Through market research and competitor analysis Nebraska Toaster Company has found a market for toaster oven...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Through market research and competitor analysis Nebraska Toaster Company has found a market for toaster oven new product that is not currently being produced by competitors. This new toaster can toast bagels or regular toast bread or grill sausages. It will be targeted for a consumer group of young family households. The customer requirements and important features to the consumer have been identified and the Nebraska Toaster Company will focus on these for the toaster oven design. The criteria are: Nebraska Toaster Company wants to competitively match the price toaster oven to basic toasters; the competitive market price is $20.00. Nebraska Toaster Company wants to earn a profit of 20 % of sales price. Relevant cost information for the company follows in Table 1. Most of the life cycle activities are done inside the firm, but shipping is outsourced. Value Chain Table 1 Life Cycle and Value Chain Analysis Life Cycle R&D Manufacturing Selling Shipping General Adm. Total Target $ 4.00 Toasts properly Size (25%) 9.00 Speed of toasting Toaster capacity Appearance Easy to clean (56%) 1.60 (10%) Inside Current Gap $ 4.20 $ 0.20 12.00 1.80 0.70 3.00 0.20 0.50 (3%) $ 15.10 $ 18.70 $ 3.60 (94%) 0.20 Target $0.90 (6%) $ 0.90 (6%) Outside Current Gap $ 1.00 $0.10 $ 1.00 S 0.10 Target $ 4.00 (25%) 9.00 (56%) 1.60 (10%) 0.90 (6%) 0.50 (3%) $16.00 Total Current Gap $4.20 $0.20 12.00 1.80 3.00 0.20 1.00 0.10 0.70 0.20 $19.70 $3.70 The toaster company through value engineering and continuous improvement plans to determine a way to reach the target cost by looking at the products life cycle and its value chain activities to determine where to reduce costs. Step 1-- Product Functional Cost analysis Nebraska Toaster Company plans to implement functional analysis to target areas of cost reduction. Here the company breakdowns the current $12.00 manufacturing costs (from Table 1 "Manufacturing" row and "Total Current" column) for the toaster oven by the components' estimated costs and functions performed. The result is in Table 2. Table 2 Product Functional Cost Analysis Component Heating Unit Display Light Lever Spring Coil Temperature Control Timer Body Design Crumb and Grease Catcher TOTAL Function Toast bagels or grill sausages Indicates the process of toasting or grilling Lowers bagels or sausages into toaster & initiates toasting or grilling Pops up bagels or sausages when toasted or grilled Controls degree of toasting or grilling Holds bagels or sausages Catches crumbs and greases & is removable for cleaning Current Cost Table 3 Customer Requirement Analysis $2.40 1.60 0.60 0.60 0.60 5.10 1.10 $12.00 % of Cost 100% 20 13 5 5 5 43 9 The Nebraska Toaster Company plans to rank the features of the new bagel toaster according to customer preferences and requirements, in Step 2. Step 2 -- Customer Requirement Analysis Nebraska Toaster Company selected a customer focus group to rank the six most important characteristics or requirements as shown in Table 3. Customer Requirements Toasts and grills properly Size Speed of teasting or grilling Toaster oven capacity Appearance Easy to clean TOTAL Customer Ranking Ranking is from 1-5, 5 the most important 5 3 3 2 1 4 Relative Ranking % Raw Score 18 5 3 3 2 I 4 28 17 17 11 5 22 100 The customers rank the criteria -- toast or grill properly, cleaning, and size -- as the most important relative to the other customer characteristics or requirements. The next process compares the customer requirement features to the component functions. Step 3 -- Quality Function Development Analysis Nebraska Toaster Company engineers assessed the new toaster oven product's functional performance as shown in Table 4. Table 4 Quality Functional Performance Assessment Components or Functions Customer Requirements Toasts properly Size Speed of toasting Toaster capacity Appearance Easy to clean Required: Heating Unit 50% 50% 70% 30% 50% Display Light 20% Lever Spring Coil 20% 5% I 20% Temp. Control & Timer 10% 10% Body Design 50% 20% 60% 80% 45% Crumb Catcher 5% 5% Total 100% 100% 100% 100% 100% 100% 1. Calculate the target cost for the toaster 2. Using the information above, develop a ranking of product functions that gives the company the importance and