thomas j. howard pt.1 ipd + pss

Design and Product Development Guest Lecture at Tallinn European Innovation Academy Thomas J. Howard www.thomasjhoward.com [email protected]

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“Original material by Thomas J. Howard, The Technical University of Denmark”

http://www.thomasjhoward.com/�

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2013 Original material by Thomas J. Howard, The Technical University of Denmark 2

Holyhead


Design in my Research


Design in Practice


Agenda Split into four sections each of roughly 40min (including exercises)

and a small break between each section Sections covered: 18:00 - Integrated Product Development 18:30 - Product/Service-Systems (PSS) 19:00 - Open Design 19:30 - Protovation


Why Design and Product Development?


Entrepreneurship mindsets

Causation

Effectuation

Business Value proposition

Means to achieve proposition

Business Value proposition

Means to achieve proposition


Designerly Mindset

To explore and develop the market, the product and its production simultaneously in an integrated fashion to get a more optimal business proposition

Market Product

Production Business

Product Development: Sequential vs Integrated Working for each other, not before each other.


Recommended Reading Source of inspiration for this lecture: Integrated Product Development Mogens Myrup Andreasen & Lars Hein (2000)


EXERCISE 1 - Example Using as few of the numbers as possible: Using these functions: +, -, x, /, (, ) Make or get as close as you can to: __________=____

25 ( 7 – 2 ) x 5 25

6 1 7 8 2 5


EXERCISE 1a Using as few of the numbers as possible: Using these functions: +, -, x, /, (, ) Make or get as close as you can to: __________=____ Make or get as close as you can to: __________=____ Make or get as close as you can to: __________=____

6 7 4 1 6 4

24

8

12

4

Cross out the numbers used


Sequential or “Over the wall” development

Marketing want: Designers want: Manufacturers want:

4

24

12

6 7 4 1 6 4 8


Exercise 1b Integrated development

Marketing wants: __________ = ____ Stylists want: __________ = ____ Manufacturers want: __________ = ____

4

24

12

6 7 4 1 6 4 8

Using as few numbers as possible, try to meet all targets at the same time (use numbers only once)


The role of the product developer

Image from: http://farm4.static.flickr.com/3289/3060694963_3d778f69dd.jpg


Does this really apply to product development

• Constraints imposed by design decisions cause compromise for other stakeholders

• Product development is greatly complex • Nobody knows how a product is developed

Even a simple product like a pencil!


Project cost allocation


What stakeholders are involved in product/service and its development?

Some important stakeholder activities:

• Engineering • User / Operators • Shipping / Distribution • Sales / Retailing • Purchasing • Quality control • Assembly • Disposal • Manufacturing • Suppliers / 3rd Party • Legal departments


The three Key disciplines of Integrated Product Development (IPD)

Business

Market Product

Production

’Need’ Situation


The three Key disciplines of Integrated Product Development (IPD)

Business

Marketing, Sales, Forecasting, User-studies

Design, Engineering, Aesthetics, Ergonomics

Manufacture, Assembly, Packaging, Transport

’Need’ Situation


“Integrated Product Development is:

an idealised model of development where the business case of a

product is built from the perspectives of all stakeholders”


2 Products with the same task...


Which product is better?

Market Product

Production Business


EXERCISE 3: Analyse the sample in terms of the key disciplines of IPD

Market

Product

Production

High end, premium, brand differentiation

Functional, mid range

Relatively complex so can malfunction, cleaner in operation, easier to direct

Simple, easy to use, less clean in operation

Difficult manufacture and assemble

Very simple 1 piece moulding, no assembly except insertion


Extreme cases...

Cheaper, quicker and easier production

Lighter, more sturdy, cheaper, better functioning product

No market differentiation or wow factor

Where does the value lie?

$$$$ $

$


Concurrent Engineering

Designing the Product and Production simultaneously

Market Product

Production Business


Think about service in advance... Headlamp bulb replacement example

This side up

[Case from Winston Knight, Rhode Island]


Here’s what it takes... Disassemble: Reassemble:

2 Screws (left side light) Cover (left side light) Cable connector Housing (left side light) 2 Screws (right side light) Cover (right side light) Cable connector Housing (right side light) 14 Screws (radiator panel) Radiator panel 4 Screws (headlamp trim) Headlamp trim Headlamp glass Headlamp bulb

