To 7 in 2013 neuro achieved these gains through value

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2012 to 7 in 2013. Neuro achieved these gains through value engineering activities that retained only those product features that customers wanted while eliminating nonvalue-added activities and costs. 5. Neuro’s managers might encounter the following challenges in achieving the target costs:
13-20 (25 min.) Target costs, effect of process-design changes on service costs. Sun Systems provides energy audits in residential areas of southern Ohio. The energy audits provide information to homeowners on the benefits of solar energy. A consultant from Sun Systems educates the homeowner about federal and state rebates and tax credits available for purchases and installations of solar heating systems. A successful energy audit results in the homeowner purchasing a solar heating system. Sun Systems does not install the solar heating system, but arranges for the installation with a local company. Sun Systems completes all necessary paperwork related to the rebates, tax credits, and financing. The company has identified three major activities that drive the cost of energy audits: identifying new contacts (that varies with the number of new contacts); traveling to and between appointments (that varies with the number of miles driven); and preparing and filing rebates and tax forms (that varies with the number of clerical hours). Actual costs for each of these activities in 2012 and 2013 are:

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