W3_ASY_Laundry Service


Problem Statement

Laundry service in my neighbourhood at this time is seemed to be an interesting business, in this posting I want talk a selection of washer machine using multi attributes as discussed in Engineering Economy Engineering Book, chapter 14: Decision Making Considering Multi Attributes”, page 551-573. This time I pick for a front loading washing machine with washing capacity 7 kg. what is the best option for buying washer machine to get as many attributes offered by manufacturer.

Feasible Alternatives

Here is the result after browsing some washer products on the internet and I have eight products with the following specifications below :

Description

Unit

Washer #1

Washer #2

Washer #3

Washer #4

Washer #5

Washer #6

Washer #7

Washer #8

Brand

 

ELECTROLUX

ELECTROLUX

HITACHI

MIDEA

SAMSUNG

SANKEN

LG

PANASONIC

Type

 

EWP-10742

EWP-85752

BDW70MAE(WH)

MFL90 D14212

WF0702

SFL7570W

WD-M1070TD

NA-107VC4

Wash Capacity

Kg

7

7

7

7

7

7

7

7

Frequency

Hz

50

50

50

50

50

50

50

50

Voltage Rating

V

220-240

220-240

220-240

220-240

220-240

220-240

220-240

220-240

Country of Origin

Sweden

Sweden

Japan

Indonesia

South Korea

Indonesia

South Korea

Japan

Price

IDR

4.939.000

4.039.000

6.669.000

7.469.000

3.399.000

3.539.000

7.510.400

5.200.000

Maximum Speed

Rpm

1.000

850

1.200

1.400

1.200

1.000

800

1.000

Water Consumption (Cotton mode)

Ltr

58

58

65

62

46

62

48

62

Rated Input (max)

watt

450

450

450

2.100

450

1.200

2.100

2.200

Number of Wash Programs

5

14

14

7

7

16

16

16

Additional Features

 

               
– Ag Technology

No

No

No

Yes

No

No

No

No

– Child Lock

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

– Pre-Wash

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

– Rinse and Spin

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

– Automatic Load Control

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

– Time display

Yes

Yes

No

No

No

No

Yes

No

Table.1

Outcomes/ Calculations of Each Alternative

Using non-dimensional scaling technique, the qualitative aspect of each attributes of those alternatives transformed into quantitative non-dimensional value shown at the following table:

Attribute

Value

Rating Procedure

Dimensionless Value

Brand Name

1

Midea

(Relative Rank-1)/6

0,00

2

Sanken

0,17

3

Hitachi

0,33

4

Panasonic

0,50

5

Electrolux

0,67

6

LG

0,83

7

Samsung

1,00

Country of Origin

1

Indonesia

(Relative Rank-1)/3

0,00

2

Sweden

0,33

3

South Korea

0,67

4

Japan

1,00

Price

IDR

4.939.000

(7,510,400-Price)/4,111,400

0,63

IDR

4.039.000

0,84

IDR

6.669.000

0,20

IDR

7.469.000

0,01

IDR

3.399.000

1,00

IDR

3.539.000

0,97

IDR

7.510.400

0,00

IDR

5.200.000

0,56

Maximum Speed

RPM

1.000

(max.speed-800)/600

0,33

RPM

850

0,08

RPM

1.200

0,67

RPM

1.400

1,00

RPM

1.200

0,67

RPM

1.000

0,33

RPM

800

0,00

RPM

1.000

0,33

Water Consumption (Cotton mode)

Ltr

58

(65-water.cons)/17

0,41

Ltr

58

0,41

Ltr

65

0,00

Ltr

62

0,18

Ltr

46

1,12

Ltr

62

0,18

Ltr

48

1,00

Ltr

62

0,18

Number of wash program

 

5

(no.wash prog.-5)/11

0,00

 

14

0,82

 

14

0,82

 

7

0,18

 

7

0,18

 

16

1,00

 

16

1,00

 

