They did ask to be regularly briefed on the progress. Price-based targeting Sets target cost for the product through comparison with that of competitors This means setting the price of the product by observing what the market will bear, then deducting the desired profit margin from the price, and thereby obtaining the target cost.
Removal process involved taking out a locking tube, which resulted in a loose part. Competitive designs did not have loose parts. Benefits Delivering the optimal value proposition to end customers.
The current RTN allowed repair within a reasonable time if all things went according to plan. Lowering product design late in the innovation process. In addition, a QFD consultant was engaged to help the team apply these tools. There were additional problems as follows: However, there was considerable time and cost involved in mobilizing equipment to support the repair, in setting up the equipment to support the repair, removing and replacing the top nozzle, and tearing down and demobilizing the repair equipment.
By the use of Martial substitution e. Table 1 — Repair Time Analysis. Additional contractual commitments caused the company to restart the project after several years. Voice of the Customer This is the obvious customer.
Smaller size of car and its component reduce cost. Selecting appropriate product and process technologies. To decompose the production process and then to set cost targets for each product element. A teleconference with the marketing representatives for the customers was held to gain their perspective.
There was concern that this part could drop during the removal or replacement operation, taking additional time. The initial meetings were intended to probe and primarily listen for the customer needs.
The nozzle did not always come free from the product as intended and an additional heavy tool was needed to supply the force to lift the nozzle off. The current product, a removable top nozzle RTNis needed in case a product has to be repaired because of a failure. Prior to meeting with customers, the team obtained a briefing on the prior QRTN effort to familiarize them with some of the issues.
By simplify the manufacturing process. The removal and replacement process was not sufficiently reliable. Contractual requirements were reviewed. Cost-based targeting It sets the cost 1st, then the desired profit margin is derive d at the price of the product.
Meetings were scheduled with engineering personnel at the customers that had a contractual requirement for the QRTN. Instead of solely relying on the marketing organization to define these needs, team members met with customers to gain a first-hand understanding of their needs.
They also need to be assured that the repair can be done expeditiously, while on the critical path.
As a result, they had important insights into the needs to support the actual removal and reinstallation of the top nozzle. It was recognized that there were multiple customer voices to consider with this project: A Services Division individual involved in this work was assigned to the core team to provide this insight and support the development process.
Team members familiar with these requirements provided this customer voice. Cost and waste is driven out of supply chains by reducing inventory 2. A multi-functional core team was created, and a decision was made to use the newly-developed NPD process, target costing, value analysis, and quality function deployment QFD to help the team accomplish its objectives.
Definition Target Costing is defined as a cost management tool for reducing the overall cost of a product over its entire life-cycle with the help of production, engineering, research and design.
Voice of Services Division The actual reconstitution work was done by the Services Division, a sister division. Several team members were involved in each of these interviews, and they typically talked with multiple people in each customer organization.
A list of questions to ask and a meeting agenda were prepared to guide these interviews. Approaches to target costing Price-based targeting Cost-based targeting Value-based targeting A target cost is the maximum amount of cost that can be incurred on a product.Target cost in tata nano (Cost Accounting) 3, views.
Share; Like; Download Target costing approach forTarget costing approach for TATA NANOTATA NANO TATA NANO a Perfect case ofTATA NANO a Perfect case of Target Costing approachTarget Costing approach 9.
Target costing approach for TATA NANO: Product development time might be lengthen as product is repeatedly designed to bring cost below that of target. PowerPoint Presentation: TATA NANO a Perfect case of Target Costing approach.
7 Ps work as innovatio to build TATA NANO. Case study in application of quality function deployement (QFD) and target costing to a development project with spectacular results. Tata Nano: The People's Car that Promises to Reconstruct the Automobile Industry Case Solution,Tata Nano: The People's Car that Promises to Reconstruct the Automobile Industry Case Analysis, Tata Nano: The People's Car that Promises to Reconstruct the Automobile Industry Case Study Solution, This instance along with the parallel three-segment theory-relying movie details Tata Motors' strategic.
Nissan Motor Co. Ltd.: Target Costing System case study. Robin Cooper On the basis of consumer analysis and a life cycle contribution study, Nissan conducts an exhaustive analysis of component.
TARGET COSTING 7 TATA NANO – THE INTRODUCTION 9 A BREAK THROUGH CAR 11 COST CUTTING FEATURES 12 TARGET PRICING THE NANO 13 Product Features 13 CASE STUDY ON TATA NANO TATA MOTORS HAS UNVEILED THE WORLD'S CHEAPEST MOTOR NANO CAR The case discusses the making of Tata Nano, the world's cheapest car, manufactured by India based Tata .Download