kuliah-02 - Product/Service and Process Design Part 1...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Product/Service, and Process Design Part 1 Product/Service Design Product/Service Design When a product/service is designed: • The detailed characteristics of the product/ service are established. • The characteristics of the product/service directly affects how the product/service can be produced/ delivered. • How the product/service is produced/delivered determines the design of the production/delivery system. Product/Service Design Product/service design directly affects: • Product/service quality • Production/delivery cost • Customer satisfaction New Product Opportunities 1. Understanding the customer 2. Economic change 3. Sociological and demographic Sociological change change Brainstorming 4. Technological change is a useful tool 5. Political/legal change 6. Market practice, professional Market standards, suppliers, distributors standards, Product Strategy Options Differentiation IJN Low cost Rapid KL Quick response Toyota Sales, cost, and cash flow Product Life Cycles Cost of development and production Sales revenue Net revenue (profit) Cash Cash flow flow Negative cash flow Introduction Loss Growth Maturity Decline Product Life Cycle Costs 100 – Costs committed Percent of total cost 80 – 60 – Costs incurred 40 – 20 – 0– Concept design Ease of change Detailed Manufacturing design prototype Distribution, service, and disposal Product Development System Ideas Ability Customer Requirements Functional Specifications Scope of product development team Product Specifications Scope for design and Design Review engineering teams Test Market Introduction Evaluation QFD House of Quality Interrelationships What the Customer Wants Relationship Matrix Technical Attributes and Evaluation Analysis of Competitors How to Satisfy Customer Wants House of Quality Example Completed Completed House of Quality Quality Cost Reduction of a Bracket through Value Engineering Value Analysis Focuses on design improvement during production Seeks improvements leading either to a better product or a product which can be produced more economically Time-Based Competition Product life cycles are becoming Product shorter and the rate of technological change is increasing increasing Developing new products faster Developing can result in a competitive advantage advantage Service Design Service typically includes direct Service interaction with the customer interaction Increased opportunity for customization Reduced productivity Cost and quality are still determined at Cost the design stage the Delay customization Modularization Reduce customer interaction, often Reduce through automation through Part 2 Process Design Dell Computer Company “How can we make the process of How buying a computer better?” buying Sell custom-built PCs directly to consumer Build computers rapidly, at low cost, and Build only when ordered Integrate the Web into every aspect of its Integrate business business Focus research on software designed to Focus make installation and configuration of its PCs fast and simple PCs Process, Volume, and Variety Volume Repetitive Repetitive Process Process Figure 7.1 Low Low Volume Volume High Variety one or few one units per run, high variety high (allows (allows customization) customization) Changes in Changes Modules Modules modest runs, modest standardized modules modules Changes in Changes Attributes (such as grade, quality, size, thickness, etc.) long runs only long Process Focus projects, job shops (machine, print, carpentry) Standard Register High High Volume Volume Mass Customization (difficult to achieve, but huge rewards) Dell Computer Co. Repetitive (autos, motorcycles) Harley Davidson Poor Strategy Poor (Both fixed and variable costs are high) are Product Focus (commercial baked goods, steel, glass) Nucor Steel Process Strategies How to produce a product or provide How a service that service Meets or exceeds customer Meets requirements requirements Meets cost and managerial goals Has long term effects on Efficiency and production flexibility Costs and quality Process Strategies Four basic strategies Process focus Repetitive focus Product focus Mass customization Within these basic strategies there are Within many ways they may be implemented many (1) (a) Process Focus Facilities are organized around specific Facilities activities or processes activities General purpose equipment and skilled General personnel personnel High degree of product flexibility Typically high costs and low equipment Typically utilization utilization Product flows may vary considerably Product making planning and scheduling a challenge challenge (1) (b) Process Focus Print Shop Many Many inputs inputs High High variety of outputs outputs (2) (a) Repetitive Focus Facilities often organized as Facilities assembly lines assembly Characterized by modules with parts Characterized and assemblies made previously and Modules may be combined for many Modules output options output Less flexibility than processfocused facilities but more efficient (2) (b) Repetitive Focus Automobile Assembly Line Modules Modules combined for many output options options Raw Raw materials and module inputs inputs Few Few modules modules Process Flow Diagram Frame tube bending Frame-building work cells Frame machining Hot-paint frame painting THE ASSEMBLY LINE TESTING 28 tests Incoming parts Air cleaners Oil tank work cell Fluids and mufflers Handlebars Wheel work cell From Milwaukee From on a JIT arrival schedule schedule Shocks and forks Fuel tank work cell Engines and transmissions Fender work cell Roller testing Crating (3) (a) Product Focus Facilities are organized by product High volume but low variety of High products products Long, continuous production runs Long, enable efficient processes enable Typically high fixed cost but low Typically variable