Texas A&M University – Corpus Christi School of Engineering and Computing Sciences

Coast Bend Business Plan Competition

Vertical Axis Centrifuge

Team:

Derek Veuleman Samir Abusetta Michael Frazier Shumeng Wang ShehryarNiazi

Advisor: Dr. P.A. Simionescu

MEEN 4340.001 Project Management – Fall 2013 Professor: Dr. Ruby Mehrubeoglu

Date: December 2, 2013

Vertical Axis Casting Centrifuge: A Game-Changer for the Industrial Equipment Industry

The Market Idea

In the time since North and Hall succeeded in producing interchangeable parts in the early 18th century, much has been done in industry to make sure that the equipment that keeps businesses working is productive and reliable. However, as the industrial revolution burgeoned a new level of reliability, machinery began to last ever longer. The result is a large number of industrial machines that have long outlived their own obsolescence, product line, and in some cases, even the manufacturer itself. This leaves end-users in the precarious position of facing either astronomical redesign and replacement costs, or the logistical nightmare of reverse engineering an obsolete machine. Unfortunately, many who lack the knowledge or gumption to face the challenge of reverse engineering end up simply paying a company to handle the problem. In the process, a great deal of time and money are squandered on what is, ostensibly, an easy way out.

The Product Idea

The problem described above is a common side effect of the ever-aging infrastructure of our refineries, power plants, chemical manufacturing facilities, and city utilities. The proposed solution is a device which is capable of using a centrifugal casting process to make parts. Whereas many of the parts inside of any given machine are made by conventional machining methods, a few of the more complex parts require a process that is capable of more intricate details. With conventional casting, complex shapes can be achieved by using a shaped mold. In centrifugal casting, the same level of complexity can be achieved, but with fewer defects, significantly better material properties, and near-net shape. The combination of better quality and less waste mean that the profit potential for such a device is high. Whereas a conventional casting operation must use a large portion of its capital on overhead costs due to scrapped parts and extra labor, a small scale centrifugal casting outfit can produce small runs of complex, hard-to-make parts. By doing this, the business can afford to sell these parts at large margins while still undercutting the OEM's prices. The device in question will be capable of this level of quality, as well as being reliable and easy to use. Please refer to the appendix for cost and design data.

The Market Served

The idea here is to use the device to complement the services that industrial equipment manufacturers and equipment repair centers already provide to their customer base. These businesses will already have a great deal of the infrastructure in place needed to sustain a casting operation, such as machining and drafting capabilities, as well as safety procedures and zoned industrial facilities. Companies looking to expand the scope of what they're able to offer their customers will take great interest in the capabilities of this product.

The Customer Value

Value for the customer is created by the special nature of what this device is able to achieve. Purchasing spare parts from an OEM often results in inflated prices and long lead times. The reason for this is that many times, end-users have no one else to turn to. When a critical piece of equipment breaks down, sometimes the only party capable of producing a fix is the OEM. With the proposed product, the hope is that third party shops become empowered to contest the OEM's market share and ultimately provide the customer with higher quality products and faster turnarounds.

Revenue Generation

Revenue will initially be generated by limited retail sales to area businesses in order to study the market impact and gauge customer interest. Once these variables have been set, attempts will be made to license the idea to an existing manufacturer. Since an established manufacturer will already have many important relationships with clients, it would be wise to assimilate this product into their already existing market share, rather than try to carve out a niche independently. After these deals are set, revenue will be generated in the form of licensing fees collected from a participating corporation.

Economic Impact for the Coastal Bend

Impact for the Coastal Bend will be large. As a result of the fact that the Coastal Bend is beset on all sides by industrial businesses, such as refineries, chemical plants, equipment repair shops, etc., a product like the one described could potentially be a game-changer for businesses that haven't yet figured out how to procure higher profile work. Also, this product encourages competition between OEMs and aftermarket parts manufacturers. Whereas the OEM used to be the only place you could find particular parts for your machine, now, many facilities will be capable of this type of manufacturing. The resulting competition results in a buyer's market, which creates added value for the customer. Hopefully, this competition will raise local standards regarding manufacturing ability and quality, as well as create jobs for residents by giving locals businesses a new venture to look into.

APPENDIX

Figure 1: Design of Vertical axis centrifuge

Figure 2: A flowchart describing the basic function of the vertical axis centrifuge

Table 1: A basic parts list and budget

Figure 4: A qualitative risk analysis table called risk matrix