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Category > Management Posted 03 Nov 2017 My Price 10.00

Quality Function Deployment

13-42    Target Costing Using Quality Function Deployment (QFD) Rick’s is a popular restaurant for fine dining. The owner and chef, Rick Goetz, is pleased with his success and is now considering expand- ing his existing restaurant or perhaps opening a second restaurant. Before making his decision, Rick wants to find out more about his competitive position. There are three other restaurants that compete directly with him on food quality and price. Rick knows that his profitability depends on his ability to provide a satisfying meal at the market price. His first step is to gather some information about his customers, using an independent market research firm, which informed him that his customers were looking for taste, comfort (the ambiance, service, and overall presentation of the food), and enjoyment (the distinctiveness of the dining experience, a degree of excitement). He was surprised to find that comfort and enjoyment ranked highest.

 

First: Customer Criteria and Ranking

 

 

Taste

Importance

50

Relative Importance

16.7%

Comfort

100

33.3

Enjoyment

150

50.0

Total

300

100.0%

 

Next, he worked with his key wait staff and chefs to try to identify the three main components, and related cost, of the service Rick’s provided:

 

Second: Components and Cost

 

Components

Cost

Percent of Total

Menu and Food Preparation

$  8

30.77%

Wait Staff

12

46.15

Food Ingredients

6

23.08

Total

$ 26

100.00%

 

Having the customer criteria and components, Rick now again worked with his staff to assess how each component contributed to the desired customer criteria.

 

Third: Determine How Components Contribute to Customer Satisfaction

 

Customer Criteria

 

Components

Menu and Food Preparation

Taste

30%

Comfort

20%

Enjoyment

50%

Wait Staff

40

60

30

Food Ingredients

30

20

20

 

100%

100%

100%

 

Required

1.    Using the information Rick has developed, determine the importance index for each component (menu and food preparation, wait staff, and food ingredients).

2.    Compare your findings in Part 1 to the cost of the components. What conclusions can you draw from this comparison?

 

 

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 03 Nov 2017 10:11 PM My Price 10.00

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