CAPITAL EQUIPMENT: Applying Design-to-Value to Build More Sustainable Products

INDUSTRY: Capital Equipment for Mining

ANNUAL REVENUE: 600M €

“We combined value-centric design with cost reduction and sustainability.

– Division President

Increased competitiveness

Design-to-Value embedded in the product development process, leading to increased customer value, product circularity and cost reduction.

Customer journey driven design

Customer journey driven design, integrated cross-functional teams across the business

Benefits delivered despite a global crisis

Targeted benefits were delivered, despite the challenges of a global crisis environment.

The Needs and Challenges

As competitors were able to capture business at lower product price for the customer, a mining equipment producer wanted to improve the value proposition of new strategic products, while improving profitability and sustainability at the same time.

The existing Value Engineering and Design-to-Cost activities, were not sufficient to balance product value versus Cost of Goods Sold (COGS).

A strategic Corporate Sustainability and Circularity program needed to be considered to fulfil internal and external requirements.

Approach

We integrated the Design-to-Value methodology into the existing value engineering approach the client had established. Using DTV the team was able to synchronise customer journeys/needs, new product design options and operations efficiency from the outset. A number of critical capabilities were identified to be added to the ways of working, in order to deliver a more valuable and cost-efficient product. Sustainability and Circularity are of growing importance for Mine operators. Through the process the team identified a several additional features that were improving the sustainability and circularity of the product during the use phase.

The Results and Impacts

  • DTV is embedded in the product design process and is being applied to all strategic new product development projects
  • Unmet customer needs were identified while using the DTV methodology
  • Stronger value-proof points for the product have been identified and agreed
  • Value-driven design trade-offs were made in the product feature set
  • Downstream operational cost reductions were identified
  • Product features that enable a circular economy product-service-system have been identified and prioritized (eg. ‘electrification of the mine’)
  • The identified benefits have been robust and where materialising despite significant market-driven turbulences.
  • The client has internally set the benchmark for best-in-class product development practices.

The sust.biz Advantage

  • Best value proposition, based on many years of expertise.
  • Ability to structure AND solve complex cross-functional topics with teams.
  • Focused and practical advice, that empowers internal teams to get the job done.

Benefits have remained more or less the same regardless of ongoing turbulence in the world and high inflation.”

Design-to-Value Project Leader

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