Francesca Battistella – CAREL INDUSTRIES S.p.A. Fabiana Pirola – Università degli Studi di Bergamo 2nd Summer School on INDUSTRY DIGITAL EVOLUTION Beyond Transformation: Evolving the Digital Enterprise 6th June 2019

1. EXPANDING SERVICE OFFERING
THROUGH A COLLABORATIVE
APPROACH: THE CAREL CASE
2nd Summer School on
INDUSTRY DIGITAL EVOLUTION
Beyond Transformation: Evolving the Digital Enterprise
6th June 2019
Francesca Battistella – CAREL INDUSTRIES S.p.A.
Fabiana Pirola – Università degli Studi di Bergamo

2. …TO a solution
(“Power by the hour”)
FROM a product…
Motivation and background
“A larger than average number of servitized
firms went bankrupt” (Neely , 2009)
“Firms will either miss interesting business
opportunities or bet on the wrong PSS in the wrong
markets and develop them via sub-optimal
processes.” (Tukker , 2009)

3. …TO a solution
(“Power by the hour”)
FROM a product…
Motivation and background
A profitable transition needs proper methods and
tools for its design, implementation and management
this transition requires approaches that consider both ‘customer’
and ‘stakeholders’ co-engagement

4. Gaps of PSS Engineering methods
No definition of
customers and
stakeholders
roles for
collaborative
design

5. Diversity project
5
The Diversity project aimed at developing a cloud-based engineering environment to support
European SMEs that are changing their business model by extending their products offering
with services (PSS – Product Service System). The project developed a proper combination of
classical product engineering tools, service design tools, cloud manufacturing and social
software solutions to effectively design and engineer product/service.

6. PSS Lean Design methodology

7. PSS Lean Design methodology

8. design project
KPI modelling
feedback
modelling
wiki
modelling
time
sentimen
t
predictio
n
lean
design
rules
design
projects
previous
design
projects
PSS design team
design
design project
design
projects
past projects KPI assessment
stakeholders’ feedback
analyse
PSS
history
new design
project
decision
to design
design project
design
ready
8

9. design project
DIVERSITY, RM2 @ Brussels, 30 Jan 2018 9

10. CAREL INDUSTRIES overview
CAREL INDUTRIES offers innovative humidification and control systems solutions
in the HVAC/R markets striving to anticipate customer needs
allowing them to achieve superior results through tailor made solutions.
This means improving our expertise in the applications
being at the technology edge acting with a global approach
in order to be the recognized leader.
10

11. The Company
• Brugine (PD)/Italy (1973);
• HVAC and REF. OEM and Project markets;
• 231 Mil € turnover (2016);
• 1200+ Employees, 21 Subsidiaries and 7 Plants;
• 3700+ Customers. 6200 part no;
• 18% of employees in R&D;
• 7% of the turnover invested every year in R&D.
11
7
Plants

12. • Non-OEM (Project) sector is gaining importance for CAREL;
• Wide heterogeneity of customers;
• The customers are the installers, not the final users;
• Wide products’ portfolio;
• Product-centric offering: focused mainly on products, still few services are
offered;
• The offering of Product+Service increases the value for Customers;
• Service improvement requires:
• to strengthen the relationships with these actors;
• to increase the flexibility of the BU;
• to develop specific service competencies.
Retail Solution and Climate Business Units
12
Objective: improving the current product-centric offering through the provision of
Product-Service Systems (PSSs) tailored to customers' needs.

13. CAREL’s humiFog
• The installation service is performed by external
installers;
• CAREL is in charge of the commissioning;
• Errors during the installation process affect the
humiFog’s life cycle and its functioning;
• Therefore, two needs have been identified:
• Long life cycle;
• Continuous functioning of the product;
• Starting from these needs, the new PSS, focused on the
installation service improvement, has been created.
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14. Step 1 – Customer Analysis
14
Installation
40%
Maintenance
24%
Commissioning
8%
Others
28%
Feedback Analysis Results
Technician
Claim Management Tool
Wiki

15. Step 1 - Knowledge acquisition and sentiment
monitoring
15
Questionnaire on WIKI
Sentiment Analysis
DIVERSITY helped CAREL in better investigate the installation problems though dedicated collection of feedback
from installers and the analysis of the related SENTIMENT
Installer sentiment is decreasing
analyse
product-
service
history

16. Step 2 – Solution concept generation
16

17. Step 3 – Solution concept assessment and
selection
17
Solution Effort Impact
Increase of service in foreign countries 5 4
Easy manual (or instruction) 1 2
Automatic installation and commissioning 4 5
Poka-yoke embedded in the machine 4 5
Better knowledge of the final customer 4 1
Maintenance intervention traceability 2 2
Remote monitoring of the machine 3 3
APP based on augmented reality 2 3

18. Step 4 – Service delivery process design
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19. Step 5 – Development of design rules
19
Code Guideline
GL01 Create visual cues allowing macro areas detection to improve installation speed
GL02 Use standard connections to improve installation speed
GL03 Evaluate positioning in installation environment to enhance installation speed
GL04 Create visual cues allowing macro areas detection to improve installation simplicity
GL05 Use standard connections to improve installation simplicity
GL06
Create visual cues allowing macro areas detection to improve the installation process quality
through Poka Yoke
GL07 Provide automatic feedback fostering an ease of installation process test

20. Step 5 – Development of design rules
20
GL Code Rule Code Rule
GL01 R01 The sticker for water input and output must resist to condensation (100% of moisture) in the long run
GL01 R02 The sticker legibility distance indicating water input and output should be at least one meter
GL02 R03 Each terminal for wiring and electrical connection can contain at most one wire
GL02 R04 The electrical grounding wire must be yellow and green
GL02 R05 The main button for power supply must be red
GL02 R06 The fuses should always be positioned on the fuse holder
GL05 R07 The hydraulic inlet must always have ¾ GAS thread
GL05 R08 To ensure geographical customization, for the American version of the product provide a dual voltage (220 or 110 V).
GL05 R09 It is recommended to adopt electronic components that operate at either 50 or 60 Hz
GL03 R10 Always provide vibration damping feet with adjustable height
GL03 R11 Provide flexible couplings to break the vibrations transmission between the pump and the engine
GL03 R12
Place a gasket (epoxy foam layer) around the door to avoid materials (e.g. water, powder) enter in the product and
increase the IP rating of the product
GL03 R13 Prepare a slot on the beat of the door to engage the seal of the gasket in it

21. DIVERSITY Benefits
Claims Management
Customer/Market Need
Service Design
Product Design
Market Performances
Customer Satisfaction
Knowledge Storage
DIVERSITY Tools
21

22. This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 636692.
Cloud Manufacturing and Social Software Based Context
Sensitive Product Service Engineering Environment for
Globally Distributed Enterprise
www.diversity.eu
Consortium Contacts
UNINOVA (PT)
ATB, DESMA (DE)
UNIBG, CAREL, EKA (IT)
LMS, BAZIGOS (GR)
SILO (CY)
Francesca Battistella (CAREL INDUSTRIES)
Fabiana Pirola (Università degli Studi di Bergamo)