Product & Service Product & Service DesignDesign
Kusdhianto Setiawan, SE, Siv.ØkKusdhianto Setiawan, SE, Siv.ØkDepartment of ManagementDepartment of Management
Faculty of EconomicsFaculty of Economics
Gadjah Mada UniversityGadjah Mada University
Strategy & DesignStrategy & Design
Desain suatu produk/jasa adalah bagian dari Desain suatu produk/jasa adalah bagian dari strategistrategi
Dengan desain, perusahaan dapat Dengan desain, perusahaan dapat menentukan siapa menentukan siapa customer-nya customer-nya dan siapa dan siapa pesaingnyapesaingnya
Desain mengkapitalisasi kompetensi dan Desain mengkapitalisasi kompetensi dan menentukan kompetensi baru apa saja yang menentukan kompetensi baru apa saja yang perlu dikembangkanperlu dikembangkan
Desain bisa menjadi Desain bisa menjadi driver of change – new driver of change – new products and services often define new products and services often define new markets and require new processesmarkets and require new processes
The Design ProcessThe Design Process
Cross functional activities – Concurrent Cross functional activities – Concurrent DesignDesign
Not Suggested: Sequential Design, walls Not Suggested: Sequential Design, walls between functional areas existbetween functional areas exist
The Design Process: Idea Generation, The Design Process: Idea Generation, Feasibility Study, Preliminary Design, Feasibility Study, Preliminary Design, Final Design and Process Planning.Final Design and Process Planning.
2
Product Design and Process Product Design and Process Selection--ManufacturingSelection--Manufacturing The Product Design ProcessThe Product Design Process
Concurrent EngineeringConcurrent Engineering
Designing for the CustomerDesigning for the Customer QFDQFD
Process SelectionProcess Selection Process Flow DesignProcess Flow Design Process AnalysisProcess Analysis Globalization of Product Design and Globalization of Product Design and
DevelopmentDevelopment
Chase, A
quila
no, Ja
cobs
The Design ProcessThe Design Process
Idea Generation
Idea Generation
FeasibilityStudy
FeasibilityStudy
ProductFeasible?
ProductFeasible?
PreliminaryDesign
PreliminaryDesign
ProcessPlanning
ProcessPlanningFinal DesignFinal Design
ManufactureManufacture
Customers
Suppliers
CompetitorsR & D
Marketing
No
Yes Performance Specification
Product Concept
Prototype
Design & Manufacturing Spec.
The Design ProcessThe Design Process
Idea GenerationIdea Generation Perceptual mapPerceptual map BenchmarkingBenchmarking Reverse EngineeringReverse Engineering
Feasibility StudyFeasibility Study Market AnalysisMarket Analysis Economic AnalysisEconomic Analysis Technical and Strategic Technical and Strategic
AnalysisAnalysis Performance SpecificationPerformance Specification
Preliminary DesignPreliminary Design Form DesignForm Design Functional DesignFunctional Design ReliabilityReliability MaintabilityMaintability
Final Design and Process Final Design and Process PlanningPlanning
Final DesignFinal Design Process PlanningProcess Planning Design SpecificationDesign Specification Manufacturing Manufacturing
SpecificationSpecification
Information TechnologyInformation TechnologyInformation TechnologyInformation Technology
3
The Product Design The Product Design ProcessProcess
Concept DevelopmentConcept Development
Product PlanningProduct Planning
Detailed EngineeringDetailed Engineering
Engineering Release (Sign-Off)Engineering Release (Sign-Off)
4
Concurrent EngineeringConcurrent Engineering Concurrent engineering can be defined as Concurrent engineering can be defined as
the simultaneous development of project the simultaneous development of project design functions, with open and design functions, with open and interactive communication existing among interactive communication existing among all team members for the purposes of all team members for the purposes of
reducing time to market,reducing time to market, decreasing cost, anddecreasing cost, and improving quality and reliability.improving quality and reliability.
5
Designing for the Designing for the CustomerCustomer
Industrial DesignIndustrial Design
AestheticsAesthetics
ErgonomicsErgonomics
6
Quality Function Quality Function DeploymentDeployment
Interfunctional teams from marketing, design Interfunctional teams from marketing, design engineering, and manufacturingengineering, and manufacturing
Voice of the customerVoice of the customer
House of Quality House of Quality
House of House of QualityQuality
Customer Requirements
Importance to Cust.
