Flow Stopper Presentation

Green SolutionsReducing Water Consumptionin the In-Home Faucet Market

Jeremy BlanchardIoli Stathi-DedakiOM880: Product Innovation Project

Product Planning: Opportunity Identification

Current trend towards Green Building: 30% Growth Annually

“Eco-Movement”: Plumbing Trend for Water Conservation

Increasing Size of the Lifestyles of Health and Sustainability

Green Building Market: Over $50B

Consumer Involvement in Plumbing Fixtures has shot up to over 75%

Ease in interaction with end users during NPD process

- Current Trends in Lifestyle and Demographics

How important is water conservation to you?


- Interview Lead Users

68%

Do you currently have water conservation products or processes in place in your home?



How likely would you be to change from your current faucet to a water conserving faucet?



52%

How likely would you be to spend more for a water conserving faucet over a standard faucet?



70%

Electric Faucet

Low Flow Dual-Setting Faucet

Cold Water Dispenser Faucet

Color-Code Faucet

Foot Pedal Faucet


- Competition

Product Description Water faucet for home kitchen use which will conserve water by shutting off the flow via a independent valve, leaving the pressure and temperature settings in place

Benefit Proposition Water savings Ease of use - Convenience Appearance Safety

Key Business Goals Expand the sustainability trend to home appliances

Create a new market of "green" faucets Gradually replace the conventional faucets

Primary Market Home Owners (new homes and renovations) Environmental friendly

Secondary Markets Contractors Land Lords (rental properties)

Assumptions & Constraints

Price

Consumer willingness to pay more for "green" appliance

Stakeholders Purchasers and Users Retailers Production Service Distributors and Resellers

Product Planning: Mission Statement- Develop a water saving faucet for home use

Identifying Customer Needs

Identify Customer

Needs

Mission Statement Establish

Target Specifications

Generate Product

Specifications

Select Product Concept

Test Product Concepts

Set Final Specifications

Plan Downstream Development

Online Survey

In-person Interviews

Ethnography

- Gathering Raw Data

Identifying Customer Needs

Identify Customer

Needs



Generate Product

Specifications





- Ethnography

Identifying Customer Needs- Interpret Raw Data

Customer Statement Interpreted NeedMy faucet looks great since it matches the overall style of my kitchen The faucet looks stylish/modern

My faucets just does not look good. The faucet has an attractive designWe changed our faucet recently and we got one with stainless steal The faucet is shiny

My faucet is hard to clean and remove water stains The faucet is easy to clean

It gathers fingerprints The faucet is stainlessMy faucet is old and has two handles (hot-cold) The faucet has a single handle

I have a faucet that has a small arc, which makes it hard for me to wash my pots and trays

The faucet has an arc that allows to fit pots underneath

I wish I could turn easily the water on/off when I am washing the dishes The faucet has "no hands" tap

I think faucets should last for many many years The faucet has a long life span

I have the same faucet for the last many years

The faucet does not need to be replaced often

My faucet keeps breaking down and I need to call the plumber

The faucet does not require technical support

• Good water pressure • Extendable/Detachable Head • Flexible

• Single handle • Pull-out hose from spout end

• Hot water side tap thingy

• Changeability of water flow

• Arcs high to fit pots underneath • Custom water spray

• Water conserving • Quick and accurate temperature adjustments

• Stainless

• No leaks • Easy to clean • Cheap

• Water purifying • Shiny • Ease of use/"No hands" tap

• Stylish/Modern • Hot water on demand • Oversized/Reach both sinks

• Attractive design/Pretty

• Long lasting/long life span

Identifying Customer Needs- Suggested Improvements

Identify Customer

Needs



Generate Product

Specifications





Identify Customer

Needs



Generate Product

Specifications





Identifying Customer Needs- Hierarchical List

No. Need Imp.1 The faucet can reach two sinks 12 The faucet has an attractive design 53 The faucet looks stylish/modern 34 The faucet supports water conservation 55 The faucet allows easy choice of temperature 56 The faucet is easy to clean 27 The faucet has "no hands" tap 5

8 The faucet has an arc that allows to fit pots underneath 3

9 The faucet has a single handle 210 The faucet is flexible / has on demand choices 411 The faucet has good water pressure 312 The faucet is lasts for long 413 The faucet allows changeability of water flow 114 The faucet is cheap 215 The faucet provides clean water 2

Identify Customer

Needs



Generate Product

Specifications





- List of Metrics

Product Specifications

Metric No.

Need Nos. Metric

Imp. Units

1 1 Neck swivel 1 deg.2 2,3 Modern Lines 4 Subj.3 4 Water flow 5 gal/min4 4 Pause functionality 5 Binary5 4,7 Foot pedal pause operation 5 Binary6 5 Visual Temp. Display 4 Subj.7 6 Made of non-stick/stainless mat. 3 min.8 8 Neck arc 2 in.9 9 Single handle operation 1 Binary10 10 Internal hose flexibility 2 in.11 11 Airation 2 water/air12 12 componant material 3 Binary13 13 Airation adjustment 1 water/air14 14 Unit manufacturing cost 2 US$15 15 Water filtration 2 parts/mil.

Identify Customer

Needs



Generate Product

Specifications





- Needs-Metrics Matrix


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Need

Met

ric

Nec

k sw

ivel

Mod

ern

Line

s

Wat

er fl

ow

Paus

e fu

nctio

nalit

y

Foot

ped

al p

ause

ope

ratio

n

Visu

al T

emp.

