Product Selected: Coffee Maker (U.S. Market)

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**1. The function of the product**

A coffee maker is an electric countertop appliance that brews hot coffee from ground coffee beans and water.

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**2. The production process of this product from the raw material to the finished products**

**Raw Materials:**
– Plastic (for housing)
– Metal (for heating elements and other components)
– Glass or Stainless Steel (for carafe)
– Copper (for wiring)
– Rubber (for seals and gaskets)
– Electronic components (for control panel and circuitry)

**Steps in Production Process:**
1. **Material Sourcing:** Procuring plastic, metal, glass, copper, rubber, and electronic components from suppliers.
2. **Design & Engineering:** Designing the coffee maker using CAD software and engineering specifications.
3. **Injection Molding:** Forming plastic parts using injection molding machines.
4. **Metal Forming & Cutting:** Shaping and cutting metal components for heating elements and chassis.
5. **Glass Blowing or Stainless Steel Forming:** Creating the carafe using either glass blowing techniques or forming stainless steel.
6. **Assembly of Components:** Assembling the electronic components, wiring, heating elements, and other mechanical parts.
7. **Circuit Board Assembly:** Soldering electronic components onto circuit boards.
8. **Final Assembly:** Putting together all components into the final product.
9. **Quality Control:** Testing each unit to ensure functionality and safety.
10. **Packaging:** Packaging the final product for distribution.

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**3. The cost of the production of the product**

– **Raw Materials:** $25 (USD)
– **Machinery:** $10 (USD per unit, accounting for depreciation)
– **Labor Cost:** $15 (USD, including assembly line workers, engineers, and quality control staff)
– **Distribution Cost:** $5 (USD)

**Total Cost per Unit:** $55 (USD)

**Job Positions Needed:**
– Assembly Line Workers
– Engineers
– Quality Control Inspectors
– Procurement Specialists
– Packaging Staff

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**4. How long does it take for this product to be produced?**

Approximately 2 hours per unit from start to finish.

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**5. List three famous companies that manufacture this product**

– Keurig
– Cuisinart
– Mr. Coffee

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**6. Which countries produce this product usually?**

– United States
– China
– Mexico

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**7. You create a new design for this product**

**New Design: Eco-Friendly Smart Coffee Maker**

**Features:**
– **Material:** Biodegradable and recycled plastics for the housing, reducing environmental impact.
– **Smart Features:** Integrated Wi-Fi connectivity allowing users to control brewing settings via a mobile app.
– **Energy Efficient:** Advanced heating technology that reduces energy consumption by 20%.
– **Water Filtration System:** Built-in water filtration system for better tasting coffee and longer machine life.
– **Design:** Sleek, minimalist design with a touch-sensitive control panel.
– **Customizable Coffee Options:** Users can customize brew strength and temperature.
– **Easy Maintenance:** Removable parts that are dishwasher safe.
– **Sustainability:** Packaging made from recycled materials.

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**8. Why the customer or clients would like to buy the new design instead of the original one**

Customers would be attracted to the new design for several reasons:
– **Environmental Appeal:** The use of biodegradable and recycled materials aligns with the growing demand for sustainable products.
– **Smart Features:** The ability to control the coffee maker remotely adds convenience and fits into the modern smart home ecosystem.
– **Energy Efficiency:** Lower energy consumption appeals to environmentally conscious consumers and may reduce utility costs.
– **Enhanced Coffee Experience:** Customizable options and water filtration system enhance the quality and taste of coffee.
– **Aesthetic Appeal:** The sleek design and touch-sensitive controls offer a modern, premium look.

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**9. Total cost of the new design**

– **Raw Materials:** $30 (USD, due to the use of higher-quality, eco-friendly materials)
– **Machinery:** $12 (USD per unit, with additional machinery to support smart features)
– **Labor Cost:** $18 (USD, additional training for handling new materials and smart technology)
– **Distribution Cost:** $6 (USD, slightly higher due to larger packaging requirements)

**Total Cost per Unit:** $66 (USD)

**Production Process for New Design:**
1. **Material Sourcing:** Procuring eco-friendly plastic, metal, glass, copper, rubber, and advanced electronic components.
2. **Design & Engineering:** Redesigning using CAD software to integrate smart features and eco-friendly materials.
3. **Injection Molding:** Forming eco-friendly plastic parts.
4. **Metal Forming & Cutting:** Shaping and cutting metal components.
5. **Glass Blowing or Stainless Steel Forming:** Creating the carafe.
6. **Assembly of Components:** Assembling advanced electronic components, wiring, and heating elements.
7. **Circuit Board Assembly:** Soldering electronic components onto circuit boards, including smart technology.
8. **Final Assembly:** Constructing the coffee maker with all new components.
9. **Quality Control:** Thorough testing to ensure both functionality and smart features work as intended.
10. **Packaging:** Using sustainable materials for packaging.

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**10. Revenue forecast of the new design of the product compared with the original one**

**Original Design:**
– **Selling Price:** $99 (USD)
– **Profit Margin:** $44 (USD per unit)
– **Projected Annual Sales:** 100,000 units
– **Total Revenue:** $9.9 million (USD)
– **Total Profit:** $4.4 million (USD)

**New Design:**
– **Selling Price:** $149 (USD, reflecting advanced features and sustainability)
– **Profit Margin:** $83 (USD per unit)
– **Projected Annual Sales:** 75,000 units (slightly lower due to higher price, but offset by niche market appeal)
– **Total Revenue:** $11.175 million (USD)
– **Total Profit:** $6.225 million (USD)

The new design is forecasted to increase revenue by $1.275 million and profits by $1.825 million annually, despite a lower sales volume, due to the higher selling price and appeal to a specific market segment interested in smart and sustainable products.