Business Logic Plan

[Adam Pouncey]

Has anyone started dealing with this yet? I am having trouble figuring out how to download it from the fsae site, and I don't see anything about how it is supposed to be completed. Any help would be awesome.

[Cardriverx]

We have been waiting for it too... they just haven't put it up yet.

From what I am told it is due January 1st so there is still some time, but I hope it gets put up soon.

I was able to find a copy of the FSG one, do a search for it. Hopefully they keep it similar for us.



Originally posted by Adam Pouncey:
Has anyone started dealing with this yet? I am having trouble figuring out how to download it from the fsae site, and I don't see anything about how it is supposed to be completed. Any help would be awesome.

[Michael Royce]

I understand that it is going to be very similar to that used at Formula Student UK this year.

[kcapitano]

It has been posted on the fsae online website. See the link below:

http://www.fsaeonline.com/page...e1-89e1-489a8a4f08d9 (http://www.fsaeonline.com/page.aspx?pageid=5ade9b01-8903-4ae1-89e1-489a8a4f08d9)

Its got an explanation of the whole thing then the template is just put at the end of it.

[Canuck Racing]

Would it be acceptable to fill in the fuel economy target with "Are you effing serious? It's a autocross car. It drives one kilometer at a time, and it sure isn't doing it to help the environment."

[Cardriverx]

So is anyone else really confused about the "Vehicle Sale Price vs. Volume" table? I mean this means that the target market is now defined for us... so why does it still mention doing market research? Also, are we supposed to analyze and compare us to other teams or do we assume we are the only company building this car? Lastly, surly they know we all are already in design/building the car, where as this mentions it is to be done before design. Hmm

I am quite confused about it.

[Canuck Racing]

Originally posted by Cardriverx:
So is anyone else really confused about the "Vehicle Sale Price vs. Volume" table? I mean this means that the target market is now defined for us... so why does it still mention doing market research? Also, are we supposed to analyze and compare us to other teams or do we assume we are the only company building this car? Lastly, surly they know we all are already in design/building the car, where as this mentions it is to be done before design. Hmm

I am quite confused about it.

I believe the intent is to have the "BLP" done earlier in future years (perhaps due just after registration?) This year had the electric rules to deal with as well as this so it fell behind a bit I'm sure.

The market research still has to be done to figure out where on the table you should target your car. Does the target market want a $12,000 pile 'o tubes with a single or a $50,000 mono-cack with wings and flappy paddles? The table helps keep the teams building a $50,000 car and claiming there is a 5,000 units a year sales market in check.

[xd2]

Does anyone know about the assessment of competition we have to do? Do we have to assess the other teams or assess the industry as a whole?

[Fikri Aulia]

Excuse me.
About business logic case (blc), is there any example of the blc result?
From all country competition maybe can share here. Thanks before.

Fikri Aulia Rahman
Universitas Gadjah Mada, Indonesia

[Will M]

Fikri,

Yes, most compitions host the results from the past several years on their own websites.

And stop spamming the 'If you are new here, click here and read this first...' threads.

-William

[Fikri Aulia]

William,

Oh i see, thanks Wil. And sorry for the spam.

[Cardriverx]

Originally posted by xd2:
Does anyone know about the assessment of competition we have to do? Do we have to assess the other teams or assess the industry as a whole?

I took it as assess the industry and assume there aren't other formula SAE specific teams.

[xd2]

Okay, thanks.

Also, for the cost, we have to establish a selling price. How much should the selling price be scaled compared to the actual cost of the car?

[JulianH]

At least for FS 2012, it was the price calculated in the Cost Report.

[Cardriverx]

That's for you to decide, but you have to use the curve of selling price vs. units sold per year that they give you and justify why you picked a certain point.


Originally posted by xd2:
Okay, thanks.

Also, for the cost, we have to establish a selling price. How much should the selling price be scaled compared to the actual cost of the car?

[xd2]

Originally posted by Cardriverx:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by xd2:
Does anyone know about the assessment of competition we have to do? Do we have to assess the other teams or assess the industry as a whole?

I took it as assess the industry and assume there aren't other formula SAE specific teams. </div></BLOCKQUOTE>
What industry/class is our "business" competing in? I couldn't find anything with similar specs/price to what we would be selling.

[Cardriverx]

It is a hard question to answer. I just assumed that we would compete with other small cars that would have enough steering to navigate a autocross course. Examples are a Arial Atom, Lotus 7/Caterham, Lotus elise/exige.

Issue is these all come in much more than the FSAE car selling price is (thanks to the mandated price vs cars sold curve we have to follow). But thats what ive done so far.




Originally posted by xd2:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Cardriverx:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by xd2:
Does anyone know about the assessment of competition we have to do? Do we have to assess the other teams or assess the industry as a whole?

