Product and Service Design Pertemuan 03 Mata kuliah: J Manajemen Operasional Tahun: 2010

Learning Objectives Explain the strategic importance of product and service design. List some key reasons for design or redesign. Identify the main objectives of product and service design. Briefly describe the phases in product design and development.

Learning Objectives Identify or Define: Issues for Product Development –Robust Design –Modular Design –Computer-Aided Design (CAD) –Computer-Aided Manufacturing –Virtual Reality Technology –Value Analysis –Environmentally Friendly Design Explain Product document Service Design

As Engineering designed it. As Operations made it. As Marketing interpreted it. As the customer wanted it. Humor in Product Design

Need-satisfying offering of an organization –Example P&G does not sell laundry detergent P&G sells the benefit of clean clothes Customers buy satisfaction, not parts May be a good or a service What is a Product?

What Does Product and Service Design Do? Translate customer wants and needs into product and service requirement (marketing, operations) Refine existing products and services (marketing) Develop new products and/or services (marketing, operations) Formulate quality goals (marketing, operations) Formulate cost targets (accpinting, finance, operations) Construct and test prototypes (operations, marketing, engineering) Document specifications

Product Idea Package Physical Good Features Quality Level Service (Warranty) Brand (Name) Product Components

Major factors in design strategy –Cost –Quality –Time-to-market –Customer satisfaction –Competitive advantage Product and Service Design Product and service design – or redesign – should be closely tied to an organization’s strategy

Reasons for Product or Service Design Economic Social and demographic Political, liability, or legal Competitive Cost or availability Technological

Objectives of Product and Service Design Main focus –Customer satisfaction –Understand what the customer wants Secondary focus –Function of product/service –Cost/profit –Quality –Appearance –Ease of production/assembly –Ease of maintenance/service

Life Cycles of Products or Services Time Introduction Growth Maturity Saturation Decline Deman d

Introduction Fine tuning –research –product development –process modification and enhancement –supplier development

Growth Product design begins to stabilize Effective forecasting of capacity becomes necessary Adding or enhancing capacity may be necessary

Maturity Competitors now established High volume, innovative production may be needed Improved cost control, reduction in options, paring down of product line

Decline Unless product makes a special contribution, must plan to terminate offering

Product Life Cycle, Sales, Cost, and Profit Sales, Cost & Profit. IntroductionMaturityDeclineGrowth Cost of Development & Manufacture Sales Revenue Time Cash flow Loss Profit

Product Development Stages Idea generation Assessment of firm’s ability to carry out Customer Requirements Functional Specification Product Specifications Design Review Test Market Introduction to Market Evaluation Scope of product development team Scope of design for manufacturability and value engineering teams

Idea Generation Ideas Competitor based Supply chain based Research based

Quality Function Deployment –Voice of the customer –House of quality Quality Function Deployment QFD: An approach that integrates the “voice of the customer” into the product and service development process.

The House of Quality Correlation matrix Design requirements Customer require- ments Competitive assessment Relationship matrix Specifications or target values

House of Quality Example

You’ve been assigned temporarily to a QFD team. The goal of the team is to develop a new camera design. Build a House of Quality. © T/Maker Co. House of Quality Example

High relationship  Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values

House of Quality Example High relationship   Medium relationship  Low Relationship Target Values Light weight Easy to use Reliable What the customer desires (‘wall’) Aluminum Parts Auto Focus Auto Exposure Customer Requirements Customer Importance

House of Quality Example High relationship  Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure Average customer importance rating

House of Quality Example High relationship   Medium relationship  Low Relationship Customer Requirements Customer Importance Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure      Relationship between customer attributes & engineering characteristics (‘rooms’)

House of Quality Example High relationship   Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure      Target values for engineering characteristics (‘basement’); key output

House of Quality Example High relationship  Medium relationship  Low Relationship Customer Requirements Customer Importance Target Values Light weight Easy to use Reliable Aluminum Parts Auto Focus Auto Exposure     

Issues for Product Development Robust design Time-based competition Modular design Computer-aided design Value analysis Environmentally friendly design

Robust Design Product is designed so that small variations in production or assembly do not adversely affect the product

Modular Design Products designed in easily segmented components. Adds flexibility to both production and marketing

Designing products at a computer terminal or work station –Design engineer develops rough sketch of product –Uses computer to draw product Often used with CAM Computer Aided Design (CAD)

Shorter design time Database availability New capabilities –Example: Focus more on product ideas Improved product quality Reduced production costs Benefits of CAD/CAM

Design for Manufacturing and Assembly (DFMA) 3-D Object Modeling CAD/CAM – CAD info is translated into machine control instructions (CAM) Extensions of CAD

Virtual Reality Computer technology used to develop an interactive, 3-D model of a product. Especially helpful in design of layouts (factory, store, home, office)

Value Analysis Focuses on design improvement during production Seeks improvements leading either to a better product or a product which can be more economically produced.

