Sustainable Product Design - Research Paper Example

SUSTAINABLE PRODUCT DESIGN 0 INTRODUCTION: Design has a tremendous impact on the quality of a product or service. Poor designs may not meet customer needs. Costly designs can result in an overpriced product that loses market share. Similarly if the design process is too lengthy, the competitor may capture the market by being the first to introduce the new products, services or features. Hence 'time to market' is at the base of any new product development designs. In this context, firms, in order to meet the pressing requirements of market may tend to forget the aspects of the economic, environmental, ethical and social factors and the impact the designs may create on these aspects of the society. The balancing of these aspects in the new product development design is the outlook of 'Sustainable product development and design'. "To create sustainable products and services that increase stakeholders' 'quality of life', whilst at the same time achieving major reductions in resource and energy use, will require a significant emphasis on stimulating new ideas through higher levels of creativity and innovation"- e generation Business Learning Centre. Thus it becomes evident that creating new designs may need increased creativity as well as the fullest involvement form the varied strata of people, if new solutions and designs are to be generated which will substantiate the Sustainable Product Design Development. In general 'sustainable development' is to be seen as a basic human concept dealing with the kind of environment the people would like to live in. Sustainable development is a strong image but a provocative one. The best place to get good suggestions on the sustained development is the 'customers'. Many companies have forgotten to talk to customers but have focused inwardly on the technological and improvements required for, primarily eco-design using less energy and less components etc. In many cases such suggestions may not be the right solution but nevertheless, it can be demonstrated that new ideas can reach marketplace if the conditions are right." Quite understandably, the majority of people do not understand the academic concept of sustainable development. Indeed, research for the Department of Environment in the UK, indicated that sustainable development was seen as a government construct to keep people out of environmental issues" Martin Charter and Anne Chick (1997). Keeping this context in view, this paper attempts to cover an overview of creation of new sustainable product designs to manufacture products, services and product service systems in so far they address economical, social and environmental issues. This paper also aims to have a re-look in to the past, study the present and suggest possible future solutions to the impact of product design on these issues. 2.0 SUSTAINABLE PRODUCT DESIGN-ECONOMICAL ISSUES As we described at the outset, good design and good business go hand-in-hand. The best challenge in business that a firm may face is to arrive at an exact product design even at the first instance so that the rushing to be first to the market will not result in design flaws and the resultant poor performance of the product. This may totally negate any advantage resulting to the firm because of its efficient and quicker 'time to market'. "An effective design process: Matches product or service characteristics with customer requirements Ensures that customer requirements are met in the simplest and less costly manner Reduces the time required to design a new product or service and Minimize the revisions necessary to make a design workable." - (Roberta S. Russell & Bernard W. Taylor III 2003) All the above objectives flow only in one direction; that is to maximize the benefit of the value design. All forces in an organization work in cognition to align themselves with the common aim of achieving market share, sales volume, brand reputation, customer loyalty, profit margin and channel growth and so on. A careful analysis of these factors will indicate that the underlying factor in all these organizational goals is to develop a design which does well with the product making it an instant success. Thus the main thrust of a developing a sustainable product design to be economically viable depends on its ability of meeting the twin organizational objectives of profit maximization and cost minimization. One approach to testing the economic impact design can have is to neutralize as many contributing interests as possible, thereby reducing the number of influencing factors and other drivers that affect the success of the project. This calls for the concentration of the efforts and focus them on a few particular possible applications of well defined design objectives, instead of trying to play around with all available alternative solutions of design development. The design may be tested with the basic simple factors of its effect on the volume of orders and the consequent increase in the sales value. "Despite growing recognition of industrial design's value in creating sustainable competitive advantage, it is difficult to quantify the contribution that design makes to company financial performance" Chris Bedford, George Daniels, Gus Desbarats, Julie Hertenstein (2006) In order that the firm reaps the benefits of its design and maintain sustainability, the managers should: Understand how to create the value by designing innovative products that will have the entire satisfaction of the customer Ascertain and appropriate value for the firm by establishing barriers using effective advertising and brands, to prevent the competitors taking the design advantages Exercise control through the complete product life to ensure that efficiencies are retained, costs are controlled and ultimately the profits are