16

1,00

Rated Input (max)

watt

450

(2,200-Rated Input)/1750

1,00

watt

450

1,00

watt

450

1,00

watt

2.100

0,06

watt

450

1,00

watt

1.200

0,57

watt

2.100

0,06

watt

2.200

0,00

Additional Features

 

 

 

– Ag Technology

1

No

(Relative Rank-1)

0,00

2

Yes

1,00

– Child Lock

1

No

(Relative Rank-1)

0,00

2

Yes

1,00

– Pre-Wash

1

No

(Relative Rank-1)

0,00

2

Yes

1,00

– Rinse and Spin

1

No

(Relative Rank-1)

0,00

2

Yes

1,00

– Automatic Load Control

1

No

(Relative Rank-1)

0,00

2

Yes

1,00

– Time display

1

No

(Relative Rank-1)

0,00

2

Yes

1,00

Table.2

And then next step is making the alternatives product using Additive Weighting Technique as follows:

Attribute

Relative Rank

Normalized Weight

W#1

W#2

W#3

W#4

W#5

W#6

W#7

W#8

Brand

8

0,09

0,67

0,06

0,67

0,06

0,33

0,03

0

0

1

0,09

0,17

0,01

0,83

0,07

0,5

0,04

Contry of Origin

7

0,08

0,33

0,03

0,33

0,03

1

0,08

0

0

0,67

0,05

0

0,00

0,67

0,05

1

0,08

Price

13

0,14

0,63

0,09

0,84

0,12

0,20

0,03

0,01

0,00

1,00

0,14

0,97

0,14

0,00

0,00

0,56

0,08

Max Speed

9

0,10

0,33

0,03

0,08

0,01

0,67

0,07

1,00

0,10

0,67

0,07

0,33

0,03

0,00

0,00

0,33

0,03

Water Consumption

11

0,12

0,41

0,05

0,41

0,05

0,00

0,00

0,18

0,02

1,12

0,14

0,18

0,02

1,00

0,12

0,18

0,02

No. Wash Prog.

10

0,11

0,00

0,00

0,82

0,09

0,82

0,09

0,18

0,02

0,18

0,02

1,00

0,11

1,00

0,11

1,00

0,11

Rate Input

12

0,13

1,00

0,13

1,00

0,13

1,00

0,13

0,06

0,01

1,00

0,13

0,57

0,08

0,06

0,01

0,00

0,00

Additional Feature                                  
Ag Technology

3

0,03

0,00

0,00

0,00

0,00

0,00

0,00

1,00

0,03

0,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

Child Lock

4

0,04

1,00

0,04

1,00

0,04

1,00

0,04

1,00

0,04

1,00

0,04

1,00

0,04

1,00

0,04

1,00

0,04

Pre-Wash

5

0,05

1,00

0,05

1,00

0,05

0,00

0,00

1,00

0,05

1,00

0,05

1,00

0,05

1,00

0,05

1,00

0,05

Rinse and Spin

6

0,07

1,00

0,07

1,00

0,07

0,00

0,00

1,00

0,07

1,00

0,07

1,00

0,07

1,00

0,07

1,00

0,07

Auto. Load Ctr.

2

0,02

1,00

0,02

1,00

0,02

1,00

0,02

1,00

0,02

1,00

0,02

1,00

0,02

1,00

0,02

1,00

0,02

Time display

1

0,01

1,00

0,01

1,00

0,01

0,00

0,00

0,00

0,00

0,00

0,00

0,00

0,00

1,00

0,01

0,00

0,00

91

0,59

0,68

0,49

0,37

0,82

0,58

0,56

0,55

Table.3

From the table we know that alternative W#5B has the highest total score among the others

Setting Minimum/ Selection Criteria

The selection shall be based which alternative has the maximum total score, for selected option

Analysis/ Comparison of the Alternatives against the Criteria

The final rank calculation of each individual for the same case as above might be different for any region or country because it is subjective and depends on what people perceive about some products and what kind of attributes is more important to another for someone. So here I try to utilize result form market survey to minimize the level of subjective reason. From economic perspective product price considered as the most important attribute, followed by rated input, water consumption and then number of program wash etc. the priority rank is dependent also to what business perspective of we had if people must make a choice to go into laundry business. and another aspect of interdependency of laundry business aspect will give influence in determining the rank of each attributes.

