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Product & Service Design

Product & Service Design. Kusdhianto Setiawan, SE, Siv.Øk Department of Management Faculty of Economics Gadjah Mada University. Strategy & Design. Desain suatu produk/jasa adalah bagian dari strategi Dengan desain, perusahaan dapat menentukan siapa customer-nya dan siapa pesaingnya

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Product & Service Design

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  1. Product & Service Design Kusdhianto Setiawan, SE, Siv.Øk Department of Management Faculty of Economics Gadjah Mada University

  2. Strategy & Design • Desain suatu produk/jasa adalah bagian dari strategi • Dengan desain, perusahaan dapat menentukan siapa customer-nya dan siapa pesaingnya • Desain mengkapitalisasi kompetensi dan menentukan kompetensi baru apa saja yang perlu dikembangkan • Desain bisa menjadi driver of change – new products and services often define new markets and require new processes

  3. The Design Process • Cross functional activities – Concurrent Design • Not Suggested: Sequential Design, walls between functional areas exist • The Design Process: Idea Generation, Feasibility Study, Preliminary Design, Final Design and Process Planning.

  4. Product Design and Process Selection--Manufacturing • The Product Design Process • Concurrent Engineering • Designing for the Customer • QFD • Process Selection • Process Flow Design • Process Analysis • Globalization of Product Design and Development Chase, Aquilano, Jacobs 2

  5. The Design Process R & D Customers Competitors Marketing Idea Generation Suppliers Product Concept Feasibility Study Product Feasible? No Yes Performance Specification Preliminary Design Final Design Process Planning Prototype Design & Manufacturing Spec. Manufacture

  6. Idea Generation Perceptual map Benchmarking Reverse Engineering Feasibility Study Market Analysis Economic Analysis Technical and Strategic Analysis Performance Specification Preliminary Design Form Design Functional Design Reliability Maintability Final Design and Process Planning Final Design Process Planning Design Specification Manufacturing Specification The Design Process Information Technology Information Technology

  7. The Product Design Process • Concept Development • Product Planning • Detailed Engineering • Engineering Release (Sign-Off) 3

  8. Concurrent Engineering • Concurrent engineering can be defined as the simultaneous development of project design functions, with open and interactive communication existing among all team members for the purposes of • reducing time to market, • decreasing cost, and • improving quality and reliability. 4

  9. Designing for the Customer • Industrial Design • Aesthetics • Ergonomics 5

  10. Quality Function Deployment • Interfunctional teams from marketing, design engineering, and manufacturing • Voice of the customer • House of Quality 6

  11. Correlation: Strong positive X Positive X X Negative X X X Strong negative * Engineering Characteristics Competitive evaluation X = Us Check force on level ground Energy needed to close door Energy needed to open door Accoust. Trans. Window Door seal resistance Water resistance A = Comp. A Importance to Cust. B = Comp. B Customer Requirements (5 is best) 1 2 3 4 5 AB X Easy to close 7 X AB Stays open on a hill 5 Easy to open 3 XAB A X B Doesn’t leak in rain 3 No road noise 2 X A B Relationships: Importance weighting 10 6 6 9 2 3 Strong = 9 Medium = 3 Target values Reduce energy level to 7.5 ft/lb Small = 1 Reduce energy to 7.5 ft/lb. Reduce force to 9 lb. Maintain current level Maintain current level Maintain current level 5 BA BA B B BXA X Technical evaluation (5 is best) B 4 X A X A 3 A X 2 X 1 House of Quality 7

  12. Value Analysis/Value Engineering (VA/VE) • Achieve equivalent or better performance at a lower cost while maintaining all functional requirements defined by the customer • Does the item have any design features that are not necessary? • Can two or more parts be combined into one? • How can we cut down the weight? • Are there nonstandard parts that can be eliminated? 8

  13. Design for Manufacturing and Assembly • Greatest improvements related to DFMA arise from simplification of the product by reducing the number of separate parts: • 1. During the operation of the product, does the part move relative to all other parts already assembled? • 2. Must the part be of a different material than or be isolated from other parts already assembled? • 3. Must the part be separate from all other parts to allow the disassembly of the product for adjustment or maintenance? 10

