AT2 – assignment 2, Page 23 onwards.
Assessment Activity 2:
Apply choice Assessment methods
Due: Week 7
Worth: 45%
Format: Report
Phrase size: 3000-3500
Studying outcomes: 2 to 7
Activity description
This Question Assignment permits you to select from one among two choices.
Possibility 1 – Full your Assessment based mostly on the Catanza Applied sciences Case Research supplied under, or
Possibility 2 – Select a fancy multi-stage choice case examine from your individual organisation.
Question Assignment 1
You’ve been engaged as a guide to your organisation’s/Catanza government to think about the data introduced. You might be requested to use choice Assessment methods to the choice drawback dealing with your organisation/Catanza Applied sciences and advise the corporate on their final result choices and really helpful course/s of motion. Clearly state any assumptions you may have made.
Your dialogue ought to embrace:
• An government abstract
• A short overview of the important thing info and your strategy to the issue.
• A transparent assertion of assumptions concerning the data supplied and your Assessment.
• A call tree of potential choice paths and occasions together with Possibilities, Web Current Worth calculations, and Anticipated Values
• The applying of a minimum of one different choice-making method coated throughout the unit, for instance SMART, Analytical Hierarchy Course of or Sensitivity Assessment.
• Advisable plan of action.
• For personal organisation choice: Extra Appendices for background data and knowledge.
Question Assignment 2
Focus on intimately the strengths and limitations of your Assessment within the context of the issue confronted by your organisation/Catanza Technlogies. Your dialogue of limitations ought to embrace consideration of potential biases, heuristics or different concerns which will have been used or utilized by your organisation/Catanza and its workers.
Make particular suggestions for different data or investigations that may be wanted to enhance your Assessment.
NOTE: The identical two questions and standards apply to each choices. Nonetheless, in case you are conducting the case examine in your personal organisation, you will have to gather and provide the suitable background knowledge and knowledge, to a minimum of the identical or larger stage of element supplied for the Catanza Case Research. This knowledge and background data must be included in Appendices and won’t be included within the phrase rely. In the event you consider that you simply would not have entry to suitably detailed background data and knowledge for this Assessment, then it is suggested that you simply use the Catanza Applied sciences Case Research.
Catanza Applied sciences Case Research
(Written as at January 2019)
Learn the case examine which follows and reply the two questions on the conclusion.
Catanza Applied sciences was based in Brisbane in 2002 at Eagle Farm as a specialist in industrial sensor expertise. In 2008, they expanded into industrial robots, nevertheless this sector fell into decline main-as much as the departure of automotive producers from Australia by 2017. In 2014 they launched a industrial grade robotic flooring cleaner which has had a gentle progress in revenues and market share.
The corporate’s turnover by product kind is proven under:
Product 2014 2015 2016 2017 2018
Industrial Sensors 16.2 12.eight 19.four 16.9 17.2
Industrial Robots eight.2 6.four four.9 four.7 5.1
Robotic Flooring Cleaner zero.four zero.eight 1.three 1.9 2.6
The corporate is now (January 2019) contemplating the event of business robotic garden administration instruments and gear and, as a primary step, an in depth plan has been put ahead to supply a industrial grade robotic lawnmower (code named the RLM19). Market analysis was performed in 2015-2016 and this revealed that industrial clients make their choices on this market on the idea of mowing space per day based mostly on operating time per cost and battery charging time, most peak of reduce, precision of navigation, ease of programming, adaptability to uneven surfaces, hill-climbing skill, impediment sensing and avoidance, worth, security and anti-theft.
Taking this market analysis data into consideration, the corporate is now looking for to develop a manufacturing prototype based mostly on one among two totally different approaches. Electrical wire (EW) perimeter or GPS and sensing navigation (GPS). For the EW mannequin, a wire is positioned across the perimeter of the realm to be mown after which linked to supply. This mower is programmed to not cross the wire. Due to the necessity to lay wire and the battery life the EW mannequin could have a mowing space of about 3000 sq. metres per day. The GPS mannequin would use sensors to detect backyard edges and likewise GPS and mapping knowledge to navigate with out use of the wire. This permits them to be extra versatile and suited to bigger areas of as much as 12000 sq. metres per day.
The market analysis and growth of the designs to this point have already value $1.65 million. If a call to proceed is made, it’s hoped profitable prototype will be developed by December 2019.
For the EW prototype, the companys chief engineer, Scott Shorten, has estimated that there’s a 75% probability that the December goal might be achieved for the EW mannequin with an additional funding of $1.75m. If the goal just isn’t achieved, the corporate will evaluate the state of affairs in January 2020. It might determine to desert the complete mission or to permit additional work on the prototype. Shorten estimates that modification of an unsuccessful prototype would value round $zero.eight million and the modifications would take an extra six months to implement. He’s, nevertheless, positive that each one issues could be overcome by finish June 2020.
