Braun AG The KF 40 Coffee Machines 496 526 In order for Braun s newest design KF40 to meet management s cost targets they have to use a much less expensive plastic material polypropylene o Unlike polycarbonate which is more costly polypropylene cannot be molded into large complicated parts like the KF40 s tank without suffering sink marks on surfaces that were supposed to be flawlessly even History and culture o Company began as a family owned radio small appliance business 1921 Developed the electric razor 1941 Postwar Germany was recovering resulting in greater spending for Designing a New Company consumer goods o Company s vision metaphorically Products should be like the proverbial English butler unobtrusively in the background but there when you need him o Almost any employee could tell a visitor that Braun s values were embodied in its products which had to have 3 characteristics First class design Superior quality Functions features ahead of the competition The Gillette Connection o Gillette purchased Braun 1967 Saw the Braun acquisition as an opportunity to cover the dry end of the shaving business as well as to extend its influence upward Braun expanded its operations in other countries and started to extend its target markets o Braun s Spanish plant was taken over in 1971 by Lorne Waxlax previous Gillette manager Refocused operation emphasizing product development sophisticated manufacturing market research and television advertising Spanish plant manufactured Braun s 1st successful mass produced kitchen appliance the hand blender Served as a training ground for Braun s mass produced appliance motors o Braun s business consisted of home appliances and consumer electronics A New Strategy To Rob a Bank o Waxlax becomes Braun s chairman in 1980 o Good design should be for everybody The Business Environment Competition o Krups o Rowenta o Germany France 2 biggest markets for coffeemakers o US Market has room to grow Corporate Structure and Operations Company was divided into 3 main functions o Business management Coordinating body essentially identical with strategic marketing Market research Testing Braun products already in the market o Technical operations R D Spent 27 million annually Engineering Manufacturing Use the company s design and engineering talents to design a product so that it required minimal assembly Must exceed standards of consumer protection tests Quality Assurance o Group sales Industrial Design Braun Design What Functionalism Really Is Good design according to Rams is really is o Unobtrusive and neutral o As little design as possible o Timeless and lasting o Honest does not make a product seem more innovating or valuable than it KF 40 Project Goals To be fully profitable it would have to cost 60 less than the KF20 considered expensive for upper income coffee drinkers o How to create 1 heating element for hot water and to keep coffee warm versus 2 in KF20 aluminum to copper o How to attach a handle invisibly o How to prevent drips either from the filter when one pulls out the coffeepot or from the water tube when one swings the filter out Market wanted a detachable transparent water tank Water tank instead of many small pieces screwed together was one large piece known as the tank Plant needed to be prepared to manufacture 10 000 units day Polypropylene Material of choice for low end producers and had never before been considered by Braun except for interior parts that could benefit from its lower density and other features o Need 700 950 grams per unit o Tended to shrink unevenly Sink marks made the product look cheap o Was not as rigid of a material Large parts were vulnerable to a flimsy feel o Easily scratches o Advantages Doesn t absorb water won t stain easily Won t chip as easily as polycarbonate Realized it would be dangerous to let out the design to a subcontractors and would have to keep it inside in order to assure a competitive lead Problem Background Market Design decision Polypropylene vs polycarbonate Strategic decision new station mass market vs high end niche Reputation of company high end o Will polypropylene threaten that perception Favoritism Conflict design vs marketing worried about reputation EU Traditional mature o Lower market high end US Growth market lots of room o Less developed Competition EU Krups Rowenta US Mr Coffee Company Design led Marketing loyal customers o Choose new market What is good design Aesthetically pleasing Minimal design vs trendy Functionality o Easy to assemble Ecologically conscious Innovative Profitable Polypropylene Appears cheap Design can work with it Conflict purists vs embracing of new challenge Recommendations Re brand low end Go into market in order to make money use polypropylene o More research limited market release only release in certain areas enhance design o License idea sell it o Outsource manufacturing Results Braun launched with polypropylene o Sold 2 600 000 units year o Competitors copied design Lessons Learned Linked design to strategy Surface design conflicts early Cross functional interaction is key Challenge people to be creative Target costing is 1 technique to accomplish this SweetWater 543 551 Background Instead of boiling water for camping trips they now have the capability to pump water through a filter that works much quicker and requires neither a fire nor a pot dedicated only to providing clean drinking water o Devices were difficult to hold o Difficult to use single handedly as well o Took too long to filter enough water for 10 people o Seemed to clog easily with the fine glacial grit of the stream increasing pressure required to pump Industry Data The Water Problem o Industrial commercial development inadequate waste disposal and aging municipal water supply systems have led to an increase in waterborne pathogens in the US Bacteria protozoan parasites 20 microns 0 2 microns viruses 085 microns 0 02 microns Cause a variety of gastrointestinal illnesses Diarrhea Cramps Vomiting The Old Solutions o Boiling the water Requires heat source Takes time Ties up cooking resources o Treating it chemically with an iodine or chlorine biocide Tablet added to a container of water Iodinated resin through which water is pumped Both leave a distinct taste in the water Require time for the chemicals to react with the pathogens Certain protozoan parasites were resisting the chemicals Micro filtration o Relied on a physical filter to screen out parasites o Could remove many of the coarse