Question
Assume the first pass manufacturing cost for the ezB electric mountain bike exceeds its target manufacturing cost by $46.00. To eliminate this cost gap, ezB
Assume the first pass manufacturing cost for the ezB electric mountain bike exceeds its target manufacturing cost by $46.00. To eliminate this cost gap, ezB interviews potential customers of the bike and determines they value (on a 10pt scale) the following key features of its newly developed mountain bike:
Preferences / | Feature Pref | electric bike product engineers indicate the % of these | ||
Features | Ranking | features come from the following parts : | ||
Smooth Ride | 7 | 30% from Part A; 70% from Part B | ||
Fast Charging | 10 | 10% from Part A; 80% from Part C; 10% from Part D | ||
Stops Quickly | 8 | 40% from Part B; 40% from Part C; and 20% from Part D |
The ezB development and manufacturing team evaluate 4 parts which contribute to these features potential customers have just evaluated. These 4 parts and their costs are:
Part A: $150,00
Part B: $115.00
Part C: $285.00
Part D: $100.00
Create Value Index for these 4 parts based on their costs and features customers value. Based on this value index, what management actions should be taken for each of these 4 parts?
Group of answer choices
a) Part A: No Action; Part B: Enhance; Part C: Reduce; Part D: Reduce.
b) Part A: Enhance; Part B: No Action; Part C: Reduce; Part D: No Action.
c) Part A: Reduce; Part B: Enhance; Part C: No Action; Part D: Enhance.
d) Part A: No Action; Part B: Reduce; Part C: Enhance; Part D: Reduce.
e) Part A: Reduce; Part B: Enhance; Part C: No Action; Part D: Reduce.
f) None of the above
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