DESIGNING INTEGRATED QUALITY: INNOVATION, PRODUCT LIFECYCLE AND CERTIFICATION SYSTEMS
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1 DESIGNING INTEGRATED QUALITY: INNOVATION, PRODUCT LIFECYCLE AND CERTIFICATION SYSTEMS Inaugural Lecture, Linz, Austria, Prof. Dr. Erik G. Hansen Institute for Integrated Quality Design
2 AGENDA 1. Introduction 2. Framing Integrated Quality Design i. Quality by Design ii. Integration and life-cycle orientation iii. Supporting role of (certified) management systems 3. Research fields and future research Inaugural Lecture, Hansen/IQD 2
3 INTEGRATED QUALITY: BMW i3 Source: ( ) Inaugural Lecture, Hansen/IQD 3
4 INTEGRATED QUALITY: BMW i3 Source: ( ) Inaugural Lecture, Hansen/IQD 4
5 IQD: BREAKING IT DOWN Integrated? Quality? Design? Inaugural Lecture, Hansen/IQD 5
6 AGENDA 1. Introduction 2. Framing Integrated Quality Design i. Quality by Design ii. Integration and life-cycle orientation iii. Supporting role of (certified) management systems 3. Research fields and future research Inaugural Lecture, Hansen/IQD 6
7 QUALITY IN A NUTSHELL Properties of an offering Degree of how expectations are met Offering A +5 Very good Expectations strongly excelled Good Expectations excelled 0 Acceptable Expectations fulfilled Offering B Bad Expectations not met -5 Very bad Expectations missed Quality = relative to expectations Source: based on Seghezzi et al. 2007, p.35 Inaugural Lecture, Hansen/IQD 7
8 QUALITY HIERARCHY Quality of society Culture Infrastructure Civilization Quality of organisations Culture Vision Structures Systems Functions/ Units Leadership Employees Quality of processes Materials Labour Information Energy Quality of products Goods Services Source: based on Seghezzi et al. 2007, p.7 Inaugural Lecture, Hansen/IQD 8
9 Inaugural Lecture, Hansen/IQD 9
10 FROM INSPECTION TO INNOVATION Inspected-in Quality Q control of manufactured good Designed-in Quality Q as part of product development Source: based on Chan & Wu 2002; Juran 1992 Image source: ( ) Inaugural Lecture, Hansen/IQD 10
11 Source: ( ) Inaugural Lecture, Hansen/IQD 11
12 AGENDA 1. Introduction 2. Framing Integrated Quality Design i. Quality by Design ii. Integration and life-cycle orientation iii. Supporting role of (certified) management systems 3. Research fields and future research Inaugural Lecture, Hansen/IQD 12
13 THE MEANING OF QUALITY OVER TIME Little Q Big Q Complying with technical standards Complying with specification Fulfilment of agreed customer requirements Fulfilment of customer expectations Fulfilment of expectations of multiple stakeholder groups SELLER S MARKETS BUYER S MARKETS Quality of a unit is measured against the expectations of relevant stakeholders Prof. Yoshinori Iizuka (as cited in Joiner 2012, p.6) Source: based on Seghezzi et al. 2007, p. 35 Quality thus relates to all who have needs and expectations related to the product or service including society, employees, suppliers, and investors. In this sense, sustainability is a part of quality of product, and I thus think we need to expand the definition of quality to include negative externalities as defects. Inaugural Lecture, Hansen/IQD 13
14 STAKEHOLDER ORIENTATION NEW Q DIMENSIONS Inaugural Lecture, Hansen/IQD 14
15 EXAMPLE: DIESEL AND STAKEHOLDERS Sources: International Agency for Research on Cancer (IARC) (2012); ( ); ( ); for scientific evidence see also: Wise 2015 Inaugural Lecture, Hansen/IQD 15
16 BMW i3: LIFE-CYCLE ORIENTATION SUPPLIERS (MATERIALS) PRODUCTION USE POST-USE (EOL) Certified Olive-tanned leather Healthy and safe workplaces Certified wood interior Recycled carbon fibre Carbon neutral CFK recycling process Inaugural Lecture, Hansen/IQD 16
