design:CASE / Cimbria Herning

design:CASE In 2003, Cimbria Herning was a company in dire economic straits.

Today, this small Danish company is the world’s leading manufacturer of loading chutes. A design investment in 2004 was essential in creating a healthy economy and a motivating work climate. danish design centre

FACTS ABOUT CIMBRIA HERNING A/S Million DKK Turnover

2003

2004

2005

2006

26

28

38

51

Pre-tax result

-9.3

3.7

3.7

7.3

Units sold

433

444

455

630

Export share

60%

80%

85%

90%

2.3

4.9

7.5

12.6

Equity

• Cimbria Herning originated as the engine works TH Rasmussen Mølle- og Maskinbyggeri, which

was founded in 1931.

• HQ in Herning with 36 employees.

• Since 1988, Cimbria Herning has been a part of Cimbria Group of Companies, an international

organisation with more than 800 employees in

20 countries.

• Cimbria Herning is an engine manufacturer

specialising in the production of loading chutes

under the brand name Moduflex.

• A loading chute is used to convey a product – such

as cement – from one unit to another in a way that

prevents waste and dust.

Cimbria Herning Grøndahlsvej 19 7400 Herning Denmark Tel +45 9712 3811 www.cimbria.com

“You can use design to engineer a better product and an increase in turnover.”

That is the unambiguous message from Cimbria Herning, whose investment in design set off a positive spiral, where increased earnings and a good work climate are just some of the effects of the design process.

THE INITIAL SITUATION AND THE DESIGN INVESTMENT

In 2003, after a turbulent period with significant economic problems, the newly appointed managing director of Cimbria Herning, Lars Nørgaard, realised that drastic changes were needed to secure the company’s continued existence.

“The design process has given our loading chute a more streamlined and international look. It is clearly the most aesthetic product in the business today.” Lars Nørgaard

The company had lost its previously unassailable market position, and more and more orders were going to the competitors.

Times were difficult, and the outlook was challenging for the

“In the past, we would just add new functions to the side

small manufacturer in Herning. In 2003, Cimbria Herning’s pre-

of the loading chute, so eventually it looked like a mechanical

tax result was a DKK 9.3 million loss, which meant that the

Christmas tree. We didn’t see it as ugly, because it had always

equity was gone, and the bank was pulling out. The situation

looked that way. The design seminar, however, made me aware

was also taking its toll internally – staff turnover was high, and

that design has to be incorporated into every business strategy

the owners were demanding to see a positive result for 2004.

if a small company like ours is to have any hope of being a relevant player in the international league,” says Lars Nørgaard.

“Cimbria Herning was in dire straits, both economically and organisationally. We were forced to be proactive, partly to

In other words, the loading chute needed a redesign, and

increase our earnings, and partly to create a shared project

management decided to go all the way and make a significant

that would bring the whole company together and rebuild

investment in design. A very unconventional initiative in the

job motivation and team spirit,” says Managing Director

engine industry.

Lars Nørgaard.

The chosen solution was an organisational restructuring, which included selling off certain business areas in order to focus exclusively on the company’s core area – loading chutes – as well as a substantial design investment to redesign the loading chute.

Lars Nørgaard had the idea of using design to relaunch the loading chute when he happened to read a design story in the newspaper; soon after, he heard about a design seminar for companies. Lars Nørgaard signed up for the design seminar, and that opened his eyes to the value-building capacity and business potential of design.

Managing Director Lars Nørgaard

THE DESIGN PROCESS

In the autumn 2004, the management initiated the design

in the market with the resources to focus on technical properties

process by handing out a questionnaire to the employees.

as well as design.

Based on their individual job functions, all employees were asked to consider the pros and cons of the current design

In 2004, Cimbria Herning was a first-time buyer of design assistance,

and propose ideas for improvements.

and the company did have certain preconceived notions about the design trade. “We were unable to go any further with the creative

The shipping department, for example, would like to make sure

aspects of the relaunch and redesign of the loading chute, so we

that the redesigned loading chute stayed within certain standard

had to bring in a design firm. We were worried that we would have

measurements, so that it could be transported on a standard

14 crackpots with thumb rings showing up, and that we wouldn’t

pallet, as this would make the work process more efficient.

be able to relate to them,” says Lars Nørgaard.

