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WHIRLPOOL CORPORATION CONFIDENTIALWHIRLPOOL CORPORATION CONFIDENTIAL
Designing for Our Consumer
Michigan State UniversityMechanical Engineering Senior Design
September 27, 2010
October 7, 10 1 WHIRLPOOL CORPORATION CONFIDENTIAL
IntroducLons
Whirlpool Engineering Rota0onal Leadership Development Program [WERLD]• Engineering Leadership Development• 2-‐year rotaLonal program (4, 6 month rotaLons)• Establish and organize rotaLon project proposals and their locaLons• InternaLonal rotaLon opportuniLes (Brazil, China, Germany, Italy, India, Mexico, Poland)• Ability to obtain fully funded technical masters (Purdue University)• All post college graduates hire into WERLD• Fortune “Top Companies for Leaders” Award List – 2009
MSU ALUM: December 2005 (BSME)WHIRLPOOL: Began July 2006POSITIONS HELD:• Ice and Water Systems
Research Engineering
• Cooking Technology
Mechanical Structures Engineering
• Completed Masters – UofM (MSME)
August 07 – May 08
• Fabric Care Technology
Consumer Science
MSU ALUM: December 2009 (BSME)
WHIRLPOOL: Began January 2010
POSITIONS HELD:
• Dryer Energy Technology Advantage
Research Engineering
• Consumer Science
Fabric Care
WHIRLPOOL CORPORATION CONFIDENTIAL
PresentaLon Overview
• Whirlpool [WHR] company overview
• Design Process – Customer-‐to-‐Customer [C2C]– Business Opportunity
– Technology SelecLon
– Ready to Transfer
• QuesLons
WHIRLPOOL CORPORATION CONFIDENTIAL
Whirlpool Overview – About Us
• World’s leading marketer & manufacturer of home appliances• Fortune 500 CorporaLon• Founded in 1911• Headquartered in southwest Michigan• More than 67,000 employees worldwide• Nearly $20B in sales from a variety of product categories
–– Fabric CareFabric Care – washers, dryers, fabric fresheners…
–– Food Stream SoluLonsFood Stream SoluLons – refrigerators, freezers, ice makers…–– Cleaning Cleaning -‐ dishwashers–– CookingCooking – ranges, cooktops, microwaves, hoods & vents…–– PortablesPortables – stand mixers, blenders, coffee makers, toasters…–– Other products Other products -‐ water treatment, air treatment, & many more…
• 67 Manufacturing and Technology Centers worldwide• 17 major brands -‐ products marketed in 170 countries
WHIRLPOOL CORPORATION CONFIDENTIAL
Whirlpool History
ManufacturingTechnology,
Single Product,Single
Customer
Multi-Productand Whirlpool
Brand
Multi-Brand,International
Expansion
BrandFocused
ValueCreation
Globalization
1911-1948 1948-1980 1980’s 1990’s 2000+
Building Brand/Customer
Loyalty Platform
Trade Management andDistribution Platform
Global Operating Platform
Best Brand / ConsumerPosition
Best Trade Position
Best Cost Position
WHIRLPOOL CORPORATION CONFIDENTIAL
Brand Poriolio
Designing for the Consumer 6
WHIRLPOOL CORPORATION CONFIDENTIAL
Global Presence
North America Region35,500 Employees20 Manufacturingand Tech Centers
European Region14,000 Employees
16 Manufacturing andTech Centers
La0n America Region19,000 Employees16 Manufacturingand Tech Centers
Asian Region5,000 Employees
9 Manufacturing andTech Centers
“Every Home, Everywhere.With Pride Passion and Performance”
WHIRLPOOL CORPORATION CONFIDENTIAL
Whirlpool Engineering and Consumer Research FuncLons:Categories:• Fabric Care (Washers, Dryers, & Adjacent Technologies)• Surface Care (Dishwashers & Adjacent Technologies)• Cooking (Ranges, Hoods, Cooktops, Microwaves, & Adjacent Technologies)• Portables (Standmixers, Blenders, Coffeemakers, Foodprocessors, etc.)• Gladiator Garage Works (Storage, Tool Boxes, ect.)