realized. "Value creation and Value preservation require both financial and non-financial metrics to support analysis that informs decision making" Chris Bedford, George Daniels, Gus Desbarats, Julie Hertenstein (2006) A case study on the point relate to the redesigning of a website for a retail stores with 34 units across the US. Their existing website was suffering from poor navigation and lacked in brand presence and communication. The redesigning involved the following objectives: Developing brand identity and personality Improving brand experience Improving site structure and navigation Adopting improved usability and refined retail strategy With a complete redesign of the website the results achieved were spectacular with the resultant increase in the online orders by more than 63% and the value of online sales rose by 156%. Another important factor worth considering is the establishment of a direct connection of all attributable costs and revenues with the product, especially those associated with the design development. Normally the costs associated with Research and Development would be written off by the firms in the same year, instead of assigning them to the particular designs developed using such R&D activities. By suitably adjusting or modifying the system of accounting for this expense head to arrive the long term cost of the designs, the firm would be able to have a better measure of the value added by the design, and would provide information to enable firms to benefit even more from design's potential. 2.1 ECONOMIC ISSUES OF SUSTAINABLE PRODUCT DESIGN - FUTURE OUTLOOK 'Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.' World Commission on Environment and Development Report 'Our Common Future' (the Brundtland Report) 1987. A careful redesigning of the product designs on the basis of well prepared reengineering approach would help the firms to improve their economic performance in the future. With this object in view, several large corporations are spending huge sums of money in developing their Research and Development activities focused on the development of sustainable product designs, which minimize the costs even at the design stage. The best example in this instance is the case study of 'Philips' discussed elsewhere in this paper. Although the main aim of this company's research model is the improvement in the environmental issues, such efforts also aim at the improvement of the economic performance of the company as a result of such new designs. 3.0 SOCIAL ISSUES CONCERNING SUSTAINABLE PRODUCT DESIGNS: Sustainable Development may be defined as the industrial progress that meets the need of the present without compromising the ability of future generations to meet their own needs. Subsequent interpretation of this principle from a business perspective has led to the adoption of a "triple bottom line" framework, comprising the following dimensions: economic prosperity and continuity for the business and its stakeholders social well-being and equity for both employees and affected communities environmental protection and resource conservation, both local and global" (Joseph Fiksel, 2001) The latest demand for health and environmental concerns are increasingly confronting the modern day manufacturing industries. They are under pressure to identify the suitability of the product designs which do not have any adverse impact on the social and environmental issues. Thus the challenge of sustainability depends on the establishment of sustainable relationships between the global society and the ecospheres as well within the global society itself. When we talk of social issues, we necessarily have to take into account the accompanying environmental factors also which are being attached much importance, of late, by both the government and the businesses in unison. Similarly, 'Employee satisfaction' is at the base of any product design which needs to satisfy the sociological factors to gain sustainability of the design concerned. The employee satisfaction may take several forms including better wages and working conditions. "The key ingredient is a visionary leadership with the capability to articulate the vision and mobilize the workforce. Merely improving the way in which things are now done is insufficient. A new model, based on explicitly different values and principles, needs to be developed." (Ray Dyck & Norman Hlapern 1999) Normally the social issues in respect of the workers group of stakeholders relate mostly to the provision of improved employment opportunities, better wages and industrial relations and improved working conditions. These sociological factors should stand first to be considered by any firm while deciding on the sustainability of its product design. The design being developed by the firm should not only be profitable to the company, but also should have the capability of meeting the requirements in respect of social and environmental issues. The fitting example for bringing about innovative designs to improve the employee satisfaction is the case study of the company 'Celestica' a stand-alone subsidiary of IBM which is involved in providing a broad range of services including design, prototyping, assembly, testing, product assurance, supply chain management, world-wide distribution and after-sales service with annual sales in excess of 3 billion. The customers include industry leading original equipment manufacturers, primarily in the computer and communication sectors. The company had grown from 2500 employees in and two facilities to over 15,000 employees with over 26 manufacturing and design sites within a span of less than 3 years. It was possible to achieve this fete by the company simply by realization of the fact that "significant changes would be the way to grow and sustain competitive advantage' (Ray Dyck & Norman Hlapern 