DESIGN DEVELOPMENT OF AN INDIGENOUS TRICYCLE RICKSHAW
Phase 6: Planning for consumption Step 1: Design for maintenance
3.6 Feasibility study
3.6.6 Financial feasibility
Sixth step in feasibility study is the financial feasibility. A project cannot be realised if it is difficult to mobilize resources for its implementation in spite of being a meritorious one from every point of view and having great economic worth. Therefore it is essential to evaluate the tricycle rickshaw design project from this aspect. On actual scouting, the developmental expenditure was sponsored by North Eastern Development Finance Corporation (NEDFi). Once the tricycle rickshaw design was ready and functional prototype was tested, an NGO came forward to manufacture under Rickshaw Bank and this effort itself was funded by various corporations. Thus the concept proved economically worthwhile and financially feasible.
The last three steps, Physical realisability, Economic worthwhileness and Financial feasibility of the concepts worked like sieves. Physically realizable solutions passed through the first sieve; solutions possessing economic worthwhileness for producer/
manufacturer, distributor and consumer passed through the second sieve and financially feasible solutions passed through the third sieve. The solutions passing successfully through each of the three sieves was the useful set of solutions. In case of this research work, the conceptualization itself was constrained such that concepts created were physically realizable.
For evaluation of the concepts, a mixed group of 30 subjects comprising of 15 students, 10 staffs and 5 faculty members currently using traditional rickshaws as local transportation medium were selected randomly from the IIT Guwahati community. They were briefed about features of various concepts. Based on their expertise, they were requested to evaluate the concepts. They were also provided with cost structure of each concepts calculated beforehand. Rickshaw pullers currently using traditional rickshaws were also randomly selected from areas near IIT Guwahati and near the office of Centre for Rural Development, Guwahati and interviewed to know how much amount they will be able to return per day and their preferable repayment period. From the financial institutions, it was found out what will be the rate of interest on loans to be provided to the rickshaw pullers. These steps provided with sufficient data for finding out the economic worthwhileness and financial feasibility easily.
A Preferential Matrix was created with the concepts and their physical realisability, economic worthwhileness and financial feasibility (Chandra, 2004). Comparative grading of the concepts were carried out based on their physical realizability, economic worthwhileness and financial feasibility. Since there are 6 concepts, grading values were from 1-6; 1 being lowest and 6 being highest. In case of physical realizability, the lowest grade was given to the concept that can be realized with highest difficulty and highest grade to the concept with least difficulty.
For economic worthwhileness, the lowest grade was given to the concept that can be least economic worthwhile due to the factor that the concept being unfamiliar in Indian context may not pick up or chosen by the manufacturer and customer and highest grade
to the concept that are novel but with familiarity and can be conveniently manufactured and priced competitively.
For financial feasibility, the lowest grade was given to the concept that will require maximum in terms of capital investment and resources such as marketing effort and hence can be least feasible financially and highest grade to the concept that are novel but with familiarity and can use maximum materials and components from existing tricycle industry and hence can be conveniently manufactured and priced competitively.
With the above criteria, a preferential matrix was tabulated and is given in Table 3.6
Table 3.6 Preferential Matrix based on Physical realizability, Economic worthwhileness and Financial feasibility (Summary based on IIT Guwahati students, faculty and staff numbering 30, value given here is the average ones)
Concepts Concept 1 Concept 2 Concept 3 Concept 4 Concept 5 Concept 6 Physical
realizability
6 1 4 3 2 5
Economic worthwhile ness
3 1 4 5 2 6
Financial feasibility
3 1 4 5 2 6
12 3 12 13 6 17
Discussion regarding tricycle rickshaw concepts:
Amongst the tricycle rickshaw concepts, the concept 1 can be easily realized physically.
