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  • Torzala, Robert J.
     
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  • Product management
     
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  • Rate of return.
     
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  • MSEM Thesis.
     
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  •  It is difficult to s...
     
     
     
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    It is difficult to structure a concept through market methodology for low volume resource intensive products / by Robert J. Torzala.
    by Torzala, Robert J.
    Subjects
  • Product management
  •  
  • Rate of return.
  •  
  • MSEM Thesis.
  • Description: 
    v, 152 leaves : ill. ; 29 cm.
    Contents: 
    Advisor: Kimbel Nap.
    Committee members: Dr. Bruce Thompson, Gene Wright.
    Introduction -- Concept through market methodology for high volume products -- Concept through market methodology for one time build products -- HV and OTB product & methodology comparison -- LVRI product attributes and methodology model formulation -- Financial performance analyses - LVRI market share and cash flow methodologies -- Thesis summary and conclusions -- Appendix A) Market share strategy model - B) Market share strategy model resource allocation sensitivity tabulation - C) Cash flow strategy model - D) Cash flow strategy model resource allocation sensitivity tabulation.
    Current literature focuses on product development methodologies for mass produced and one time build product types. Very little literature focuses on product types that are not in the category of the above two classifications. A product that has a low annual volume and is capital intensive has similarities to both mass produced and one time build products. It also has unique characteristics different from either of the forementioned. As a result, defining an appropriate development program that addresses the unique characteristics of a low volume resource intensive (LVRI) product is difficult.
    The scope of this thesis is to propose and evaluate concept through market methodologies for LVRI products. The thesis begins with a study of the concept through market methodologies employed for high volume (HV) and one time build (OTB) products. Assuming that a methodology spectrum exists with the HV and OTB methods at opposite ends, potential methodologies for LVRI products are formulated and financially analyzed.
    The study of the HV and OTB methodologies involves modeling concept through market methodologies typical for these product and market types. The models are structured and formatted around similar incremental phases and stages. After modeling the methodologies, the corresponding products' attributes and market attributes are identified and correlated against the phases within the models. Also, the investment philosophies for each of the two product types are reviewed for correlation to the methodology models. In addition to correlating against the incremental phases, the attributes are correlated against the intensity of each incremental phase.
    The study continues by analyzing the product and market attributes of a generic LVRI product typical for the surface mining industry. Utilizing the identified correlations between methodology phases and intensity against product attributes, market attributes, and investment philosophies, two potential methodology models are proposed for a LVRI product. Each model is based on the correlated attributes identified in the HV and OTB methodology study, but the models differ in investment philosophies. One model pursues a market share, or long term, investment philosophy. The second model pursues a cash flow, or short term, investment philosophy.
    The final part of the study evaluates the financial feasibility and performance of the two LVRI models. The models are formulated on assumptions typical for the mining industry. The financial models include projections for market shares, margins, investments, expenses, costs, working capital, and program lives to establish annual cash flows. The evaluation includes sensitivity analyses of twelve model factors to assess the ramifications of both varied resource allocations and the base assumptions. The models are compared on the basis of internal rate of returns (IRR), present worths, and break-even points.
    The evaluation indicated that the market share strategy was more likely to yield a higher IRR than the cash flow strategy and less likely to yield a negative IRR. This study indicates that a market share strategy is the pursuable concept through market methodology for a LVRI product, assuming an organization's mission is to be profitable, competitive, and endure over time.
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    Walter Schroeder LibraryMaster's ThesesAC805 .T67 1996AvailableAdd Copy to MyList

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