projecteverest

Proposed Experiment

[Proposed Experiment] Exploring options for importing precut sheet metal for local assembly of Buka 5.0/5.1

Lean Phase: Channels

 

Assumption: That it is feasible to source the Buka 5.1’s by importing the metal pre-cut and assembling them in Fiji.

  1. That the total cost of materials and manufacturing will be below $40FJD per stove.

  2. That it is possible to source sufficient materials from an imported source to manufacture over 200 stoves per month in Fiji.

  3. That local manufacturers have the capacity to manufacture over 200 stoves a month.

 

Time Box: 3 weeks

 

Key Metrics:

  1. Cost of materials and manufacturing per stove (including shipping costs)

  2. Amount of stoves that can be manufactured

  3. Reliability of manufacturing

 

Success Criteria:

Green Light:

  • Solidify this supply chain by organizing the necessary logistics to make sure that this can run outside of project months

Success Point:

  • The total cost of production of the stove using this method is below $40FJD

  • We are able to manufacture over 200 stoves per month using this method

 

Orange Light Point 1

The total cost of production of the stove using this method is below $40FJD

  • We are able to manufacture between 100-200 stoves per month using this method

Orange Light optimize: Find alternate suppliers that can be use to supplement the use of this supply chain as the business scales to manufacture more stoves.

 

Orange Light Point 2

  • The total cost of production of the stove using this method is below $40FJD

  • This price point can only be met if we order more stoves than what we can currently sell

Orange Light Optimize:

  • Continue to expand the distribution channels of the Bukka stove using the Bukka 4.0 until we are able to meet the required amount of sales per month to locally manufacture the Bukka 5.0 at less than $40FJD from imported materials.

  • Once that point is reached, solidify and establish this supply chain.

 

Red Light Point

  • It is not possible to manufacture the stove for less than $40 FJD using this supply chain

  • It is not possible to manufacture more than 100 stoves per month using this supply chain.

Red Light Failure:

  1. Determine whether the following supply chains are feasible:

    1. Local manufacturing of the Buka stove from local materials

    2. Importing raw materials and manufacturing them locally

 Experiment build:

 

  • Obtain quotes for labour(assembly) from manufacturers (expected to be less than before as construction is simplified)
  • Obtain cost for importing materials (eg. Alibaba), and if check scale is viable.
  • Ensure these prices meet key metrics
  • Contact ministry of economy about import requirements and restrictions
  • Order a test run of a pre cut stove if possible, and arrange for assembly
  • Work with Value prop team to evaluate a prototype from the manufacturer chosen: Portability, Test cooking time with rice, Weight bearing capacity (within reason, don’t test to the limit)
  • Obtain price and timeframe from manufacturer for producing 30, 100, and 200 stoves (with materials provided)

 

edited on 3rd January 2019, 20:01 by Tariq Uddin

Jess Riley 1 month ago

Status label added: Proposed Experiment

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