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58 CHAPTER 5 DE S I G N O F GO O D S A N D SE R V I C E S
5.18 The decision tree is shown here:
The joint design provides the lowest EMV and hence the lowest
expected cost.
60 CHAPTER 5 DE S I G N O F GO O D S A N D SE R V I C E S
5.21
Outcome calculations:
5.20 House of quality sequence for ice cream:
()()()()()()
90 10
$100,000 500 300 $1.20 500 300 $1.30
100 100
− + − =
CHAPTER 5 DE S I G N O F GO O D S A N D SE R V I C E S 61
Copyright ©2014 Pearson Education, Inc.
ADDITIONAL HOMEWORK PROBLEMS*
Solutions to Problems 5.22–5.28 that appear on our Web sites,
www.myomlab.com and www.pearsonhighered.com/heizer.
5.22 The answer should look something like the following:
Bill of Material for “Curried Couscous
Salad with Dried Cranberries”
Description
Quantity
Curried couscous salad with dried cranberries
1
Salad
1
Un-cooked couscous
1
2
1
cups
Dried cranberries
1 cup
Frozen peas—thawed
1 cup
Curry powder
1
2
tsp
Boiling water
2 cups
Thinly sliced green onions
1
4
cup
Finely chopped fresh basil
1
4
cup
Canned chickpeas
1
2
15
oz
Dressing
Fresh lemon juice
1
3
cup
Grated orange ring
1 tbsp
Water
2 tsp
Olive oil
1
2
1
tbsp
Thawed orange juice concentrate
1 tbsp
Black pepper
1
4
tsp
Garlic cloves, crushed
4
5.23 “Product-by-value” analysis for products A, B, C, D, E:
Individual
Total
Contribution
Contribution
C
Keep these
D
D
C
A, E
Investigate
B
B
these for
A
replacement
E
5.24 Bill of material for a wooden pencil with eraser:
Description
Quantity
Pencil
1
Wood half
2
Graphite rod
1
Band
1
Eraser
1
Yellow paint
2 grams
5.25 Bill of material for a table:
Table
Table
1
Table Top
1
Frame:
Back
1
Front
1
Left Side
1
Right Side
1
Bracket
4
Bolt
4
Washer
4
Nut
4
Legs:
Legs
4
Casters
4
5.26 Bill of material for a computer mouse (GeniMouse):
Bill of Material for GeniMouse
Part Number
Description
Quantity
GM1001
GeniMouse
1
SC004
Phillips Head No.12 0.5 inch. Screw
1
TA101
Top Mouse Assembly
1
CB101
Center Button
1
CBC101
Center Button Clip
1
RB101
Right Button
1
LB101
Left Button
1
PB101
Palm Base
1
BA101
Base Assembly
1
IA101
Idler Assembly
1
IS101
Idler Spring
1
IR101
Idler Roller
1
MB101
Ball
1
BW101
Base Ball Washer
1
BP101
Base Rest Pads
5
BA101
Board Assembly
1
CA101
Cable Assembly
1
DB101
Digital Board
1
CW101
Control Wheel
2
GML101
GeniMouse Label
1
5.27 Sample bill of materials for a mechanical pencil:
ID
Description
Quantity
A1
Mechanical Pencil
1
B1
Top half
1
C1
Top casing
1
C2
Pocket clip
1
C3
Plunger cap
1
C4
Plunger
1
C5
Small spring
1
C6
Brass guide
1
C7
Brass Clamp
1
C8
Eraser
1
62 CHAPTER 5 DE S I G N O F GO O D S A N D SE R V I C E S
An implication (not necessarily correct) in constructing the
bill of material in this fashion is that all assembly operations will
5.28 The decision tree is:
Copyright ©2014 Pearson Education, Inc.