Headlamp bulb Headlamp glass Headlamp trim 4 Screws (headlamp trim) Radiator panel 14 Screws (radiator panel) Housing (right side light) Cable connector Cover (right side light) 2 Screws (right side light) Housing (left side light) Cable connector Cover (left side light) 2 Screws (left side light)

32 items 32 items



Boeing Helicopter (formerly McDonnell Douglas Helicopter Systems)

Apache Longbow Helicopter Redesign

Estimated savings

$1.3 billion over life of program

One aircraft per month

Increased to five per month



Anti-Flair Bracket Assembly for the Boeing Longbow Apache Helicopter

Source: Alfredo Herrera,1998 International DFMA forum, Newport, RI

Before

5 sheet metal parts 19 rivets 20 tools needed 32 hours manufacturing

After

1 high-speed machined part 2 hours manufacturing 10% less weight 45% less cost Tooling cost virtually eliminated


Jump Seat assembly

Base line analysis 105 separate parts

Total assembly time estimate 1440 s, excluding paint application

Many tubular parts and small tabs hand welded during assembly

Many reorientations of product during assembly



Jump Seat assembly

Phase 1 Proposal Objective to reduce parts and assembly time while maintaining essential functions

Most welding steps eliminated

Cams and rolling components replaced by slides guided in slots

Part count reduced to 19 , with 5 major subassemblies

Assembly time estimate reduced to 258 s

A more radical Phase 2 proposal that loses some functionality was also developed



DfMA – Housing corner piece

[Andreasen, Kähler & Lund, 1988 – “Design for Assembly”]

Lønstrup


DfA – Plastic integration


Customer relationship modelling

Market Product

Production Business

The right products and the right services for the market


Products and Services

What is a Product?

What is a Service?

Use the phrase “Value is Created” and the term “Stakeholder” in your definitions


Definitions

Product • The result of a synthesis process, where value is

created by transferring ownership of the result from one stakeholder to the next.

Service • The creation of value when one stakeholder

carries out an activity on behalf of another.

McAloone 2012


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Producer’s traditional responsibility/liability

Traditional producer ownership Traditional customer ownership

€

Why PSS ?


Producer’s extended product responsibility, customer contact and revenue source

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Product life cycle design PSS-oriented business strategy

€ € € € €

Why PSS ?


PSS means making a shift of business focus, from:

business based on value creation through the transfer of product ownership and -responsibility to: business based on value creation through the support and delivery of a service from a product, for the whole of its lifetime…

PSS as a business strategy


Rolls Royce From airplane engines to ’power-by-the-hour’

In the airline industry, the company does not sell engines - it charges for use of the thrust they provide, on a 'power by the hour' basis. Where previously the company's aerospace arm simply sold engines to plane companies, they now offer a fixed-fee maintenance back-up service for those engines, thus allowing customers to accurately project their maintenance and part replacement costs.

[www.rolls-royce.com]

[www.rolls-royce.com]

Traditional model

Core business:passenger

revenues

Rolls-Royce

Airline

OverhaulBase

Eng. Health Monitoring

LogisticsProvider Vendors

Non-core business activities

TotalCare modelFocus on core

business

Rolls-Royce responsible forairline’s non-core business activities

OverhaulBase


Airline

Rolls-Royce

Predictive maintenance

TotalCare modelFocus on core

business

Rolls-Royce responsible forairline’s non-core business activities

OverhaulBase


Airline

Rolls-Royce

Predictive maintenance

From Selling Engines to... ?


Danfoss From electronic refrigeration controls to cooling in supermarkets

In order to avoid being reduced to a component supplier (where competition is tough and margins slim) Danfoss has positioned itself as a provider of value added consultant advice to the food retail industry. By tying a closer link to the retailer Danfoss can increase knowledge about operational know-how.

[www.danfoss.com]

Systems

Networks

Components

Value

Added

Services

[Eriksen, Danfoss, 2005]

OEM’s

Contractors

OEM’s

System house Contractors

End-Users Supermarkets

Distribution

channel

From Selling Refrigeration

Equipment to... ?


Xerox From photocoping machines to document services

Xerox has worked to turn its product into a service, providing a complete "document service" to companies including supply, maintenance, configuration, and user support. Customer’s don’t buy photocopy machines anymore, the buy the ability to photocopy.

