OmnAuto(“All Car”)

October 20, 2003 2

Members

J an e t Br u n elleG en er a l M an ag er

Z eal P a te lP r o jec t M an ag er

D eb o r ah An d er s o nL eg al An aly s t

M ic h ae l J an d aM ar k etin g

W ay n e L ettR es ear c h an dD ev elo p m en t

C h r is to p h er O s b o r n eF in an c e

S c o t P o s tlew aitW eb D es ig n er

J er em y W ils o nT ec h n ic a l S u p p o r t

October 20, 2003 3

OmnAuto

1. Define the Problem

2. US Government Issues

3. Define the Solution

4. Market Identified

5. Issues and Risk

6. Funding and Scheduling

7. Conclusion

October 20, 2003 4

Societal Problem Defined

The U.S. National Traffic Safety Administration states that one in three vehicles are unknowingly being driven

with one or more significantly under inflated tires.

October 20, 2003 5

Problem Characteristics

In a survey of 2,350 drivers:• 66% of drivers don’t know where to find

recommended tire pressure• 45% of drivers think you can visually

inspect a tire for low pressure• Only 9% of drivers accurately and regularly

check their tire pressure

*Rubber Manufacturer’s Association

October 20, 2003 6

Safety is at Risk

• 23,000 crashes per year caused by tire blowouts

• 535 of those are fatal

*National Highway Traffic Safety Administration

October 20, 2003 7

Federal Mandates

• Transportation Recall Enhancement Accountability and Documentation Act (TREAD Act)

• Tire pressure monitoring – Section 13

• Monitoring will be phased in

October 20, 2003 8

Federal Mandates Issues

• Provisions for direct and indirect monitoring

• Declared ineffective and must be rewritten for only direct monitoring

*Detroit News

October 20, 2003 9

Alert Level – Federal MandatesIdeal pressure = 35 psi cold

20.0

25.0

30.0

35.0

40.0

45.0

50.0

0 25 50 75 100 125 150 175 200 225 250 275

Temperature

Pre

ssu

re

Ideal

Direct Alert

Indirect Alert

24psi

October 20, 2003 10

Proposed solution identified

The OmnAuto system provides the capability to alert the driver of low pressure relative to temperature and

maintains a history of pressure, temperature, vehicular speed, and mileage.

October 20, 2003 11

Objectives

• Operation when the key is in the “on” position

• Record tire pressure, temperature, vehicle speed, and mileage every 2 minutes while vehicle is “on”

• Data is recorded in separate memory unit

October 20, 2003 12

Objectives Continued

• Method to record significant equipment changes – tire replacement or repairs

• Availability of data to consumers

• Availability of data to mechanics

• Use of Graphs to analyze data

October 20, 2003 13

Historical Data OutputTemp vs Miles

70

90

110

130

150

170

190

210

230

79990 80000 80010 80020 80030 80040 80050 80060 80070 80080

Miles

Te

mp

Tire1

Tire2

Tire3

Tire4

October 20, 2003 14

Component Diagram

October 20, 2003 15

Pros

• OmnAuto will save lives

• Pressure will be monitored more frequently than consumers currently average

• Will meet the Federal Mandate as currently written, and the changes ordered by the Federal Appeals Court

• Required technology is already available

October 20, 2003 16

Pros Continued

• Tires will wear more evenly

• Increased fuel efficiency

• Tire and Auto designs will both benefit due to the valuable “Real-World” historical data

• Consumers can play an active role in the safety of their vehicle

October 20, 2003 17

Cons

• 67% will rely on the system instead of checking tire pressure manually

• Relies on existing vehicle electrical system• Human interaction to upload data from the system• Reprogramming required on tire change or rotation

*Rubber Manufacturer’s Association

October 20, 2003 18

What Our Solution Will Do

• Monitor for temperature and pressure, and alert driver based on both

• Maintain history of pressure, temperature, vehicular speed, and mileage

• Data will be available to any service provider with industry standard equipment

October 20, 2003 19

What Our Solution Will Not Do

• Adjust tire pressure

• Prevent sensor failure

• Monitor Tread wear

• Indicate level of under pressurization

October 20, 2003 20

Market Defined and Analyzed

“It is already apparent that there are several courses of action required for this to be

successful but they all are dependent upon a better-informed consumer.”

-- John Bolegoh, SmarTire - February 2001 Comments to the National Highway Traffic Safety Administration

October 20, 2003 21

Market Defined

• Safety is critical to consumers

• New safety devices will be quickly embraced

*Dohring Company

October 20, 2003 22

Market Defined - 2

• Federal Mandates = Must be OEM equipment

• Our solution raises the bar on safety; must appeal to manufacturer

October 20, 2003 23

Market Defined - 3

• 11,425,000 vehicles produced in 2001– 1,142,500 by Nov 2004– 3,998,750 by Nov 2005– 7,540,500 by Nov 2006– 100% of all cars built after Nov 2006

*Bureau of Transportation Statistics

October 20, 2003 24

Competition Matrix

Intellivalve x x xMotorola x xSmarTire x x xSensoNor x xTire-SafeGuard xOmnAuto x x x x x

October 20, 2003 25

Technical Issues

• Connections to odometer, speedometer, and keyless entry system

• Processor Chip/Board

• Memory

• Housing

• Integrated Software

October 20, 2003 26

Management Methods Issues

• Obtaining a contract with automaker

• Coordination of software and hardware teams

• Employee Lifecycle

• Legal issues

• Project Deadline

October 20, 2003 27

Risk Issues

• Liability if the sensors are not functioning properly

• Proprietary protocols for existing car networks

• Government Mandates

• Time to market

October 20, 2003 28

Resource Issues

• Existing sensor manufacturers meeting our production needs

• Maintain project schedule

• Initial development funding prior to establishing a contract

October 20, 2003 29

Time Feasibility

Se

pt

Oct

No

v

De

c

Jan

Fe

b

Ma

r

Ap

r

Ma

y

Jun

Jul

Au

g

Concept Development

Research & Development

Construction

Testing

Implementation

SBIR Phase KeyPhase 0Phase 1Phase 2

5 months

5 months

2 months

2003 2004

2 months

5 months

October 20, 2003 30

Monetary Feasibility# Man Months Salary

Project Manager 1 12 86,282.00$ Marketing/ Public Relations 1 12 41,637.00$ Software Engineer 2 24 115,422.00$ Hardware Engineer 1 4 21,381.33$ Test Engineer 3 19.5 86,230.63$ Lawyer 1 3 26,893.75$ Technical Writer 1 1 3,877.67$ Support Staff 2 16 54,597.33$ Professional Driver 1 1 5,000.00$

441,321.71$ Total Development Cost

October 20, 2003 31

Cost Per Unit

56MB memory chip 60.00$ Processor Board/Chip 120.00$ Housing 100.00$ Connecting Hardware 20.00$ Overhead 45.00$ Sensors 75.00$

Total 420.00$

Estimated Product Cost per Unit

October 20, 2003 32

Market Share Required

Development Cost 441,321.71$ Cost per Unit 420.00$

Sales Price per Unit 433.00$

Units sold for Breakeven 29,421

Cars needing sensor in 2005 4,000,000

Market Share to Break even 0.736%

October 20, 2003 33

Conclusion

• Tires are not properly inflated

• Federal Mandate is not strong enough

• If data is available, safety will improve, both long and short term

• If we save only one life, OmnAuto will be a huge success.