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Product Trends: Sustainability, Customization, Servitization, & Advanced Manufacturing, Appunti di Gestione Delle Operations

Current trends in product development, including the shift towards sustainable and green products, mass customization, servitization, and the use of new materials and advanced manufacturing technologies. The text also touches upon the importance of people and innovative strategies such as offshoring and reshoring.

Tipologia: Appunti

2018/2019

Caricato il 29/08/2019

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Product’s trends
1. They become more green
They are becoming green, sustainable products, since customers are becoming very interesting in this issue. This is not
only a matter of money but of being conscious of:
Economic sustainability: our economic system
Environmental sustainability
Social sustainability: create positive impact on people, for example by buying products that allows you to co-
contribute to social issues (bottle of water)
It’s very important to notice that green products have higher prices, so customers have to decide if to pay more and be
unstainable or to pay less and not being sustainable. It’s a difficult choice.
Which car is the most sustainable? We have two parameters to consider: CO emission and gasoline consumption. In this
case the problem is not the product’s performances but the production cycle’s performance, which could be very
unsustainable. For example, It’s important to consider if the car is produced during the day when you can use solar
energy or during the night when you cannot do it.
Rebound: more energy consumed than expected, but less than before the technological innovation.
Backfire effect: more energy consumed than before the technological innovation
Paradox: “thanks” to energy efficiency, more energy is consumed. Is this Sustainable Development? If you want to
exploit all the potential of technology, you have to change also the people culture. If you reduce too much the price of
something (of energy) people will consume more of it. So higher price of energy is not good for companies but it’s
good for sustainability.
2. They become Mass Customized
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Product’s trends

1. They become more green

They are becoming green, sustainable products, since customers are becoming very interesting in this issue. This is not only a matter of money but of being conscious of:

• Economic sustainability: our economic system

• Environmental sustainability

• Social sustainability: create positive impact on people, for example by buying products that allows you to co-

contribute to social issues (bottle of water) It’s very important to notice that green products have higher prices, so customers have to decide if to pay more and be unstainable or to pay less and not being sustainable. It’s a difficult choice.

Which car is the most sustainable? We have two parameters to consider: CO emission and gasoline consumption. In this case the problem is not the product’s performances but the production cycle’s performance, which could be very unsustainable. For example, It’s important to consider if the car is produced during the day when you can use solar energy or during the night when you cannot do it.

• Rebound: more energy consumed than expected, but less than before the technological innovation.

• Backfire effect: more energy consumed than before the technological innovation

Paradox: “thanks” to energy efficiency, more energy is consumed. Is this Sustainable Development? If you want to exploit all the potential of technology, you have to change also the people culture. If you reduce too much the price of something (of energy) people will consume more of it. So higher price of energy is not good for companies but it’s good for sustainability.

2. They become Mass Customized

If you standardize, everything is the same, so you get specialized and thus increasing productivity. This is the case for example the case of Ford in 1900. Nowadays we can a huge number of different combinations of the same item, which is produced in an industrial environment but it’s unique.

3. Servitization

Products are becoming services. The product is nor more only a tangible item but it’s also the pack aging, the brand, the quality, etc. Service is beco me a way to differentiate the product. The prob lem of Toyota in Europe was that it has not a net work of maintenance. They had to create one. No wadays you don’t’ own the car anymore, service (car sharing) is the new product. For example, selling flyin g hours instead of aeronautical engines. The old business model of Rolls-Royce was the engine manufacturing, which were sold to Airbus. To compete, Rolls-Royce had to decrease its costs, but it will impact the costs maintenance which have to be faced by acquiring companies. Nowadays, they design and manufacture the products, sell them to Boing or Airbus, but they still be owned by Rolls-Royce who is the one that face the costs of maintenance. In this way, Rolls- Royce manufacture the engine with higher quality, so the maintenance costs are lower. It’s an advantage for both Rolls- Royce and the acquiring companies.

4. New materials which improve raw-material and energy efficiency

5. Products become energy aware

6. Products become smarter

Industry 04

The third industrial revolution is when we started to use computers in the production. Now we talk about a fourth because we are started to use sybers.

Internet is a mean for sending information using a particular protocol. Internet connects computers. Internet of Things is referred to the fact that two physical objects (two cars) are exchanging information. The data are collected by the car but than they are collected by the cloud, where we have all the history of the object. So, we have a digital representation (digital print or avatar) of the object. When two car are exchanging information it’s happening in the cloud. This is the syber physical world. If we apply this concept to production, it’s called industry 4.0. The main benefits are: availability of the information, simulations and forecasting, so thanking decisions,