Product value analysis on customized product based on pleasurable design and time-driven activity-based costing in food industry

Abstract

The application of mass customization in the food industry requires an appropriate system design to meet the customers’ needs and wants. One of the systems is the modularization concept for product design. The application of the modularization concept will impact manufacturing systems. Modular design involves the creation of independent modules to build various products. This paper used product design based on the pleasurable design that considers aspects of functionality, usability, and pleasure for ice cream products. This study aimed to analyze the process design and production costs to realize the product variations and determine product value. Product value analysis is used to assess product variations that provide immense benefits to customers but with minimal costs. Time-Driven Activity-Based Costing (TDABC) method is applied to the ice cream industry. Product variations provided were 25 product variants by combining three types of modules, namely ice cream paste, packaging, and appearance. In this study, the selected product variants based on the product value determined based on the inherent benefits and the production costs of each product variant. Products that get the highest value are products that provide significant benefits to consumers but require a relatively low cost.

Keywords

• modularization
• product design
• process design
• tdabc
• product value