Smartwave Pod Essay, Research Paper
1.0 Document History
This is a history of the document. The revisions will be described and the authors indicated.
1.1 Authors and Sections
Author Section Numbers
John Webb 4.X 2.0 2.1 2.2 6.X
Noah Everett 5.X 3.11 3.12 3.13
Shannon Campbell 1.X 3.4 3.5 3.7 3.8 3.9 3.10
Thomas Lann 3.0 3.1 3.2 3.3 3.6 2.3 2.4
1.2 Revision History
Number Date Description
Number Date Description
1.0 07 November 2001 Rough Draft
2.0 16 November 2001 First Draft
1.3 References
1. William P. Kopp ?Microwave Oven Radiations Hazards & Standards? http://www.lessemf.com/mw-stnds.html#FDA
(Current 1 Nov. 2001).
2. Andrei Khurshudov ?Compact Disk? http://www.usbyte.com/common/compact_disk.htm
(Current 1 Nov. 2001).
3. ?ECMA-119? http://www.ecma.ch/ecma1/STAND/ECMA-119.HTM (Current 1 Nov. 2001).
4. Nick Johnson ?Spatula Systems – Nick Johnson’s Barcode Specifications ? Spatula Systems? http://www.spatula.net/proc/barcode/upc.src
(Current 1 Nov. 2001).
5. ?EXCERPT FROM STANDARD OF SAFETY Microwave cooking appliances – Underwriters Laboratories Inc ANSI / UL 923?
http://www.ask.com/main/metaAnswer.asp?t=m&s=a&en=directhit&o=0&url=http%3A%2F%2Fask%2Edirecthit%2Ecom%2Ffcgi%2Dbin%2FRedirURL%2Efcg%3Furl%3Dhttp%3A%2F%2Fwww%2Egripi%2Ecom%2Fexcerpt%2Ehtml%26qry%3DWhat%2Bis%2BUL%2B923%26rnk%3D3%26cz%3Dac30f827e403c85b%26src%3DDH%5FAsk%5FSRCH%26u%3D2101618212&ac=-1&pt=EXCERPT+FROM+STANDARD+OF+SATEFY&io=2&qid=DA031792B06E7D4086BF71DC19EFED40&back=ask%3DWhat%2Bis%2BUL%2B923&ask=What+is+UL+923
(Current 1 Nov. 2001).
6. http://www.gallawa.com/microtech/how_work.html
7. http://www.gallawa.com/microtech/xformer.html
8. http://www.gallawa.com/microtech/magnetron.html
9. http://www.gallawa.com/microtech/mwave.html
10. H. W. Berkman and C. Gilson, Advertising: Concepts and Strategies, 2nd ed., New York, Random House, 1990, pp. 199-215.
11. SmartWave, Inc. Internal Document No. 2001.fin.10021, Financial and Business Plan for SmartWave, a UPC-Scanning Microwave Oven, June 2001.
2.0 Executive Summary
Presently, there are many microwave ovens available that cook food. However, it is often awkward and annoying to figure out the correct cook time and power for a microwavable product. We have researched a possible new product that could simplify microwave ovens. The SmartWave is an intelligent microwave oven that determines a product?s cook time and power by scanning the Universal Product Code from the package.
2.1 Market Objectives
The following paragraphs describe the target market, potential competition, and market capacity for the SmartWave product.
2.1.1 Target Market
Four target markets segments have been identified for the SmartWave: consumers, convenience stores, hotel/motel enterprises, and other institutional customers. Refer to section 0 for a definition of each of these market segments.
2.1.2 Competition
Because the SmartWave is a new product concept, current competition is limited to conventional (non UPC-scanning) microwave ovens. Future competition should be expected, however, as other competing manufacturers begin to produce UPC-scanning microwave ovens.
2.1.3 Summary of Market Research
Market research indicates that there are currently 46 million microwave ovens in use in the U.S. today, and that this number is growing by 1.1 million units per year. An additional annual sales volume of 15.4 million units is seen due to replacement of worn-out or outdated units, for a total annual market of 17 million units in 2000. Section 0 discusses goals for penetration of the SmartWave into these markets.
2.2 Financial Goals
Goals for sales, market pricing, and profits, both short- and long-term, for the SmartWave are described in the following paragraphs.
2.2.1 Market Goals
Research indicates that market response is unpredictable when introducing new technology into existing products. Initial market penetration can range from 1% to as high as 9%, depending on the market, the level of technology involved, and marketing strategies [10]. For the SmartWave, we are predicting an initial market penetration of 5%. This means that one out of every 20 microwaves sold will be a SmartWave. Using the 2000 sales figures as a conservative estimate for 2002-2003, this translates to annual sales of 850,000 units for the SmartWave in its first year.
2.2.2 Unit Price
For 2001, the average retail price of microwave ovens ranges from $69.00 to as high as $375.00 depending on size, wattage, and features. The SmartWave is a 600 watt, 1.2 cubic foot oven and would normally sell in the range of $79.00 to $109.00 retail. Because of its unique capability and corresponding advantages, the SmartWave is retail priced at $99.00, or about $5.00 higher than the average competing (non-UPC scanning) unit. The wholesale price for the SmartWave will range from $55.90 to $65.00 each, depending on the number of units purchased. Refer to section 0 for a detailed analysis of market pricing.
