Group Assignment
GE Cooking Stove
Group 4
Suman Singh, Biao Su, Zhe Xu, Po-Han Shih
GE Cooking Stove
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Project Objective : To build a new cooking stove for General Electric
within 8 months with a budget of $10M, that has all the latest state of the
art features of a cooking stove, meets all the federal regulations of the
United States and is available to consume both the power sources – gas as
well as electricity.
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High-level Schedule Estimate:
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Initiation: July 4th week, 2013
Planning: Aug. 3rd week, 2013
Market Research: Oct. 1st week, 2013
Design: Dec. 1st week, 2014
Prototype: Jan. 4th week, 2014
Testing: Feb. 2nd week, 2014
Review: Feb. 3rd week, 2014
High-level Cost Estimate:
– $5.675M (Initiation – $25K, Planning - $75K, Market Research – $500K,
Design - $2M, Prototype - $2M, Testing - $500K, Review - $75K, Contingency – $500K)
2
GE Cooking Stove
• Business case: There exists an enormous untapped
opportunity to produce and supply cooking stove to General
Electric. General Electric can use its distribution networks,
brand image (of providing high quality goods) and skilled
marketing network to distribute the products.
• The following are the demand drivers of the business
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High Price of Gas
Ease of Use with both Gas & Electricity
Environment Friendly
Cost Effective through lower running cost and higher shelf life.
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GE Cooking Stove
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Our Unique Selling Proposition (USP)
– Innovative Technology
– Possible Usage of the Existing Supply Chain Management of GE.
– Expertise & Experience.
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Some notable features of the stove
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Dual Fuel source for cooktop and oven (Gas (Natural Gas, Propane) & Electricity)
Induction variant for Electric stove
Multiple Design features (Freestanding, Slide-in and Drop-in)
Multiple sizes to accommodate different kitchen sizes (30” with 6 burners & 24” with 4 burners)
Multiple cooking oven preferences (Conventional, convection and auto conversion feature)
Multiple cooktop surface (Ceramic and glass); Scratch proof surface with No drip raised to
prevent boil-overs.
Auto-shutoff feature to prevent fires
Touch Screen controls and metallic knobs
Multiple finishes – Steel, black, white and ability to change the surface with different shades
matching kitchen cabinets with self cleaning feature.
Back illumination for controls and Warming drawer
Programmable features accessible from iphone/android apps
EPA’s Energy Star Certified
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GE Cooking Stove
Advantage accruing to General Electric .
– Opportunity to establish its name in the Gas Stove Market.
– Huge market Size
– Leverage of its brand and Supply Chain Management
– Lower Cost and consequent Higher Margins
– Opportunity of Cross Selling.
The Business Case Presents a Win-Win Situation for all.
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GE Cooking Stove
• Priorities
Scope
Constrain
Enhance
Accept
Time
Cost
Element
Priority
Time
1
Cost
4
Scope
2
Quality
3
Explanation: The launch of the stove by March 2014 is the highest
priority to garner larger market share and pre-empt the advantage of
NewGen Stove launch by cookers corporation. The scope has been
defined in close coordination with market research team, but it can be
enhanced and cost can exceed a little, to meet the timelines.