1999). To achieve this aim the compnay followed a 'Socio Technical System' design model, which acknowledges the basic necessiy to focus eqully on non-technical elements to establish a more competent, high perormance and high commitment work environment. The model adopted by the company included a rsource team formed to act as fcilitators and internal consultants, assisted by esternal experienced people and this resource team made a complete study of the entire design system of one of the plants. Based on the redesign strategy of this team the company was able to reach newer heights, satisfying simultaneously one of the important social objectives of sustained product desgin development. The next issue which needs careful consideration from the sustainability angle is the meeting of the requirements of other stakeholders interest groups like creditors and the Community in common. So long as the profitability aspect of the design is taken care of, the firm would be performing financially well and thus would be able to meet the creditors' demands of settling their payments on the due dates and the demand for new and improved opportunities for further sales will be ensured. The other partners in the product supply chain will also be satisfied in the same way by achieving the development of a profitably sustainable product design. "With the advent of globalization, companies attracted by regions of future growth, are setting up production facilities in multifarious locations and countries. This involves people of different cultures working together in planning, design, manufacturing, and administration. Since they are not accustomed to act outside their cultural boundaries they have to learn to reflect upon beliefs, values and behaviour dispositions which we call cultural factors."- (G.Seliger, J.Cai H.Weber D.Krtzfeldt and J.Lichte 2005). These factors do also affect the sustainability of the design development and it is necessary to adopt proper systems to recondition these cultural differences. 4.0 ENVIRONMENTAL FACTORS IN DEVELOPING SUSTAINABLE PRODUCT DESIGN: "Sustainable development is the process of moving human activities to a pattern that can be sustained in perpetuity. It is an approach to environmental and development issues that seeks to reconcile human needs with the capacity of the planet to cope with the consequences of human activities". - (Richard Dodds, Roger Venables 2005) A significant break though in thinking and technology is the key requirement for the companies to adapt themselves to create such new product designs which can sustain themselves to the impact of the various environmental issues. "The key aspect of 'sustainable Product Design" is the addition and balancing of social and ethical issues, alongside environmental and economic issues into the product design process to achieve the 'Quadruple bottom line'"- (Martin Charter and Anne Chick 1997). Since there are no defined methodologies for developing innovative product designs which are more eco-efficient, the companies should integrate environmental issues in the product planning process as early as possible. This way the sustainable design development becomes an integral part of the business policy. "However, in order to reach the target of a ten-fold increase in eco-efficiency, more far-reaching innovative improvements of current production techniques are required." (Prof. Jacqueline Cramer 1997) This kind of a strategy is being adopted by the Philips sound & Vision/Business Electronics. The Philips Eco-design Model involves the understanding and analysis of the following factors for product design development in an eco-friendly and eco-efficient manner: Usage of Materials involving weight reduction and a reduction in the 'end of life' waste' Classification of Hazardous substances and materials according to the European Association of Consumer Electronics Manufacturers list of relevant substances Elimination or reduction of Chlorofluorocarbons and Hydro chlorofluorocarbons in soldering, glues, metal coatings, chromates and lacquers and paints Providing complete information on the end of life material wastage Providing complete information on energy use in operational mode and energy use in stand-by mode Evaluation of Environmental Design based on: Environmental weight 'End of life' costs Environmental release criteria to be used. The eco-efficient product design development in the organization of Philips was driven by the following forces: Formulation of a corporate environmental policy by the CEO of Philips Growing public pressure to find responsible ways of disposing used consumer electronic goods Regulations concerning the use of certain chemical substances. The designing of the products with sustainability means development of the designs with the possible impact on the environment which should be visualized at the beginning of the product life cycle and the design created. This could also involve choosing bio degradable materials over non-biodegradable materials: using renewable energy sources in the manufacturing process; and making sure the product is recyclable at the end of its useful life. Designing products with environmental sustainability may save considerable costs by incorporating recycled material in the product. According to the design engineers, considerable saving is made during the design phase of a product and generally these savings outweigh the savings made through changes made during the operation process. Several legislative measures are being brought in by the government to provide the public the safety net against the polluting environmental wastes. Development of sustainable designs may also help the businesses to comply with such regulations that target business impacts on the environment. Achieving sustainability will require stabilizing or reducing the environmental burden. That can be done be decreasing the human population, lowering the level of affluence or changing fundamentally the technology used to create wealth. From the foregoing discussions, it becomes evident that 'Sustainable Development' is the process of moving human activities to a pattern that can be sustained in perpetuity. 