Parking Guidance System

Parking Guidance System

Group Member:Chan Chun Kit (50115211)Cheung Chi Ming (50165054) Kwong Yee Fai (50177772)Lai Chung Wing (50276497)Sum Kai Yiu (50369026)Yiu Chi Kan (50524565)

Course Instructor: Dr. John K L Ho

MEEM5001 Enterprise Engineering Strategy

ParkingParking CityCity

• A newly established engineering company in HK in providing effective parking guidance system for all types of parking facilities.

• Shareholders of the company are graduates of City University of Hong Kong.

• No experiences in business, but the system is creative & able to meet the customers’ needs.

Company Background

Mission Statement

• To be a pioneer for providing efficient, competitive technology and engineering services to multi-storey car parks through application of parking guidance system.

• To recommend & promote the use of innovative parking guidance system in Hong Kong.

• To optimize the use of parking spaces & reduce the time in searching free parking space by introducing parking guidance system.

• To gain profit for the newly established company in HK on a 39% rate of return in the first three year of business.

Goals

Objectives

• Guide the driver to find a parking space more efficient & convenient.

• Optimize the use of car parking spaces• Provide a long term car parking space solution for

users & operators.• Prevent a long queue of cars from forming at the

entrance point

Environment Analysis

• Finding a space in a car park can

be difficult and stressful

• Reduce the time of searching space

in order to reduce parking time

• Look for a solution for reduce air and noise pollution from vehicle in urban area

• No similar parking management system in HK

• Suitable for multi-storey car park in crowed district e.g. Central, Mongkok, etc

Environment Analysis

• Many car park developers:- Improve the facilities- No idea to implement the system- Look for a solution for reduce

traffic problem outside highly-utilized car parks- Seek for improving the usage efficiency - Seek for efficiency and flexible management system - Increase the rate of filling parking space- Improve customer service and customer satisfaction

Market Survey

• Conduct market survey by questionnaire • Apply Kansei Engineering (KE)

- investigate the driver’s feeling towards car parks- to identify the system’s design

• Totally 41 questions • 5 points Semantic Differential

(SD) scale for rating• Sample size: 150 drivers

• The four main parts in questionnaire: Part 1: General opinions towards car parks Part 2: Opinions about different parking

guidance systems. The proposed components involved:- Auto-allocation of parking space - Parking guidance indicator (Numerical indicator, Electronic display board)

- Indicating light for parking space Part 3: Overall opinions towards the system Part 4: Personal information

Market Survey

General opinions from survey’s results:

• Most of respondents have experience of parking vehicle in highly-utilized car parks

- They felt difficult and annoying when looking for parking spaces

- They don’t satisfied with thecurrent parking indicators

- Some of them considered thetime taken in searching for parking spaces

General opinions from survey’s results:

• Parking guidance system can reduce the time looking for parking spaces

• Parking guidance system can

reduce the time taken for vehicles

entering the car parks• There is a need to install a parking

guidance system in highly-utilized car parks

• Based on survey’s results:- Most of respondents don’t like the computer assigning the packing space to them- They like numerical indicators

more than electronic displayboard at the main entrance and each storey’s entrance

- They thought that too much informationwill distract their concentration in driving

- They are welcome to install indicating lights for parking spaces

Conceptual designs of parking guidance system

Key benefits for Drivers, Citizens and Developers

For car park developers:• Enhances customer service/customer satisfaction• Increased rate of filling

parking spaces• Improved the profit• Prevented excess queues

at car parks

Key benefits for Drivers, Citizens and Developers

For drivers and citizens:• Improved traffic flow• Improved road safety• More convenient to drivers• Reduced parking time• Reduced atmospheric and

noise pollution

Company Profile - Strength

• No competitors

• Cost effective for large scale multi-storey car park

• Easy to install

• Low maintenance cost

Company Profile - Weakness

• No experience due to no such system in HK

• No experienced staff

• Uncertain in actual demand

• No well known brand name

Identified Opportunities• No competitors, profit margin is large• Many cars in HK, but no enough