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Responsibility Matrix
Deliverables
Design
Management
Production
Testing
QA
Delivery
Manufacturing
Approvals
5
1
2
2
3
Stove design
1
2
4
3
2
Stove
specifications
3
3
2
1
3
3
Final design
1
3
2
2
3
2
First product
3
4
1
2
3
4
Product
inspection
4
2
2
1
3
4
Product tests
4
3
2
1
3
5
Production
4
3
1
3
2
2
Customer
feedback
4
1
4
2
2
3
1 Responsible
2 Support
3 Consult
4 Notification
5 Approval
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GE Cooking Stove: Communications
Plan
Deliverable
Description
Delivery
Method
Frequency
Owner
Project
status report
Regular update on project
including status and issues
E-mail
Weekly
Project Manager
Quality audit
report
Regular update on project
quality performance
E-mail
Weekly
Quality Manager
Project
Dashboard
A concise display of current
status of the project and
various metrics
Sharepoint
Fortnightly
Project Manager
Task owner schedule
reminders
E-mail
Daily
Project Manager
Project Manager
Project Team
List of key milestones
Sharepoint
Weekly
Project Manager
Project Manager
Project Team
High Level Review Meeting
with key stakeholders
Meeting
Monthly
Project Manager
Project Manager
Project Sponsor
Reports
Presentations
Task
Project reminders
Announcements
Key Milestones
Steering
Committee
Reviews and Meeting
Meetings
Team Building
Team meeting
Meeting to review project
status
Meeting
Weekly
Project Manager
Team
Get-together
Regularly schedule team
get-together
Event
Quarterly
Project Sponsor
Audience
Project Manager
Project Sponsor
Project Team
Project Manager
Project Sponsor
Project Team
Quality Manager
Project Manager
Project Sponsor
Project Team
Project Manager
Project Sponsor
Project Team
Quality Manager
Project Manager
Project Sponsor
Project Team
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GE Cooking Stove
• Major Deliverables:
– Project plan
– Design Specifications
– Prototype
– Test plan
– Lessons Learnt & Project Closure
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GE Cooking Stove
• Limitations & Exclusions:
– Procurement of parts will be handled by Procurement
group
– Any advancement in the federal regulations and
standards will be handled in later releases of the
product
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GE cooking Stove
• Deliverables for Project
Phase
Milestone
Initiation
Project Charter
Planning
Project Plan
Design
Design Specifications
Execution
Prototype
Testing
Test Plan
Closure
• Review
• Lessons Learnt
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GE Cooking Stove
• High level Cost estimate for Project
Deliverable
Cost Estimate
Duration Estimate
Initiation
$25K
22 Days
Planning
$75K
15 Days
Market Research
$500K
31 Days
Design
$2M
43 Days
Prototype
$2M
40 Days
Testing
$500K
55 Days
Review
$75K
3 Days
Contingency
$500K
10 Days
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GE Cooking Stove
• Stakeholders
Stakeholder
Position
Project Sponsor
VP – Appliance Products
Project Manager
Project Manager
Project Team
Design Team, Engineering Team, QA Team, Production
Team
Suppliers/Vendors
Sears, Home Depot, JC Penny
Consumers/Users
Dealers, Consumers
Other Interested
Parties
Retailers, Suppliers, Competitors
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Risk Register
Risk Statement
%
PE
%
PI
Est. $
Amt.
of mp.
EMV
Exp.
Loss
Est.
Dur.
Sch.
Loss
Exp.
Sch.
Loss
Risk: The time allocated to fix the defects after testing may be insufficient.
Impact: The quality of product may be impacted causing loss of faith and
rework from $100K to $500K.
Risk: The estimates for development may be inaccurate by 1 to 3 weeks.
Impact: The product launch may be delayed from 1 to 3 weeks at a cost to
the company from $1M to $2M.
Risk: The procurement of parts may be delayed.
Impact: The product launch may be delayed from 1 to 3 weeks at a cost to
the company from $1M to $2M.
Risk: The testing may not complete as per schedule.
Impact: The project’s schedule may be delayed by 5 days at a cost to the
budget of $100K.
Risk: There may be compatibility issues between apps and stove.
Impact: The project’s schedule may be delayed by 1 to 2 weeks at a cost to
the budget from $100K to $200K.
.75
1
-$500K
-$375K
-15 d
-11.25 d
.6
.33
-$2M
-$396K
-15 d
-3 d
.25
.65
-$2M
-$325K
-15 d
-2.5 d
.3
1
-$100K
-$3000
-5 d
-1.5 d
.25
.5
-$200K
-$2500
-10 d
-1.25 d
Contingency Reserve for Budget: $500K; Contingency Reserve for Schedule: 25 days.
Legend:
PE = % Probability of the Risk (example 30%); PI = % Probability of the Impact (example 40%)
Estimated $ Amount of Impact = Estimate the cost of the impact should it occur; EMV / Expected Loss = Column (A)*(B)*(C)
Estimated Duration of the Schedule Loss = Estimate the number of weeks that the schedule will be delayed should the impact occur
Expected Schedule Loss = Column (A)*(B)*E
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GE Cooking Stove
• Success criteria: Launch of the cooking stove
prototype by Mar. 2014 with fewer than 5 major defects
and with in ±5% of budget allocated.
• Approver : VP- Appliance Products
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