Selection of the Best/ Preferred Alternative Compared against the Criteria

Considering above analysis, clothe washer Samsung type WF0702 is the preferred alternative.

Performance Monitoring and Post Evaluation of Result/ Follow up Assessment

As mention previously that ranking the attribute is relative for everybody than we can go for what common sense for what if mostly people perceive about something, then we can use the survey to help us minimize subjectivity of individual for example we can use the survey of customer satisfaction rank of electronic product as shown in following table :

Attribute

Value

Rating Procedure

Dimensionless Value

Costumer Satisfaction Rank

1

Midea

(Relative Rank-1)/5

0,00

2

Sanken

0,20

3

Panasonic

0,40

4

Electrolux

0,60

5

LG

0,80

6

Samsung

1,00

Table.4

Hopefully by using any data available as much as we can the multi attributes technique can result most objective result that may useful for most people

References :

  1. Hartono Elektronika (2013). Front Loading Washer. [ONLINE] Available at: https://www.hartonoelektronika.com/en/washer-and-dryer/washer-and-dryer-en/front-loading-washer-en-2/. [Last Accessed 15 Sept 203].
  2. Bursa Elektronik (2013). Product Categories. [ONLINE] Available at: http://www.bursa-elektronik.com/shop.html?page=shop.browse&category_id=60. [Last Accessed 15 Sept 203].
  3. Sullivan, William G., Wick, Elin M., Koelling, C. Patric. (2012), Engineering Economy. Chapter 14 Pp. 551 – 573, Fifteenth edition, Prentice hall.
  4. J.D. Power and Associates (2013). 2013 Laundry Appliance Satisfaction Study and the 2013 Kitchen Appliance Satisfaction Study. [ONLINE] Available at: http://www.jdpower.com/consumer-ratings/homes/ratings/909201545/2013-Laundry+Appliance+Satisfaction+Study%3A+Clothes+Washer/index.htm. [Last Accessed 15 Sept 203].
  5. MIDEA Electronics Indonesia (2011). Produk Midea. [ONLINE] Available at: http://www.midea.co.id/produk_mesincucmfl90.html. [Last Accessed 16 September 2013].
  6. Electrolux (2013). Washing Machines. [ONLINE] Available at: http://www.electrolux.com.sg/Products/Laundry_Room/Washing_Machines. [Last Accessed 16 Sept 2013].
  7. PT. Hitachi Modern Sales Indonesia (2013). Mesin Cuci. [ONLINE] Available at: http://www.hmsi-hitachi.co.id. [Last Accessed 16 September 2013].
  8. Samsung (2013). Wash Smart, Save Energy. [ONLINE] Available at: http://www.samsung.com/id/consumer/home-appliances/washing-machine/front-load. [Last Accessed 16 September 2013].
Advertisements

1 Comment

Filed under Asyhad, Week 03

One response to “W3_ASY_Laundry Service

  1. AWESOME case study Pak Asyhad and you did a nice job on your analysis and you provided plenty of references to back up your research. EXCELLENT.

    Having said that, given you are considering this as a BUSINESS, I would suggest that while your analysis of which machines to purchase is a valid and appropriate use for Multi-Attribute Decision making, when it comes time to actually do your business case, you need to focus primarily on the classic financial analysis tools- NPV, IRR, ERR and Payback Period.

    When the time comes, I have an EXCELLENT spreadsheet program which calculates all this information. Send me an email and I will send the Excel file to you……… Then you can use that in your analysis……

    Keep up the good work and looking forward to seeing more postings on this wonderful and appropriate case study!!

    BR,
    Dr. PDG, Jakarta

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s