17 LIFECYCLE ORIENTATION IN THE STEEL INDUSTRY It will be increasingly hard to maintain traditional mass steel production... in the mature economies. [...] We need to develop a long-term plan for encouraging a traditional steel industry, still strongly driven by volume, to increasingly focus on quality. Another focus is life cycle assessment; the integrated approach to material developments, applications, and value chains, starting with the raw material, its production, use, and subsequent recycling. Source: ( ) Inaugural Lecture, Hansen/IQD 17
18 CIRCULAR BRAND Verwendung von Haushaltsreinigern in % (2012) Cleaning detergents in private households in % (2012) Aldi Meister Proper Frosch Der General Viss flüssig Sources: Werner & Mertz Gruppe (2013), p.7; statista (2013) Inaugural Lecture, Hansen/IQD 18
19 CIRCULAR BRAND Source: Product catalogue, Green care , tana-chemie GmbH, S.5 ( ) Inaugural Lecture, Hansen/IQD 19
20 THE CIRCULAR ECONOMY IN DETAIL Regeneration Recycle Minimize systematic leakage and negative externalities Source: based on Ellen MacArthur Foundation, 2012, p. 24 Inaugural Lecture, Hansen/IQD 20
21 CIRCULARITY, QUALITY ASSURANCE AND CONSUMER HEALTH Inaugural Lecture, Hansen/IQD 21
22 PRELIMINARY CONCLUSION I: LIFECYCLE-ORIENTED PRODUCT DEVELOPMENT 3. Innovation context Innovation task Clarification of task Idea generation and selection 2. Product development process Anticipate/ control Source: based on Abele et al. 2005, p.5 Conceptual design Embodiment/ detailed design Influence 1. Product life-cycle Raw materials/ parts Production Product (Product-Service-System) Post-Use Use Inaugural Lecture, Hansen/IQD Repair Reuse Remanufacture, Recycle 22
23 AGENDA 1. Introduction 2. Framing Integrated Quality Design i. Quality by Design ii. Integration and life-cycle orientation iii. Supporting role of (certified) management systems 3. Research fields and future research Inaugural Lecture, Hansen/IQD 23
24 THE ORGANIZATION AS AN INTEGRATED MANAGEMENT SYSTEM Requirements Customers, relevant stakeholders Results Products, services, customer satisfaction Source: based on Quality Austria (2016), p.4 Inaugural Lecture, Hansen/IQD 24
25 INTEGRATED QUALITY: BMW i3 Integrated Management System (ISO 9001, 14001, EFQM,...) ISO (Life cycle assessment) SUPPLIERS (MATERIALS) PRODUCTION USE POST-USE (EOL) Certified Olive-tanned leather Certified wood interior Carbon neutral 25% recycled plastic content Hemp Kenaf-enforced composites Healthy and safe workplaces CFK recycling process Inaugural Lecture, Hansen/IQD 25
26 PRELIMINARY CONCLUSION II: QUALITY BY DESIGN MEETS QUALITY MANAGEMENT 3. Innovation context 2. Product development process Leadership Requirements customers + stakeholders 1. Product and life-cycle Requirements for products + development processes Life-cycle orientation... Quality Management Quality by Design Source: based on Abele et al. 2005, p.5 Inaugural Lecture, Hansen/IQD 26
27 AGENDA 1. Introduction 2. Framing Integrated Quality Design i. Quality by Design ii. Integration and life-cycle orientation iii. Supporting role of (certified) management systems 3. Research fields and future research Inaugural Lecture, Hansen/IQD 27
28 IQD RESEARCH FIELDS Project 1: Project 2: Interorganisational Organisation (Innovation context) F3: Influence/transformation of organisations (Strategy, Systems, Structure, Culture) Involvement of external actors* e.g. Stakeholder board Innovation process (Process) Produkt-Service-System (Outcome) F2: Methods of integrated quality design for the innovation process F1: Concepts and methods for product life-cycle orientation and assessment Interdisciplinary collaboration e.g. open innovation e.g. value creation network Level of analysis (Level of innovation) * Cross cutting theme - not an independent research field Research fields (F) Inaugural Lecture, Hansen/IQD 28
