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WHIRLPOOL  CORPORATION    CONFIDENTIAL  WHIRLPOOL  CORPORATION    CONFIDENTIAL  

Designing  for  Our  Consumer  

Michigan  State  University  

Mechanical  Engineering  Senior  Design  

September  27,  2010  

February  7,  11    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  2006  POSITIONS  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:  May  2008  (BSME)    

                                       Aug  08-­‐Present  (MSME)  

WHIRLPOOL:  Began  June  2010  

POSITIONS  HELD:  

•  RefrigeraOon    -­‐Technology  Advantage  Research  Engineering  

•  Fabric  Care  Consumer  Science  

Kyle Sztykiel Katie Crow

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  

WHIRLPOOL  CORPORATION    CONFIDENTIAL  

Whirlpool  History  

 Manufacturing Technology,

Single Product, Single

Customer

 Multi-Product and Whirlpool

Brand

 Multi-Brand,  International

Expansion

 Brand Focused

Value Creation  Globalization

 1911-1948  1948-1980  1980’s  1990’s  2000+

 Building Brand/ Customer Loyalty

Platform

 Trade Management and Distribution Platform

 Global Operating Platform

 Best Brand / Consumer Position

 Best Trade Position

 Best Cost Position

WHIRLPOOL  CORPORATION    CONFIDENTIAL  

Brand  Poraolio  

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WHIRLPOOL  CORPORATION    CONFIDENTIAL  

Global  Presence  

North  America  Region  35,500  Employees  20  Manufacturing                        and  Tech  Centers  

European  Region  14,000  Employees  

16  Manufacturing  and  Tech  Centers  

La0n  America  Region  19,000  Employees  16  Manufacturing                        and  Tech  Centers  

Asian  Region  5,000  Employees  

9  Manufacturing  and  Tech  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:  •  PlaRorm  engineers  –  work  on  implementaLon  of  technologies/innovaLons  into  complete  products  and  support  

unLl  launch  –  Within  in  each  category  there  are  mulLple  plaaorms  (ex.  In  laundry  there  are  top  loading  washers  and  front  loading  washers)  

•  Technology  engineers  –  work  on  up  front  technologies/innovaLons  that  translate  across  mulLple  plaaorms  •  Quality  engineers  –  work  on  enhancing  future  plaaorm  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  •  MarkeOng/Brands  –  work  with  both  technology  and  plaaorm  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  successful  products  in  a  consumer  goods  industry!  

WHIRLPOOL  CORPORATION    CONFIDENTIAL  

Customer  to  Customer  

Technology  Shelf  

Is  this  technology  ready  for  commercializaOon?  

NO  

YES  

Is  there  a  plaRorm  ready?  

NO  

YES  

Business  Opportunity  Tollgate  

Technology  SelecOon  

Ready  to  Transfer  

Winning  DefiniOon  Tollgate  

Concept  Lockdown  Tollgate  

Investment  Decision  Tollgate  

Launch  Contract  Tollgate  

Project  Release  Tollgate  

InnovaLon/Technology  Driven  Engineering  and  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  of  customer  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  constantly  monitored  to  determine  future  and  current  technology  projects  

WHIRLPOOL  CORPORATION    CONFIDENTIAL  

Pre-­‐BOT  Consumer  Research  Example:  

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  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,  and  category)  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  selecLon  milestone  (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  

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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  for  future  use.  

What  we  need  to  learn  more  about:  

•  How  will  this  technology  fit  within  our  products,  what  is  the  applicaLon  of  the  technology  

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Quality  FuncLonal  Deployment  [QFD]  QFD  relates  consumer  requirements  [CR]  and  the  concept’s  technical  requirements  /  specificaOons  [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  the  TRs  are  managed  in  a  Pugh  matrix  

  QFD  is  ALWAYS  a  living  document  meaning  it  evolves  with  product  progression  and  our  C2C  process  

Comparison matrix

Consumer requirements [CR]

TR target values

Technical requirements [TR]

TR importance

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

Solution ranking Tech. 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  consumer  base  

Deliverables:  

•  Finalized  data  to  show  the  technology  will  deliver  a  specific  benefit  that  was  defined  at  BOT  and  refined  to  be  more  specific  at  TSM  

•  Finalized  data  to  show  the  technology  will  deliver  a  specific  markeLng  claim  that  defined  at  BOT  and  refined  to  be  more  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  was  defined  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  iniLal  impressions  

•  For  the  first  10  –  20  uses  of  the  product  testers  take  detailed  notes  about  their  usage  of  the  product  and  their  saLsfacLon  on  various  product  and  technology  awributes  

•  Half  way  through  the  test  Whirlpool  representaLves  come  to  the  home  to  interview  the  testers  about  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  

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WHIRLPOOL  CORPORATION    CONFIDENTIAL  

QUESTIONS??  

WHIRLPOOL  CORPORATION    CONFIDENTIAL  

You’re Invited ! Join us to learn how Spartan

Engineers at Whirlpool Corporation have made your day to day life easier for the past 100 years !

What : Whirlpool Engineering Info Session Where : 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 !