I took it as assess the industry and assume there aren't other formula SAE specific teams. </div></BLOCKQUOTE>
What industry/class is our "business" competing in? I couldn't find anything with similar specs/price to what we would be selling. </div></BLOCKQUOTE>

[DSR]

As soon as we find the cost of our car, then for profit maximization we can find a unique point on the curve that will decide the selling price as well as quantity sold per year. Can't we use this point as our selling price and target market ???

[Jackie L]

Originally posted by Cardriverx:
It is a hard question to answer. I just assumed that we would compete with other small cars that would have enough steering to navigate a autocross course. Examples are a Arial Atom, Lotus 7/Caterham, Lotus elise/exige.

Issue is these all come in much more than the FSAE car selling price is (thanks to the mandated price vs cars sold curve we have to follow). But thats what ive done so far.



<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by xd2:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Cardriverx:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by xd2:
Does anyone know about the assessment of competition we have to do? Do we have to assess the other teams or assess the industry as a whole?

I took it as assess the industry and assume there aren't other formula SAE specific teams. </div></BLOCKQUOTE>
What industry/class is our "business" competing in? I couldn't find anything with similar specs/price to what we would be selling. </div></BLOCKQUOTE> </div></BLOCKQUOTE>

I think it's best to go with the Presentation event's definition of the competition. After all, this is how FSAE wants us to correlate Presentation, Cost, and design. That market is the amateur, weekend autocross enthusiast. Consider what other vehicles someone would consider when looking to compete in Solo or something like that. You're not necessarily marketing an FSAE car.

[FSTT]

1) As I understand, cost from cost report would apply only if the sales volume is 1000, as the cost report gives the cost assuming we produce 1000 cars per year. Which cost should we use if we produce and sell 20 cars per year?

2) For target annual profit, did you take into account other costs as well? Overheads? In that case target profit does not equal total revenue minus total production cost, right?

[JulianH]

At FS 2012, the cost is the exact number of your cost report. It doesn't matter if you want to sell 10 or 1000 cars.

Last year we took (Selling Price-Cost of car)*Number of Cars sold as revenue. I think we assume that "all costs" are in the cost of the car.

[DSR]

Originally posted by FSTT:
1) As I understand, cost from cost report would apply only if the sales volume is 1000, as the cost report gives the cost assuming we produce 1000 cars per year. Which cost should we use if we produce and sell 20 cars per year?

2) For target annual profit, did you take into account other costs as well? Overheads? In that case target profit does not equal total revenue minus total production cost, right?

1) The cost report gives the cost of producing one vehicle, whether you produce 100 or 1000 in a year.

2) Logically, it should be, Profit = {(Selling Price - Cost) x No. of Vehicles sold per year} - Overheads (Marketing expenses, etc... but this list can be too long).

But, my doubt still remains - How to decide the selling price of the car and the no. of units sold per year ?

Can I assume any selling price and any sales volume per year, while keeping a check that the sales volume should not cross the max. volume corresponding to the selected selling price from the given table ?

[wbertrand]

But, my doubt still remains - How to decide the selling price of the car and the no. of units sold per year ?

Can I assume any selling price and any sales volume per year, while keeping a check that the sales volume should not cross the max. volume corresponding to the selected selling price from the given table ?

I believe that the selling price should be determined using the real world market. So, I researched companies that made F1000 and F500 cars, saw what kind of features they had (monocoque chassis, engine specs, overall weight) and how much they cost, and scaled it for FSAE and what kind of features our car will most likely have.

[IITStamen]

Hi all I have a few questions.

1)When considering the total cost of producing the car do you include cost of labor?

2)Do you include donated or sponsored parts/materials in your total cost?

Thanks,
Stamen IIT MotorSports

[wbertrand]

1)When considering the total cost of producing the car do you include cost of labor?

2)Do you include donated or sponsored parts/materials in your total cost?

I do not think labor will account into the total cost, at least for us since it is so difficult to 1.) find a "wage" to fit everybody regardless of skillset and 2.) get anywhere close to an accurate figure into how many man hours were actually used.
As per including donated parts and material, I believe the answer to your question is yes you take into account the value of those donated items, much like what is done in the Cost Report.

[dlobato]

I thought labor costs were in the cost report files?

[wbertrand]

I thought labor costs were in the cost report files?

Apologies. I forgot that they have ways to account for "labor" in the cost report. I was thinking in more general terms, but it would be wise to use those guidelines in your price.

[Fikri Aulia]

for all,
where we sumbit the business logic case form? at the web of the event we participate or at the fsaeonline.com ?

thanks before
Fikri, Bimasakti Indonesia

[JulianH]

It depends on the event you want to participate...

[Shubhang MIttal]

Is it necessary to calculate fuel economy for electric vehicles? If yes how do I proceed?

[JulianH]

We always insert the amount of energy we are using in an Endurance race (roughly accumulator size + 0.1 * recuperation).