Bmw Case

1.11

10,000 hours at $20/per – $200,000

500 kits at $1,000/per – $500,000

100,000 kilowatt-hours at $3/per – $300,000

Our total resource cost is $1,000,000/per year and the total amount of automobiles we modify per year are 375.

____375/autos per year____

$1,000,000/total cost

.000375 autos/dollar

Multifactor productivity with the current amount of resource used is 375 autos/ $1,000,000 = 0.000375 autos/dollar.

Ch5: Product Design at Regal Marine

1. The concept of product life cycle applies to Regal Marine products due to the very short life cycle of only 3 years. Regal marine is forced to produce new models very frequently, and are introducing multiple new models per year. They are constantly involving consumers, dealers and consultants in their product design and with the aid of a CAD machines they are able to speed the development process.

2. Regal has a product line of 22 models with an average life cycle of 3 years. Regal uses a differentiation strategy to stay competitive, they engage their customer and dealers in the overall design of the product so that they become immersed and even feel as active participant of the company.

3. When a products life cycle is so short production speed is the key to success, Regal Marines CAD system is set up to produce new molds and designs in the fastest amount of time. Drafting was very slow and had many complications; with CAD the goal is to reduce the time from concept to prototype to production.

4. The benefits of the CAD design technology are that production is sped up, design is sped up, and it's easier to involve consumers'

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