[P] DIEGUEZ 2000 - Development of a design managment audit model
[P] DIEGUEZ 2000 - Development of a design managment audit model
DEVELOPMENT OF A DESIGN
MANAGEMENT AUDITING MODEL
FOR THE CERAMIC SECTOR
ABSTRACT
Owing to the growing importance of product design and design managementfor enhancing
corporate competitiveness in the ceramic sector, the development was undertaken of an analysis
tool that would allow determining the situation of both aspects in ceramic companies. The tool is
a design managementaudit applied to the ceramic sector, whichfor its development required using
other audits and managementfeatures considered of importance, besides performing an empirical
verification at four sectoral companies, specifically involving ceramic floor and wall tile
manufacturing companies. This empirical study of the four cases yielded certain further
conclusions regarding design management in this branch. The four studied companies were
selected as being a priori representative of different ways of managing design in the Spanish
ceramic sector.
INTRODUCTION
Owing to the need for ceramic floor and wall tile manufacturers to achieve greater
effectiveness in introducing new product models in their target markets, product
design and design management are starting to playa determining role in the ceramic
sector. However, for companies to set about improving product design and design
management, it is first necessary to analyse their situation in this regard. The
development of an analysis tool termed a design management audit was therefore
undertaken for this purpose.
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1) Theoretical. This has required studying and using other currently existing design
audits, besides incorporating new features considered of great importance, which
had not been analysed. On the other hand, all the excessively generic
requirements were fitted to the specific situation of the ceramic branch. The sector
is characterised amongst other aspects by the fact that certain companies leave
generating new models to suppliers of raw materials and other products, which
offer ceramic product design free, incorporating the cost in the price of their
products.
DESIGN MANAGEMENT
Considering innovation as the process through which new ideas, objects and
practices are created, developed or invented, the process will include an essential, prior
design stage, followed by other stages of development, adoption, implementation and
dissemination (Slappendel, 1996, pp. 107-108). Aubert (1982, in Walsh, 1996, p.513) takes
design to be the essence of innovation, the moment at which a new object is imagined,
materialised and formed as a prototype. Design is thus closely related to innovation, as
the act of designing itself always introduces something new (Felip and Gimmy, 1995, p.
94). Moreover, the corporate innovation process is conceived as a process of individual
and collective learning, which responds to a pattern of constant search for problem-
solving approaches (Garcia, 1995, p. 28), which ties innovation to organisational learning.
which includes the various organisational activities required to achieve this process.
Hence "design is crucial to innovation, as it involves the part of creativity where ideas are
materialised, but also where technical possibilities and market demands or opportunities
merge"(Freeman, 1982, in Walsh, 1996, p. 514).
According to Bennet et al. (1988 in Bruce and Cooper, 1997, p.65-66) and Cooper and
Press (1995, p. 38-39), the product design process involves four stages, which determine
design as a wide-ranging process that goes beyond the simple creation of a projection:
2) Specification of the idea and concept; projecting and generating the prototype or
design.
To carry out the design process, correct management is required together with the
existence of a series of aspects and knowledge that facilitate the unfolding of this process.
Rothwell and Gardiner (1989) consider that design management includes various
features:
(1) Knowing and situating the company, its products and main technologies in
relation to competing products and companies.
(2) Defining where the company wishes to act and where not, in terms of
technologies, products and markets.
(3) Defining options and paths, from a rational standpoint, based on its weakness
and strengths.
(4) Stimulating the dialogue between product development, production, marketing
and financial staff to discover and assess potential product markets and the
possibilities of new products for present markets.
(5) Making the idea of design and innovation part of corporate culture, something
absolutely necessary for the company to be profitable in the long term.
If product design is linked to a "network" or social and technical structure, this will
involve relations, connections, teamwork, conflicts, ambiguity, etc., from different
perspectives and agent approaches. Design management needs to ensure that the
dialogue takes place between persons interested in the use of design, including the end
user (Walsh, 1996, p.515).
