Economic Growth, Business Innovation and Engineering Design

Economic Growth, Business Innovation and Engineering Design

Author: Gunnar Sohlenius, Leif Clausson, and Ann Kjellberg

Abstract: Scientific knowledge of engineering within innovative industrial decisions process has a great potential to improve quality and productivity in industrial operations and hence improve profitability. This is a precondition for economic growth, which in turn is necessary to improve welfare. Innovative processes have to combine creativity with quality and productivity in order to achieve profitability and growth. The most important ways to improve profitability in industrial production are through an improved ability to meet more advanced requirements in new products and processes by using new knowledge and inventions and higher productivity through investments in more advanced and automatic tools. This is the fundamental mechanism behind industrial production seen as an engine of welfare. Besides the real world of products and production processes, the mechanisms for this development can be classified into three worlds. These are the decision world, the human world and the model world. In striving to obtain increased welfare through industrial production, fundamental knowledge about these worlds and about their relations to products and processes has to be developed. This paper is a contribution to this understanding, which is necessary in order to combine Total Quality Management, (TQM) and Total Productivity Management (TPM) into Total Effective Management (TEM) by understanding Means.




  • Axiom 1: A design maintaining the independence of functions is superior to coupled designs.
  • Axiom 2: A design with higher probability to meet the functional requirements within specified tolerances is superior
  • Axiom 3: A design requiring less energy to be realized is superior
  • Axiom 4: A design requiring less time to be a realized is superior

Competence Management Process


Industrial Company as a Business System


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