This project by Royal College of Art student Szu-Ying Chen is shortlisted for the Service Design Award 2017 in the Student category.
Taiwan’s small and medium manufacturing industry is in crisis. Factory NextGen seeks to address this issue by building bridges between the young and old workforce.
Taiwan’s small and medium manufacturing industry is in crisis. Due to an ageing workforce and a lack of succession planning, the industry is facing a severe skills shortage. The problem is made worse by a significant decline in sales. More than 35,000 SME manufacturers in Taiwan are projected to survive for only the next 5 to 10 years.
Using in-depth interviews with more than 40 stakeholders and 8 factory visits, this research finds numerous challenges facing small factories. Factory technicians undervalue their own skills, while small factory owners feel overwhelmingly pessimistic about the future of the industry. Furthermore, there is a lack of knowledge documentation, and insufficient diversification and funds forinnovation.
At the same time, views from outside the factories and the younger generation in particular suggest several opportunities for manufacturing SMEs. In particular, the young seem to appreciate the value of manufacturing SMEs, expressing a desire to secure their future. Being digitally savvy and creative, the young also bring vital skills and experiences to the industry, especially in securing funding from the government or other sources.
Factory NextGen aims to help struggling SME manufacturers innovate by connecting them with the younger generation. This project provides a platform for the old and young to exchange skills and ideas, and develop solutions to restore the SME manufacturing industry to its former glory. The project’s strategy is threefold, targeting three main stakeholders:
pooling resources within and outside factories to help SME manufacturers identify new market opportunities and innovate
empowering millennial professionals to engage with SME manufacturing and become key agents of positive change in the industry
opening factory doors to provide hands-on experience and job opportunities for teenagers
This project adopts the well-known “Double Diamond” design process, which consists of four stages:
Discover: Desk research is conducted to gain a comprehensive understanding of the past and future of SME manufacturing in Taiwan. This includes reviewing the history of the Taiwanese manufacturing industry and reports of the Taiwanese economy, and identifying contemporary trends in SME manufacturing from news articles. In addition, in-depth interviews are conducted with more than 30 stakeholders, including factory technicians, students, teachers, and industry specialists in government (Image 01). The interviews serve to provide first-hand understanding of the current manufacturing ecosystem and identify gaps in communication between stakeholders.
Develop: During this stage, solutions are developed and tested with key stakeholders. Key activities include running workshops at the factories with factory technicians, teenagers and millennial professionals, and setting up a project blog to generate interest, ideas and feedback. At the same time, key concepts and prototype solutions are tested with stakeholders.
Delivery: After refining and testing potential solutions, a pilot version of Factory NextGen is launched in New Taipei City with 6 factories. Most of the materials required are contributed by participants.
Providing insight into the day-today realities of SME manufacturing
Empowering factory owners to appreciate the value of their business
Providing a platform that facilitates two-way communication between SME manufacturers and external stakeholders
Creating productive partnerships for innovation and funding
Using a threefold strategy, Factory NextGen facilitates the sharing and exchange of knowledge, skills and experience between the older generation of SME manufacturers and the younger generation of millennial working professionals as well as teenage students. The project seeks to empower the younger generation to take the lead in transforming the SME manufacturing industry for the better.
The three project strategies are implemented via the following touchpoints (Image 02):
Digital platforms: A project website, blog and social media page have been set up to facilitate timely and transparent communication among stakeholders Education and outreach events: Meet-ups, factory tours and summer camps aim to provide young people the opportunity to experience working life in SME manufacturing and inspire them to pursue a career in this sector
Knowledge sharing toolkit: A comprehensive framework and toolkit promotes effective knowledge sharing and dissemination between SME manufacturers and young working professionals
Factory NextGen helps the small factories to explore opportunities for business transformation and turns dying factories into powerhouses that allow hard-working younger generations to demonstrate their capacities and implement their ideas.
Through offering transparency of the realities of small manufacturers, the general public can take the conscious actions based on the understanding of the manufacturing process. Furthermore, this service re-build the relationship between the factories and the communities and empower the local small factories to secure the local supply chain for sustainable manufacturing.
For manufacturing SMEs • consulting support and ideas validation • extending the market • getting resources and funding easier via clustering the small factories
For millennial professionals • earning extra revenue • developing the leadership • exploring the potential suppliers
For teenagers • discovering the interests in real workforce • getting hands-on experience and implement opportunities
For industry • securing the local supply chain to develop sustainable manufacturing industry • provide more accessible and fast-reflecting prototype resource for the creative and design industry
For communities and the government • building up community relationship • providing job opportunities to contribute in local economy • delivering government service efficiently
Project Name: Factory NextGen: Connect to Sustain
Service Design Award 2017, nominated project for Student Award
University: The Royal College of Art
Degree: Masters in Service Design
Clients: SME manufacturing organisations in Taiwan
“Designing the Future” is the feature theme of the upcoming issue of Touchpoint. We invite you to become an author and help to advance the service design field and its practices. Submit your abstracts until 20 June 2018.