cost variable Generally less skilled labor (3) (b) Product Focus Bottling Plant Many Many inputs inputs Output Output variation in size, shape, and packaging packaging (4) (a) Mass Customization The rapid, low-cost production of The goods and service to satisfy increasingly unique customer desires desires Combines the flexibility of a Combines process focus with the efficiency of a product focus of (4) (b) Mass Customization Item Vehicle models Vehicle types Bicycle types Software titles Web sites Movie releases New book titles Houston TV channels Breakfast cereals Items (SKUs) in Items supermarkets supermarkets Number of Choices Early 21st Early 1970s Century Century 140 260 18 1,212 8 19 0 300,000 0 46,412,165 267 458 40,530 77,446 5 185 160 340 14,000 150,000 14,000 (4) (c) Mass Customization Repetitive Focus Modular design Flexible equipment Modular techniques Mass Customization Effective Effective scheduling techniques techniques Process-Focused High variety, low volume Low utilization (5% to 25%) Low (5% General-purpose equipment Rapid Rapid throughput techniques techniques Product-Focused Low variety, high volume High utilization (70% to 90%) High (70% Specialized equipment Comparison of Processes - i Process Focus (Low volume, high variety) Repetitive Focus (Modular) Product Focus (High-volume, low-variety) Mass Customization (High-volume, high-variety) Small quantity, large variety of products Long runs, standardized product made from modules Large quantity, small variety of products Large quantity, large variety of products General purpose equipment Special equipment aids in use of assembly line Special purpose equipment Rapid changeover on flexible equipment Comparison of Processes - ii Process Focus (Low volume, high variety) Repetitive Focus (Modular) Product Focus (High-volume, low-variety) Mass Customization (High-volume, high-variety) Operators are broadly skilled Employees are modestly trained Operators are less broadly skilled Flexible operators are trained for the necessary customization Many job instructions as each job changes Repetition reduces training and changes in job instructions Few work orders and job instructions because jobs standardized Custom orders require many job instructions Comparison of Processes - iii Process Focus (Low volume, high variety) Repetitive Focus (Modular) Product Focus (High-volume, low-variety) Mass Customization (High-volume, high-variety) Raw material inventories high JIT procurement techniques used Raw material inventories are low Raw material inventories are low Work-inprocess is high JIT inventory techniques used Work-inprocess inventory is low Work-inprocess inventory driven down by JIT, lean production Comparison of Processes - iv Process Focus (Low volume, high variety) Repetitive Focus (Modular) Product Focus (High-volume, low-variety) Mass Customization (High-volume, high-variety) Units move slowly through the plant Movement is measured in hours and days Swift movement of unit through the facility is typical Goods move swiftly through the facility Finished goods made to order Finished goods made to frequent forecast Finished goods made to forecast and stored Finished goods often made to order Comparison of Processes - v Process Focus (Low volume, high variety) Scheduling is complex, trade-offs between inventory, availability, customer service Repetitive Focus (Modular) Scheduling based on building various models from modules to forecasts Product Focus (High-volume, low-variety) Relatively simple scheduling, establishing output rate to meet forecasts Mass Customization (High-volume, high-variety) Sophisticated scheduling required to accommodate custom orders Comparison of Processes -vi Process Focus (Low volume, high variety) Repetitive Focus (Modular) Product Focus (High-volume, low-variety) Mass Customization (High-volume, high-variety) Fixed costs low, variable costs high Fixed costs dependent on flexibility of the facility Fixed costs high, variable costs low Fixed costs high, variable costs must be low Costing estimated before job, not known until after job is complete Costs usually known due to extensive experience High fixed costs mean costs dependent on utilization of capacity High fixed costs and dynamic variable costs make costing a challenge Changing Processes Difficult and expensive May mean starting over Process strategy determines Process transformation strategy for an extended period extended Important to get it right Process Analysis and Design Flow Diagrams - Shows the movement Flow of materials of Time-Function Mapping - Shows flows Time-Function and time frame and Value Stream Mapping - Shows flows Value and time and value added beyond the immediate organization immediate Process Charts - Uses symbols to show Process key activities key Service Blueprinting - focuses on Service customer/provider interaction customer/provider Process Analysis Tools Flowcharts provide a view of the Flowcharts big picture big Time-function mapping adds rigor Time-function and a time element and Value stream analysis extends to Value customers and suppliers customers Process charts show detail Service blueprint focuses on Service customer interaction customer Service Process Matrix Degree of Customization High Low Mass Service Degree of Labor High Professional Service Private banking Commercial banking Full-service stockbroker Generalpurpose law firms Boutiques Retailing Service Factory Service Law clinics Service Shop Specialized Limited-service hospitals stockbroker Low Warehouse and catalog stores Fast food restaurants Airlines No frills airlines Fine-dining restaurants Hospitals Service Process Matrix Mass Service and Professional Service Labor involvement is high Selection and training highly important Focus on human resources Personalized services Service Factory and Service Shop Automation of standardized services Low labor intensity