value of each component relative to the features that create value to the customer. Through market research and competitor analysis Nebraska Toaster Company has found a market for toaster oven new product that is not currently being produced by competitors. This new toaster can toast bagels or regular toast bread or grill sausages. It will be targeted for a consumer group of young family households. The customer requirements and important features to the consumer have been identified and the Nebraska Toaster Company will focus on these for the toaster oven design. The criteria are: Nebraska Toaster Company wants to competitively match the price toaster oven to basic toasters; the competitive market price is $20.00. Nebraska Toaster Company wants to earn a profit of 20 % of sales price. Relevant cost information for the company follows in Table 1. Most of the life cycle activities are done inside the firm, but shipping is outsourced. Value Chain Table 1 Life Cycle and Value Chain Analysis Life Cycle R&D Manufacturing Selling Shipping General Adm. Total Target $ 4.00 Toasts properly Size (25%) 9.00 Speed of toasting Toaster capacity Appearance Easy to clean (56%) 1.60 (10%) Inside Current Gap $ 4.20 $ 0.20 12.00 1.80 0.70 3.00 0.20 0.50 (3%) $ 15.10 $ 18.70 $ 3.60 (94%) 0.20 Target $0.90 (6%) $ 0.90 (6%) Outside Current Gap $ 1.00 $0.10 $ 1.00 S 0.10 Target $ 4.00 (25%) 9.00 (56%) 1.60 (10%) 0.90 (6%) 0.50 (3%) $16.00 Total Current Gap $4.20 $0.20 12.00 1.80 3.00 0.20 1.00 0.10 0.70 0.20 $19.70 $3.70 The toaster company through value engineering and continuous improvement plans to determine a way to reach the target cost by looking at the products life cycle and its value chain activities to determine where to reduce costs. Step 1-- Product Functional Cost analysis Nebraska Toaster Company plans to implement functional analysis to target areas of cost reduction. Here the company breakdowns the current $12.00 manufacturing costs (from Table 1 "Manufacturing" row and "Total Current" column) for the toaster oven by the components' estimated costs and functions performed. The result is in Table 2. Table 2 Product Functional Cost Analysis Component Heating Unit Display Light Lever Spring Coil Temperature Control Timer Body Design Crumb and Grease Catcher TOTAL Function Toast bagels or grill sausages Indicates the process of toasting or grilling Lowers bagels or sausages into toaster & initiates toasting or grilling Pops up bagels or sausages when toasted or grilled Controls degree of toasting or grilling Holds bagels or sausages Catches crumbs and greases & is removable for cleaning Current Cost Table 3 Customer Requirement Analysis $2.40 1.60 0.60 0.60 0.60 5.10 1.10 $12.00 % of Cost 100% 20 13 5 5 5 43 9 The Nebraska Toaster Company plans to rank the features of the new bagel toaster according to customer preferences and requirements, in Step 2. Step 2 -- Customer Requirement Analysis Nebraska Toaster Company selected a customer focus group to rank the six most important characteristics or requirements as shown in Table 3. Customer Requirements Toasts and grills properly Size Speed of teasting or grilling Toaster oven capacity Appearance Easy to clean TOTAL Customer Ranking Ranking is from 1-5, 5 the most important 5 3 3 2 1 4 Relative Ranking % Raw Score 18 5 3 3 2 I 4 28 17 17 11 5 22 100 The customers rank the criteria -- toast or grill properly, cleaning, and size -- as the most important relative to the other customer characteristics or requirements. The next process compares the customer requirement features to the component functions. Step 3 -- Quality Function Development Analysis Nebraska Toaster Company engineers assessed the new toaster oven product's functional performance as shown in Table 4. Table 4 Quality Functional Performance Assessment Components or Functions Customer Requirements Toasts properly Size Speed of toasting Toaster capacity Appearance Easy to clean Required: Heating Unit 50% 50% 70% 30% 50% Display Light 20% Lever Spring Coil 20% 5% I 20% Temp. Control & Timer 10% 10% Body Design 50% 20% 60% 80% 45% Crumb Catcher 5% 5% Total 100% 100% 100% 100% 100% 100% 1. Calculate the target cost for the toaster 2. Using the information above, develop a ranking of product functions that gives the company the importance and value of each component relative to the features that create value to the customer.
