Flower Power Shower, Inc.

presents:

Business Plan

Clover Aguayo

Dave Dale

Vimal Mathew

Vineet Raichur

The Need for BlueValve™

• The Earth has 1338 million

cubic kilometers of water

• 97.5% of that is salty

• Of the 2.5% that is freshwater,

70% is frozen

• The 0.75% that remains is what

all living things depend on

The Need for BlueValve™

• Current water

requirement is 4,500

cubic kilometers

• This is projected to

reach 6,900 cubic

kilometers in 2030

• This is a 40% above

the current globally

accessible and

reliable water supply

600 800

3100

900

1500

4500

Municipal &Domestic

Industry Agriculture

Water Requirement

Present 2030

Personas

Vineet Careless Water User, Mom Would

Like to Reduce Water Bill

Clover Passionate Conservationist

Dave Property Manager

Vimal Lengthy Latherer,

Sensitive to Temperature

Slideblock Spring: k = 2.1 N/mm

Piston Spring: k = 1.8 N/mm

Pin Spring: k = 0.7 N/mm

Paraffin Wax Actuator

(full activation @ 95⁰ F)

Gate Valve Pin

Flow Release Lever

*Scale in mm 70

43

33

47

28

24

Video and Operation Mode

BlueValve™ Costed Bill of Materials

Includes: • Part Name (17 unique sub-components)

• Part Quantity

• Description

• Material

• Purchased or Manufactured

• Part Cost

• Operation Reference Number

Total Material Cost: $11.20

BlueValve™ Manufacturing Costs

Includes:

• Operation

• Machine Description

• Fixed and Variable Overhead ($/hour)

• Direct Labor ($/hour)

• Cycle Time (seconds)

• Operation Total Cost

Total Manufacturing Cost: $7.00

• Machine and Equipment Costs: $600,000

• Tooling/Dedicated Capital Costs: $70,000

• Launch Costs: $100,000

BlueValve™ Manufacturing Floor Plan

60 ft

60 ft

Die Casting

Press

(1)

Auto

Lathe

1

(3,4)

Auto

Lathe

2

(5,8)

Machine

Center

(2,6,7)

Final

Assem-

bly

(9)

Rubber

Coating

Dipping

(10)

Finishing,

Final Inspection

(11)

Production Capacity Calculations:

Takt Time for Complete Valve: 60 seconds

In 8 hour shift, assume 420 minutes of production available = 420 valves/day

Assume 260 working days/year (industry standard) ≈ 100,000 valves/yr per shift

BlueValve™ Cost Summary

Cost @ 100,000/yr (1 shift) A. MATERIAL COSTS $11.20

B. MANUFACTURING COSTS $6.98 Total Material and Manufacturing: $18.18

Investment Requirement $770,000

Cost @ 200,000/yr (2 shifts) A. MATERIAL COSTS Leverage Economy of Scale $10.20

B. MANUFACTURING COSTS $6.98

Total Material and Manufacturing: $17.18

Investment Requirement $0

Ladybug Sales since start up (~4 years):

300,000 = 0.62% (75,000/yr)

BlueValve™ target:

1,000,000 ≈ 2.00% (100,000/yr)

http://smart-future.org/2009/10/wave-3-dilemma/

Water Cost Saved Per User Per Year

Savings from

using BlueValve™

Choice Based Conjoint

Survey

Attribute Variables • Price

• Valve type

Responses - 30

Product Pricing

• Profit Maximizing Configuration (first year)

-Price = $ 36.25

-Valve = Push Button

-Market Share = 62%

-Profits = $ 800,000

• Chosen Price - $29

- Based on competitor pricing ($30)

BlueValve™ Product Cost Summary

A. MATERIAL COSTS $11.20

B. MANUFACTURING COSTS $6.98

Total Material and Manufacturing: $18.18

C. NON-MANUFACTURING COSTS Sales Comm, Distr, and Gen Admin (10%) $1.82

Other (5%) $0.91

Total Non-Manufacturing: $2.73

Total Product Cost (Mat'l, Mfg, Non-Mfg): $20.90

D. PROFIT $8.10 39%

TOTAL SELL PRICE: $29.00

BlueValve™ Financial Summary 5 Year Business Plan

Initial Investment: $770,000

NPV = $1,600,000

Internal Rate of Return on Investment (IRR) = 76.1%

Breakeven Period = 1.67 Years (20 months)

Product Gross Margin = 27.9%

-$800,000

-$300,000

$200,000

$700,000

$1,200,000

$1,700,000

1 2 3 4 5

Year

Profitability

Investment

Profit

Net Present Value

100,000 units produced/yr

200,000 units produced/yr

Thank you

What Questions Do You Have?