Cumberland Metal Industires Essay

1103 words - 4 pages

CUMBERLAND METAL INDUSTRIES

Overview
Cumberland Metal Industries (CMI) is seeking to diversify its product line. A Houston area sales representative has made us aware of the use of curled metal in pile driving as a cushion to absorb shock. The curled metal pads have been tested by two contracting groups, Colerick and Fazio, both with promising success and noticeable advantages over the current asbestos pads.
Colerick has requested pricing so that they can purchase and use our pads on other job sites. Colerick has been told CMI will give them pricing information by the end of the week. Price is the first priority which will be analyzed by cost savings to company, manufacturing costs, and break-even volume. Marketing options will also be analyzed based on the market share, market size, and sales force size.

Analysis
Benefits of Coiled Metal Pads
Coiled metal pads drive 30 times more piles per pad than asbestos pads because they transfer more force and prevent shock while creating less heat than the conventional asbestos pads (Exhibit 1). This also helps to prevent piles from vibrating or cracking. Coiled metal pads only heated up to 250ºF, or 450º less than asbestos pads. Health dangers associated with asbestos have also made those who use the asbestos pads wary of the risks.
Value to Contractors
From the two experiments with CMI's coiled pads the contractors averaged 30% more feet driven per hour with our coiled pads over typical asbestos pads. The pads also drove 2800% more piles per set of pads than did the asbestos pads. The contractors averaged 630 asbestos pads used for the project; at a cost of $1,575. The total time to change sets was 700 minutes. With our coiled metal pads they used 11 pads with a change time of 4 minutes (Exhibit 1).
Market Size
It is estimated that there are 19,500 to 26,000 hammers in use 25 weeks per year for 30 hours per week. These hammers average 20 feet per hour for 290 million to 390 million feet driven annually. If six pads per set will drive 10,000 feet then the market for coiled metal pads would be 174,000 to 234,000 pads annually (Exhibit 2).

Market Share
Manufacturing cost estimates are based on a 250 unit per month production schedule. For twelve months CMI would produce 3000 pads per year, or 500 sets of a single coiled metal pad size. With a potential market demand of 174,000 to 234,000 pads annually CMI would only be capturing less than 2% of the market (Exhibit 2).
Basic Pricing based on Manufacturing Costs
The most common pad size is 11 1/2". Total cost per pad would be $148.12 using current equipment or $69.18 with the purchase of $50,000 permanent tooling equipment. CMI seeks for a 40-50% margin allowing for a price of $269.31 or $125.78 respectively (Exhibit 4).
Break-Even Volume
With a margin of $121.19 for existing equipment the break-even volume would be 214 units per month. For the permanent tooling equipment the margin is $56.60 which has a break-even volume of 185...

Find Another Essay On Cumberland Metal Industires

Psychological Egoism Theory Essay

2240 words - 9 pages The theory of psychological egoism is indeed plausible. The meaning of plausible in the context of this paper refers to the validity or the conceivability of the theory in question, to explain the nature and motivation of human behavior (Hinman, 2007). Human actions are motivated by the satisfaction obtained after completing a task that they are involved in. For example, Mother Teresa was satisfied by her benevolent actions and

How Celtic Folkore has Influenced My Family

1587 words - 6 pages Every family has a unique background that influences the way they live and interact with other people. My parents, who emigrated from Ireland to the States with my three brothers in 1989, brought over their own Celtic folklore and traditions that have helped shaped the way our family operates and lives. One aspect of folklore that has helped shape my family dynamic is the Celtic cross—both its background and what role it has played in our lives

Julia Margaret Cameron

1406 words - 6 pages At a time when women were looked upon as being homemakers, wives, mothers and such the late 1850's presented a change in pace for one woman in specific. Photography was discovered in 1826 and soon after the phenomenon of photography was being experimented with and in turn brought new and different ways of photo taking not only as documenting real time, but also conceptualizing a scene in which an image would be taken. Julia Margaret Cameron will

Evaluation of School Improvement

1403 words - 6 pages The evaluation process should be progressive to incorporate overall planning, implement changes, which contribute to success. In order to focus on school climate and norms, the evaluation design must include the students, instructions, and outcomes to improve communication and building-level concerns to be address in this response. School Climate and Social Norms The school principal, other staff leaders, and personnel set the tone and the

Case Study: The Benefits of Animal Testing

1757 words - 7 pages Nine year old Amy has already had a rough start in life. She was born with an abnormal heart that hinders her everyday activities. Amy is unable to keep up with kids her own age because she often tires out easily. As a consequence, she has very little friends and is often alone. Amy is forced to take different medications everyday just to survive. Amy’s life consists of medicine, doctors, and constant hospital visits. However, Amy is due for a