Engineering Within Each Category:• PlaOorm engineers – work on implementaLon of technologies/innovaLons into complete products and support
unLl launch– Within in each category there are mulLple plaiorms (ex. In laundry there are top loading washers and front loading washers)
• Technology engineers – work on up front technologies/innovaLons that translate across mulLple plaiorms• Quality engineers – work on enhancing future plaiorm quality and improving exisLng product quality• Manufacturing engineers – work on improving day to day engineering and line pracLces in manufacturing plants• Process Engineers – work on process improvements and six sigma (OPEX) pracLces
Consumer Research/Input Within Each Category• Consumer Science – works as a the link between markeLng and engineering to help translate technical feasibility
into sellable feature stories by developing and execuLng consumer research• MarkeQng/Brands – work with both technology and plaiorm development to ensure we develop products that
win in the market place and fit our brand profile and consumer segmentaLon• Insights and Intelligence – work on high level market and industry trends to help drive future products and
technologies
The link between Consumer Input/Research and Engineering is key to crea<ng successfulproducts in a consumer goods industry!
WHIRLPOOL CORPORATION CONFIDENTIAL
Customer to Customer
Technology Shelf
Is this technologyready forcommercializaQon?
NO
YES
Is there aplaOormready?
NO
YES
BusinessOpportunityTollgate
TechnologySelecQon
Ready toTransfer
WinningDefiniQonTollgate
ConceptLockdownTollgate
InvestmentDecisionTollgate
LaunchContractTollgate
ProjectReleaseTollgate
InnovaLon/Technology Driven Engineeringand Research & Development
ImplementaLon and CommercializaLon
Our internal design process is called Customer-‐to-‐Customer [C2C]Obvious that end customer is always the focus…
Front-‐end of process encompasses majority of consumer input and requirements
“Tollgates” are milestones that guide project development• In the diagram below the Tollgates are symbolized using a navy circle
Today our discussion will focus on the innova<on/technology development por<on of the process where the majority ofcustomer research is completed WHIRLPOOL CORPORATION CONFIDENTIAL
Pre-‐Business Opportunity Tollgate
Consumer Trends• Purchase Drivers• Unmet Needs• Habits & PracLces
Market Trends• Market Share & Sales Data• Adjacent Market Sales (laundry addiLves, texLles)• New Product IntroducLons• Housing & ConstrucLon (laundry room size and locaLon)• Overarching Influencers (eco-‐efficiency, simplicity, wellness)
Technology Trends• New Technology ApplicaLons• Cost EffecLve SoluLons
Compe00ve Insights• New Product Launches• Technology ExecuLon• Feature Delivery• IP Filings
Each of these area’s are constantlymonitored to determine future andcurrent technology projects
WHIRLPOOL CORPORATION CONFIDENTIAL
Pre-‐BOT Consumer Research Example:
Designing for the Consumer 11
Voice of Consumer [VOC] process used to idenLfy Accepted Consumer Beliefs [ACBs]
ACBs are translated to Need Statements
Top unmet consumer needs idenLfied through a gap analysis How saLsfied are you that ...(need statement)? How important is it to you that...(need statement)?
Consumer needs begin to define the consumer requirements to guide product development
Difference = Magnitude of Need
WHIRLPOOL CORPORATION CONFIDENTIAL
Business Opportunity Tollgate
What we know:• There is a significant gap or need in a given technology area
• What our compeLLon is doing in this area
Deliverables:
• Customer Benefits; both primary and secondary
• Concept PotenLal; likeability, believability, uniqueness, and purchase intent
• Consumer Segment/Brand
• Desired/PotenLal markeLng claims and consumer reports score targets
Based on the deliverables, a cross func<onal team (product development, brand, engineering, consumer design, andcategory) determines if there is a business case for a given technology area
• If the team agrees there is a valid business case, the technology teams will work towards a technology selecLonmilestone (TSM)
What we need to learn more about:
• What exisLng technologies have potenLal to deliver the desired benefit
• Or, what innovaLons should be developed to deliver the desired benefit
WHIRLPOOL CORPORATION CONFIDENTIAL
BOT Consumer Research Example:
Concept TesLng: Steam Dryer 2006
WHIRLPOOL CORPORATION CONFIDENTIAL
Technology SelecLon
What we know:• There is a desired benefit that our consumers need from our products that we aren’t currently giving them
• Brand aligned messaging and claims
• High level consumer interest in the concept
• What our North American and global compeLtors are doing in this space
Deliverables:• Technical assessments of mulLple technologies completed via simulaLon or prototype tesLng
– IniLal tesLng should also focus on the desired markeLng claim given at the BOT
• PUGH and QFD’s are completed and aligned with brands and product development
• Cost esLmates for each technology
• Consumer input on each technology and technology trade off’s
Based on the deliverables, a cross func<onal team (product development, brand, engineering, consumer design,and category) determines which technology will provide the best benefit to both our business and our
consumer
• The selected technology is moved forward in the C2C process and other technologies and learnings are kept forfuture use.
