DESIGN OF

GOODS AND
SERVICES
Source: Jay Heizer & Barry Render
Risna Kartika, S.E., M.M.
Learning Objectives
When you complete this chapter you should be able
to :
1. Define product life cycle
2. Describe a product development system
3. QFD (Quality Function Deployment)
4. Build a house of quality

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Goods and Services Selection
• Organizations exist to provide goods or services to
society
• Great products are the key to success
• Top organizations typically focus on core products
• Customers buy satisfaction, not just a physical good
or particular service
• Fundamental to an organization's strategy with
implications throughout the operations function
• Goods or services are the basis for an organization's
existence
• Limited and predicable life cycles requires
constantly looking for, designing, and developing
new products
• New products generate substantial revenue

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Product Decision
The objective of the product
decision is to develop and
implement a product strategy
that meets the demands of the
marketplace with a
competitive advantage

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Product Life Cycles

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Life Cycle and Strategy
• Research
Introductory • Product development
Phase •
•
Process modification and enhancement
Supplier development

• Product design begins to stabilize

Growth Phase • Effective forecasting of capacity becomes necessary
• Adding or enhancing capacity may be necessary

• Competitors now established

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

• Unless product makes a special contribution to the

Decline organization, must plan to terminate offering

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• Generating New Products
Understanding the customer
Economic change
Sociological and demographic change
Technological change
Political and legal change
Market practice, professional standards, suppliers,
distributors

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Product Development Analysis

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Quality Function Deployment (QFD)

• Identify customer wants

• Identify how the good/service will satisfy customer wants
• Relate customer wants to product hows
• Identify relationships between the firm’s hows
• Develop customer importance ratings
• Evaluate competing products
• Compare performance to desirable technical attributes

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QFD House of Quality

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 (5)

(3)

(1)

Score : (1x3) + (1x4) + (3x5) = 22 11

Issues for Product Design
1. Robust design
2. Modular design
3. Computer-aided design (CAD)
4. Computer-aided manufacturing (CAM)
5. Virtual reality technology
6. Value analysis
7. Sustainability and Life Cycle Assessment (LCA)

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• Robust Design • Modular Design • Computer Aided • Computer Aided • Virtual Reality
• Product is • Products Design Manufacturing Technology
designed so that designed in easily • Using computers • Utilizing • Computer
small variations in segmented to design specialized technology used
production or components products and computers and to develop an
assembly do not • Adds flexibility to prepare program to interactive, 3-D
adversely affect both production engineering control model of a
the product and marketing documentation manufacturing product from the
• Typically results • Improved ability • Shorter equipment basic CAD data
in lower cost and to satisfy development • Often driven by • Allows people to
higher quality customer cycles, improved the CAD system ‘see’ the finished
requirements accuracy, lower (CAD/CAM) design before a
cost physical model is
• Information and built
designs can be • Very effective in
deployed large-scale
worldwide designs such as
plant layout
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• Virtual Reality Technology
• Focuses on design improvement during
production
• Seeks improvements leading either to a better
product or a product which can be produced
more economically with less environmental
impact
• Sustainability and Life Cycle
Assessment (LCA)
• Sustainability means meeting the needs of the
present without compromising the ability of
future generations to meet their needs
• LCA is a formal evaluation of the environmental
impact of a product
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ThankYou
Risna Kartika
082115050696
risnakartika@gmail.com