Le Petit Chef

M9721807 Tiffany Putri M9721803 Sulistio Handayani M9721002 Irene Chen

Contents
Microwave Industry Technology Market Recent Development of Microwave

Le Petit Chef Le Petit Product Line Project Selection and Execution Le Petit Market Development Crisis and Dilemma

Solution

BACKGROUND OF MICROWAVE OVEN INDUSTRY

Microwave Oven History

History
1940
Radar(Radio

detecting and ranging)

1946
Magnetron

and Chocolate bar

1947
The

first commercial product hit the market first home microwave model, $1295
5 feet tall Over 750 pounds $5000

1952
The

Technology of Microwave Oven

The Basic Techonology

Microwave oven uses various combinations of electrical circuits and mechanical devices to produce and control the output of microwave energy for heating and cooking. Two fundamental sections:
Control

section

Technology of Microwave Oven

Cost structure of a microwave oven as % of total cost

Microwave cost structure Raw Material Direct Labor Indirect Labor General Overhead & Depreciation Logistic & Stock Holding Development Total 65% 10% 6% Module & Assembly Costs Cavity Power Supply 15%
Scale- 25% sensitive Microwave System

11%
5% 3% 100%

(magnetron, waveguide)

15%

Door
Controls Final Assembly Other Total Cost of Grill, Crisp & Control*
Over 40%

10%
10% 10% 15% 100% 40%

*Impact of providing an additional grill feature on the cost structure of a basic oven.

The level of sophistication of a microwave oven

Microwave dispersion characteristics The power output of the magnetron The capabilities of the control section Advanced options provided by accessories

Cooking performance of the oven

Two Dimension s Design of user interface

Convenience Ease of use

Recent Developments

Combi-Ovens
A

combination of microwave and other cooking modes to provide a variety of options. Steaming, browning and grilling

Accessories
Allowed

users to cook specific types of food

Intelligence
Fuzzy
New

logic

control technique Improve the ease of use and performance of microwave ovens

BACKGROUND OF LE PETIT CHEF

Introduction
History & Profile Le Petit Chef was founded in 1989 by Laurent Laferrire. Headquartered in Paris By 1999, Le Petit Chef was a Private held Regional manufacturer Product Kitchen counter-top appliances mixers/blenders, coffee/expresso machines, griller/toasters, microwave ovens Employee & Organization

600+ employees Administrative, Finance, Sales & Service and Marketing departments in Paris. R&D, Manufacturing, Procurement and Logistics in Lyon.

Sales
Product Mix Turnover by geographic region

Strategy

Differentiated through
Technical innovation Performance features

Combi-ovens

Combined cooking modes of grilling and convection heating with microwave cooking. Exclusive recipes Innovation design and high performance

Pull marketing strategy

Created a strong brand image

Diversify into manufacturing other high-end countertop appliance.

Operating structure

High conformance quality Reliable order deliveries Low costs Strong control over suppliers Heavy investment in R&D Inter-functional coordinate and cooperation

Organization Structure
CEO CFO

Finance Admin
Manufact uring

Marketing

Sales

R&D

PRODUCT LINE MAP

Liberte Ultigril 20L Liberte Ultigril 25L Liberte Ultigril 35L Liberte Electoniqu e 20L Liberte Electoniqu e 25L Liberte Electoniqu e 35L

Ultigril Electoniqu e 20L Ultigril

Electoniqu e 25L Ultigril Electoniqu e 35L

Liberte Italia 20L Liberte Rotesori 20L

Liberte Italia 25L

Liberte Rotesori 25L Liberte Italia 35L Liberte Rotesori 35L

Liberte 25L

Egalite Deluxe 20L Egalite Deluxe 25L Egalite Uno 25L

Egalite Uno 20L

Egalite Compact e 20L Egalite 25L Egalite Grande 35L

Egalite Deluxe 35L

Egalite Crousty 20L

Egalite Uno 35L

Egalite Crousty 35L

Egalite Crousty 35L

1990

1991

1992 1993

1994

1995

1996

1997

1998

1999

2000

PROJECT SELECTION & EXCUTION

Project Selection

Project Execution
Marketin g

Sale s

R& D

Manufacturi ng

Servic Cross Functional Working Group e

The project plan included the NPV Analysis, a project Charter, the Detailed sequence of project activities split into a number of different phases separated by clear decision points for reviews by the head of other departments.