For the GPS prototype, Shorten estimates that there’s a 60% probability that the December goal might be achieved for the GPS mannequin with an additional funding of $three.3m. If the goal just isn’t achieved, the corporate will evaluate the state of affairs in January 2020. It might determine to desert the complete mission or to permit additional work on the prototype. Shorten estimates that modification of an unsuccessful prototype would value round $1.9 million and the modifications would take an extra 12 months to implement. He’s, nevertheless, positive that each one issues could be overcome by finish December 2020.
Following the event of a profitable prototype, manufacturing could be performed in accomplice amenities in China. The manufacturing amenities require a six-month lead-time for retooling and part sourcing for the EW and twelve months for the GPS resolution.
If a profitable EW prototype was developed by Dec 2019, manufacturing might begin in July 2020. Nonetheless, if the prototype growth for the EW resolution took till June 2020, then manufacturing might begin in Jan 2021. Shorten estimates the retooling and manufacturing line set-up prices for the EW resolution to be $1.25m. EW models are anticipated to promote for between $3500 and $4500.
If a profitable GPS prototype was developed by Dec 2019, manufacturing might begin in
Jan 2021. Nonetheless, if the prototype growth for the GPS resolution took till December 2020, then manufacturing wouldn’t begin till Jan 2022. Shorten estimates the retooling and manufacturing line set-up prices for the GPS resolution to be $2.7m. GPS models are anticipated to promote for between $14000 and $16000.
Gross sales of the RLM19 could be supported by a significant promoting and advertising and marketing marketing campaign at commerce reveals, direct to grounds upkeep contractors, councils and different house owners of golf programs, airfields and taking part in fields. This is able to be performed particularly within the first few months after its launch, demonstrating the foremost value saving advantages. As a way to estimate the gross sales that may end result, in depth use has been product of market analysis, financial and trade-vast knowledge. A key risk is the event of aggressive merchandise by main mower producers and new entrants with robotics and electrical motor applied sciences.
To simplify the issue, the administration crew has determined to estimate gross sales below two totally different market circumstances: Good, and Poor. These circumstances will be assumed to prevail by the complete lifetime of the product. The possibilities of those circumstances prevailing are thought to rely to some extent on how shortly the product will be launched since an early launch will give Catanza an edge over potential opponents. The Advertising and marketing Division has estimated the next possibilities:
Market Situations Prevailing Good Poor
Month Manufacturing Commences
July 2020 zero.eight zero.2
January 2021 zero.65 zero.35
January 2022 zero.5 zero.5
It has been determined to make use of a 6-12 months planning horizon (i.e. as much as December 2025) since technological developments would most likely imply new mannequin could be required for the marketplace for later years. The tables under present the estimated internet money flows which can happen throughout the years of the merchandise life.
EW – Good EW – Poor GPS – Good GPS – Poor
1st Yr $6m $2m $10m $4m
2nd Yr $9m $4m $16m $7m
third Yr $12m $6m $18m $9m
4th Yr $16m $7m $22m $11m
fifth Yr ** $18m $9m $26m $13m
** If required
Within the occasion of the both prototype growth being cancelled it may be anticipated that the mental property related to the analysis output could have no residual worth.
The companys value of capital is estimated to be eight%. For simplicity, it may be assumed that each one money flows happen on the finish of the 12 months. Additionally, the impact of things like taxation and growth grants must be ignored.
Assessment Submission Necessities:
Produce a report addressing the two questions – textual content, illustrations, diagrams and calculations – supported by reference to the sources of knowledge and theoretical frameworks of understanding.
Check with the Scholar Handbook for extra data
Assessment Standards
Please check with the detailed marking rubric on the subsequent web page.
Rubric: Assessment Activity 2
Assessment standards %
Allotted Tutorial Grading Standards
Format 20 Presentation and report format to prescribed AIM normal.
Demonstration of vast studying and inclusion of requisite references in Harvard reference fashion.
Tutorial writing acceptable to postgraduate stage of examine.
Clearly articulated. Nicely structured, logical movement to argument.
Inside required phrase rely.
Ideas, Sensible Software and
Analytical Pondering 30 Demonstrates sensible utility of choice Assessment ideas to advise final result choices which are nicely articulated and clearly drawn from Assessment.
Sensible Software 10 Clear assertion of assumptions.
Sensible
Software &
Analytical Pondering 10 Acceptable inclusion of illustrations, diagrams and proper calculations to Help choices and recommendation.
Sensible
Software and
Suggestions 20 Detailed dialogue of strengths and limitations of research.
Suggestions 10 Efficient identification of different data that may be wanted to enhance the Assessment.
100 Complete

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