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13-31 Target Costing Using Quality Function Deployment (QFD) Rick's is a popular restaurant for fine dining. The owner and chef, Rick Goet, is pleased with his success and is now consider ing expanding his existing restaurant or perhaps opening a second restaurant. Before making his decision, Ridk wants to find out more about his competitive position. There are three other resta rants that exmpete directly with him on food quality and price. Rick knows that his profitability depends on his ability to provide a satistymg meal at the market price. His first step was to gather mame intomation about his customers, using an independent market research firm, which informed him that his customers were looking for taste, con otthe ambiance service, and overall presenta tion of the food and enjoyment (the distinctiveness of the dining experience, a degree of excite ment. He was surprised to find that comfort and enjoyment ranked highest First: Customer Criteria and Ranking Importance Relative Importance Taste Confort 45 15:00 3167 53 100 Total 300 Next, he worked with his key wait staff and chefs to try to identify the three main components, and related costs, of the service Rick's provides Second: Components and cost Components Cost Percentage of Total Menu and food preparation Wait staff Food ingredients Total $ 8 12 6 30.77% 46.15 23.08 100.00% $26 Having the customer criteria and components, Rick now again worked with his staff to assess how cach component contributes to the desired customer criteria: Third: Determine How Components Contribute to Customer Satisfaction Customer Criteria Components Taste Comfort Enjoyment Menu and food preparation Wait staff Food Ingredients 30% 30 40 204 60 20 455 35 20 100 100 100% Required Using the information Rick has developed, determine the importance inden for each component menu and food preparation at stuff, and food ingredients Compare our findings in Um I to the cost of the components What causes a year from this comparison

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