1. De Mar’s product is primarily service. There is a tangible
product (air conditioners and plumbing components—pipe,
valves, faucets, blowers, ductwork, etc.), but the distinguishing
2. Marketing needs to support the product by selling a special,
reliable, quality service. Finance needs to support the product by
providing friendly, easily obtained financing. Personnel need to be
careful to convey the service and attitude that goes with a premi-
3. ◼ Quality: Must permeate all of the product/service activi-
ties. See the service quality discussion in Chapter 6.
◼ Design of the good and service: Both the product and ser-
vice components must be selected and designed to fulfill
high quality aspects of the mission. Some aspects of this
design will have customer input.
lation and/or repair issues like packaging, neatness, and
cleanup will all be part of the process.
◼ Location: May not be critical at De Mar because the prod-
uct is delivered.
◼ Layout: Warehouse and truck layout may impact efficiency
and speed of delivery for those emergency calls.
◼ Human resources: Are very important because of the cus-
cal element of estimating that must be done very accurate-
ly; substantial training.
◼ Supply-chain management: The quality of the equipment
chosen for initial installation and parts will make substan-
tial difference in the product/service delivered. Conse-
◼ Scheduling: These clients will expect effective scheduling—
having the right part and personnel available as needed and
then meeting the established delivery/repair schedule.
equipment may be the most critical maintenance elements
here.
VIDEO CASE STUDY
The 7-minute video available from Pearson Prentice Hall, filmed
specifically for this text, supplements the written case.
1. The concept of product life cycle applies to Regal Marine because
Regal is constantly under pressure to introduce new products—and
those products have life cycles of relatively few years. As the
video suggests, it is a matter of typically less than 5 years before a
2. Regal Marine uses a strategy of product differentiation, which
constantly introduces new products with new innovations and new
styling to stay competitive in the luxury performance boat market.
3. The cost and time saving at Regal Marine through use of
CAD is typical of the use of CAD everywhere. It allows a variety
of designs and styles to be tested very economically. The ratio of
4. The payoff from CAD is not only evident in efficiency, crea-
tive designs, and styling but in production of the code necessary
for the numerical machines, such as the machines used to make
the plugs (molds) in Washington State and for those applications
60 CHAPTER 5 DE S I G N O F GO O D S A N D SE R V I C E S
5.21
Outcome calculations:
5.20 House of quality sequence for ice cream:
()()()()()()
90 10
$100,000 500 300 $1.20 500 300 $1.30
100 100
− + − =
CHAPTER 5 DE S I G N O F GO O D S A N D SE R V I C E S 61
Copyright ©2014 Pearson Education, Inc.
ADDITIONAL HOMEWORK PROBLEMS*
Solutions to Problems 5.22–5.28 that appear on our Web sites,
www.myomlab.com and www.pearsonhighered.com/heizer.
5.22 The answer should look something like the following:
Bill of Material for “Curried Couscous
Salad with Dried Cranberries”
Description
Quantity
Curried couscous salad with dried cranberries
1
Salad
1
Un-cooked couscous
1
2
1
cups
Dried cranberries
1 cup
Frozen peas—thawed
1 cup
Curry powder
1
2
tsp
Boiling water
2 cups
Thinly sliced green onions
1
4
cup
Finely chopped fresh basil
1
4
cup
Canned chickpeas
1
2
15
oz
Dressing
Fresh lemon juice
1
3
cup
Grated orange ring
1 tbsp
Water
2 tsp
Olive oil
1
2
1
tbsp
Thawed orange juice concentrate
1 tbsp
Black pepper
1
4
tsp
Garlic cloves, crushed
4
5.23 “Product-by-value” analysis for products A, B, C, D, E:
Individual
Total
Contribution
Contribution
C
Keep these
D
D
C
A, E
Investigate
B
B
these for
A
replacement
E
5.24 Bill of material for a wooden pencil with eraser:
Description
Quantity
Pencil
1
