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Products may refer to tangible goods and intangible such as services.

Goods and services selection.

Product decision – the selection, definition, and design of products.
Product design can manifest itself in concepts, technology and packaging
4 phase of the product life cycle:
- Introduction
- Growth
- Maturity
- Decline
Product by value analysis – a list of products, in descending order of their individual dollar
contribution to the firm, as well as the total annual dollar contribution of the product. Laporan
analisis produk berdasarkan nilai ini membantu manajemen dalam mengevaluasi strategi yang
mungkin dilakukan pada masing-masing produk/ memusatkan perhatian pada arah strategi
masing-masing produk (bisa mencakup pada peningkatan arus kas, peningkatan penetrasi pasar,
atau pengurangan biaya) dimana dapat juga membantu manajaemen mengenai penawaran produk
mana yang harus dieleminasi dan mana yang gagal.

Generating new products.

Product selection, definition and design take place on a continuing basis. Changes in product
opportunities, the product themselves, product volume and product mix may arise due to
understanding the cust, economic change, sociological and demographic change, technological
change, political/legal change, market practice, professional standards, suppliers or distributor.
Importance of new products cannot be overestimated.

Product development.
[product development stages image]
Quality function deployment – a process for determining cust requirements (customer ‘wants’)
and translating them into attributes (the ‘hows’) that each functional area can understand and act
on. Mengacu pada penentuan apa yang akan memuaskan pelangganan dan menerjamahkan
keinginan pelanggan menjadi targe:desain. Digunakan pada awal proses desain untuk membantu
menentukan apa yang akan memuaskan pelangan dan dimana upaya penyebaran kualitas
dibutuhkan. Salah satu alat QFD adalah house of quality, sebuah teknik grafis untuk
mendefinisikan hubungan antara keinginan pelanggan dan produk/jasa. Kegunaan lain dari QFD
adalah untuk menunjukkan bagaimana quality effortnya akan disebarkan.
House of quality – a part of the quality function development process that utilizes a planning matrix
to relate customer wants to how the firm is going to meet those wants.
There are 7 basic steps :
1. Identify cust wants
2. Identify how the good/service will satisfy cust wants
3. Relate cust wants to product hows
4. Identify relationships between the firm’s hows
5. Develop importance ratings
6. Evaluate competing products
7. Determine the desirable technical attributes, performance and competitor’s performance
against these attributes.
Product development teams – teams charged with moving from market requirements for a product
to achieving product success.
Concurrent engineering – use of participating teams in design and engineering activities.

Manufacturability and value engineering – activities that help improve a product’s design,
production, maintainability, and use.(memusatkan perhatian pada perbaikan design dan spesifikasi
pada tahap penelitian, pengembangan, desain dan praproduksi dari pengembangan produk.
Kegiatan manufakturabilitas dan perekayasaan nilai bisa merupakan Teknik penghindaran biaya
terbaik yang mungkin dilakukan oleh manajemen Operasional.

Issues for product design/Peluncuran desain produk (pertimbangan penting bagi desain
sebuah produk selain pengembangan sistem dan struktur organisasi yang efektif).
Robust (baik) design – a design that can be produced to requirements even with unfavorable
conditions in the production process.
Modular design – a design in which parts or components of a product are subdivided into modules
that are easily interchanged or replaced. Menawarkan fleksibilitas, baik bagi produksi maupunn
Computer aided design (CAD) – interactive use of a computer to develop and document a product.
Menggunakan gambar tiga dimensi untuk menghemat waktu dan uang dengan mempersingkat
siklus pengembangan untuk semua produk.
Design for manufacture and assembly (DFMA) – software that allows designers to look at the
effect of design on manufacturing of a product. DFMA merupakan perluasan CAD memfokuskan
pada efek dari desain dan perakitan.
3-D object modelling – an extension of CAD that builds small prototypes.
Standard for the exchange of product data (STEP) – a standard that provides a format allowing the
electronic transmission of three-dimensional data.
Computer-aided manufacturing – the use of information technology to control machinery.
Virtual reality – a visual form of communication in which images substitute for reality and
typically allow the user to respond interactively.
Value analysis – a review of successful products that takes place during the production process.
LCA(keberlanjutan dan penilaian siklus hidup) – evaulasi formal atas dampak lingkungan sebuah

Time Based competition.

Time based competition – competition based on time rapidly developing products and moving
them to market.

Defining a product.
Ketika barang atau jasa baru dipilih untuk diperkenalkan mereka harus didefinisikan dalam hal
fungsinya lalu didesain dan lalu ditentukan bagaimana fungsi tersebut dicapai.
Engineering drawing – a drawin that show dimensions, tolerances, materials and finishes of a
Bill of material (BOM) – a list of the components, their description and the quantity of each
required to make one unit of a product.
Make or buy decision – the choice between producing a component or a service and purchasing it
from an outside source.
Group technology – a product and component coding system that specifies the type of processing
and the parameters of the processin; it allows similar products to be grouped.

Documents for production.

ketika produk sudah siap untuk diproduksi,produksi dibantu oleh beragam dokumen. Berikut
beberapa dokumen :
Assembly drawing – an exploded view of a product.
Assembly chart – a graphic means of identifying how components flow into sub-assemblies and
final products.
Route sheet – a list of the operations necessary to produce a component with the material specified
in the bill of material.
Work order – an instruction to make a given quantity of a particular item.
Engineering change notice (ECN) – a correction or modification od an engineering drawing or bill
of material.
Configuration management – a system by which a product’s planned and changing components
are accurately identified.
Product life cycle management (PLM) – software programs that together many phases of product
design and manufacture.

Service design.
Techniques to reduce costs and enhance the service offering include :
1. Delaying customization
2. Modularizing
3. Automating
4. Designing for the ‘moment of truth’

Application of decision trees to product design.

To form a decision tree ,
1. Include all the possible alternatives (including ‘do nothing’) and state of nature;
2. Enter the payoffs at the end of the approptiate branch; and
3. Determine the expected value of each course of action by starting at the end of the tree and
working toward the beginning, calculating values at each step and ‘pruning’ inferior

Transition to production.
One of the arts of modern management is knowing when to move a product from development to
3 common approaches to managing transitions
- Project managers
- Product development teams
- Integrate product development & manufacturing organizations.