Application of Design-To-Value methodology to the Major Domestic Appliances industry

The European major domestic appliances industry experienced significant changes over the past decades. The population increased its purchasing power and home appliances became a must-have for many households. In addition to the commoditization process, Western manufacturers had to face an always more unfavorable business environment due to stronger regulations and massive investments required. To complete the picture, the coming of new aggressive players from the East gave hard time to Whirlpool EMEA, already dealing with a high internal complexity. Inevitably, the past years have been particularly difficult for the company, which saw its profits shrinking and coffers suffering. The objective of this thesis is therefore to identify the right lever to help Whirlpool EMEA rise its margins and start being competitive again. To this purpose, the Design-to-value (DTV) methodology has been proposed. This paper wants to illustrate what DTV is and what are its origins and elements of novelty compared to traditional approaches in product development. Furthermore, it will present in what way and under what conditions Design-to-value turns out to be successful, also providing examples of companies that have already introduced a DTV methodology. Finally, this thesis describes the application of Design-to-value inside Whirlpool EMEA. The setup of the program required the definition of the target, the delineation of the modus operandi and the selection of team and scope. The implementation of the program developed through three main work-streams, organized in interconnected activities of idea generation and analysis, and led to the identification of the levers necessary for company margin acceleration and their potential economic scope. The paper goes over both the setup and the implementation phases, also providing the quantitative cost saving estimation that would derive from one of the DTV activities carried out. Furthermore, a final overview of the program is delivered to inform the reader about what the advancement stage of the program is and what is still required to ensure its success in the short and long-run horizon.