Lamp Project 2009Lamp Project 2009Team 6Team 6

May 26, 2009May 26, 2009

Sabina MaSabina MaCarl RosenauCarl Rosenau

Lorelyn ShannonLorelyn ShannonBruce WilliamsBruce WilliamsDontay YoungDontay Young

Daud ZossDaud Zoss

AgendaAgendaDeciding on a Product

The Product

Business Value

Project Management

Personal Takeaways

Deciding on a ProductDeciding on a Product

Our Mission

Product Choices

Product Selection

Our MissionOur Mission

Develop a product delivered by science/engineering studentManaged by us

Student income of ~$200/month

Product makes use of science/engineering principles

Product ChoicesProduct Choices

Started with two conceptsStarted with two conceptsWeb-based shopping list with printable store Web-based shopping list with printable store

mapmapScience/engineering-based party service for Science/engineering-based party service for

kidskids

Broke into two teams, each researching Broke into two teams, each researching one ideaone ideaCreate simple prototypeCreate simple prototypeAnalyzed markets for eachAnalyzed markets for each

Web-based Shopping MapWeb-based Shopping Map

Concept was easy to prototype and expandConcept was easy to prototype and expand Figuring out target market was difficultFiguring out target market was difficult

Who pays for service (stores, consumer, coupons)?Who pays for service (stores, consumer, coupons)?

Difficult to determine profitability/student incomeDifficult to determine profitability/student income

Science/Engineering PartyScience/Engineering Party Product design more open-endedProduct design more open-ended Market research was more feasibleMarket research was more feasible

Half of team have kids near potential target market ageHalf of team have kids near potential target market age Easier to determine who pays (and who would want to Easier to determine who pays (and who would want to

pay)pay) Parent/kid value proposition easy to explainParent/kid value proposition easy to explain

Product SelectionProduct Selection

Engineering/Science party service Engineering/Science party service Target ages – 6 to 12Target ages – 6 to 12Number of participants – 6 to 14Number of participants – 6 to 14

The ProductThe Product

DescriptionRunning the Business

Market Test Feedback and ObservationsProduct Improvements and Market Expansion

Operational Improvements

Smartie PartySmartie Party™™

Educational entertainment party service for kidsEducational entertainment party service for kids

Children learn basic science and engineering Children learn basic science and engineering principles through interactive game challengesprinciples through interactive game challenges

Delivered and facilitated by energetic and Delivered and facilitated by energetic and friendly service repsfriendly service reps

No two parties are alike Client’s customize their service

Smartie PartySmartie Party™™ Challenges Challenges

Shake, Rattle, and BuildShake, Rattle, and Build™™Civil engineeringCivil engineering

Abe Lincoln’s Penny FloatersAbe Lincoln’s Penny Floaters™™BuoyancyBuoyancyWeight distributionWeight distribution

Running Smartie PartyRunning Smartie Party™™

Promotional Methods Internet website, Fliers, Brochures, ReferralsInternet website, Fliers, Brochures, Referrals

Product development Design all challengesDesign all challenges

ProductionProduction Material Purchase/KittingMaterial Purchase/Kitting

Sales managementSales management Consultation, appointments, etc.Consultation, appointments, etc.

Service delivery and hostingService delivery and hosting Human ResourcesHuman Resources

Recruitment and trainingRecruitment and training PayrollPayroll

Market Test Feedback and Market Test Feedback and ObservationsObservations

Customer FeedbackGood presentation of engineering conceptsKids enjoyed themselvesKids liked goodie bagsKids didn’t quite digest engineering principles

Team ObservationsSetup requirements not originally foreseenManaging kids' attention spans

Product Improvements Product Improvements and Market Expansionand Market Expansion

Enhance productEnhance product Include prizes, goodie bags (additional cost)Include prizes, goodie bags (additional cost) Add visual aidsAdd visual aids Design more challengesDesign more challenges Accommodate children with disabilitiesAccommodate children with disabilities Provide special challenges where kids can partner up Provide special challenges where kids can partner up

with parentswith parents

Expand target marketExpand target market Companies, organizationsCompanies, organizations Expand into other geographiesExpand into other geographies FranchisingFranchising

Operational ImprovementsOperational Improvements Online sales management system

Customize service online Book appointments online

Area customer service reps Saves cost on gas and travel time

Sales reps Interface with larger, more lucrative clients Earn commissions

Business ValueBusiness Value

Market Analysis

Market Research

Value Proposition

Financial Data

KidsKids

Upper-Mid or Higher IncomeUpper-Mid or Higher Income

San Diego North County (92127 Zipcode)San Diego North County (92127 Zipcode)

Country Country SquiresSquires

Kids & Cul Kids & Cul de sacsde sacs

Upward Upward BoundBound

Winner’s Winner’s CircleCircle

Market AnalysisMarket Analysis

Market ResearchMarket Research

Studied similar ventures found in online Studied similar ventures found in online searchessearches

Interviewed audience in target marketInterviewed audience in target market

Research at two children‘s birthday partiesResearch at two children‘s birthday parties

Developed high level service requirementsDeveloped high level service requirements

Educational, hands-on, creative entertainment

Safe

Hassle-free

Low cost

No two parties are alike

Smartie PartySmartie Party™™ Value Value PropositionProposition

Cumulative PaybackCumulative Payback

$150 is our sweet spot

1 Year ROI vs. Unit Cost1 Year ROI vs. Unit Cost

Recommended PricingRecommended PricingOur Price

Smartie PartySmartie Party™™ $150

Direct Competitors’ Prices

Mad ScienceMad Science™™ $195

Play Well Play Well TEKnologiesTEKnologies™™

$275

Indirect Competitors’ Prices

Color Me MineColor Me Mine™™ $280

Captain Cook’s Captain Cook’s Culinary Academy for KidsCulinary Academy for Kids™™