2.2.3 Potential Profit
Development costs for the SmartWave are expected to be $1.2 million over the 20-month development effort. Direct manufacturing costs are $24.00 per unit based on production runs of 100,000 units. Other ongoing costs such as general and administrative (G&A) and overhead costs are $19.5 million per year. This translates to a total cost per unit of $50.82, and resulting profit of $5.08 per unit or $4.3 million annually, calculated as follows:
The above figure assumes that all sales of SmartWave products by SmartWave, Inc. are wholesale sales with a unit price of $55.90 and that annual sales volume in the first full year of production is 850,000 units. Refer to section 4.0 for a detailed analysis of costs and profit.
2.2.4 Long-term Estimates
Long-term growth of profits for SmartWave, Inc. will be assured through the continuous development and introduction of innovative SmartWave products into the marketplace. Based on the business plan for SmartWave, Inc., a 20% annual earnings growth is being projected over the company?s first 5 years.
2.3 Product Requirements
2.3.1 The SmartWave will make microwave oven cooking much easier.
The SmartWave will automatically set the cook time and
power by scanning the Universal Product Code or barcode
from the microwavable products package. The UPC scanner
eye will read the UPC on the first try 98% of the time. The
SmartWave will also search its database for cook time and
cooking power based on the UPC in under one second. Like
all other good kitchen appliances, the SmartWave will be
very easy to clean. The owner of a SmartWave will only need
a cloth and regular dish soap to clean the unit. The
cheapest model will cost approximately $100.
2.3.2 Production Requirements
The SmartWave has a more advanced logic system than other microwave ovens. There will be a need to produce circuit boards with components that will need to be mounted by advanced soldering machinery.
2.3.3 Time Frame
The whole process of creation from the beginning of research and development to the end of production development will take approximately 20 months. Each product phase will last six months. However, some phases start while other phases are still proceeding.
2.4 Recommendations
I recommend that we immediately seek funding for the project and begin research. We should also begin organizing engineering, marketing and management teams.
3.0 Product Objective
The SmartWave will be able to scan a UPC from the package of microwavable foods. The SmartWave then searches its database for the cook-time and power that corresponds with the product. After finding the cooking information, the microwave oven prompts the user to open the door, place the food in the SmartWave and then press start. Because of the creation of new microwavable food products the SmartWave?s UPC database will be upgradeable by CD-ROM.
3. 1 Required Features
3.1.1 Design Constraints
The SmartWave must use an embedded processor with a storage device large enough to hold a database of universal product codes and support future upgrades. The economy unit must cost about $100 so that people with low budgets can afford one. The UPC scanner eye will read the UPC on the first try 98% of the time so that the SmartWave is convenient. The SmartWave must also be able to search for the cook time in less then 1 second. Otherwise, people will not like to use the SmartWave because it takes to long. The SmartWave will also heat food evenly so that it is warm all the way through. Outside edges must not be cold or frozen.
3.1.2 Physical Features
The SmartWave will have a UPC scanning eye (2?x2?) above the LCD display, a keypad to activate the UPC reader or to enter the cook time and cook power manually, and a CDROM below the keypad for database and operating system upgrades. The food will be visible during cooking through the viewing window.
3.1.3 Controls
The SmartWave has a keypad with buttons to enter time manually, to set the clock, to start the UPC scanner, to start the microwave oven, a button to stop the microwave oven, and a button to clear the cook time that has already been set. Like other microwave ovens the SmartWave will have an audible alarm to signal when the food is done.
3.1.4 Systems
The SmartWave consists of four different system modules.
3.1.4.1 The input output module is comprised of input output devices such as a keypad, a CDROM, a UPC scanning eye and a hard storage device. The keypad facilitates communication between the user and the SmartWave. The CDROM reads Universal Product Code database information and operating system upgrades from CDs. The hard storage device stores the operating system and the database of UPC. The UPC scanning eye reads universal product codes from the packages of microwavable foods.
3.1.4.2 The software module is comprised of the operating system and the Universal Product Code database. The operating system controls the microwave. The UPC database stores UPC information, cook time and power for every microwavable product.
3.1.4.3 The control module consists of the embedded processor system, the hard storage device interface, the CDROM interface and the microwave generation interface. The embedded processor system controls all of the other system components by communicating with their interface. The hard storage device interface controls the hard storage device and communicates with the processor. The CDROM interface is similar to the hard storage device except that it communicates commands from the processor to the CDROM. The microwave generation interface relays commands from the embedded processor system and controls the system that generates microwaves to cook the food.
3.1.4.4 The microwave generation module produces the microwaves that cook the food.
3.1.4.5 The shell module consists of the door, the door interlock mechanism, the outer case, the frame, and the microwave cavity where the food is cooked.
3.1.5 The SmartWave will have configurations that fit the language requirements for all necessary regions.
3.1.6 Due to the relatively small nature and specialization of the
operating system, it will be necessary to develop it in house.
