Determine which components of the boat are most important

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Reference no: EM13877483

Target Costing Quality Function Deployment Ranger Yacht manufactures a line of family cruiser/ racing sailboats. The boats are well-known for their quality, safety, and performance. Ranger hired Matthew Perry, a well-known sailboat designer and racer, to design a new sailboat, the M33. The M33 will have advanced materials in the hull and rigging to enhance the safety and performance of the boat, and also to improve its overnight comfort. Safety and comfort are the two most important boat- buying criteria of Ranger's customers, rated at 33 percent and 32 percent respectively, on a 100 point scale. The other two criteria are performance (20 percent) and styling (15 percent). The overall length of the boat is about 33 feet; its two sleeping areas have room for five or six people. Ranger projects a sale price of approximately $200,000 and estimates the costs of manufacturing the M33 as shown in Table 1.

Table 1

Component

Target Cost

Percentage of Total

Hull and keel

$36,000

30%

Standing rig

18,000

15

Sails

20,000

17

Electrical

16,000

13

Other

30,000

25



100%

A team of engineers and sales managers studied the projected cost and was able to identify how each component of the planned boat contributed to satisfying the customers' criteria. The results of this study, based on careful estimates, is shown in Table 2. For example, the estimates show that 30 per- cent of the customers' desire for safety is satisfied by the construction of the hull and keel, another 30 percent by the standing rigging.

Table 2

Component

Safety

Styling

Performance

Comfort

Hull and keel

30%

40%

50%

30%

Standing rig

30

20

20

10

Sails

10

10

30

10

Electrical

20

10

-

-

Other

10

20

-

50

 Criteria

100%

100%

100%

100%

Required

1. Using the information in Table 2 developed by the team of engineers and sales managers, together with the customer criteria, determine which components of the boat are most important to customers, and why.

2. Take your findings in requirement 1 and compare them against the target cost figures in Table 1. What conclusions can you draw from this comparison?

Reference no: EM13877483

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