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.

2 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

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

The Design Process 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 Information Technology

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

4 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.

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

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

House of Quality 7

8 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?

10 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?

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

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

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

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

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

Assembly (Gozinto) Chart A-2SA Lockring Spacer, detent spring Rivets (2) Spring-detent A-5 Component/Assy Operation Inspection Exhibit © The McGraw-Hill Companies, Inc., 1998 Irwin/McGraw-Hill

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

2 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

3 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).

4 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.

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

6 Internal Services Internal Supplier Internal Customer External Customer

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

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

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

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

11 Service Blueprinting

12 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.

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

14 Have we compromised one of the 3 Ts?

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

16 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

17 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.

18 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.