I was recently tasked with coming up with a brief template for our 2014/15 ranges of furniture.
As part of my template, I have broken down the work into stages with hours estimated for the project. As it is in house, management want to evaluate this and put a dollar figure on it.
After adding in our hourly rate including overheads etc, I am a bit surprised as to how much it actually costs to design a range of furniture. These are not going to be overly complicated items. No injection moulding, casting or expensive tooling.
I am wondering if my estimates are accurate. How do design managers or consultants usually work this out? Can anyone suggest changes to my times, or am I on the right track? I don’t want to make the price too high as it may be the death of the project, but at the same time, I don’t want to estimate too low and risk going way over budget.
I have the following:
Stage 1 - Research: 10 hours
• Compile images from managers meeting and establish an aesthetic and commonality in function
• Research materials and processes
• Determine price point and market
Stage 2 – Ideation: 40 hours
• Sketches
• Initial 3D renders
• Scale models and 1:1 cardboard models
• Timber frame details
• Upholstery options
Stage 3 – Evaluation: 2 hours
• Present 5 options to management for input
• Review cost in relation to price point
• Choose 2 to develop further
Stage 4 – Detail design of 2 chosen designs: 120 hours
• More detailed 3D models and renders
• Design optimisation in relation to material availability
• Full scale production prototypes.
• Fabric meters estimate
• Labour hours estimate
• Cutting lists
Stage 5 – Market testing – Internal with sales managers: 2 hours
• Decide on final range
• Evaluate price point and objectives
Stage 6 – Production Prototypes: Time TBA
• One of each product – produce in factory
• Final detailing adjustments for manufacture
• Feel and test models
• Determine labour hours of final designs
Stage 7 – Design Documentation: 100 hours
• 3D models
• 2D drawings
• Assembly drawings
• Buy in component details and pricing
• Fabric patterns
• Data for planning if required
Stage 8 – Production: Time TBA
• Tooling and manufacturing liaison
• Provide further clarification to in house manufacturing, suppliers and contractors
Total design development hours: 234 HOURS