Myth and Magic: Realism in "One Hundred Years of Solitude"

1531 words - 6 pages “He enjoyed his grandmother's unique way of telling stories. No matter how fantastic or improbable her statements, she always delivered them as if they were the irrefutable truth” (Wikipedia, 2011). Experiences are particular instances of one personally encountering or undergoing something and in these moments of time life changes for the best or the worst and memories are formed. These recollections such as riding your first bicycle, going to

Adiponectin: a Novel Indicator of Malnutrition and Inflammation in Hemodialysis Patients

2384 words - 10 pages Objective Protein-Energy malnutrition (PEM) and inflammation are common and overlapping conditions in hemodialysis patients which are associated with increased risk of morbidity and mortality. Adiponectin is an adipocytokine which is exclusively produced by adipose tissue. Few studies in hemodialysis patients have demonstrated that serum levels of adiponectin were significantly higher in malnourished patients compared to well-nourished ones. The

The Congo Free State: A Legacy of Apathy, Exploitation and Brutality

2298 words - 9 pages Between 1885 and 1908, Belgium’s Leopold II ruled Congo, a region in central Africa, as his personal colony, exploiting the resources and inhabitants for his own gain. Leopold allowed and encouraged Europeans and other Westerners to enter Congo and set up companies whose primary purpose was to gather rubber, which was abundant but difficult to get to in the Congo, using the Congolese as the laborers for the Europeans. Rubber gathering in Congo

Selective Exposition in The Lottery, by Shirley Jackson

1073 words - 4 pages Usually when someone hears the word “lottery” the first thing that comes to mind is a large sum of cash that people compete against highly impractical odds to win. Shirley Jackson’s story The Lottery might imply a similar conception based on the title alone, but the story is filled with unknowns never revealing exactly when and where the story takes place, or why the lottery exists; even what the lottery is isn’t revealed until the very end. Yet

Lightning

1857 words - 7 pages electrical storm one should take cover indoors out of the environment, stay away from open areas, tall trees, and metal objects. (http://www.nws.noaa.gov/os/lightning/resources/lightning-safety.pdf) While lightning may be a dangerous event, it does not take away the beauty of watching a good lightning storm, as long as you are safely indoors or out of harm’s way. In the above pages I have explained how and why lightning is formed in a cloud, what

Maryland's Ecology and Environment

1130 words - 5 pages Maryland is the 42nd largest state, making it one of the smaller states in America. It is located in the South Atlantic region on the United States eastern seaboard. Prince George's is one of twenty four counties in Maryland. It is also the geographic center of the state. Maryland has a varied climate. The state is home to a variety of different ecosystems. This is also true of Maryland’s environment, which has the Atlantic Ocean on

Similar Essays

When The Bubble Burst Essay

1539 words - 6 pages By the time I arrived state side from my second tour in the Middle East the housing bubble had already burst. I noticed a drastic change in the way that many of my friends and family were living. Several of my friends that worked in real estate had sold their boats and seconds houses. My own stock portfolio had lost a third of its value. My sister and her husband had defaulted on their home mortgage leaving them scrambling for a place to live. I

Phase Diagram Essay

4456 words - 18 pages Introduction: Chemical equilibrium is a crucial topic in Chemistry. To represent and model equilibrium, the thermodynamic concept of Free energy is usually used. For a multi-component system the Gibbs free energy is a function of Pressure, Temperature and quantity (mass, moles) of each component. If one of these parameters is changed, a state change to a more energetically favorable state will occur. This state has the lowest free energy

Revolutionary Work Of Art Essay

1890 words - 8 pages Walter Benjamin emphasizes in his essay, “The Work of Art in the Age of its Technological Reproducibility” that technology used to make an artwork has changed the way it was received, and its “aura”. Aura represents the originality and authenticity of a work of art that has not been reproduced. The Sistine Chapel in the Vatican is an example of a work that has been and truly a beacon of art. It has brought a benefit and enlightenment to the art

Enlightenment Thought In New Zealand Schools

1594 words - 6 pages In this essay I will be looking at how the political and intellectual ideas of the enlightenment have shaped New Zealand Education. I will also be discussing the perennial tension of local control versus central control of education, and how this has been affected by the political and intellectual ideas of the enlightenment. The enlightenment was an intellectual movement, which beginnings of were marked by the Glorious Revolution in Britain
Computer and Philippines Inc. - 5708 Words | Скачать | importance of education - 496 Words