Herman Miller Case Analysis 2a4637

1. Name: 2. The Case: Cradle-to-Cradle Design at Herman Miller: Moving Towards Environmental Sustainability 3. Client: Herman Miller 4. The critical challenge faced by the client are following: a) Use of PVC for arm-pad skins b) Getting suppliers on board with regard to implementation of C2C design methodology c) How to get the used chairs back into the loop for recycling Out of the above mentioned challenges the first one is of prime importance and needs immediate attention. 5. The major stakeholders according to my understanding of the case and their respective concerns are as follows: Stakeholders

Concerns and Interests

Herman Miller and it’s officials

Environmental sustainability is the prime objective of Herman Miller. Their concern is to successfully implement the C2C approach in design and manufacturing of Mirra chair. Due to the use of cradle-to cradle approach in deg the Mirra chair, a lot of new materials need to be sourced. Suppliers are required to disclose their product configuration. Changes in the formulation or on many occasions completely new materials are required to be supplied. Mirra chair is one of the first products designed according to the cradle-tocradle approach, the success of this product will determine the future of C2C approach.

Suppliers

MBDC

6. The challenge being faced by Herman Miller is whether to use PVC for armpads or not. The root issue they need to resolve is to find an alternative for PVC which is as efficient and economical as PVC, develop new tooling and assembly line suiting the new material or modify the existing one.

7. The various possible options to resolve the challenges are: a) Search for newer materials which can be effective replacements for PVC and in the longer run develop new materials which have better performance than PVC and are cheaper b) Continue with PVC as the production line has already been designed according to PVC arm pads. Also the switching cost from PVC to any new material will be high in of revamping the supply chain. 8. I would recommend Herman Miller to replace PVC with the new material TUP at the same time continue their research to find a better substitute. To my recommendation I would like to bring to fore the following arguments: a) According to the DeF scorecard 91% of material chemistry by weight falls within the green and yellow categories. By making only one more material adjustment the recyclability can be increased to 100%. b) Perception is a powerful driver in any industry, and the use of PVC in Mirra chair will be a threat to that image of environmental consciousness that the company has created for itself so painstakingly. c) PVC produces toxins during its manufacturing process. This will not only harm their employee’s health, but also damage the environment. d) PVC releases toxins in a fire. This makes it a high risk material for office equipment and furniture e) Herman Miller has always adopted environmental sustainability as part of its core value. Since PVC is not environmentally friendly, and against Herman Miller’s dedication towards sustainable design, it should not use PVC, as it will damage its brand. 9. In order to implement the endeavour successfully Herman Millar might face some hurdles which need to be addressed. First, there might be issues regarding vendors and suppliers. This can be solved by letting the suppliers know the tangible benefits of the undertaking and educating them about the benefits of C2C design methodology. Second, the company might face issues in of closing the loop. It will not easy to develop competency to collect the used chairs and dismantle them for reuse. The company needs to develop a separate mechanism to collect the used chairs and bring them back to the manufacturing cycle. Third, the company may use TUP for the time being as there is no better option, but it needs to search for cheaper and more efficient replacements of TUP for future use. They also need to improve the DeF score by working on other components of the product. At present the DeF score is 61%.