parking space• Multi-stories car park is arising in HK• Resurrection of property market, large shopping mall

will increase• Government introduces pedestrian zone, this reduces

public parking spaces in crowed district• Future development in mainland China, system can be

applied in large city and result in gaining more profit

Identified Threats

• Few people will use the carpark if parking fee is high

• Indirectly affected bypoor economic environment

• Easy replaced by other high/new technology• Property developers are not rare, their

decisions will affect the company development

Organization WheelOrganization Wheel

(3)

(2)

Customer

(1)

Framework of OrganizationFramework of Organization

• 1.) Core Target1.) Core Target– Customer:Customer: carpark management companies, facilities carpark management companies, facilities

management companies of large shopping malls etc.management companies of large shopping malls etc.

• 2.) Company Development2.) Company Development– Organization: Organization: All founders are partnersAll founders are partners

– Teamwork: Teamwork: Partners +Partners + In-house staffIn-house staff

– People: People: Services Team (on-site, remote and hotline Services Team (on-site, remote and hotline support)support)

Framework of OrganizationFramework of Organization

• 3.) Business Development3.) Business Development – System Design : simple but innovative, System Design : simple but innovative,

new system for car park management in new system for car park management in HK, suitable for multi-storey car parksHK, suitable for multi-storey car parks

– Customer Services : meet customersCustomer Services : meet customers’’ expectation through questionnaires expectation through questionnaires

– Assembly & Test : local design Assembly & Test : local design – Operations : in-house staffOperations : in-house staff

Quality Management

• ISO 9000 certified

• EMSD’s approved system design

• All technicians are registered electrical workers

• All components & parts are RoHS & WEEE compliance Product

Develop & Evaluate Strategic Alternatives

• Two Strategic Alternatives for Operation:1.in-house engineering services2.completely out-sourcing

• Problems on Strategic Alternatives: 1.control of quality2.communication3.competition4.coordination5.costs

Alternatives for Operation

Pro Cons

* have own facilities/equipment

* quicker reaction to problems

* better control

* good communication

* have own facilities/equipment

* higher business security

* high set up cost

* high training cost

* cost on own facilities/equipment * no external technical support

* complicated management

Strategy of In-house Services

Alternatives for Operation

Pro Cons

* low set up cost

* low training cost

* less own facilities/equipment * external technical support

* trained personnel available

* flexible

* loss of direct control* quicker reaction to problems

* readily fixed costs

* hidden costs

* risk

Strategy of Out Source Services

Evaluation of Various Strategies

Management StrategiesAlternatives of Operation

In-house Staff Out-sourcing

control of quality

communication

competition

coordination

costs

Technology BackgroundParking Guidance SystemA displaying system that provides the latest parking information and directs the drivers to free parking space along the shortest possible route

Technology Background

Vehicle Detection Technology

Ultrasonic Object Detector Technology

Inductive Loop Detector Technology

Inductive Loop Detector

• A coil of wire is buried under the parking lot and connected to a roadside control box

Ultrasonic Detector

Ultrasonic Detector

- Install in the ceiling on each parking lot- Ultrasonic frequencies (25.8kHz or 24.7kHz)- To detect the presence of car in the

corresponding parking lot- LED is integrated in detector • to indicated two possible states

Free (Available) or Occupied

- Low construction/installation cost compared with inductor loop detector

Ultrasonic vs. Inductive Loop Criteria for comparison include:

Data accuracy, Environmental effect, Reliability, System expendability, Cost and Ease of installation and maintenance.