However addition of extended roof permanently over the passengers and puller solve the existing problem partially and it is being done in a very cheap and localized manner. It alone does not make this an economically worthwhile project for investment competing with the existing decentralized manufacturer. Regarding financial feasibility, the decentralized manufacturing units fabricates rickshaws with minimum or negligible overheads. The owner themselves works as workers and hence works without additional hired person. Thus earning their livelihood is the main return from their business. These manufacturers also fabricates only a few rickshaws at a time based on demand and after selling these starts the fabrication for more and extensively uses mild steel components made by blacksmiths out of scrap materials that contributes to lower cost. This keeps their working capital low. Thus manufacturing the new rickshaws as per concept 1 will be financially unviable because of cost of manufacture will be higher and competing with the existing decentralized manufacturer will be difficult with marginal changes in features, since form wise it will be very similar to the existing rickshaws.
Concept 2 is radical in Indian context. It will be also most difficult to realize physically with existing level of skill of the rickshaw fabricators or small enterprises due to unfamiliarity with this type of passenger rickshaw configuration. Braking and efficient steering is an issue with this concept. Thus its physical realization is linked to complex fabrication compared to traditional rickshaw. The unfamiliar design along with additional
mechanism to be made specifically for this concept will require enhanced cost inputs and its economic worthwhileness compared to traditional rickshaw is much lower, since it can not be ascertained whether it will be easily acceptable or not to the users, both passengers and the pullers. In absence of clear indications of economic worthwhileness, it is difficult to ascertain its financial feasibility. However creating awareness and changing mindsets of users will involve huge financial outlay. Thus financially, it is not feasible immediately.
Concept 3 is physically easily realizable although it does not meet all the design parameters. Process and design being simple, it can be manufactured in a financially feasible manner and it is economically worthwhile.
In fact most of the imitation of the newly designed tricycle rickshaw is in this configuration. (Fig. 7.29, 7.30, 7.34 and 7.35 pp 227-228). In the preferential matrix, Table 3.6, p 97, this concept earned the third highest total points.
The concept 4 can be realized physically but with comparable difficulty. Only advantage is that, a physical model in terms of the trike was available for its execution. Due to its novel features and configuration, it can be economically worthwhile since its pricing will not be directly depends on the common tricycle rickshaw and its manufacturing will be financially feasible, considering the available scopes for new rickshaws.
Concept 5 although appears to be simple has many difficulty in its physical realisability.
First a bicycle if taken as it is has shorter wheel base compared to a tricycle rickshaw to accommodate another row of seat for passengers. If a side attachment is used with an integrated roof makes it unstable and unbalanced specifically for two passengers. Also with existing bicycle, additional carrier to be manufactured with roof / canopy will not be economically worthwhile, because it can be sold only as an accessory. Thus financial feasibility is also low.
Amongst the tricycle rickshaw concepts, the concept 6 can be comparatively easy to realize physically with existing level of skill of the rickshaw fabricators and small enterprises engaged in fabrication of mild steel items such as furniture and equipments due to familiarity with this type fabrication and also familiarity with the passenger rickshaw configuration in spite of using a space frame or monocoque frame. Integration of extended roof permanently over the passengers and puller solve the existing problem and it is being done in a very competitively and localized manner. This concept meets most of the terms of design consideration for the design of the tricycle rickshaw. This makes the concept an economically worthwhile project for investment competing with the existing decentralized manufacturer. Regarding financial feasibility, in this concept, almost everything including the mainframe are fabricated in house and makes this more cost effective compared to the decentralized manufacturing units that fabricates rickshaws in spite of their minimum or negligible overheads, since this lower overhead expenses is balanced through lower cost of off the shelf components for fabrication of the rickshaw. Also the new rickshaw will be more durable and variety of materials and
types of skill required is reduced. Thus manufacturing the new rickshaws as per concept 6 will be financially feasible although the cost of manufacture may be marginally higher.
Competing with the existing decentralized manufacturer will not be difficult with considerable changes in features in spite of form wise it will be somewhat similar to the existing rickshaws.
Based on the above Concept 6 qualified through the three parameters of physical realizability, economic worthwhileness and Financial feasibility and considered for detailed design of the tricycle rickshaw.