  14. Types of Processes • Conversion • Fabrication • Assembly • Testing 11

  15. Process Flow Structures • Job shop • Batch • Assembly Line • Continuous Flow 12

  16. Few Major Products, Higher Volume High Volume, High Standard- ization Low Volume One of a Kind Multiple Products, Low Volume Flexibility (High) Unit Cost (High) I. Job Shop Commercial Printer French Restaurant II. Batch Heavy Equipment Coffee Shop III. Assembly Line Automobile Assembly Burger King IV. Continuous Flow Sugar Refinery Flexibility (Low) Unit Cost (Low) Exhibit 4.9 Source: Modified from Robert Hayes and Steven Wheelwright, Restoring Our Competitive Edge: Competing through Manufacturing (New York: John Wiley & Sons, 1984). p. 209. 13

  17. Virtual Factory Shift from centralized production to .... ... an integrated network of capabilities 14

  18. Process Flow Design • Assembly drawing • Assembly chart • Operation and route sheet 15

  19. Lockring 4 Spacer, detent spring 5 SA-2 A-2 Rivets (2) 6 Spring-detent 7 A-5 Component/Assy Operation Inspection Assembly (Gozinto) Chart Exhibit 4.13 16 • The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill

  20. Global Product Design and Manufacturing • Joint Ventures • Strategic Suppliers • Global Product Design Strategy 17

  21. Product Design and process Selection--Services • The Nature of Services • Service Generalizations & Service Types • Service Strategy: Focus & Advantage • Customer Contact • Service Blueprinting • Service Recovery • Failsafing • Service Guarantees • Characteristics of a Well-Designed Service Delivery System 2

  22. Some Service Generalizations 1. Everyone is an expert on services. 2. Services are idiosyncratic. 3. Quality of work is not quality of service. 4. Most services contain a mix of tangible and intangible attributes (service package). 3

  23. Service Generalizations 5. High-contact services (described later) are experienced, whereas goods are consumed. 6. Effective management of services requires an understanding of marketing and personnel, as well as operations. 7. Services often take the form of cycles of encounters involving face-to-face, phone, electromechanical, and/or mail interactions. 4

  24. Service Businesses • Facilities-based services • Field-based services 5

  25. Internal Supplier Internal Customer External Customer Internal Supplier Internal Services 6

  26. The Service Strategy The Customer The Systems The People The Service Triangle Exhibit 5.1

  27. Service Strategy: Focus and AdvantagePerformance Priorities • Treatment of the customer • Speed and convenience of service delivery • Price • Variety • Unique skills that constitute the service offering

  28. Service-System Design Matrix Exhibit 5.6 Degree of customer/server contact Buffered Permeable Reactive High core (none) system (some) system (much) Low Face-to-face total customization Face-to-face loose specs Sales Opportunity Production Efficiency Face-to-face tight specs Phone Contact On-site technology Mail contact Low High 9

  29. Service Blueprinting Steps 1. Identify processes 2. Isolate fail points 3. Establish a time frame 4. Analyze profitability 10

  30. Service Blueprinting 11

  31. Service Recovery (Just in case) • A real-time response to a service failure. • Blueprinting can guide recovery planning (fail points). • Recovery planning involves training front-line workers to respond to such situations as overbooking, lost luggage, or a bad meal. 12

  32. Task Treatment Tangibles Service FailsafingPoka-Yokes (A Proactive Approach) • Keeping a mistake from becoming a service defect. • How can we fail-safe the three Ts? 13

  33. Have we compromised one of the 3 Ts? 14

  34. Three Contrasting Service Designs • The production line approach • The self-service approach • The personal attention approach 15

  35. What is a Good Service Guarantee? • Unconditional • Meaningful • The payout covers--fully--customer dissatisfaction • Easy to understand and communicate • For customers • For employees • Painless to invoke • Given proactively 16

  36. Characteristics of a Well-Designed Service System 1. Each element of the service system is consistent with the operating focus of the firm. 2. It is user-friendly. 3. It is robust. 4. It is structured so that consistent performance by its people and systems is easily maintained. 17

  37. Characteristics of a Well-Designed Service System 5. It provides effective links between the back office and the front office so that nothing falls between the cracks. 6. It manages the evidence of service quality in such a way that customers see the value of the service provided. 7. It is cost-effective. 18

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