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Practice Problems

Practice Problems. 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.

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Practice Problems

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  1. Practice Problems 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. © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  2. Practice Problems 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. © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  3. Practice Problems Problem 2: Prepare a bill-of-material for a ham and cheese sandwich. © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  4. 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 Practice Problems Problem 2: Prepare a bill-of-material for a ham and cheese sandwich. © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  5. Practice Problems Problem 3: Prepare an assembly chart for a ham and cheese sandwich. © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  6. Practice Problems Problem 3: Prepare an assembly chart for a ham and cheese sandwich. Based on the BOM in Problem 2, an assembly chart might look like © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  7. Practice Problems 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? © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

  8. Practice Problems 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? The EMV for the desktop systems is $620,000 vs. $320,000 for the integrated system. Therefore, Michael should purchase the desktop systems. © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

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