SUSTAINABLE OPERATIONS PGPM 2023-24

Group Assignment for 20% Due Date: 23 April 2024

The task at hand

The CLTLLZEN CT-512 electronic calculator has been a huge success in India,
especially among school and college students. The model has delivered record financial
results for the company over five years since its launch.

However, competitors have now developed devices with similar features and selling
them at a lower price in the same markets where the CT-512 competes. Hence, the
CEO at CLTLLZEN Electronics wishes to take a fresh look at the design of the model.

In addition, the company wishes to present itself as a champion of sustainability,

communicating to its main stakeholders that it adopts “green practices”.

The objective of the exercise is to reduce material costs through product reengineering
(so that the model can be sold at a lower price point) by at least 10% and make the
model more environmentally friendly.

Required of you
1 Draw the Exploded View of the CT-512.
2 Draw the Product Structure Tree from Level 0 to the terminal blocks.
3 Create the Bill of Materials table from the Product Structure Tree.
4 Analyse in a systematic manner how the BOM cost can be reduced by at least 10%.
5 Recommend how the company can adopt environmentally friendly practices for the
model.

Details of the components are given on the next page. All components are procured
from external suppliers.

Guidelines for Submission

1 Please work in the groups you have formed [three members per group].
2 Your submission should contain responses to the five sections stated above.
3 Submit your response in class using the A3 sheets provided to you.
4 Deadline for submission: Tuesday, 23 April 2024.
5 Clearly state your names and roll numbers on the first page of your submission.
6 Your responses will be checked for copying from other groups.

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 CT-512 CALCULATOR: DELIVERED MATERIAL COSTS [LIFO]
COMPONENT COMPONENT QUANTITY PER TOTAL COST OF
REFERENCE DESCRIPTION PRODUCT UNIT COMPONENTS
(US cents)
C-01 Packing box – cardboard 1 7.00
C-02 Packing cover – plastic 1 0.50
C-03 Outer screws – aluminium 2 0.16
C-04 Back cover – plastic 1 9.50
C-05 Front cover – plastic 1 16.25
C-06 Display unit – glass 1 20.00
C-07 Light electric panel – plastic (dummy) 1 0.50
C-08 Light electric panel pad – foam 1 0.40
(pasted to the panel)
C-09 Display unit protection pads – foam 2 0.40
(pasted to the back cover)
C-10 Display unit wiring harness 1 3.00
C-11 Printed circuit board with battery 1 26.00
C-12 Keyboard spring pad – foam 1 5.15
C-13 Blue keys: CHECK, CORRECT 2 0.60
C-14 Black key: + 1 0.50
C-15 Other black keys 22 5.50
C-16 White keys 4 1.00
C-17 Orange key: ON/AC 1 0.40

Total 96.86

Note: Cost of components (the last column) account for the quantity required for one assembled
unit of the product.
For example, for Item C-16, 1.00 cent is the cost for four white keys, and not for each key.

Have fun!!!
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