Practice Problems: Chapter 5, Design of ||Goods and Services
Practice Problems: Chapter 5, Design of Goods and Services
Problem 1:
You wish to compete in the super premium ice cream market. The task is to determine the wants of the super premium market and the attributes/hows to be met by their firm. Use the house of quality concept.
Market research has revealed that customers feel four factors are significant in making a buying decision. A “rich” taste is most important followed by smooth texture, distinct flavor, and a sweet taste. From a production standpoint, important factors are the sugar content, the amount of butterfat, low air content, and natural flavors.
Problem 2:
Prepare a bill-of-material for a ham and cheese sandwich.
Problem 3:
Prepare an assembly chart for a ham and cheese sandwich.
Problem 4:
Michael’s Engineering, Inc. manufactures components for the ever-changing notebook computer business. He is considering moving from a small custom design facility to an operation capable of much more rapid design of components. This means that Michael must consider upgrading his CAD equipment. Option 1 is to purchase two new desktop CAD systems at $100,000 each. Option 2 is to purchase an integrated system and the related server at $500,000. Michael’s sales manager has estimated that if the market for notebook computers continues to expand, sales over the life of either system will be $1,000,000. He places the odds of this happening at 40%. He thinks the likelihood of the market having already peaked to be 60% and future sales to be only $700,000. What do you suggest Michael do and what is the EMV of this decision?
ANSWERS:
Problem 1:
One possible solution for this problem is:
[pic]
Problem 2:
One possible BOM would be:
Bill of Material
Bread 2 slices
Ham 1 slice
Swiss Cheese 1 slice
Lettuce 1/26 head of lettuce
Mustard 2 teaspoon
Pickle relish 1 teaspoon
Paper plate 1
Paper napkin 1
Problem 3:
Based on the BOM in Problem 2, an assembly chart might look like:
[pic]
Problem 4:
[pic]
The EMV for the desktop systems is $620,000 vs. $320,000 for the integrated system. Therefore, Michael should purchase the desktop systems.
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