Easy to close
Stays open on a hill
Easy to open
Doesn’t leak in rain
No road noise
Importance weighting
Engineering Characteristics
Ene
rgy
need
ed
to c
lose
doo
r
Che
ck f
orce
on
leve
l gro
und
Ene
rgy
need
ed
to o
pen
door
Wat
er r
esis
tanc
e
10 6 6 9 2 3
7
5
3
3
2
X
X
X
X
X
Correlation:
Strong positive
Positive
NegativeStrong negative
X*
Competitive evaluation
X = UsA = Comp. AB = Comp. B(5 is best)
1 2 3 4 5
X AB
X AB
XAB
A X B
X A B
Relationships:
Strong = 9
Medium = 3
Small = 1Target values
Red
uce
ener
gy
leve
l to
7.5
ft/l
b
Red
uce
forc
eto
9 lb
.
Red
uce
ener
gy to
7.5
ft/
lb.
Mai
ntai
ncu
rren
t lev
el
Technical evaluation(5 is best)
5
4321
B
A
X
BA
X B
A
X
B
X
A
BXABAX
Doo
r se
al
resi
stan
ce
Acc
oust
. Tra
ns.
Win
dow
Mai
ntai
ncu
rren
t lev
el
Mai
ntai
ncu
rren
t lev
el
7
8
Value Analysis/Value Value Analysis/Value Engineering (VA/VE)Engineering (VA/VE)
Achieve equivalent or better performance at a Achieve equivalent or better performance at a lower cost while maintaining all functional lower cost while maintaining all functional requirements defined by the customerrequirements defined by the customer Does the item have any design features that are not Does the item have any design features that are not
necessary?necessary? Can two or more parts be combined into one?Can two or more parts be combined into one? How can we cut down the weight?How can we cut down the weight? Are there nonstandard parts that can be eliminated?Are there nonstandard parts that can be eliminated?
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Design for Manufacturing Design for Manufacturing and Assemblyand Assembly
Greatest improvements related to DFMA Greatest improvements related to DFMA arise from simplification of the product by arise from simplification of the product by reducing the number of separate parts:reducing the number of separate parts:
1. During the operation of the product, does the part 1. During the operation of the product, does the part move relative to all other parts already assembled?move relative to all other parts already assembled?
2. Must the part be of a different material than or be 2. Must the part be of a different material than or be isolated from other parts already assembled?isolated from other parts already assembled?
3. Must the part be separate from all other parts to 3. Must the part be separate from all other parts to allow the disassembly of the product for adjustment or allow the disassembly of the product for adjustment or maintenance?maintenance?
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Types of ProcessesTypes of Processes ConversionConversion
FabricationFabrication
AssemblyAssembly
TestingTesting
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Process Flow StructuresProcess Flow Structures Job shopJob shop
BatchBatch
Assembly LineAssembly Line
Continuous FlowContinuous Flow
IV.Continuous
Flow
III.Assembly
Line
II.Batch
I.Job
Shop
LowVolumeOne of a
Kind
MultipleProducts,
LowVolume
FewMajor
Products,HigherVolume
HighVolume,
HighStandard-
ization
CommercialPrinter
French Restaurant
HeavyEquipment
Coffee Shop
AutomobileAssembly
Burger King
SugarRefinery
Flexibility (High)Unit Cost (High)
Flexibility (Low)Unit Cost (Low)
Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: John Wiley & Sons, 1984). p. 209.
Exhibit 4.9Exhibit 4.9
13
14
Virtual FactoryVirtual FactoryShift from centralized production to ....Shift from centralized production to ....
... an ... an integrated network of capabilitiesintegrated network of capabilities
15
Process Flow DesignProcess Flow Design Assembly drawingAssembly drawing
Assembly chartAssembly chart
Operation and route sheetOperation and route sheet
Assembly (Gozinto) ChartAssembly (Gozinto) Chart
A-2SA-2
4
5
6
7
Lockring
Spacer, detent spring
Rivets (2)
Spring-detent
A-5Component/Assy Operation
Inspection
Exhibit 4.13Exhibit 4.13
16©The McGraw-Hill Companies, Inc., 1998
Irwin/McGraw-Hill
17
Global Product Design Global Product Design and Manufacturingand Manufacturing
Joint VenturesJoint Ventures
Strategic SuppliersStrategic Suppliers
Global Product Design StrategyGlobal Product Design Strategy
2
Product Design and process Product Design and process Selection--ServicesSelection--Services The Nature of ServicesThe Nature of Services
Service Generalizations & Service TypesService Generalizations & Service Types
Service Strategy: Focus & AdvantageService Strategy: Focus & Advantage Customer ContactCustomer Contact Service Blueprinting Service Blueprinting Service Recovery Service Recovery FailsafingFailsafing Service GuaranteesService Guarantees Characteristics of a Well-Designed Service Characteristics of a Well-Designed Service
Delivery SystemDelivery System
3
Some Service Some Service GeneralizationsGeneralizations
1. Everyone is an expert on services.1. Everyone is an expert on services.
2. Services are idiosyncratic.2. Services are idiosyncratic.
3. Quality of work is not quality of service.3. Quality of work is not quality of service.
4. Most services contain a mix of tangible 4. Most services contain a mix of tangible and intangible attributes (service package). and intangible attributes (service package).