The sales department wanted a more conceptual and logical type designation for the product.

Cimbria Herning did some thorough market research to find a design firm with experience from the engine industry and eventually chose

Thus, together, Cimbria Herning’s management and staff

the design firm 3PART. The chemistry between Cimbria Herning and

defined a set of challenges that they wanted the design process

3PART was good from the first meeting, and the dreaded culture

to address. Lars Nørgaard says, “The feedback from the staff

difference proved to be a productive ‘culture clash’. “3PART was

provided an excellent basis for the design process, and as

really quick to learn about our world and grasp the technical and

another important effect, it helped promote the team spirit

aesthetic challenges that we were facing. They also proved very

within the company, because everybody had a sense of

competent in our discussions about materials and manufacturing

ownership in relation to the design process.” To Lars Nørgaard,

processes – something which we had not expected. We really gained

the key challenge was to make the product more aesthetic in

much more than just a new design for our loading chute,” says Lars

order to make it stand out from the competitors’ products, since

Nørgaard.

by then, the technical differences between Cimbria Herning’s product and the competition had more or less been eliminated.

The design process itself went without a hitch. In Lars Nørgaard’s

By redesigning the loading chute, Cimbria Herning wanted to

assessment, the design process was so successful “... because we

prove to its customers that they were the only manufacturer

had defined the project so clearly from the outset. That meant that we were able to maintain a very close dialogue throughout the four stages of the design process. Each stage was completed with our

Cimbria Herning estimates the total cost of the

formal approval. In that way, we always knew and approved of the

design investment at DKK 250,000 for the redesign

direction that the redesign of the loading chute was taking.”

of the loading chute and the conceptualisation of all the marketing material. That does not include the hours spent by Cimbria Herning’s internal staff and the new tools and materials that had to be acquired to produce the new design.

However, Lars Nørgaard estimates that the total design investment paid for itself within the first six months, because the redesign of the loading chute led to significant increase in sales and, thus, increased earnings.

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“3PART was really quick to learn about our world and grasp the technical and aesthetic challenges that we were facing. They also proved very competent in our discussions about materials and manufacturing processes – something which we had not expected. We really gained much more than just a new design for our loading chute.” Lars Nørgaard

During the final stage of the design process, the collaboration

CIMBRIA’S DESIGN PROCESS STEP BY STEP

with 3PART was expanded. By then, 3PART had gained more insight into the engine industry, and they saw an opportunity

September 2004

to help Cimbria Herning stand out in the marketplace through

Cimbria Herning contacts 3PART and introduces

a more conceptualised product line. 3PART suggested redesigning

them to the company and the task of redesigning

all Cimbria Herning’s marketing material to give it a more

the loading chute. 3PART visits the production hall

professional and exclusive look. Furthermore, all the modular

for some hands-on experience with the loading

solutions should be presented in the brochures in order to

chute. Lars Nørgaard gives 3PART all the employees’

make it easier for the customers to pick a personal solution

comments and feedback about the loading chute.

that matched their individual needs.

OCTOBER 2004 “The design process has given our loading chute a more

3PART provides a price estimate and a project plan.

streamlined and international look. It is clearly the most aesthetic

Cimbria Herning and 3PART negotiate and reach

product in the business today. Besides, the design process

an agreement. Together, they draw up a detailed

has been incredibly rewarding for us, because 3PART has

design process with four stages from design brief

systematised our product line, which has enabled us to combine

to prototype testing. This detailed description aims

new solutions and customise loading chutes to individual buyers.

to ensure that both Cimbria Herning and 3PART

That has increased our sales volume, which in turn has led to

know the content of the individual stages and

increased earnings and lower costs,” says Lars Nørgaard.

know how many hours are projected for each stage.