Dis

play

Mad

e of

non

-stic

k/st

ainl

ess

mat

.

Nec

k ar

c

Sing

le h

andl

e op

erati

on

Inte

rnal

hos

e fle

xibi

lity

Aira

tion

com

pona

nt m

ater

ial

Aira

tion

adju

stm

ent

Uni

t man

ufac

turin

g co

st

Wat

er fi

ltrati

on

1 The faucet can reach two sinks •2 The faucet has an attractive design •3 The faucet looks stylish/modern •4 The faucet supports water conservation • • •5 The faucet allows easy choice of temperature •6 The faucet is easy to clean •7 The faucet has "no hands" tap •8 The faucet has an arc that allows to fit pots underneath •9 The faucet has a single handle •

10 The faucet is flexible / has on demand choices •11 The faucet has good water pressure •12 The faucet is lasts for long •13 The faucet allows changeability of water flow •14 The faucet is cheap •15 The faucet provides clean water •

Identify Customer

Needs



Generate Product

Specifications





- Classification Tree

Concept Generation

Store or Accept Energy

Electrical

Pneumatic

Hydraulic

Hydroelectric Rechargeable Battery

Non-fixed Battery

Wall Outlet

Fixed Rechargeable Battery

Identify Customer

Needs



Generate Product

Specifications





- Concept Brochure

Concept Selection

Identify Customer

Needs



Generate Product

Specifications





- Concept Screening MatrixConcept Selection

Product A Product B Product C Product D Product E Product F

Selection CriteriaDigital Control

Unit

Digital Control Unit with Pause

Button

Control Unit with Pause

Button

Digital Control with Pause

Foot Button

Basic Control Unit with Pause

Foot Button

Add-On Unit with Pause

Foot Button

The faucet supports water conservation -1 0 0 0 0 0

The faucet allows easy choice of temperature +1 +1 0 +1 0 0

The faucet has "no hands" tap -1 -1 -1 0 0 0

The faucet has a single handle +1 +1 +1 +1 +1 0

The faucet has good water pressure 0 0 0 0 0 0

The faucet is lasts for long -1 -1 0 -1 0 0

The faucet is cheap -1 -1 -1 -1 -1 0

Sum +'s 2 2 1 2 1 0

Sum 0's 2 3 4 3 5 7

Sum -'s 4 3 2 2 1 0

Net Score -2 -1 -1 0 0 0

Rank 6 5 4 3 2 1

Continue No No No No No Yes

Product Definition

• Add-on device placed without hassle in any existing faucet

• Foot button allows the user to stop the flow of water instantly

• Solenoid activates two unique values shutting off the flow of water to both the hot and cold water supplies

Identify Customer

Needs



Generate Product

Specifications





- Final Specifications


Metric No.

Need Nos. Metric

Imp. Units

Marginal

Value

Ideal Valu

e1 1 Neck swivel 1 deg. - -2 2,3 Modern Lines 4 Subj. - -3 4 Water flow 5 gal/min 1.5 2.54 4 Pause functionality 5 Binary Yes Yes5 4,7 Foot pedal pause operation 5 Binary Yes Yes6 5 Visual Temp. Display 4 Subj. - -7 6 Made of non-stick/stainless mat. 3 min. - -8 8 Neck arc 2 in. - -9 9 Single handle operation 1 Binary - -

10 10 Internal hose flexibility 2 in. - -

11 11 Airation 2water/

air - -12 12 componant material 3 Binary steel brass

13 13 Airation adjustment 1water/

air - -14 14 Unit manufacturing cost 2 US$ <70 <50

15 15 Water filtration 2parts/mil. - -

Product Distribution-TV infomercials

- Enthusiastic demonstrations

- Day time advertising

- Special offers

-In Stores which sell traditional faucets

- Placed next to the “Faucets” section

- Supported with POP material to promote the

“green” attributes of the product

- Via technicians/plumbers

- Promotional leaflets

- Free placement

- Commission over sales

- In-Store Synergy with American Standard

- Product Placement in TV Shows

- Product Demonstration in Events which

promote the “Green” Trend

Product Promotion

Unit in thousands (exp. Unit) Year 1 Year 2 Year 3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Development Ramp-Up Marketing and support Production and sales window

Year 1 Year 2 Year 3 ($ values in thousands) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Development cost -33 -33 -33 Ramp-up cost -20 -20 Marketing & support cost -5 -5 -5 -5 -5 -5 -5 -5 -5Production cost -40 -40 -40 -40 -40 -40 -40 -40 Production Volume 1000 1000 1000 1000 1000 1000 1000 1000 Unit production cost -0.04 -0.04 -0.04 -0.04 -0.04 -0.04 -0.04 -0.04Sales revenue 100 100 100 100 100 100 100 100 Sales volume 1000 1000 1000 1000 1000 1000 1000 1000 Unit price 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Period Cash Flow -33 -33 -53 -25 55 55 55 55 55 55 55 55PV Year 1, r = 10% -33 -33 -51 -23 49 48 47 45 44 43 42 41 Project NPV $220

Development cost 100000Ramp-up cost 40000Marketing and support cost 20000/yearUnit production cost 40/unitSales and production volume 1000/quarterUnit price 100/year

Financial Model

Thank YouQuestions?

Flow Stopper Presentation

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