R&D
Overview
Research and Development (R&D) within the natural graphite sector must be effective and continuous, as it is considered a key success factor within the business. To this end, Mega Graphite’s R&D process is uniquely customer-centric in its focus and is designed to achieve three goals:
- To develop and offer leading edge natural graphite products that can be tailored to meet both standardized and highly individualized specifications.
- To continually improve production processes that effectively manages production costs and improves profit margins.
- To enhance operations such that the Company meets its commitments to environmental sustainability and human resource improvement.
This approach recognizes that the nature of the natural graphite sector is characterized by a continual evolution of product specifications as customers undergo new process and cost demands, and development discontinuity as new applications and technologies continue to emerge. An effective R&D program must incorporate these realities in order to compete in the natural graphite sector.
The Company’s program also relies on strong working relationships with external with key research organizations such as Hydro Quebec and the University of Manchester. These groups allow the Company to leverage its own efforts through access to leading edge equipment, processes, and ultimately new high margin products. Using this framework, the Company has developed R&D objectives as outlined below.
R&D Objectives
1.Develop / Grow Market Share – short term and long term.2.Develop New Products and Processes.
3.Establish and Achieve Profit Margin Targets.
4.Pursue Balance of Product Sustaining (short term) and Strategic Research (long term) Activities.
5.Establish and maintain key strategic relationships with public and private research organizations.
Mega Graphite's R&D Program:
1. Is designed to support ongoing product evolution (product sustaining).
2. Prepare for and manage anticipated and emerging discontinuity (strategic development).
R&D Projects
Product Sustaining Projects
•Ongoing support and enhancement of existing products•Typically a smaller ”r” research component (prototyping, alpha and beta testing)
•Greater use of internal resources
•Greater proportion of research budget
•Leverage funding opportunities through IRAC, SHRED, MITACS programs
Strategic Development Projects
•Prepare for discontinuity (3-5 years)
•Small Iterative Proof of Concept (POC) projects
•Gradually scale up investment as risk is retired
•Maximize use of low cost/high value external resources such as university Post Grads and Prof’s.
•Scale resources and overhead with investment to minimize costs
•Look for IP opportunities and threats
•Leverage funding opportunities through IRAC, SHRED, MITACS programsStrategic Development Projects
•Prepare for discontinuity (3-5 years)•Small Iterative Proof of Concept (POC) projects
•Gradually scale up investment as risk is retired
•Maximize use of low cost/high value external resources such as university Post Grads and Prof’s.
•Scale resources and overhead with investment to minimize costs
•Look for IP opportunities and threats
•Leverage funding opportunities through IRAC, SHRED, MITACS programs
Summary
•Operate from a customer-centric approach to provide generic and tailored products.
•Create clear objectives and "product development roadmap” for planned and emergent products and processes.
•Establish adequate budget funding to support both sustaining and strategic activities,
•Maintain continuous but small "proof of concept” projects to minimize financial risk.
•Leverage low cost/high value external resources where possible: government and university based research facilities.
•Leverage all available research funding to maximize budget and minimize risk.
•Assess all proprietary and/or intellectual property opportunities or threats before proceeding with R&D.
•Use R&D as company radar.
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Latest Graphite Prices
2012 Industrial Minerals Graphite Prices per Tonne
FCL CIF main European port
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News
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