$390

Projected Operating Cash FlowProjected Operating Cash Flow

NPV Summary and AssumptionsNPV Summary and Assumptions

NPV Summary

Initial Outlay 5065

Operating Cash Flow

30262

Disbursement Proceeds

0

NPV 15197

 

IRR 51%

Year 1 ROI: 0.080

Assumptions

Sale Price 150 per unit

Bad Debt Expense Factor 1% of gross revenues

Purchases and Payments

Unit Cost 112.89 per unit

Rent 0 per month

General & Administrative 0 per month

Sales & Commission0% of total sales, paid month

following sale

General Assumptions

Capital Investment Required

5,065

Tax Rate 35%

Discount Rate 8%

Project ManagementProject Management

Actual vs. Planned Schedule

Actual vs. Planned Materials Cost

Project Challenges and Resolutions

High Level WBS

Planned vs. Actual SchedulePlanned vs. Actual Schedule

Milestone Target Deadline Actual Completion Date

Project Plan 4/14/09 4/14/09 Market Questions 4/14/09 4/17/09 Market Research 4/21/09 4/21/09 Requirements 4/21/09 4/21/09 Design/Game Development 4/28/09 4/30/09 Prototype 5/5/09 4/30/09 Test 5/12/09 5/8/09 Presentation Creation 5/19/09 5/19/09 Presentation Dry Run 5/19/09 5/19/09 Presentation 5/26/09 5/26/09

Detail Plan in MS ProjectDetail Plan in MS Project

Planned vs. Actual SchedulePlanned vs. Actual Schedule

Planned vs. Actual Materials CostPlanned vs. Actual Materials CostVendor Description Estimated Cost Actual Cost

Amazon Blocks 20.99 - Amazon Play-doh! Clay 12.44 -

Office DepotOffice Depot® Poster Boards, 22" x 28", White,

Pack Of 10 4.59 - Target White Rolling Die 1.00 - Home Depot Tape Measure 1.00 -

Office DepotOxford Color-Coded recycled Index Cards 4" X

6" Assorted Colors Pack of 100 1.99 - Michaels Craft sticks for bridge activity (1000 qty) - 4.34 Walmart Tin foil - 3.32 Walmart Timer/stopwatch - 4.97 Walmart Bins for water (2x6.50) - 13.00

Dollar StoreTrays to support building blocks

Bowls to hold blocks - 4.39 Kmart Jenga sets x 2 - 26.08 Home Depot Measuring Tape - 1.08 Party City Prizes/Goodie Bags - 26.23 World Market Prizes/Goodie Bags - 6.36 CVS Name tags - 2.16 Michaels Stickers (to ID groups) - 1.16

Pennies - 5.05 Tax (for itemized costs) - 1.86

Total 42.01 100.00

Project Challenges and ResolutionsProject Challenges and Resolutions

Interpersonal CommunicationInterpersonal Communication WikiSpace (challenge and benefit)WikiSpace (challenge and benefit) Product vs. ProcessProduct vs. Process Task ownershipTask ownership Class project assignment unclearClass project assignment unclear Balancing family, work, and LAMPBalancing family, work, and LAMP Market test logisticsMarket test logistics Inconvenient assignment due dates Inconvenient assignment due dates Keeping Bruce happy Keeping Bruce happy

Personal TakeawaysPersonal Takeaways

Lessons Learned

Leadership and Management Principles Applied

Topics of Interest

Lessons LearnedLessons Learned ““When asked to build a prototype, remind yourself that it is When asked to build a prototype, remind yourself that it is justjust a a

prototype.”prototype.” – Lorelyn – Lorelyn

““Sometimes it’s good to just let some things go and trust others to do a good Sometimes it’s good to just let some things go and trust others to do a good job.”job.” – Bruce – Bruce

““Encouragement and appreciation are a must to help foster a team Encouragement and appreciation are a must to help foster a team environment.”environment.” – Sabina – Sabina

““Assign roles and responsibilities up front to help streamline projects.”Assign roles and responsibilities up front to help streamline projects.” – – DontayDontay

““Patience is a virtue. Take the time to understand who you work with.”Patience is a virtue. Take the time to understand who you work with.” – – CarlCarl

““Nothing works like a demonstration.”Nothing works like a demonstration.” – Daud – Daud

Leadership and Management Leadership and Management Principles AppliedPrinciples Applied

New Product Development – New Product Development – IDEO Deep DiveIDEO Deep Dive

Financial SuccessFinancial SuccessProject ManagementProject ManagementDISC Management StylesDISC Management StylesPerformance ManagementPerformance ManagementMarket Positioning and TargetingMarket Positioning and TargetingEffective PresentationsEffective Presentations

Topics of InterestsTopics of Interests

For Continued and Future DevelopmentFor Continued and Future Development

Effective communication Effective communication Conflict ResolutionConflict ResolutionCoaching and MentoringCoaching and MentoringTeam and Cross Functional CollaborationTeam and Cross Functional CollaborationServant LeadershipServant LeadershipAgile and LEAN principlesAgile and LEAN principles

Video ClipVideo Clip

Questions?Questions?

www.lampproject2009.wikispaces.com

Backup SlidesBackup Slides

http://lampproject2009.wikispaces.com/

• Kept all of our project information and documents

• Alerted us all of changes

• Easily edited

LAMP Project WikiLAMP Project Wiki