Product Service Design Kusdhianto Setiawan SE Siv

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 § 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

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.

Product Design and Process Selection--Manufacturing § The Product Design Process bs co § Concurrent Engineering § Designing for the Customer Ja o, an il qu § QFD § § , A se a Process Selection Process Flow Design Ch Process Analysis Globalization of Product Design and Development 2

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

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

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

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

Designing for the Customer § Industrial Design § Aesthetics § Ergonomics 5

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

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

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

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

Types of Processes § Conversion § Fabrication § Assembly § Testing 11

Process Flow Structures § Job shop § Batch § Assembly Line § Continuous Flow 12

Exhibit 4. 9 Low Volume One of a Kind I. Job Shop II. Batch III. Assembly Line IV. Continuous Flow Few High Multiple Major Volume, Products, High Low Higher Standard. Volume ization Flexibility (High) Unit Cost (High) Commercial Printer French Restaurant Heavy Equipment Coffee Shop Automobile Assembly Burger King Sugar Refinery 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. 13

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

Process Flow Design § Assembly drawing § Assembly chart § Operation and route sheet 15

Exhibit 4. 13 Assembly (Gozinto) Chart 4 5 6 7 Lockring Spacer, detent spring SA-2 Rivets (2) A-2 Spring-detent A-5 Component/Assy Operation Inspection Irwin/Mc. Graw-Hill ©The Mc. Graw-Hill Companies, Inc. , 1998 16

Global Product Design and Manufacturing § Joint Ventures § Strategic Suppliers § Global Product Design Strategy 17

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

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

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

Service Businesses § Facilities-based services § Field-based services 5

Internal Services Internal Supplier Internal Customer External Customer Internal Supplier 6

Exhibit 5. 1 The Service Triangle The Service Strategy The Customer The Systems The People

Service Strategy: Focus and Advantage Performance Priorities § Treatment of the customer § Speed and convenience of service delivery § Price § Variety § Unique skills that constitute the service offering

Service-System Design Matrix Exhibit 5. 6 Degree of customer/server contact High Buffered core (none) Permeable system (some) Reactive system (much) Low Face-to-face total customization Face-to-face loose specs Sales Opportunity Face-to-face tight specs On-site technology Production Efficiency Phone Contact Mail contact Low High 9

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

Service Blueprinting 11

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

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

Have we compromised one of the 3 Ts? 14

Three Contrasting Service Designs § The production line approach § The self-service approach § The personal attention approach 15

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

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

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