Product and Service Design Pertemuan 03

Mata kuliah : J0444 - Manajemen OperasionalTahun : 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

ProductIdea

Package

PhysicalGood

FeaturesQualityLevel

Service(Warranty)

Brand(Name)

Product Components

• Major factors in design strategy– Cost– Quality– Time-to-market– Customer satisfaction– Competitive advantage

Product and Service DesignProduct 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

Dem

and

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

Sa

les

, Co

st

& P

rofi

t .

Introduction Maturity DeclineGrowth

Cost ofDevelopment

& ManufactureSales Revenue

Time

Cash flowLoss

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

Sco

pe

of

pro

du

ct d

evel

op

men

t te

am

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

Designrequirements

Customerrequire-ments

Competitiveassessment

Relationshipmatrix

Specificationsor

target values

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 gr

ound

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 positivePositiveNegativeStrong 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 = 9Medium = 3Small = 1Target values

Red

uce

ener

gy

leve

l to

7.5

ft/lb

Red

uce

forc

eto

9 lb

.

Red

uce

ener

gy to

7.5

ft/l

b.

Mai

ntai

ncu

rren

t lev

elTechnical evaluation(5 is best)

54321

B

A

X

BAX B

AX

BXA

BXABA

X

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

House of Quality ExampleHouse 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.

© 1984-1994 T/Maker Co.

House of Quality Example

House of Quality Example

High relationship Medium relationship Low Relationship

CustomerRequirements

CustomerImportance

Target Values

House of Quality Example

High relationship Medium relationship Low Relationship

Target Values

Light weightEasy to useReliable

What the customer desires (‘wall’)

AluminumParts

AutoFocus

AutoExposure

CustomerRequirements

CustomerImportance

House of Quality Example

High relationship Medium relationship Low Relationship

CustomerRequirements

CustomerImportance

Target Values

Light weight

Easy to useReliable

AluminumParts

AutoFocus

AutoExposure

3

1

2

Average customer importance rating

House of Quality Example

High relationship Medium relationship Low Relationship

CustomerRequirements

CustomerImportance

Light weight

Easy to useReliable

AluminumParts

AutoFocus

AutoExposure

3

2

1

Relationship between customer attributes & engineering characteristics (‘rooms’)

House of Quality Example

High relationship Medium relationship Low Relationship

CustomerRequirements

CustomerImportance

Target Values

Light weight

Easy to useReliable

AluminumParts

AutoFocus

AutoExposure

3

2

1

5 1 1

Target values for engineering characteristics (‘basement’);

key output

House of Quality Example

High relationship Medium relationship Low Relationship

CustomerRequirements

CustomerImportance

Target Values

Light weight

Easy to useReliable

AluminumParts

AutoFocus

AutoExposure

3

2

1

5 1 1

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 StrategiesAlliances

Joint Ventures Purchase Technology or Expertise by Acquiring the Developer

Internal Development StrategiesMigrations of Existing Products

Enhancement to Existing ProductsNew 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

Number Description Qty

Description Qty

A60-71 Panel Weldm’t 1 BunHamburger PattyCheddar CheeseBaconBBQ OnionsHickory BBQ SauceBurger Set Lettuce Tomato Red Onion PickleFrench FriesSeasoned Salt11-inch PlateHRC Flag

18 oz.2 slices2 strips½ cup1 oz. 1 leaf1 slice4 rings1 slice5 oz.1 tsp11

A 60-7R 60-17R 60-428P 60-2

Lower Roller Assembly Roller Pin Locknet

1111

60-72R 60-57-1A 60-402-50-1150

Guide Assem. Rear Support Angle Roller Assem. Bolt

1111

A 60-73A 60-74R 60-9902-50-1150

Guide Assm, Front Support Weldm’t Wear Plate Bolt

1111

 

Bill of Materials – Manufacturing Plant Bill of Materials – Manufacturing Plant and Fast-Food Restaurantand 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

112mm112mm

60mm60mm

4mm x 45° chamfer4mm x 45° chamfer

80mm80mm Product Code:

1 5 3 1 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

Head Neck

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

Route Sheet for BracketSequence Machine Operation Setup

TimeOperationTime/Unit

1 Shear # 3 Shear tolength

5 .030

2 Shear # 3 Shear 45°corners

8 .050

3 Drillpress

Drill bothholes

15 3.000

4 Brakepress

Bend 90° 10 .025

Route Sheet for BracketSequence Machine Operation Setup

TimeOperationTime/Unit

1 Shear # 3 Shear tolength

5 .030

2 Shear # 3 Shear 45°corners

8 .050

3 Drillpress

Drill bothholes

15 3.000

4 Brakepress

Bend 90° 10 .025

Work Order

Dept Oper Date

Work Order

Approved: JM

Manufacturing

© 1984-1994 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. Conceptualize2. Identify service package components3. Determine performance specifications4. Translate performance specifications into

design specifications5. Translate design specifications into delivery

specifications

Challenges of Service Design

1. Variable requirements2. Difficult to describe3. High customer contact4. 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 Differences Between Product and Service Designand Service Design

The End