**Ultrasonic Inductive loop

Data accuracy Good (98% or above) Good (98% or above)

Environmental Effect Low Low

Reliability Good Good

System expendability Good Medium

Ease of installation/maintenance

Easy Difficult

Construction cost Medium High

Vehicle Detection Technology

• Ultrasonic Detector is selected

in our parking guidance system

Reference:

** Naoyuki Ushio and Toshiyuki Shimizu, “Loop vs ultrasonic in Chicago: Ultrasonic vehicle detector field test isolating diffused reflection and enduring harsh environment”, 1997

System Architecture of Parking Guidance System

System Architecture of Parking Guidance System

System Architecture of Parking Guidance System

Digital Display and Signage

Financial AnalysisSource of Funding

Friends

Bank Loans

Government Funding Scheme

Easy to borrow

Depends on degree of friendship

High interest rate for small business

More flexible

Strict application requirement

Tailor-made loan scheme

Financial Analysis

Initial Investment HK $ Annual Expenses HK $

Office Hardware 80,000 Direct Cost

Computer Software with license 80,000 Labor salary 648,000

R & D cost 60,000 Other Direct Cost 30,000

Marketing Promotion 50,000 Indirect Cost

Working Capital 50,000 System Maintenance 10,000

Quality Control & Testing 10,000 Marketing Promotion 10,000

Taxes and insurance 60,000

Other Indirect Cost 30,000

Total 330,000 Total 788,000

Financial Analysis

Net income from each project HK $

1. Ultrasonic detector 126,250

2. Microprocessor-based controller 7,500

3. Equipment rack/housing for the controller 1,500

4. Central workstation sever computer 12,000

5. Parking guidance system software with 1 year license 28,000

6. Hubs/Routers 1,000

7. Building service provisions 85,000

8. Related shielded cables 54,400

9. Uninterruptible power supply 27,000

10. LED display board 13,000

11. Consultancy and installation & testing 65,000

Total cost for 1 project 420,650

Markup price for each project: 40% on the total project cost

Selling Price = HK$ 420,650 X 1.4

= HK$ 588,910

Total Income from *projects each year:

Total Income = HK$ 588,910 X 5

= HK$ 2,944,550

* Assume 5 projects each year

Financial Analysis

Income Calculation:

Consultancy Income: 80% of the project cost category 11 Consultancy Income = HK$ 65,000 X 80% = HK$ 52,000 Markup Profit = HK$ 168,260

Total Profit for each year = HK$ (52,000 + 168,260) X 5 = HK$ 1,101,300

Net Profit = Total Profit – Total Expenses = HK$ 1,101,300 – HK$ 788,000 = HK$ 313,300

Financial AnalysisNet Profit for each project:

Financial Analysis

Payback Period:

Year Cash Inflow

HK$

Cash Outflow

HK$

Net Cash Flow

HK$

1 440,520 1,118,000 (677,480)

2 1,101,300 788,000 (364,180)

3 1,101,300 788,000 (50,880)

4 1,101,300 788,000 262,420

Payback period: 3 + [50,880/(1,101300 - 788,000)] X 12 = 3 year and 2 months

Time ScheduleMonth

1Tasks

Stage 1: Requirement Study (30 days)(1.1) Operation and Process Review(1.2) Technology Review(1.3) Requirement Checklist Finalization

Stage 2: System design and development (100 days)(2.1) Design of System(2.2) Coding of System (2.3) Testing version/ Demo Version Roll Up

Stage 3: System testing (60 days)(3.1) Design of Testing Plan(3.2) System Acceptance Testing and Pilot Run (3.3) System Fine-tuning(3.4) System Final Version Release

Stage 4: Training and marketing (60 days)(4.1) Promotion Start(4.2) System Training for Supporting Staff

Month2

Month3

Month4

Month5

Month6

• Strategy plans are fully achieve the mission statements & Strategy plans are fully achieve the mission statements & objectivesobjectives

• The functions of the Parking Guidance System is based on The functions of the Parking Guidance System is based on the customers needthe customers need

• No market competitor as a result of high profit margin No market competitor as a result of high profit margin tends to shorten the payback periodtends to shorten the payback period

Conclusions

Question & Answer

Thank You !Thank You !