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Queensland manufacturers first to trial cost-focused innovation

The world renowned Fraunhofer Institute is partnering with QMI Solutions to pilot an innovation program with ten Queensland manufacturing companies.

Fraunhofer is the largest organisation for applied research in Europe and was responsible for developing MP3 technology, while Fraunhofer’s Institute for Industrial Engineering (IAO) focuses on topics such as Work Design, Engineering Systems as well as Technology and Innovation Management. Some of the most recent work of IAO has been in Cost-Focused Innovation (CFI), which is innovation specifically targeted at price sensitive customer groups. Well known pioneers of CFI include budget furniture company IKEA and India’s low-cost car the Tata Nano. This is the first time the IAO has worked with companies outside of Europe to demonstrate its CFI theory and tools.
 
Fraunhofer IAO’s approach to CFI is centred on identifying new price sensitive customer groups and then designing products that meet the absolute needs of that group. A great example is that of IKEA’s innovative approach to affordable living for young families. Formule 1, Accor’s budget hotel brand, is another CFI example targeted at a specific customer group - travelling sales representatives.
 
Innovation has been cited as a key driver to ensure the future sustainability of Queensland’s economy and innovation is a key target of the Queensland Government’s ‘Towards Q2’ strategy. As a major contributor to the Queensland economy, the manufacturing industry must focus on retaining a competitive edge through innovation.
 
QMI Solutions, a government-funded organisation responsible for assisting Queensland industry achieve world best practice in manufacturing and sustainability, recognises the importance of providing companies with the necessary skills and tools to introduce and improve cost-focused innovation. The primary objective is to help local manufacturers meet the identified challenges ahead to develop new products and new markets.
 
Fraunhofer IAO experts Frank Wagner and Liza Wohlfart assisted QMI to develop and deliver a one-day workshop and to deliver CFI support activities with two local companies.
 
“During the activities, a series of tools were used to help identify product features and options that reduce cost but maintain features that are important to the customer. Finally we looked at how to modify the product and add value in an innovative way to satisfy the newly-identified customers,” Mr Wagner said. 
 
Involved in the program were Brisbane-based Centor, a company that designs and manufactures systems for folding and sliding doors, screens and blinds. As part of the pilot program, Centor worked with QMI and Fraunhofer mastering a number of the CFI tools.
 
Centor Business Development Manager Glen Pacholke and his team used the QMI and Fraunhofer CFI approach to review existing products and create new innovative solutions for customers. “By minimising features that are not as important to newly-identified customer groups, and maximising important ones, we can add value and make substantial cost-savings,” Mr Pacholke said.
 
As the manufacturing industry best practice group, QMI will be the custodians of the program and will be responsible for benchmarking initial performance and measuring outcomes in the future. The Fraunhofer Institute will be supporting QMI to introduce the program across the state. Queensland manufacturers will be able to benefit from the knowledge of the Fraunhofer Institute on innovation through QMI clinics, workshops and in-house support programs.
 
It is hoped that by using the tools from the Fraunhofer Institute, Queensland manufacturers will be able to take a new approach to growth which will help maintain the future of the industry and wider economy.
 

For further information:
+617 3364 0700
info@qmisolutions.com.au 

Posted on Thursday, December 09, 2010
Posted by admin