Expert Answer:
Answer rating: 100% (QA)
a The target cost for the toaster is 1600 Show your working please 1600 20 x 800... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Choose an activity or behavior that is not currently considered deviant in the United States and develop a proposal to seek legal change. The proposal should include a logical set of justifications...
-
A survey research group conducts regular studies of households through mail questionnaires and is concerned about the factors influencing the response rate. In an experiment, 30 sets of...
-
A company that makes toaster ovens has done extensive testing on the accuracy of its temperature setting mechanism. For a previous toaster model of this company, the standard deviation of the...
-
Value Mapping Use the attached information to map the current state map and future state map. Jack's Taxes Jack is a CPA and maintains a practice in personal, self-employed and small business income...
-
Review the chapters opening feature highlighting Jacquelyn Tran and her company, Beauty Encounter. Assume that Beauty Encounter consistently maintains an inventory level of $300,000, meaning that its...
-
If a player rolls a 2, 3, or 12, it is called craps. What is the probability of getting craps or an even sum on one roll of the dice? a. 4/36 b. 18/36 c. 20/36 d. 22/36 e. 32/36 The casino game craps...
-
Determine the number of ways in which a software professional can choose 4 of 25 laptops to test a newly designed application.
-
A car dealer acquires a used car for $ 14,000, terms FOB shipping point. Additional costs in obtaining and offering the car for sale include $ 250 for transportation-in, $ 900 for import duties, $...
-
A vacation property valued at $29,900 was bought for 300 payments of $235 due at the end of every month. What nominal annual rate of interest compounded quarterly was charged?
-
A certain tank has a circular bottom area A = 20 ft2. It is drained by a pipe whose linear resistance is R = 150 m-1sec-1. The tank contains water whose mass density is 1.94 slug/ft3 a. Estimate how...
-
Smart businesses in all industries use data to provide an intuitive analysis of how they can get a competitive advantage. The real estate industry heavily uses linear regression to estimate home...
-
Green Caterpillar Garden Supplies Inc. has the following end-of-year balance sheet: Green Caterpillar Garden Supplies Inc. Balance Sheet For the Year Ended on December 31 Assets Liabilities Current...
-
. . FastCars is debating whether its next car model should be a gas or electric car. Due to factory limitations, FastCars will only be able to introduce one new model in the next five years . Both...
-
The following is the trend of PSEI monthly values: Axis Title 1. 1,600.00 1,400.00 1,200.00 1,000.00 800.00 600.00 400.00 200.00 0.00 Required: PSEI y= 5.0896x+614.29 1 6...
-
During the financial year ended 30th June 2019, Milk Park Ltd received rental revenue of 38,500 which relates to the following financial year. The related revenue is taxable by the ATO when the...
-
1. A production Enterprise is considering introduction of a new product into the market. Detailed calculations of expected revenues are presented in the table below: Thousands euro Revenues Year 1...
-
XYZ Corporation, a well-established mid-sized manufacturing company with a history spanning over four decades, was confronting a multitude of challenges that were endangering its profitability and...
-
Two mutually exclusive investment alternatives are being considered. Alternative A requires an initial investment of $20,000 in a machine. Annual operating and maintenance costs are anticipated to be...
-
Based on the information available at www.Cisco.com describe Cisco Systems positioning strategy.
-
What role can internal marketing play in enhancing effectiveness of both planning and implementation?
-
Discuss how government may participate in helping domestic companies develop their competitive advantages in an industry such as aerospace products.
-
Using Mendels data from the experiment in Figure 2.8, conduct a chi square test to determine if the data agree with Mendels law of independent assortment. Mendels data: THE DATA P cross F1 generation...
-
On rare occasions, an organism may have three copies of a chromosome and therefore three copies of the genes on that chromosome (instead of the usual number of two copies). The alleles for each gene...
-
Outline the steps that occur when piRITS or piRISC silences transposable elements by repressing transcription and by directly inhibiting TE RNAs, respectively. What is the role of piRNAs in this...
Study smarter with the SolutionInn App