Environmentally Friendly Designs Benefits –Safe and environmentally sound products –Minimum raw material and energy waste –Product differentiation –Environmental liability reduction –Cost-effective compliance with environmental regulations –Recognition as good corporate citizen

“Green” Manufacturing Make products recyclable Use recycled materials Use less harmful ingredients Use lighter components Use less energy Use less material

Time-based Competition Product life cycles are becoming shorter.  Faster developers of new products gain on slower developers and obtain a competitive advantage

Product Development Continuum External Development Strategies Alliances Joint Ventures Purchase Technology or Expertise by Acquiring the Developer Internal Development Strategies Migrations of Existing Products Enhancement to Existing Products New Internally Developed Products Internal  Cost of Product Development  Shared Lengthy  Speed of Product Development  Rapid and/or Existing High  Risk of Product Development  Shared

Engineering drawing –Shows dimensions, tolerances, & materials –Shows codes for Group Technology Bill of Material –Lists components, quantities & where used –Shows product structure Product Documents

Engineering Drawings - Show Dimensions, Tolerances, etc.

Bill of Material for a Panel Weldment Hard Rock Café’s Hickory BBQ Bacon Cheeseburger NumberDescriptionQt y DescriptionQty A60-71Panel Weldm’t 1Bun Hamburger Patty Cheddar Cheese Bacon BBQ Onions Hickory BBQ Sauce Burger Set Lettuce Tomato Red Onion Pickle French Fries Seasoned Salt 11-inch Plate HRC Flag 1 8 oz. 2 slices 2 strips ½ cup 1 oz. 1 leaf 1 slice 4 rings 1 slice 5 oz. 1 tsp 1 A 60-7 R R P 60-2 Lower Roller Assembly Roller Pin Locknet R A Guide Assem. Rear Support Angle Roller Assem. Bolt A A R Guide Assm, Front Support Weldm’t Wear Plate Bolt Bill of Materials – Manufacturing Plant and Fast-Food Restaurant

Make-or-Buy Decisions Decide whether or not you want (or need) to produce an item May be able to purchase the item as a “standard item” from another manufacturer

Parts grouped into families –Similar, more standardized parts Uses coding system –Describes processing & physical characteristics Part families produced in manufacturing cells –Mini-assembly lines Group Technology Characteristics

112mm 60mm 4mm x 45° chamfer 80mm Product Code: Part function (round rod) Material (steel) Max. length (50 < L < 150) Primary machine (lathe) Round Rod Group Technology Code Example

Group Technology Schemes Enable Grouping of Parts

Improved product design Reduced purchases Reduced work-in-process inventory Improved routing & machine loading Reduced setup & production times Simplified production planning & control Simplified maintenance Group Technology Benefits

Production Documents Assembly Drawing Assembly chart Route sheet Work order

Shows exploded view of product HeadNeck Handle End Cap Assembly Drawing

1 2 3 SA1 A1 A2 Tuna Fish Mayonnaise Bread Tuna Assy FG Sandwich Assembly Chart for A Tuna Sandwich

Assembly Drawing and Assembly Chart

Route Sheet Lists all operations

Work Order Dept Oper Date Work Order Approved: JM Manufacturing © T/Maker Co. Authorizes producing a given item, usually to a schedule

Service Design Service is an act Service delivery system –Facilities –Processes –Skills Many services are bundled with products

Service Design - Nature of Customer Participation

Service Design Service –Something that is done to or for a customer Service delivery system –The facilities, processes, and skills needed to provide a service Product bundle –The combination of goods and services provided to a customer Service package –The physical resources needed to perform the service

Phases in Service Design 1.Conceptualize 2.Identify service package components 3.Determine performance specifications 4.Translate performance specifications into design specifications 5.Translate design specifications into delivery specifications

Challenges of Service Design  Variable requirements  Difficult to describe  High customer contact  Service – customer encounter

Tangible – intangible Services created and delivered at the same time Services cannot be inventoried Services highly visible to customers Services have low barrier to entry Location important to service Range of service systems Demand variability Differences Between Product and Service Design

The End