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

12

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

9

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

12

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..