for many other purposes. After you read a newspaper they can be used for many useful things.

You can use a newspaper for building a fire in the fireplace or wood stove. A newspaper works great to catch the flames and make them spread.

When you have tomatoes that are not ripe enough for your taste you can wrap the tomatoes in old newspaper and let them sit at room temperature. Wrap the tomatoes individually for best results and let them sit until they are the desired ripeness. This is great if you can tomatoes and you need to make some of the tomatoes riper.

Newspaper can make great wrapping paper. A child’s present looks good wrapped up in a sheet of old comics make sure you put the child’s favorite comic strip at the top. A wedding shower gift can be wrapped up in a sheet of newspaper from the wedding announcement section especially if the special person’s announcement is in that section.

Newspapers can make drawer liners. You can line your drawers with old newspapers. Just cut the newspaper to fit the bottom of the drawer and place the newspaper in the bottom of the drawer.

Newspaper works great to wash windows. You can use a commercial window wash and use some crumpled newspaper as you would a towel when you are washing windows. Or you can use a mixture of vinegar and water to wash the windows with.

Newspaper is great to pack away precious items. It is especially helpful when you are moving. You can wrap all your dishes and glasses in newspaper and put them into boxes for moving to a new place.

Shoes can be dried with newspaper. Just take a piece of crumpled newspaper and put it into wet shoes. Let the newspaper sit in the shoes overnight to dry the shoes out as you sleep.

Newspaper will give a cool stuff if you love crafting with newspaper because it is so readily available, cheap, and completely biodegradable. Here are 10 inspiring projects made with newspaper from our site and around the web.


No need to buy special pots when you have newspapers in the house. Take a look at how easy it is to use newspaper and a bit of dirt to get started. Once you’re plants are ready to put in to the ground, you can pop the whole thing  newspaper pots included right into your garden bed.


Use newspaper to make a basket. If you are working in a newsroom, you probably have stacks of paper cluttering your workspace. A creative way to mask your mess? A newspaper basket! Basically, what you need to do is cut up an issue of  your local newspaper of choice  into strips and weave the pieces together, then glue some ribbon to the edges.


You can make coasters from newspaper.


Aren’t these party hats fantastic.


Make your own gift bags with newspaper. Everyone knows you can wrap a gift box with newspaper, but for those of you who want to go the extra mile, newspaper gift bags are an adorable and fun  little treat, especially when the gift is coming from a journalist. Said bags would be ideal for newsroom gift exchanges, the birthday of a journalist, or even as a desk decoration.


Make some swords for pretend play fun.


newspaper play structures.

The newspaper wrap and bow make an attractive gift wrapping that anyone would be pleased to receive.

Here are the video of newspaper recycling idea.

Concurrent Engineering

What is Concurrent Engineering?

Concurrent engineering is a work methodology based on the parallelization of tasks (i.e. performing tasks concurrently). It refers to an approach used in product development in which functions of design engineering, manufacturing engineering and other functions are integrated to reduce the elapsed time required to bring a new product to the market.


How to implement Concurrent Engineering into system?