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
 Concurrent Engineering
 Designing for the Customer
 QFD




Process Selection
Process Flow Design
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




Information Technology
Form Design
Functional Design
Reliability
Maintability
Feasibility Study
 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
Correlation:
Strong positive
X
Positive
X
X
Water resistance
*
Accoust. Trans.
Window
Energy needed
to open door
Check force on
level ground
Door seal
resistance
Customer
Requirements
Energy needed
to close door
Engineering
Characteristics
Negative
Strong negative
X
X
X
Competitive evaluation
X = Us
A = Comp. A
B = Comp. B
(5 is best)
1
2
Easy to close
7
X
Stays open on a hill
5
X AB
Easy to open
3
Doesn’t leak in rain
3
No road noise
2
3
4
5
AB
XAB
A XB
X A
Importance weighting
10
6
6
9
2
3
B
Relationships:
A
X
BA
X
Reduce energy
to 7.5 ft/lb.
B
B
A
X
X
A
Maintain
current level
B
Maintain
current level
Technical evaluation
(5 is best)
5
4
3
2
1
Reduce force
to 9 lb.
Target values
Maintain
current level
Reduce energy
level to 7.5 ft/lb
Strong = 9
BXA
BA
X
Medium = 3
Small = 1
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, Products,
High
Low
Higher StandardVolume 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/McGraw-Hill
©The McGraw-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
Standard
execution time
2 minutes
Brush
shoes
30
secs
Total acceptable
execution time
5 minutes
Seen by
customer
Line of
visibility
Not seen by
customer but
necessary to
performance
Clean
shoes
45
secs
Apply
polish
30
secs
Fail
point
Buff
Collect
payment
45
secs
15
secs
Wrong
color wax
Materials
(e.g., polish, cloth)
Select and
purchase
supplies
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 the
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 and communicate


For customers
For employees
 Painless to invoke

Given proactively
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Characteristics of a WellDesigned 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.
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Characteristics of a WellDesigned 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.
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