Case Study #3 : Product Pricing and Costing – The Matador Sporting Company

You work for Matador Sporting Company as the Project Manager for a new product to be introduced in 2023. Your Marketing and Engineering departments have designed a new push-pull golf bag cart with an attached resting seat, the Matador-Golf. It features push-pull (three wheels); an attached resting seat; and it folds into a compact unit to easily load into the trunk of an automobile. You have been requested to prepare an estimate of the material and labor costs and to propose a competitive price for this new product.

You will have 3 sections.

Section 1:  Material and Labor Costing

Matador Sporting Company is only an assembly house but you might chose to cut materials to length from stock lengths or drill holes as needed. Most, and maybe all parts will purchased. The Case Study team will select a pre-existing design to represent your product. You will create a parts list based on your selected design and your best guesswork. In this section you will need to determine and prepare the following items:

1. How will you assemble the purchased components (your best guess).  Prepare a precedent diagram with estimated labor times.  Discuss how labor times were estimated (we used several methods in class)

2. Prepare a Costed Bill of Material.  All parts will be purchased, and labor times will be estimated as described in #1.  The BOM can be indented if appropriate to make it readable.

3. You might need to design and build custom assembly and fixtures.  Provide an estimate of the cost and amortize this on a per-unit basis.