[www.xerox.com]

From Selling Photocopiers to... ?

http://www.xerox.com/�


Aarstiderne From organic produce to convenient food delivery

Aarstiderne has delivered organic products to the doorsteps of Danish households since 1999. It started out as a small vegetable garden at a farm, Barritskov, in the western part of Denmark. The idea behind Aarstiderne.com is to deliver organic food products directly to the doorstep of the customer who values quality and taste and thereby catalyses the public motion towards healthier food and better environment in Denmark – not by agitating, but simply by enabling everybody to be a part of the good idea. The products are supplied with recipes and stories about growers, production, farms, the company, food products and quality.

[www.aarstiderne.com] From Selling Organic Veg to... ?


Douwe Egberts From coffee bean supplier to coffee systems

Douwe Egberts was originally a coffee supplier. Normally clients in offices would buy a traditional hot plate-based coffee machine, buy consumables such as coffee and filters separately, and make pots of coffee in the traditional way. Douwe Egberts took the advantage by starting to offer coffee systems delivering freshly brewed, good-quality coffee per cup and thereby created a much more powerful position in the value chain.

[www.douweegberts.com]

From Coffee Machines to... ?


IBM From computers to consulting services

Traditionally IBM’s business was in manufacturing computer hardware but over the years they have moved to a more business and software consulting service approach. This was particularly noticeable with the sale of their personal computers to Chinese manufacturer Lenovo in 2004

[www.ibm.com]

From Selling Hardware to... ?


DuPont From paint to painted cars

Payment by paint quality:

Reward: selling more paint

No action concerning painting

Flexible delivery

Quality of painted surface

Cost of painting

Payment per car:

Concern of reducing quantity

Immediate delivery

Quality of the painted surface

Immediate satisfaction

No action concerning painting

DuPont

Ford

DuPont

Ford DuPont painting

Ford producing

Ford painting

Ford producing DuPont

Customer: Long-term interest of quality from satisfaction delivery system [McAloone, 2003]

From Selling Car Paint to... ?

http://www2.dupont.com/DuPont_Home/en_US/�


easyJet From 3rd party booking to direct booking service

easyJet is perhaps more renowned for its ‘lack of’ or ‘no frills’ approach to service. However, in the late 90’s, airliners were running a very standard business model providing service in a ‘complementary’ form rather than a extra revenue form. easyjet were able to strip this service and translate it to low costs, something a large proportion of the market valued greatly. But more importantly easyjet were able to harness web bookings enabling them to provide a service to their customers that, at the time, was only available through 3rd party travel agents and thus dramatically reduced costs, prompting their slogan “the web’s favorite airline”.

From Selling Flights to... ?


In your teams discuss the following scenario:

“You have been developing and selling microwave ovens for many years and

have seen profits steadily falling due to increased competition. How could you

add a service dimension to your business and what market segment would you

target?


Strategies of Service Design

Product

Product use services •Maintenance

•Repair

•Spare parts

•Warranty

Product life services •Supplies

•Installation

•Auxiliary input

•Upgrade

•Disposal

Customer activity services •Training

•Planning

•Designing

•Specifying

•Operating

•Measuring

Business supporting services •Consulting

•Financing

•Managing

•Partnering

•Outsourcing

Design for Serviceability [Dewhurst 1994]

Design for Supportability [Goffin, 2000][Takata et al. 2004]

Design for Service [Harrison, 2006]


SUPPORT OF CUSTOMER’S ACTIVITIES

CUSTOMER’S ACTIVITY

CYCLE

PRODUCT’S LIFE CYCLE

TRAN

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Product Life & User Activity Cycles

Tan, A., McAloone, T.C., Andreasen, M., “What happens to integrated product development Models with product/service-system approaches?”, The 6th Integrated Product Development workshop, 2006 Pre Use

During Use

Post Use


Applying IPD to NPD Sketch a product life and activity cycles for sun lotion

Try to suggest a new configuration.


Our solution...

Existing distribution chains

At point of use

Single serve


PSS can be an effective way to bring suppliers closer to customers while responding more to the customer’s

real needs.

Services should be integrated into the design of products where

valuable.


Questions

?

thomas j. howard pt.1 ipd + pss

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