Project Everest

Experiment Results

[Feb 19] Supply Chain Experiment Results - Fuel Fiji

Experiment Design Post: Supply Chain Experiment Design

Lean Phase: Channels

Assumption: That it is feasible to manufacture 10 Buka Dragons within the project month in Fiji

Results:

Red Light

Failed to meet or exceed our failure point.

A contract to supply 10 or more stoves per month was not achieved due to the price quoted far exceeding our failure point amount of $81 FJD. Therefore our other metrics could not be measured. It should be noted that the prototype picked up from Jack’s of Fiji did pass our Prototype Testing Procedure.

Validated Learning:

The results of this experiment contradicted the hypothesis in that it was infeasible to manufacture 10 or more Buka Dragon stoves within the project month.

This result was made clear from the interactions with multiple manufactures over the month in both Nadi and Suva. A list of these can be found in the spreadsheet, Potential Manufacturer Information. Detailed description of our interactions are listed on HubSpot

Jack’s of Fiji was our most promising potential manufacturer and was the only company to produce a prototype of the Buka Dragon during February. Despite this, the prototype delivery was delayed by a day and our Nadi team ended up bringing it up themselves. After successful testing of the prototype we received a quote that was excessively more than what was originally discussed due to a number of manufacturing costs (Mainly Material Cost). The manufacturing cost for the design made was,16 gauge - $322.00 VEP far in excess of the $60 target.  With greater volume and change of material from stainless steel to galvanized steel has the potential to be reduced to $120FJD.  Even though the quality was superb, our failure point was not surpassed by the other two metrics. A summary of the costs is included below:

24 Gauge - $216 VEP

22 Gauge - $237 VEP

18 Gauge - $248 VEP

16 Gauge - $322 VEP

The channel for supply chain of the Buka Dragon has not been validated.

Next Move:  

As established, the main obstacle to proving the assumption was the quotes for the Buka Dragon given to us by Jacks of Fiji, a manufacturer which was the only contact that was both well organised and delivered a very high quality prototype. Because of this, a decision was made to continue production of the Buka 4.0. This allows the team to continue with the test for an autonomous business model.  Whilst a good relationship with Jacks of Fiji should be upkept, it is now required to look into other possibilities.

Another option is available for altering the Buka design, in order to retain the efficiency of the Dragon, whilst reducing it’s cost.

One such future action is to repeat the experiment with overseas manufacturers, where costs such as labour are cheaper. If it is preferable to keep production in Fiji, then another cost cutting measurement is to expand on previous research done into importing stainless steel. However, it should be seen whether metal can be pre cut by Fijian or overseas suppliers as well, as based on discussions with manufacturers, this could significantly lower costs.

edited on 21st February 2019, 01:02 by Harry O'Donnell

Haziq Ahmed 8 months ago

One thing we can potentially look into is simplifying the design of the Buka Stove and focusing on a design that addresses/focuses on the UVP of the Buka Stove (portability, less fuel, safe to use) however it was always going to be difficult to manufacture Buka Dragon with the current materials since Fiji isnt inherently a steel manufacturing/producing country.

I still think the viable option is to look into getting steel sheets imported whether they are pre laser cut or in bulk from either India/China (would be interesting to see if any progress has been made on this since January?) but I do understand that in order to be financially viable we need to be ordering in the range of 200-300+ stoves and we are just not at that stage right now.

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Haziq Ahmed 7 months ago

Status label added: Experiment Results

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