Based on Porter's (1985) value chain concept, Borja de Mozota (1998) establishes the
guidelines for measuring design performance. He sets three types of design for each
company activity:
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The existence of all these types of design involves correct design management.
Although the term audit is for many a synonym for financial analysis, it is currently
used for any type of business analysis (Cooper y Press, 1995, p.189). It generally involves
the objective analysis of the present situation in the organisation, with regard to a given
topic, in this case design management. However, design audits have not been developed
to any great extent, so that they are not very consistent.
Design audits have been approached in different ways . The following are
particularly noteworthy:
• Morton, as director of the "Design Council" (Cooper and Press, 1995, p.207)
created a questionnaire model based on three levels: general management, project
management and design team, and five topics: objectives, plans, communication,
implementation and evaluation. This formed the basis for the following model.
• State Society for Design Development and Innovation (DDI) . This audit
approaches analysis through interviews and data collection in the company on
the following aspects:
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B. Product Audit: analysis of the current product portfolio with regard to lines and marks,
together their economic results.
C. Design Audit: product portfolio analysis, with regard to those aspects in which design
can act directly.
Analysis of the product concept, descriptive aspects of the line (formal pro-
duct, broadening and evolution of the company product), industrial design
audit (functional features, use, production, and shape / image), packaging
audit, mark and logotype audit, and analysis of corporate image and culture.
According to Cooper and Press (1995), to develop a design audit model, the features
to be dealt with shall be clear. These authors set four levels, which could be taken into
account in a design audit:
(2) The organisational culture, design role and values, design strategies, degree of
design integration with other organisational functions, etc.
The Alicer design audit focuses particularly on features (2) and (3), without
however disregarding points (1) and (4), therefore terming it a design management audit.
The audit is based on the DDI model, outlined above, though it also includes ideas from
other auditing models, as well as analysing other particularly relevant organisational
features. Furthermore, an essential feature was to adapt each type of framework or
questionnaire to the ceramic sector to achieve a fully fitted model, which will be used on
eventually providing this service.
- Special attention has been paid to product design, leaving aside for the moment
features regarding image, mark, packaging or environment.
- Nor was it considered a priority to study each company model in detail, as process
and management are considered essential to this audit.
I} Study of the Organisational and Directive Environment. This analyses company reality from a gene-
ral perspective. To do so requires:
• Strategic data analysis (general and product strategies, competitive differences), and descriptive
organisational data on the company. Analysis of the customer portfolio (without nominal data on the
customers, just general and percent data). General vision of design. Minimum analysis of production
resources and economic-financial resources.
• Measurement of competitive differences in Marketing, Technology and R&D, Production, Finance,
Design, Organisation and Human Resources and General Management.
• Measurement of Organisational Performance (business performance).
2} The Questionnaire on Organisational Learning. This analyses the company's flexibility, and ability
to adapt and change.
3}Study of the Product Design Environment. This part is designed to determine and analyse present
product portfolio structure, besides studying the product design management process. The follo-
wing tasks are thus performed:
• Analysis of the latest general investments in products, product ABC, analysis of sales evolution,
analysis of the product portfolio.
• Study of the product development process and its design management.
• Analysis of the most important series, especially focussing on design aspects and sources.
The Alicer Design management audit thus aims to provide a general analysis of the
organisation, particularly focussing on the product design process and product
management, distinctive company competences, and company level of organisational
learning.
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CASE STUDIES
With a view to developing this model from an empirical stand p oin t and thus
valid ating it, case stu d ies w ere undertaken in th e ceramic floor and wall til e
manufacturing business, which simultaneously enabled going more deeply into the
design management situation in this branch.