It is decided to complete each stage with a formal

The design process was very intense, as it allowed only

approval from Cimbria Herning’s management. During

four months to complete the redesign of the loading chute.

this period, 3PART also draws up a project proposal

Lars Nørgaard says, “The intense design process was definitely

with five different prototypes. That forms the basis

worth the effort. We are happy with the outcome, as we now

for developing a more specific brief for the desired

see growth in the areas that we were aiming for. In fact,

design of the loading chute.

Cimbria Herning has the highest earnings among Danish engine manufacturers.” He adds, with a smile, “That’s not bad.”

NOVEMBER 2004 3PART works on a new prototype produced in new materials, where all the technical content is concealed. Cimbria Herning chooses this as the design for their relaunch of the loading chute.

DECEMBER 2004 The final stage of the design process consists in finetuning of the prototype. Then, production begins.

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The collaboration with 3PART is expanded, as 3PART is asked to redesign Cimbria Herning’s marketing materials 1 JUNE 2005 The redesigned loading chute is launched in the market.

THE OUTCOME SO FAR...

Even though Cimbria Herning was under pressure on every front

The design investment came at a crucial point in Cimbria Herning’s

in 2003, the company responded proactively and decided to

history, when the company was struggling, both economically and

invest in design. The use of product design was new to this

mentally. The figures had never looked worse, and staff turnover

sector of the engine industry, but Cimbria Herning was convinced

had never been higher.

that design is good for the bottom line. When Cimbria Herning told others of their idea, their contacts all advised them to stay

The design investment, however, helped turn things around

far away from design.

for Cimbria Herning and initiated a positive spiral. The economy is back on track, and the work climate has improved. Once again,

But the company was convinced that design is good business

the employees are proud to work for the small, successful

and that the implementation of design in the relaunch of the

company in Herning. Involving all the employees in the process

loading chute was a move that could help save the company

helped generate renewed loyalty to the company.

and set a new, positive course. Shortly after the relaunch of the redesigned loading chute, Cimbria Herning saw a 40%

The bank and the owners are very happy with the outstanding

increase in turnover. The customers had once again begun

results that Cimbria Herning has created in a matter of just a

to prefer Cimbria Herning’s products over the competitors’.

few years.

Within the first year, the company’s DKK 9.3 million deficit was turned around to a positive result of DKK 3.7 million. Since the design investment, Cimbria Herning has been the main player in the market and has consolidated its position as the world’s leading manufacturer of loading chutes.

A FUTURE WITH DESIGN

Cimbria Herning has had nothing but positive experiences with

ADVICE

design. Consequently, design has now been made an integrated

on collaborating with a design firm

part of the company’s business strategy. Cimbria Herning is convinced of the value-creating and economic potential of

INITIAL STEPS

design. The benefits of design are plain to see.

• Consider and define your vision, objectives

and strategy before the design process

“Design has an impact on everything. The implementation of

is initiated

design has led to success on several levels within the company

• Define the company’s view, strategy

and has helped Cimbria secure a strong position in the inter-

national market. Besides, we believe that design awareness in

• Know the market and the competition

this industry can help future-proof our products as well as our

• Define and specify the task

market position. Therefore, design is also a part of Cimbria’s

• Assemble a working group

future,” Lars Nørgaard concludes.

• Do some research on relevant design firms,

and expectations of the design process

and pick a designer on the basis of

competencies, creativity and chemistry

• Listen to advice from other companies

that have used design as part of product

development, and learn from their experiences

• Make sure that all employees have a sense

of ownership of the design process by

consulting them and by staging a common

kick-off meeting.

DURING THE PROCESS • Make sure to have clear agreements with

the designers

• Promote an open climate where it is possible

to speak freely

• Define who has approval rights over what • Keep the process on track and always maintain

the overall control of the overall design process

• Reject mediocre ideas • Stick to the time line and budget –

that promotes creativity and motivation.

IN THE CLOSING STAGES • Evaluate the process • Tell the world about the upsides and

downsides to the design process

• Remember to celebrate your successes.

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