5.0 CORRELATION BETWEEN SOCIO-ECONOMIC AND ENVIRONMENTAL ISSUES ON SUSTAINABLE DESIGN DEVELOPMENTS: Although it appears that the issues pertaining to Socio-Economic and Environmental issues seem to be independent of each other, in the true sense they are interdependent on each other to help the organizations to achieve their business goal of profit maximisation. All through our discussions in this paper we have identified the economic advantages resulting to the companies from adapting their designs to a sustained development. As already pointed out the savings in cost during the design process will be more than the savings resulting from the changes in the production process. This clearly shows the relationship between the different issues on the sustainable development. Similarly the changes in the designs for meeting the environmental standards also help the firms improve their economic ends. 6.0 DESIGN SUSTAINABILITY- AN OUTLOOK INTO THE FUTURE: "The roots of the problem-explosive population growth and rapid economic development in the emerging economies -are political and social issues that exceed the mandate and the capabilities of any corporation"- (Stuart L Hart 1997). Owing in part to the rapid expansion of market economy, existence in the survival economy is becoming increasingly precarious. Extractive industries and infrastructure developments have in many cases degraded the eco-systems upon which the survival economy depends. This has necessitated a deep insight into the development of a sustainable design development in every manufacturing and service industry. Based on the experiences of the past the industries are looking into various redesigning and rethinking processes into making their designs environmental friendly. 'Greenhouse' building construction is one of the steps taken in this direction. Several legislative measures have also been adopted by the governments of various nations to promote the awareness of environmental issues. 7.0 CONCLUSION: "The emergence of sustainable development as a strategic force within the business community has created new opportunities for companies to fundamentally change how they design products, engage suppliers, operate facilities, and service customers. Sustainability awareness is spurring breakthrough innovation that will introduce "discontinuities" based on new technologies, such as fuel cells, "smart" materials, bio-based processing and nanotechnology." (Joseph Fiksel, 2001) As industry leaders evaluate ways to drive further improvements in cost, quality and cycle time, two imperative issues are clear. Firstly, companies must be able to measure and drive supply chain performance throughout the entire product life cycle; in addition as a second measure they should adopt the sustainable product design development as the highest leverage point is to provide a structural framework for balancing continuous improvement with reengineering breakthroughs by working across design development processes to meet the organizational needs. Reference List: 1. E generation Business Learning Centre: What is sustainable Product Development and Design [online] Available from: http://www.egeneration.co.uk/centre/modules/sustainable_productdesign/1.asp Accessed on 16th January 2007 2. Martin Charter and Anne Chick (1997) Editorial The Journal of Sustained Product Design Issue 3 [online] Available from: http://www.cfsd.org.uk/journal/archive/index.html Accessed on 16th January 2007 3. Roberta S. Russell & Bernard W. Taylor III (2003) Operation Management Edition V Prentice Hall 4. Chris Bedford, George Daniels, Gus Desbarats, Julie Hertenstein Et al (2006) Profitability by Design [online] Available from: http://www.findarticles.com/p/articles/mi_qa4143/is_200604/ai_n16537348 Accessed on 16th January 2007 5. Joseph Fiksel, (2001) Emergence of a sustainable business community Pure Appl. Chem. Vol 73, No 8 pp. 1265-1268 [online] Available from: http://www.iupac.org/publications/pac/2001/pdf/7308x1265.pdf Accessed on 16th January 2007 6. Ray Dyck & Norman Hlapern (1999) Team-Based Organisations redesign at Celestica The Journal for Quality Participation [online] Available from: http://www.findarticles.com/p/articles/mi_qa3616/is_199909/ai_n8857393 Accessed on 16th January 2007 7. G.Seliger, J.Cai H.Weber D.Krtzfeldt and J.Lichte (2005) Cultural Factors in Factory Planning The International Journal of Advanced Manufacturing Technology [online] Available from: http://www.springerlink.com/content/n830k6m314w0l38u/ Accessed on 16th January 2007 8. Richard Dodds, Roger Venables (2005) Engineering for Sustainable Development: Guiding Principles The Journal of Sustainable Product Design Issue 1 [online] Available from: http://www.raeng.org.uk/education/vps/pdf/Engineering_for_Sustainable_Development.pdf Accessed on 16th January 2007 9. Martin Charter and Anne Chick (1997) Editorial The Journal of Sustainable Product Design Issue 1 [online] Available from: http://www.cfsd.org.uk/journal/archive/index.html Accessed on 16th January 2007 . 10. Prof. Jacqueline Cramer (1997) Towards Innovative, More Eco-Efficient Product Design Strategies The Journal of Sustainable Product Design Issue 1 [online] Available from: http://www.cfsd.org.uk/journal/archive/index.html Accessed on 16th January 2007 11. Stuart L Hart (1997) Beyond Greening: Strategies for a Sustainable World Harvard Business Review [online] Available from: http://staff.ttu.ee/katri/contro/beyond%20greening.pdf Accessed on 16th January 2007 Read More