Decisions for Quarter One and Quarterly Business Review

/

"Growing Your Business" - A Management Simulation

Developing Project

Project 02

Available Project

Project 01

Project 03

No report from competitors

Status Summary

Status: In Progress since Q4'20

Developing plan: - Q4'20: $45,000.00 - Q1'21: $35,000.00

SPEEDY READER We have found a way to increase the speed of the reader transport mechanism by 100%. This will make the reader 30% faster than it is now. The new system will also use forms printed on standard paper instead of the current heat sensitive paper (similar to that used by most of the old style Rapifax machines). Our Environmental Manager indicates that there is legislative activity to require the phase out of non-recylable office paper, including possibly heat sensitive types. Although this is speculative at this stage, conversion to the new units may position our products advantageously for the future. As you know, primary paper records are stored for three years at which time most hospitals microfilm these and throw out the originals.

I talked to some of our sales representatives and they agree that if we can do it, these features can increase our market share by 15%. (For example, if our market share is now 30% it will jump to 30*1.15=34.5%). However, it will have no effect on the total size of the market.

Given that the prior management team had invested $45,000 to get the new design ready, we need one more $35,000 investment this quarter to have the design ready to implement next quarter.

There will be some rework cost and waste disposal costs for each finished product in stock - about $15 per unit. The labor content of the product will also increase by about 10%.

 R&D

Contact Us (mailto:[email protected]) © 1991-2020, Tri Corporation. (http://www.tri-simulation.com/)

 Reginald Whimbush

Hisco    SWOT and STRATEGY  R&D Financial Statements  Supply Chain Mgt