Question 5 Based on textbook Exhibit 1-3 (reproduced here) which product had the highest production investment per production unit? Stanley Tools Jobmaster Screwdriver 100,000 units/year Rollerblade In-Line Skate Hewlett-Packard DeskJet Printer 4 million units/year Volkswagen New Beetle Automobile 100,000 units/year Boeing 777 Airplane 50 100,000 units/year units/year Annual production volume Sales lifetime Sales price Number of unique parts (part numbers) 40 years $6 3 parts 3 years $200 35 parts 2 years $130 200 parts 6 years $20,000 10,000 parts 30 years $200 million 130,000 parts 1 year 2 years 1.5 years 3.5 years 4.5 years 3 people 5 people 100 people 800 people 6,800 people Development time Internal development team (peak size) External development team (peak size) Development cost Production investment 3 people 10 people 75 people 800 people 10,000 people $150,000 $750,000 $50 million $400 million $3 billion $150,000 $1 million $25 million $500 million $3 billion EXHIBIT 1-3 Attributes of five products and their associated development efforts. All figures are approximate, based on publicly available information and company sources. The airplane The screwdriver The rollerblades The printer The automobile Question 5 Based on textbook Exhibit 1-3 (reproduced here) which product had the highest production investment per production unit? Stanley Tools Jobmaster Screwdriver 100,000 units/year Rollerblade In-Line Skate Hewlett-Packard DeskJet Printer 4 million units/year Volkswagen New Beetle Automobile 100,000 units/year Boeing 777 Airplane 50 100,000 units/year units/year Annual production volume Sales lifetime Sales price Number of unique parts (part numbers) 40 years $6 3 parts 3 years $200 35 parts 2 years $130 200 parts 6 years $20,000 10,000 parts 30 years $200 million 130,000 parts 1 year 2 years 1.5 years 3.5 years 4.5 years 3 people 5 people 100 people 800 people 6,800 people Development time Internal development team (peak size) External development team (peak size) Development cost Production investment 3 people 10 people 75 people 800 people 10,000 people $150,000 $750,000 $50 million $400 million $3 billion $150,000 $1 million $25 million $500 million $3 billion EXHIBIT 1-3 Attributes of five products and their associated development efforts. All figures are approximate, based on publicly available information and company sources. The airplane The screwdriver The rollerblades The printer The automobile