Ca se stu d ies were conducted at four companies, chosen theoretically on the basis of
two dimen sions related to product design, which characterise thi s ceramic business: the
existen ce of a design department and the degree of use of product d esign provided by
su p p liers of raw materials and other products. The first dimension determined a first
strategy regarding the w ay the company managed design. The se cond dimension is a
characteri stic of th e business: su p p liers give away or include product design w ith the
sa les of th eir raw materials. It w as thus attempted with these four companies to achieve
th e greates t possibl e branch representativity with regard to design. Th e case stu d ies were
carried out by intervie w s, questionnaires, data gathering and process ob servation.
On w ritin g thi s paper the case studies have not been completely finali sed, owing to
the extent of the work involved in completing the audits. However, all the firm s have
been analysed with regard to design management, besides other aspects, so that we sh all
focu s particularly on this point in our analysis. It is certainly the mo st important issue in
our stu dy. We sh all first describe each company and subsequently set out some of th e
relations found.
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Company A
The sales department decides which product is to be manufactured and has the
greatest say in this matter. This department commissions the type of product to be
designed by the design department. The design department is subordinate to the sales
department.
Product meetings are held with different departments linked to the product:
marketing, production, sales, communication and design, though the sales staff hold
sway.
The first five series sold in 1998 involved 27.3% of that year's turnover. The first ten
accounted for 39.5% of the 1998 turnover. The best-sold series was designed in co-
operation with a centre for innovation and technology. The second and third series were
completely designed in-company. The fourth was again designed in co-operation with
the centre. The fifth was designed in-company. The sixth, seventh and eighth came from
a design provided by the suppliers of raw materials and other products. Series nine and
ten were in-company designs. Summing up, the five best-sold series were designed in-
company or with the centre for innovation and technology.
The ideas thus came basically from the sales staff, who take the decisions.
Marketing and design advance a few ideas. The sales staff are the administrators of
their markets: they decide product issues, logistics, etc. Hence, with a processed idea,
the sales department asks the design department for the design, which is either
internally designed or externally acquired, be it from suppliers of raw materials and
other products, design studios or other sources. If the idea originally came from
design, the proposal was obviously more concrete than when it came from the sales
department.
As the design departments is quite large and has a high capacity, only 40 or 50% of
the designs come from outside. Of these about 30% come from suppliers of raw materials
and other products and 10% from design studios, etc.
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Company B
This company has a design department that designs most of its products, called the
design and development department, as it also develops the products. It also acquires
designs from design studios but never uses designs from suppliers of raw materials and
other products, as the company feels that their use and designs are too widespread. The
firm considers that these designs will be similar in most companies, making the product
unoriginal.
It distinguishes itself from its competitors by product design, quality and high level
of technology. The company has a dynamic, innovating, modern image.
Management sets out sales, marketing and administrative strategies. The other
departments do their work based on these criteria. There is an intense, good relationship
between the design and development department and production, which is considered
essential by the design manager for the success of new product projects.
With regard to the product design process, there is a first meeting with
Management, the sales, production and design department to establish priorities in
creating new products, based on available products in the catalogue, in accordance with
company commercial and marketing policy. These priorities are restricted to aspects
relating to size or product families (marbling, rustic, etc.) or ideas from the market
screened by the sales staff or designers. On the basis of these very general conclusions,
the design department prepares concrete ideas based on trends or purchases the design
outside. It prepares a product projection and submits it at a second meeting with the same
interlocutors, who discard or select some of the proposals. Design then starts working on
the chosen proposals with development, to develop the product itself: glazes, relief, etc.
After developing the product, a third meeting is held at which the prospective product is
presented and its manufacture is discussed. As a result of this meeting a semi-industrial
trial is run to verify the end product. At a final meeting all the participants decide
whether to go ahead with the product or not.
At this company the design and development manager has a similar position to that
of the sales manager. For this reason the latter is not on above of him and does not impose
the product to be made.
• Communication: displays and catalogues, though the later are prepared together
with marketing, etc. A product test is often run or the product is shown to some
distributors and customers, though not to the end user, to verify its success.