4
Service GeneralizationsService Generalizations5. High-contact services (described later) are 5. High-contact services (described later) are
experienced, whereas goods are consumed. experienced, whereas goods are consumed.
6. Effective management of services requires an 6. Effective management of services requires an understanding of marketing and personnel, as understanding of marketing and personnel, as well as operations.well as operations.
7. Services often take the form of cycles of 7. Services often take the form of cycles of encounters involving face-to-face, phone, encounters involving face-to-face, phone, electromechanical, and/or mail interactions.electromechanical, and/or mail interactions.
5
Service BusinessesService Businesses Facilities-based servicesFacilities-based services
Field-based services Field-based services
6
Internal ServicesInternal Services
Internal Supplier
Internal Supplier
InternalCustomer
ExternalCustomer
The Service TriangleThe Service Triangle
Exhibit 5.1Exhibit 5.1
TheCustomer
The ServiceStrategy
ThePeople
TheSystems
Service Strategy: Focus and Service Strategy: Focus and AdvantageAdvantagePerformance PrioritiesPerformance Priorities
Treatment of the customerTreatment of the customer
Speed and convenience of service deliverySpeed and convenience of service delivery
PricePrice
Variety Variety
Unique skills that constitute the service Unique skills that constitute the service offeringoffering
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Service-System Design Service-System Design MatrixMatrix
Exhibit 5.6Exhibit 5.6
Mail contact
Face-to-faceloose specs
Face-to-facetight specs
PhoneContact
Face-to-facetotal
customization
Buffered core (none)
Permeable system (some)
Reactivesystem (much)
High
LowHigh
Low
Degree of customer/server contact
On-sitetechnology
SalesOpportunity
ProductionEfficiency
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Service Blueprinting Service Blueprinting StepsSteps
1. Identify processes1. Identify processes
2. Isolate fail points2. Isolate fail points
3. Establish a time frame3. Establish a time frame
4. Analyze profitability 4. Analyze profitability
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Service BlueprintingService BlueprintingBrushshoes
Applypolish
Failpoint
BuffCollect
payment
Cleanshoes Materials
(e.g., polish, cloth)
Select andpurchasesupplies
Standardexecution time
2 minutes
Total acceptableexecution time
5 minutes
30secs
30secs
45secs
15secs
Wrongcolor wax
Seen bycustomer 45
secs
Line ofvisibility
Not seen bycustomer butnecessary toperformance
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Service Recovery (Just in Service Recovery (Just in case)case)
A real-time response to a service failure.A real-time response to a service failure.
Blueprinting can guide recovery planning (fail Blueprinting can guide recovery planning (fail points).points).
Recovery planning involves training front-line Recovery planning involves training front-line workers to respond to such situations as workers to respond to such situations as overbooking, lost luggage, or a bad meal.overbooking, lost luggage, or a bad meal.
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Service FailsafingService FailsafingPoka-Yokes (A Proactive Poka-Yokes (A Proactive Approach)Approach)
Keeping a Keeping a mistake from mistake from becoming a becoming a service defect.service defect.
How can we How can we fail-safe the fail-safe the three Ts?three Ts?
Task
TangiblesTreatment
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Have we Have we compromised one of compromised one of the 3 Ts?the 3 Ts?
15
Three Contrasting Three Contrasting Service DesignsService Designs
The production line approachThe production line approach
The self-service approachThe self-service approach
The personal attention approach The personal attention approach
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What is a Good Service What is a Good Service Guarantee?Guarantee?
UnconditionalUnconditional MeaningfulMeaningful
The payout covers--fully--customer dissatisfactionThe payout covers--fully--customer dissatisfaction
Easy to understand and communicateEasy to understand and communicate For customersFor customers For employeesFor employees
Painless to invokePainless to invoke Given proactively Given proactively
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Characteristics of a Well-Characteristics of a Well-Designed Service SystemDesigned Service System
1. Each element of the service system is 1. Each element of the service system is consistent with the consistent with the operating focus operating focus of the firm. of the firm.
2. It is 2. It is user-friendlyuser-friendly. .
3. It is 3. It is robustrobust. .
4. It is structured so that 4. It is structured so that consistent performance consistent performance by its people and systems is easily maintained.by its people and systems is easily maintained.
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Characteristics of a Well-Characteristics of a Well-Designed Service SystemDesigned Service System
5. It provides effective 5. It provides effective linkslinks between the back between the back office and the front office so that nothing falls office and the front office so that nothing falls between the cracks. between the cracks.
6. It manages the 6. It manages the evidenceevidence of service quality in of service quality in such a way that customers see the value of such a way that customers see the value of the service provided. the service provided.
7. It is 7. It is cost-effectivecost-effective..