responds well to Low process technology and scheduling process Tight control required to maintain Tight standards standards Another Way of Looking at Process Design in Services • Three schemes for producing and delivering services – Quasi-Manufacturing – Customer-as-Participant – Customer-as-Product Process Design in Services • Quasi-Manufacturing – Physical goods are dominant over intangible service – Production of goods takes place along a production line – Operations can be highly automated – Almost no customer interaction – Little regard for customer relations – Example – bank’s checking encoding operation Process Design in Services • Customer-as-Participant – Physical goods may be a significant part of the service – Services may be either standardized or custom – High degree of customer involvement in the process – Examples: ATM, self-service petrol station Process Design in Services • Customer-as-Product – Service is provided through personal attention to the customer – Customized service on the customer – High degree of customer contact – There is a perception of high quality – Customer becomes the central focus of the process design – Examples: medical clinic, hair salon Process Reengineering • The concept of drastically changing an existing process design • Not merely making marginal improvements to a the process • A correctly reengineered process should be more efficient • A smaller labor force is often the result Product Focused, Dedicated Systems Product Focused, Batch System Cellular Process-Focused, Manufacturing Process-Focused, Job Shop Job Small Batch Size Large Process Design Depends on Product Diversity and Batch Size Few Number of Product Designs Many Cost Functions of Processing Alternatives Annual Cost of Production ($000) p ho S ob J 2,000 ine sembly L s Autom. A 1,500 1,000 500 Job Shop Preferred 100,000 Cellular Manufacturing Preferred n u f. a ar M l ellu C Automated Assembly Line Preferred Units Units Produced Produced Per Year 250,000 Improving Service Productivity Strategy Technique Example Separation Structure service so Bank customers go to a customers must go manager to open a new where service is offered account, to loan officers for loans, and to tellers for deposits Self-service Self-service so customers examine, compare, and evaluate at their own pace Supermarkets and department stores, internet ordering Improving Service Productivity Strategy Technique Example Postponement Customizing at delivery Customizing vans at delivery rather than at production Focus Restricting the offerings Limited-menu restaurant Modules Modular selection of service, modular production Investment and insurance selection, prepackaged food modules in restaurants Improving Service Productivity Strategy Technique Example Automation Precise personnel scheduling Automatic teller machines Scheduling Precise personnel scheduling Scheduling ticket counter personnel at 15-minute intervals at airlines Training Clarifying the service options, explaining how to avoid problems Investment counselor, funeral directors, aftersale maintenance personnel Equipment and Technology Often complex decisions Possible competitive advantage Flexibility Stable processes May allow enlarging the scope of the May processes processes Machine Technology Increased precision Increased productivity Increased flexibility Improved environmental impact Improved Reduced changeover time Decreased size Reduced power requirements Improving Service Processes Layout Product exposure, customer Product education, product enhancement education, Human Resources Recruiting and training Impact of flexibility Technology in Services Service Industry Example Financial Services Debit cards, electronic funds transfer, ATMs, Internet stock trading Education Electronic bulletin boards, on-line journals Utilities and government Automated one-man garbage trucks, optical mail and bomb scanners, flood warning systems Restaurants and foods Wireless orders from waiters to kitchen, robot butchering, transponders on cars that track sales at drive-throughs Communications Electronic publishing, interactive TV Technology in Services Service Industry Example Hotels Electronic check-in/check-out, electronic key/lock system Wholesale/retail trade Point-of-sale terminals, e-commerce, electronic communication between store and supplier, bar coded data Transportation Automatic toll booths, satellite-directed navigation systems Health care Online patient-monitoring, online medical information systems, robotic surgery Airlines Ticketless travel, scheduling, Internet purchases Process Redesign The fundamental rethinking of business The processes to bring about dramatic improvements in performance improvements Relies on reevaluating the purpose of the Relies process and questioning both the purpose and the underlying assumptions purpose Requires reexamination of the basic Requires process and its objectives process Focuses on activities that cross Focuses functional lines functional Any process is a candidate for redesign Process Design (Hiring/Bringing, renewal of maid services) • • • • • • • • Health checkup Maid info Maid agency Health clinics / doctors FOMEMA Immigration – visa Internet technology Bank/payment One stop processing centre Ethics and Environmentally Friendly Processes Reduce the negative impact on the Reduce environment environment Encourage recycling Efficient use of resources Reduction of waste by-products Use less harmful ingredients Use less energy Wrap-Up: World Class Practice • • • • • • • • Fast new product introduction Design products for ease of production Refine forecasting Focus on core competencies ... less vertical integration Lean production Flexible automation Job shops move toward cellular manufacturing Manage information flow ..... automate and simplify! That’s it! ...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online