29 Inaugural Lecture, Hansen/IQD 30
30 REFERENCES Abele, E., Anderl, R., Birkhofer, H., & Rüttinger, B. (Eds.). (2008). EcoDesign von der Theorie in die Praxis. Berlin [u.a.]: Springer. American Society for Quality (ASQ). (2011) Future of Quality Study: Emergence. Online: (accessed: ). Business for Social Responsibility (BSR); American Society for Quality (ASQ) (2011): CSR and Quality: A Powerful and Untapped Connection. Executive Brief. Online: (Zugriff: ). Chan, L.-K.; Wu, M.-L. (2002): Quality function deployment: A literature review. In: European Journal of Operational Research 143 (3), S doi: /S (02) Cradle to Cradle Products Innovation Institute. (2013). Redefining Product Quality: Cradle to Cradle Certified. Products Program. Online: (accessed: ). Ellen MacArthur Foundation (2013): Towards the Circular Economy 1. Economic and business rationale for an accelerated transition. Online: (Zugriff: ). Foodwatch e.v. (2015). Mineralöle in Lebensmitteln Ergebnisse des foodwatch-tests. Online: (accessed: ). Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman series in business and public policy. Boston: Pitman. ISBN Fust, S.F.; Walker, L.L. (2007): Corporate sustainability: the next TQM? In: KORN/FERRY International Executive Insight, 1-8. Hansen, E.G., Große-Dunker, F., & Reichwald, R. (2009). Sustainability Innovation Cube A Framework to Evaluate Sustainability-Oriented Innovations. International Journal of Innovation Management, 13(4), doi: /S Hansen, E.G., & Klewitz, J. (2012). The Role of an SME s Green Strategy in Public-Private Eco-innovation Initiatives: The Case of Ecoprofit. Journal of Small Business and Entrepreneurship, 25(4), doi: / Inaugural Lecture, Hansen/IQD 34
31 REFERENCES International Agency for Research on Cancer (IARC). (2012). Diesel Engine Exhaust Carcinogenic: Press Release N 213. Lyon, France. Online: (accessed: ). Joiner, B. L. (2012): Improvement in the New Millennium. Quality, Sustainability, and Externalities. In: The Journal for Quality & Participation (January), S Juran, J. M. (1992): Juran on quality by design. The new steps for planning quality into goods and services. New York: Free Press. PKFWW & acatech (2013). Umsetzungsempfehlungen für das Zukunftsprojekt Industrie 4.0: Abschlussbericht des Arbeitskreises Industrie 4.0. Online: (accessed: ). Quality Austria. (2016). The Integrated Management System: The Position of Quality Austria. Online: (accessed: ). Seghezzi, H. D., Fahrni, F., & Herrmann, F. (2007). Integriertes Qualitätsmanagement: Der St. Galler Ansatz (3., vollst. überarb. Aufl.). München: Hanser. ISBN Werner & Mertz Group. (2013). Sustainability Report: with integrated Environmental Statement. 2013/2014. Mainz, Germany. Online: (accessed: ). Wise, J. (2015). Nitrogen dioxide is linked to 5900 deaths a year in London, report says. BMJ, h3907. doi: /bmj.h3907. Inaugural Lecture, Hansen/IQD 35
32 BACKUP 36
33 SUSTAINABILITY INNOVATION CUBE Innovation space SUSTAINABILITY SPHERE Environmental Social Economic Business model Product-service system Product/technology Supply Manufacture Use Post use (End of life) Life-cycle analysis LIFE-CYCLE PHASE Source: Hansen, Große-Dunker & Reichwald, 2009, p. 695 Inaugural Lecture, Hansen/IQD 37
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