What we need to learn more about:
• How will this technology fit within our products, what is the applicaLon of the technology
WHIRLPOOL CORPORATION CONFIDENTIAL Designing for the Consumer 15
Quality FuncLonal Deployment [QFD]QFD relates consumer requirements [CR] and the concept’s technical requirements / specificaQons [TR]
TRs are created with input from of MarkeLng, Engineering, standards, previous project knowledge, etc. Team specifies to what extent a TR influences a CR (using the comparison matrix) Form automaLcally calculates “importance” of a TR by summing weighted scores
QFD rules of thumb: Every CR must have at least one
associated TR! Every TR must have targets that are
quanLfiable or measurable!
Technical soluLons that address theTRs are managed in a Pugh matrix
QFD is ALWAYS a living documentmeaning it evolves with productprogression and our C2C process
Comparisonmatrix
Consumerrequirements [CR]
TR targetvalues
Technicalrequirements
[TR]
TRimportance ratings
TSM Consumer Requirement Analysis Example
QFD’s help drive the poten<al technical solu<ons that are evaluated at the TSM WHIRLPOOL CORPORATION CONFIDENTIAL 16
PUGH Matrix:
Facilitates relaLve comparison of idenLfied promising soluLons against TRs
Linked directly to QFD – if importance raLngs of TRs change, Pugh is automaLcally updated
A living document that changes with the product progressing
Technical solution options
Technical requirements, targets, & importance
SolutionrankingTech. solutions comparison ratings & justification
TSM Consumer Requirement Analysis Example
PUGH matrices help determine the op<mal technology solu<on to move on to RXM
WHIRLPOOL CORPORATION CONFIDENTIAL
Ready to Transfer
What we know:
• A specific technology exists that has both technical feasibility and trade off’s that are acceptable to our consumerbase
Deliverables:
• Finalized data to show the technology will deliver a specific benefit that was defined at BOT and refined to bemore specific at TSM
• Finalized data to show the technology will deliver a specific markeLng claim that defined at BOT and refined to bemore specific at TSM
• The technology has an applicaLon that is acceptable to the consumer and fits with in product architecture.Answers to the quesLons;
– What does it feel like?
– What does it look like?
– Where is it?
– How does the consumer interact with it?
Based on the deliverables, a cross func<onal team (product development, brand, engineering, consumer design,and category) determines whether this technology is ready to be implemented into a specific product/plaQorm
WHIRLPOOL CORPORATION CONFIDENTIAL
RXM Consumer Research Example
Consumer Use Field Test [CUFT]• Prototypes containing the technology are placed in consumer or employee homes for 3 – 6 months
for evaluaLon
• Consumers are screened to fit the demographic/brand segment that the technology fits in (this wasdefined at BOT and refined to be more specific at TSM)
• Consumers were interviewed to understand their current habits with their personal appliance
• Whirlpool representaLves install and observe first Lme use of the product to gain iniLalimpressions
• For the first 10 – 20 uses of the product testers take detailed notes about their usage of theproduct and their saLsfacLon on various product and technology axributes
• Half way through the test Whirlpool representaLves come to the home to interview the testersabout the product
• Results of the test can be used prior to RXM to make improvements to the technology
– Test results and the changes driven by the results are presented at RXM
WHIRLPOOL CORPORATION CONFIDENTIAL
QUESTIONS??
WHIRLPOOL CORPORATION CONFIDENTIAL
You’re Invited !Join us to learn how Spartan
Engineers at Whirlpool Corporationhave made your day to day lifeeasier for the past 100 years !
What : Whirlpool Engineering Info SessionWhere : 3400 EB
When : September 30th 2010 from 6:00pm – 7:30pm
Info about our WERLD (Whirlpool Engineering Rotational Leadership Development) Program
Free Pizza & Pop will be provided !