Table Of Content

i Praise for Product design and the suPPly chain ‘Omera Khan has beautifully bridged the yawning gap between “product design” and “supply chain design” – a gap that has existed since the logistics/supply chain domain became an accepted management discipline over 50 years ago. Her emphasis on conscious “design” of the supply chain rather than the inside-out style of thinking that has prevailed to date is very refreshing. And she backs up her case with an impressive array of case studies. This book is long overdue, and a must read for l eaders of all corporate functions.’ Dr John Gattorna, global supply chain thought leader and author, adjunct Professor, University of Technology, sydney, and executive Chairman, Gattorna alignment ‘In an accelerating world, this book provides an essential insight into the deep relationship between product design and the supply chain, and how many of the world’s most successful businesses have used this intersection as a point of generating significant competitive advantage.’ Vikas shah, MBe, Managing Director and Ceo, swiscot Group ‘A very thoughtful and insightful analysis identifying the complex requirements for designers to be aware of for their route to market and then identifying how to maximize their chances of success in their highly competitive marketplaces. The analysis is significantly enhanced through the use of highly relevant case studies.’ Michael Proffitt, former Ceo of Dubai Logistics City ii ‘New products are the lifeblood of the business. However, the m ajority of new products never make it to market and those that do have a failure rate as high as 45 per cent. To be successful, new product development and commercialization must be cross-functional and cross-firm, and representatives from product design must be key members of the team. In this book, Omera Khan documents how product design can be used to improve the chances of launching successful new products while considering supply chain risks, the need for agility and the organization’s sustainability goals. Numerous company examples are provided to illustrate how the integration of design and supply chain management were key to new product success.’ Doug Lambert, Mason Chair in Transportation and Logistics, and Director, The Global supply Chain forum, fisher College of Business ‘An essential read for those wishing to understand the importance of design, its relationship with the supply chain and its impact on a business.’ James Dracup, Managing Director, Macnaughton Holdings iii Product Design and the supply Chain Competing through design Omera Khan iv Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publisher and author cannot accept responsibility for any errors or omissions, however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or the author. First published in Great Britain and the United States in 2019 by Kogan Page Limited Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be repro- duced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 2nd Floor, 45 Gee Street c/o Martin P Hill Consulting 4737/23 Ansari Road London EC1V 3RS 122 W 27th St, 10th Floor Daryaganj United Kingdom New York, NY 10001 New Delhi 110002 www.koganpage.com USA India © Omera Khan, 2019 The right of Omera Khan to be identified as the author of this work has been asserted by her in accordance with the Copyright, Designs and Patents Act 1988. ISBN 978 0 7494 7823 0 E-ISBN 978 0 7494 7824 7 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Names: Khan, Omera, 1976- author. Title: Product design and the supply chain : competing through design / Omera Khan. Description: London, New York, NY : Kogan Page Limited, [2018] | Includes bibliographical references and index. Identifiers: LCCN 2018015884 (print) | LCCN 2018029586 (ebook) | ISBN 9780749478247 (ebook) | ISBN 9780749478230 (pbk.) | ISBN 9780749478247 (ebk.) Subjects: LCSH: Business logistics. | Product design. Classification: LCC HD38.5 (ebook) | LCC HD38.5 .K447 2018 (print) | DDC 658.5/752--dc23 Typeset by Integra Software Services, Pondicherry Print production managed by Jellyfish Printed and bound by CPI Group (UK) Ltd, Croydon, CR0 4YY v Shaan and Afra vi THIS PAGE IS INTENTIONALLY LEFT BLANK vii CoNTeNTs List of figures xi List of tables xiii About the author xv Foreword xvii Acknowledgements xix 01 setting the design agenda 1 Introduction 1 What this book isn’t about – and what it is about 7 What is design? 10 Case study: the pains of growth: Tesla’s supply chain 12 How design impacts competitiveness 15 Design and the supply chain 18 Case study: ECCO: balancing cost and complexity 20 Developing a shared agenda: design and the supply chain working together 24 Checklist: questions for design professionals 27 Checklist: questions for supply chain professionals 27 Notes 28 References 28 Further reading 29 02 The interface between product design and the supply chain 31 Introduction 31 The design-centric business 34 The supply chain begins on the drawing board 40 vviiiiii Contents Case study: New Look: competing through the design–supply chain interface 45 Constrained design versus unconstrained design 48 The 4Cs: aligning product design with the supply chain 50 Case study: General Motors 56 Checklist: questions for design professionals 59 Checklist: questions for supply chain professionals 59 References 60 Further reading 61 03 Product design and supply chain risk 63 Introduction 63 Sources of risk 68 Strategies for reducing design risk 74 Formal risk minimization methodologies 78 Checklist: questions for design professionals 86 Checklist: questions for supply chain professionals 86 References 87 04 Product design and the pursuit of agility 89 Introduction 89 Virtual success: the development of the Boeing 777 89 Agility through concurrent engineering 97 Case study: Johnstons of Elgin: agility as a counter to cost competition 114 Checklist: questions for design professionals 118 Checklist: questions for supply chain professionals 119 References 120 Further reading 121 05 Product design and sustainability 123 Introduction 123 Partnership for good: supplier collaboration in action 123 Contents iixx Design decisions matter 127 Case study: Coca-Cola: ‘rightsizing’ containers saves plastic and reduces shipping costs 142 The desiderata of sustainability 146 Checklist: questions for design professionals 149 Checklist: questions for supply chain professionals 150 References 151 Further reading 152 06 Building bridges: making the change 153 Introduction 153 The journey ahead 153 Defining the challenge 159 Making the change 162 Checklist: questions for design professionals 182 Checklist: questions for supply chain professionals 183 References 184 Further reading 185 Appendix 187 Glossary 215 References 217 Further reading 227 Index 229