HOMEWORK $7$

The Daugherty Porta$-$Vac Project

The H$.$ S$.$ Daugherty Company has manufactured industrial

vacuum cleaning systems for many years. Recently, a member of

the company's new$-$product research team submitted a report

suggesting that the company consider manufacturing a cordless

vacuum cleaner.

The new product, referred to as a Porta$-$Vac, could contribute to

Daugherty$$s expansion into the household market. Management

hopes that it can be manufactured at a reasonable cost and that

its portability and no$-$cord convenience will make it extremely

attractive.

Daugherty$$s management wants to study the feasibility of

manufacturing the Porta$-$Vac product. The feasibility study will

recommend the action to be taken. To complete this study,

information must be obtained from the firm's research and

development $($R&D$),$ product testing, manufacturing, cost

estimating, and market research groups. List of activities,

estimated duration and cost are given in the following table.