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Company B designers are concerned with product quality, durability, margins, etc.,
without restricting themselves to purely stylistic matters. This is perhaps all tied to a
company slogan: "make faithful customers" in the medium-high market segment; price
and quality: seeking their satisfaction. It does not appear to be matter of selling at any price.
Company C
This company has no design department and obtains all its designs from suppliers
of raw materials and other products.
It targets the medium segment with regard to price and quality. According to the
company its competitive differences lie in product variety, quality control, logistics and
perhaps greater customer service. For this company design involves giving the customers
what they want or ask for. Design is run by the marketing manager, who mainly acts on
company communication. This person obtains the designs from the suppliers of raw
materials and other products, with whom he gets into touch when sales staff or catalogue
needs become known, to have all types of products. No meetings are held with
production or with any other department in this respect. Besides Management, the sales
staff ultimately decide if a product is to be developed.
Company D
This company has no design department, though it does not obtain designs from
suppliers of raw materials and other products. Its sources are design studios and centres
for innovation and technology. Though there is no design department, there is a
department that designs and develops products using the outside designs.
The company targets the medium and high market segments in price and quality.
According to company opinion, its competitive differences lie in being product innovators,
i.e., always ahead of what the market offers; doing market research; having consolidated
distribution and sales networks, with company staff in different countries; investing
highly in technology; having managers and sales staff with a high level of training.
Design plays a key role in the company, as it drives or is the basis of its innovating
capability. Its function is furthermore to contribute quality to the product by the selection
of materials and components and through product aesthetics.
Design is run by the general manager and assistant director. Both seek high product
quality and aesthetics, taking into account market trends. These two persons have the
first idea for a design, based on information from studies of market tendencies in design,
fashion, etc., as well as from. watching fashion and design centres all over the world:
museums, galleries, shops in new York, Paris, London, Milan, etc. They then observe the
colours, shapes, ideas, etc., which they suggest to outside designers. They then design
products based on these global ideas: they create product ideas and design the product,
which after being approved by both managers is passed on to the product design
development department, which transforms the design into a ceramic reality.
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Both managers are contin ually in touch w ith sales staff, production and other
technicians who contribute their knowledge and ideas to the product. The ideas of the
sales staff are heard but they do not decide on th e product, as according to the general
manager, their view is a partial, biased one: they would only create what is already
available on the market. On the other hand, production tends to be very prudent and
cautious when the issue of making a new product is raised. Customer opinion is also
heard on the new product but is not conclusive, owing to their restricted vision of the
market in space and time.
Besides providing the design, design studios are sometimes also involved in
product communication though this is also done in-company by the development group.
The company mentioned that they h ad tried different ways of running product
design, but the best and easiest was still the current system. They had initially had a
product committee, made up of production, development and sales, besides the general
manager and assistant director. However, these meetings did not allow the company to
present truly innovative products, as it meant a brake owing to the individual interests of
the departments involved. ow the departments voice their ideas through reports to
Management or at meetings with Management, but do not decide on the product.
All the information produced by the four companies can be summed up as follows:
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CONCLUSIONS
As the study has shown, the auditing model appears to contain features that
determine the situation of product design and design management, besides other
directive, organisational information needed to draw up a diagnostics on these features
in the company. The model would therefore be validated.
The conclusions of the case studies, by means of the auditing model, are not meant
to be generalised to all the companies, but are restricted to the four companies involved,
though the conclusions attempt to stress the relations that exist between the various
concepts or directive and organisational types of behaviour linked to design.
On the other hand, these conclusions focus on product design and design
management, so that they relate to associated behaviour. That is, a company can consider
its strategy to lie beyond these aspects and therefore disregard them. This does not mean
an entrepreneurial or managerial error. However, if a company wishes to focus on
product design, it needs to adhere to these conclusions or requirements of the design
process and design management.
The following statements may be made regarding the four companies, based on the
case studies conducted with the audit model:
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