Wood half
2
Graphite rod
1
Band
1
Eraser
1
Yellow paint
2 grams
5.25 Bill of material for a table:
Table
Table
1
Table Top
1
Frame:
Back
1
Front
1
Left Side
1
Right Side
1
Bracket
4
Bolt
4
Washer
4
Nut
4
Legs:
Legs
4
Casters
4
5.26 Bill of material for a computer mouse (GeniMouse):
Bill of Material for GeniMouse
Part Number
Description
Quantity
GM1001
GeniMouse
1
SC004
Phillips Head No.12 0.5 inch. Screw
1
TA101
Top Mouse Assembly
1
CB101
Center Button
1
CBC101
Center Button Clip
1
RB101
Right Button
1
LB101
Left Button
1
PB101
Palm Base
1
BA101
Base Assembly
1
IA101
Idler Assembly
1
IS101
Idler Spring
1
IR101
Idler Roller
1
MB101
Ball
1
BW101
Base Ball Washer
1
BP101
Base Rest Pads
5
BA101
Board Assembly
1
CA101
Cable Assembly
1
DB101
Digital Board
1
CW101
Control Wheel
2
GML101
GeniMouse Label
1
5.27 Sample bill of materials for a mechanical pencil:
ID
Description
Quantity
A1
Mechanical Pencil
1
B1
Top half
1
C1
Top casing
1
C2
Pocket clip
1
C3
Plunger cap
1
C4
Plunger
1
C5
Small spring
1
C6
Brass guide
1
C7
Brass Clamp
1
C8
Eraser
1
62 CHAPTER 5 DE S I G N O F GO O D S A N D SE R V I C E S
An implication (not necessarily correct) in constructing the
bill of material in this fashion is that all assembly operations will
5.28 The decision tree is:
Copyright ©2014 Pearson Education, Inc.
1. De Mar’s product is primarily service. There is a tangible
product (air conditioners and plumbing components—pipe,
valves, faucets, blowers, ductwork, etc.), but the distinguishing
2. Marketing needs to support the product by selling a special,
reliable, quality service. Finance needs to support the product by
providing friendly, easily obtained financing. Personnel need to be
careful to convey the service and attitude that goes with a premi-
3. ◼ Quality: Must permeate all of the product/service activi-
ties. See the service quality discussion in Chapter 6.
◼ Design of the good and service: Both the product and ser-
vice components must be selected and designed to fulfill
high quality aspects of the mission. Some aspects of this
design will have customer input.
lation and/or repair issues like packaging, neatness, and
cleanup will all be part of the process.
◼ Location: May not be critical at De Mar because the prod-
uct is delivered.
◼ Layout: Warehouse and truck layout may impact efficiency
and speed of delivery for those emergency calls.
◼ Human resources: Are very important because of the cus-
cal element of estimating that must be done very accurate-
ly; substantial training.
◼ Supply-chain management: The quality of the equipment
chosen for initial installation and parts will make substan-
tial difference in the product/service delivered. Conse-
◼ Scheduling: These clients will expect effective scheduling—
having the right part and personnel available as needed and
then meeting the established delivery/repair schedule.
equipment may be the most critical maintenance elements
here.
VIDEO CASE STUDY
The 7-minute video available from Pearson Prentice Hall, filmed
specifically for this text, supplements the written case.
1. The concept of product life cycle applies to Regal Marine because
Regal is constantly under pressure to introduce new products—and
those products have life cycles of relatively few years. As the
video suggests, it is a matter of typically less than 5 years before a
2. Regal Marine uses a strategy of product differentiation, which
constantly introduces new products with new innovations and new
styling to stay competitive in the luxury performance boat market.
3. The cost and time saving at Regal Marine through use of
CAD is typical of the use of CAD everywhere. It allows a variety
of designs and styles to be tested very economically. The ratio of
4. The payoff from CAD is not only evident in efficiency, crea-
tive designs, and styling but in production of the code necessary
for the numerical machines, such as the machines used to make
the plugs (molds) in Washington State and for those applications
