Harvard Case - Deepa Bachu (A): Design Thinking at Pensaar Design
"Deepa Bachu (A): Design Thinking at Pensaar Design" Harvard business case study is written by Thomas Graeber, Joshua R. Schwartzstein, Amram Migdal. It deals with the challenges in the field of Operations Management. The case study is 10 page(s) long and it was first published on : Mar 22, 2023
This case study analyzes Pensaar Design's adoption of Design Thinking and its impact on the company's operations and innovation. We recommend Pensaar Design implement a comprehensive strategy that leverages Design Thinking principles across its entire value chain, focusing on operational excellence, product development, and customer-centric innovation. This strategy should involve a combination of process improvement, technology adoption, and organizational change, ultimately leading to enhanced efficiency, increased profitability, and a stronger competitive advantage.
2. Background
Pensaar Design is a leading manufacturer of custom-designed furniture and home d'cor products. Deepa Bachu, the company's CEO, is committed to using Design Thinking principles to drive innovation and improve customer satisfaction. However, the company is facing challenges in scaling its operations effectively, managing inventory, and ensuring consistent product quality.
The case study highlights the key protagonists:
- Deepa Bachu: CEO, passionate about Design Thinking and driving innovation.
- Pensaar Design Team: A team of designers, engineers, and production staff grappling with operational challenges.
- Customers: Demanding high-quality, customized furniture and home d'cor products.
3. Analysis of the Case Study
This case study can be analyzed using the Operations Strategy Framework, focusing on the following key areas:
1. Operations Strategy: Pensaar Design needs to develop a clear operations strategy that aligns with its Design Thinking philosophy. This strategy should focus on customer-centricity, flexibility, and continuous improvement.
2. Product Development: Design Thinking should be integrated into the product development process, from initial concept to final production. This involves customer research, prototyping, and iterative design to ensure products meet customer needs and expectations.
3. Supply Chain Management: Pensaar Design needs to optimize its supply chain to ensure timely delivery of high-quality materials and components. This requires implementing efficient inventory management, robust logistics, and effective supplier relationships.
4. Manufacturing Processes: Pensaar Design should focus on lean manufacturing principles to streamline production processes, reduce waste, and improve efficiency. This can involve process analysis, bottleneck identification, and implementation of continuous improvement initiatives.
5. Information Systems: Pensaar Design should leverage technology and analytics to enhance decision-making, improve operational visibility, and optimize resource allocation. This can involve implementing ERP systems, data analytics tools, and collaborative platforms.
6. Organizational Change: Successful implementation of Design Thinking requires a cultural shift towards collaboration, experimentation, and customer focus. This involves training, communication, and leadership buy-in to ensure all employees embrace the new approach.
4. Recommendations
1. Design Thinking Implementation Framework: Pensaar Design should develop a structured framework for implementing Design Thinking across its operations. This framework should include:
- Customer Journey Mapping: Understanding customer needs and pain points at each stage of the product lifecycle.
- Ideation and Prototyping: Encouraging experimentation and rapid prototyping to test new ideas and solutions.
- Data-Driven Decision Making: Using data to track progress, identify areas for improvement, and make informed decisions.
- Cross-Functional Collaboration: Fostering collaboration between design, engineering, production, and marketing teams.
2. Operational Excellence Program: Pensaar Design should implement an operational excellence program focused on:
- Lean Manufacturing: Identifying and eliminating waste in production processes through value stream mapping, bottleneck analysis, and Kaizen initiatives.
- Supply Chain Optimization: Improving inventory management, logistics, and supplier relationships to ensure timely delivery of high-quality materials.
- Capacity Planning: Predicting future demand and adjusting production capacity accordingly to avoid bottlenecks and ensure smooth operations.
- Quality Management: Implementing rigorous quality control measures throughout the production process to ensure consistent product quality.
3. Technology Adoption: Pensaar Design should invest in technology to enhance its operations and decision-making:
- ERP System: Implementing an integrated ERP system to manage inventory, production, and customer orders efficiently.
- Data Analytics Tools: Utilizing data analytics tools to track performance, identify trends, and make data-driven decisions.
- Collaborative Platforms: Adopting collaborative platforms to facilitate communication and knowledge sharing across teams.
4. Organizational Change Management: Pensaar Design should implement a comprehensive change management program to ensure successful adoption of Design Thinking:
- Training and Development: Providing training to employees on Design Thinking principles and methodologies.
- Leadership Buy-in: Ensuring senior leadership actively promotes and supports the adoption of Design Thinking.
- Communication and Engagement: Communicating the benefits of Design Thinking and engaging employees in the change process.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: Pensaar Design's core competence lies in its design expertise and customer focus. Design Thinking aligns with these strengths and can further enhance them.
- External Customers: Customers value customization, high quality, and timely delivery. The proposed strategy addresses these customer needs through improved efficiency, product development, and customer service.
- Competitors: The furniture and home d'cor industry is highly competitive. Implementing Design Thinking can differentiate Pensaar Design from competitors by offering more personalized and innovative products.
- Attractiveness: The proposed strategy is expected to yield significant benefits, including increased efficiency, reduced costs, improved product quality, and enhanced customer satisfaction, leading to increased profitability and market share.
6. Conclusion
By embracing Design Thinking principles and implementing a comprehensive strategy that focuses on operational excellence, product development, and customer-centric innovation, Pensaar Design can achieve significant improvements in its operations, enhance its competitive advantage, and drive sustainable growth.
7. Discussion
Alternative Options:
- Outsourcing Production: Pensaar Design could consider outsourcing some production processes to focus on design and innovation. However, this could lead to loss of control over quality and production processes.
- Acquiring a Technology Company: Pensaar Design could acquire a technology company to gain access to advanced software and data analytics capabilities. However, this could be a costly and complex undertaking.
Risks and Key Assumptions:
- Resistance to Change: Employees may resist the adoption of Design Thinking, requiring effective communication and change management strategies.
- Technology Investment: Implementing new technologies can be expensive and require significant investment.
- Market Volatility: Changes in consumer preferences or economic conditions could impact demand for Pensaar Design's products.
8. Next Steps
- Develop a detailed implementation plan: Outline specific actions, timelines, and resources required to implement the recommendations.
- Pilot Test Design Thinking: Implement Design Thinking principles in a pilot project to assess its effectiveness and gather feedback.
- Train Employees: Provide training to employees on Design Thinking principles and methodologies.
- Monitor Progress: Track key performance indicators (KPIs) to measure the impact of the implemented strategies and make adjustments as needed.
By taking these steps, Pensaar Design can successfully integrate Design Thinking into its operations and achieve its strategic goals of enhanced efficiency, innovation, and customer satisfaction.
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Case Description
In this case, set in June 2019 in Bangalore, Karnataka, India, Deepa Bachu of Pensaar Design and her team work with client ITC Ltd. to use design thinking and behavioral experiments to improve workplace safety and strive toward the company's zero-accident goal. The case contains information on the conglomerate ITC and its subsidiary, ITC Paperboard and Specialty Papers (PSPD), along with background on worker safety trends in India. During Pensaar's engagement, its team embedded at one of ITC PSPD's sites, conducting observations and qualitative interviews with employees. Next, Pensaar's team collaborated with ITC employees at different levels of the organization to design and implement a variety of safety interventions to better understand how to improve safety at the plant.
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