3.2 Performance Goals
3.2.1 The SmartWave cooks food fully and consistently each time. The food that is cooked will not be cold in the center or on the edges.
3.2.2 The SmartWave will also be easy to use for almost anyone.
The user first presses the scan button and then swipes the
Universal Product Code in front of the UPC scanning eye. Next,
the door is opened, the food inserted and then the door is closed.
Finally, the user presses the start button to begin cooking the food.
3.2.3 The UPC database will also be easy to upgrade. The user only has to insert the upgrade CD into the CDROM. The smart-wave display will prompt the user with the message ?upgrade 1=yes and 2=no?. If the user wishes to upgrade he or she will select one for yes. If the CD is a valid upgrade CD the smart-wave will upgrade its database and then eject the CD.
3.2.4 The SmartWave?s system outputs include the user screen, the cooking subsystem, and the audible alarm. The user screen displays messages from the smart-wave such as cook time. The cooking subsystem outputs microwaves to cook the food inside the microwave oven.
The audible alarm signals the user with sound when the food is done.
3.2.5 Inputs of the SmartWave include the door release button, the keypad, the CDROM and the UPC scanning eye. The door release button is used to open the door to place a cooking product inside the SmartWave. The keypad is used to program the smart-wave with a cooking time and to activate the UPC reader. The CDROM is used to update the UPC database and the operating system. The UPC reader reads universal product codes so the SmartWave can identify the product.
3.3 Platform and Connectivity Requirements
An embedded processor will control the SmartWave. The
SmartWave will also upgrade its database regularly by means of a
CD-ROM.
3.4 Packaging Requirements
3.4.10 Boxes ? Cardboard
Cardboard boxes will be needed to ship the SmartWaves in.
3.4.20 Packing Foam
Some packing foam will be necessary to place inside the boxes to protect the SmartWaves from damage during shipping.
3.4.30 Packing Tape
Packing tape will be used to close the boxes prior to shipment.
3.4.40 Shipping Labels
The customer, retailer, or institutions address will be printed on shipping labels.
3.4.50 Wood Pallets
Bulk SmartWave shipments will be placed on wood pallets and wrapped in plastic.
3.4.60 Plastic Wrap
Plastic wrap will be used to secure the boxed SmartWaves to the wood pallets.
3.5 Standards Adherence
3.5.10 Microwave Ovens
The United States Food and Drug Administration have developed standards for microwave ovens which include the following:
3.5.10.10 Power Density Limits
There is a limit to the amount of microwaves that can be emitted from the SmartWave. It is described in the FDA standards [1]
3.5.10.20 Safety Interlocks
SmartWaves are required to have two safety locks that prevent someone from opening the SmartWave while the power is on.
3.5.10.30 Measurement and Test Conditions
There are standards for the equipment used to measure the emissions from the SmartWave that are described in the FDA Standards [1]. The test will be done with 275+- 15 milliliters of tap water initially at 20+- 5 degrees centigrade in a 600 milliliter beaker with an 8.5 centimeter inside diameter. [1].
3.5.10.40 User Instructions
The SmartWave will have instructions produced in all of the languages supported by the SmartWave. They will conform to the FDA standards for microwave oven instructions.
3.5.10.50 Service Instructions
Microwave oven manufacturers are required to provide service manuals upon request.
3.5.10.60 Warning Labels
Microwave Ovens are required to have warning labels attached to the inside that contain the Phrase, ?PRECAUTIONS FOR SAFE USE TO AVOID POSSIBLE EXPOSURE TO EXCESSIVE MICROWAVE ENERGY DO NOT Attempt to Operate This Oven With: (a) Object Caught in Door. (b) Door That Does Not Close Properly. (c) Damaged Door, Hinge, Latch, or Sealing Surface? [1]. The microwave oven is also required to have a label on the outside which warns owners to have it operated on by a professional repairperson.
3.5.20 CD-ROM
The ECMA Defines CD-ROM standards that include:
I. The attributes of the volume and the descriptors recorded on it [3].
II. The relationship among volumes of a volume set [3].
III. The placement of files [3].
IV. The attributes of the files [3].
V. Record structures intended for use in the input or output data streams of an application program when such data streams are required to be organized as sets of records [3].
VI. Three nested levels of medium interchange [3].
VII. Two nested levels of implementation
requirements for the processes which are provided within information processing systems, to enable information to be interchanged between different systems, utilizing recorded CDROM as the medium of interchange; for this purpose it specifies the functions to be provided within systems which are intended to originate or receive CDROM which conform to this Standard [3].
3.5.30 UPC Standards
There are standards involved for making the barcode that is used in the UPC tag.
3.6 Product Phases
3.6.1 Research
The research phase begins at zero months and ends at six months. Some of the things that will be researched are an implementation of the UPC reader, data storage device, cooking module and platform requirements necessary for control and input and output.
3.6.2 Development
The development phase begins at two months and ends at the 8 months. The control architecture, UPC reader, microwave generation module, data storage, and CDROM interface will be developed during this phase.
3.6.3 Design
The design phase begins at six months and ends at twelve months.
The design phase covers all modules of the SmartWave. The modules are the control module, the input output module, the microwave generation module, and the software module.