LE PETIT MARKET DEVELOPMENT

Recent Market Development

Low end mid range segment

Price Decline

Positioning
Upper End of Price Range
Lower Cost Structure

Lower Cost Design

Automated Manufacturing Facility

Improvement in Operation

Global Component Sourcing

The Crisis
Manufacturing
Cant reduce cost anymore coz it will lower quality lack of unit volumes for each product offering Accessories is not compatible for other product

Marketing

Delay in development and introduction of new models Lack of visible product differentiation made it impossible to sustain premium prices for the models. Aggressive advertising and promotion already made, more marketing expenses is impossible.

R&D

Limited number of engineer with large number of project cause delay R&D is an uncertain process, without meeting company standard , new product can not be release. They are churning out over five model upgrades every year, more than any of our competitors

Propose Microwave Oven

306 person
NPV 7,000,000 18 months

72 People
NPV 20,000,000 12 months

180 People
NPV 10,000,000 18 months

24 People
NPV 15,500,000 6 months

30 People
NPV 14,400,000 6 months

On Going Project
Product Design Redesign wave Research on Material Product Modification Develop Egalite Compact model Add Egalite Line Capability User Interface for Egalite
Improve Existing Product more Aesthetically Differentiated Retailer Feedback NPV 16,000,000 / 25 Improve wave diffusion in Liberte line Test Kitchen Feedback NPV 12,000,000 / 48

Change grill element material in Liberte to make it longer lasting Feed back from Sales and Service NPV 7,000,000 / 12 Modify HV supply power in Egalite and Liberte to be able to use it in other country Feed back from Sales and Service NPV 5,000,000 / 36 Reconfigure Component lay out to reduce overall volume occupied Proposal from marketing NPV 12,000,000 / 72

Hologen lamp grilling R&D Proposal NPV 22,500,000 / 108 Redesign user interface for faster user input (one-touch cooking) and expand recipe offering All competitor have it NPV 13,700,000 / 18

Gagnes Dilemma
Propose Project On going Project

Price and Visible Feature Differentiation are paramount in todays market

Cost Reducing sound like to trim MercedesBenz down to make Fiat

Problem in Product Planning Activity

Too many projects overall. Too many derivative projects( v.s Platform project). Overcommitted resources. Inappropriate skill mix in R&D. Little top-down input to project generation (the focus being on bottom-up suggestion). Dealing with potentially radical disruptive technology trends.

Things to Consider

Solution
Rescheduling Project Standardized component for various product line Encourage all division to involve in R&D

Increase Top-down input in project generation Give training for engineer to increase skill mix in R&D

Solution ..
Fuzzy Logic Project Create new product Line for low end market with new brand

Product differentiations

Opinion from our classmates

Hai

Depend on the NPV, I may choose the highest one. But we still need to know more detail and information about the projects. If we just consider about numbers, such as NPV, human resources and time to complete the project, I may choose the fourth project. Depend on the strategy, considering about time limited. The company can choose the second project to create a new market.

Silvia---The fourth and the second projects

Luz---The second project

Because of NPV, people and time, the second is the best one. In another way, Asian market is another chance, because of Asian people may think the brand from Europe is kind of luxury. It will be another chance to create low end market. Combine on going project for product design and product modification The choices is base on the company strategy, if I could choose one of the project, then :

Pipe---The fourth and the first projects

Short term strategy: The fourth project Long term strategy: The first project

Henky---The fourth project

To think about why people use microwave oven, one important reason is they want to save time. So the performance is important, project 4 enhance the speed of cooking. Marketing department always focus on low price, good quality, they can sale easily. R&D department want to create unique, high quality product. Focus in product design for the on going project. NPV is just a prediction, its only project prediction. We can not just look at the NPV in deciding which project to go on. I rather choose first project which is fuzzy logic as it is a new innovation in the market and this is very important for company which its operation based on the innovation to be able to compete in the market. It might give lower NPV but company can be a market leader for the technology We can not stop the on going project and we have new project thus we can use heavy weight model to link each other project.

Bodhi--- The first project

THANK YOU FOR YOUR ATTENTION

LE PETIT CHEF BY : MIPS

ANGEL