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Copy of C2C At Herman Miller

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Yousef Husseini

on 16 October 2013

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Transcript of Copy of C2C At Herman Miller

Cradle To Cradle At Herman Miller
Agenda
Herman Miller Company
Cradle-to-Cradle
Dilemma
Alternatives & Analysis
Recommendations & Action Plan
Should Herman Miller Continue
To Use PVC?
Dilemma
Lower the Cost
First product under the C2C protocol
Consolidate shares in healthcare and education markets
More and more customers ask for PVC-free products
TPU will be applied in the future products, so Herman Miller can promise the future contracts.
TPU helps suppliers develop new markets
Herman Miller will highlight the role of its suppliers
Soul of Herman Miller
Any Questions?
Presented By:
Yousef Husseini
Kristen Keene
Yan Liao
Polyvinyl Chloride
Introduction
Herman Miller, Inc.is a major American manufacturer of office furniture, equipment and home furnishings.
It was founded as the Michigan Star Furniture Company in 1905, and was renamed Herman Miller in 1923.
Over the following 60 years, the company grew into an internationally acclaimed furniture design house.
Collaborating with notable designers, Herman Miller has created lots of imaginative modernist designs that have been showcased in many museums including New York’s Museum of Modern Art, the Whitney Museum, etc.

Corporate Culture
The mindset of the management and employees was reflected in the “Thing that matter” at Herman Miller : Curiosity and Exploration, Design, A Better World, Performance, Relationships, Transparency, Engagement, Inclusiveness, and Foundation.
Herman Miller adopted the triple-bottom-line philosophy of financial, environmental, and social responsibility.
The culture attracts a lot of talent employees who hold the same values and care about environmental sustainability.

Products and Designs
It’s also called cubicle workstation, a partially enclosed workspace, separated from neighboring workspaces by partitions that are usually 5–6 feet tall.
Its purpose is to isolate office workers from the sights and noises of an open workspace so that they may concentrate without distractions.
It was created by designer Robert Propst at Herman Miller

Economic Performance
Herman Miller sales grew from $25 million in 1970, when it first become a publicly traded company, to $1.5 billion in 2002
Herman Miller was one of the top four suppliers in the U.S office furniture industry.
In 2002, Its market share was 16% of the $8.9 billion the whole industry
The company had a significant presence in healthcare, education, and residential/consumer markets

Herman Miller and Environment
“We contribute to a better world by pursuing sustainability and environmental wisdom. Environmental advocacy is part of our heritage and a responsibility we gladly bear for future generations”—Corporate Value statement.
The company was considered to be an environmental leader in the industry, with competitors following its lead on many environmental initiatives.
In 1989, the company formed the Environmental Quality Action Team (EQAT) to set the company’s environmental direction, and to measure the results.

Design for Environment (DfE):
A list of facts and suggestions that can help when making decisions during product design and development.
It offered specific guidelines in the categories of Material Selection, Design for Disassembly, and Manufacturing.

Herman Miller and Environment
Herman Miller and Environment
In the early 2000s, the company proposed the “Perfect Vision” initiative.
--A range of sustainability targets including zero landfill, zero hazardous waste generation, zero air and water emissions from manufacturing, and the use of 100% green energy to meet power needs; these targets were to be achieved by the year 2020.
They drafted the Cradle-to Cradle Design Protocol, and planed to apply it in their products.

Cradle to Cradle
The Mirra Chair
Years before the chair was made careful research into fit, ride, tilt, mechanisms, materials, aeration, adjustments, and design for the environment started


Alternative 1
Use PVC
PVC(Pros)
Standard materials(widely used)
Good performance(durable, scratch resistance)
Inexpensive
Mature supply chain.
Existing tooling for PVC

PVC(Cons)
“Red”material on the list—toxins released during its manufacturing when it is burned.
Violating the standards of the C2C.
Lots of bad press about it.
More tightening legislation on polluted materials

Alternative 2
Use TPU
TPU(Pros)
More scratch resistant than PVC
No toxins released when manufacturing
In accord with C2C standard.
In accord with Herman Miller’s "Perfect Vision"


TPU(Cons)
Supply chain immature—suppliers are reluctant using new materials.
Expensive—30% more assembly cost
Retooling Cost ($100,000)

Conclusion
We choose using TPU as material for arm pads

TPU
PVC
Relatively low sunk cost compared to potential revenue
Standardized production can further reduce cost
Patent the application
Find Cooperative Suppliers
Market Impact
It fits Herman Miller’s sustainability targets and culture of environmental sustainability.
PVC would contradict this . TPU is in accord with this.

Future Impact
TPU will better fit future tightening environmental legislation.
"Green" publicity. First PVC-free product. Good advertising for other future products.
Full transcript