Abstract. Cyber-physical production systems (CPPS) enable completely new possibilities in the factory of the future through the connectivity between the digital world and the physical production system. It has so far been difficult to transfer these advantages and concepts to students as well as professionals in a clear and practical oriented manner. The Fraunhofer Italia team has built a demonstration model for a flexible and decentralized CPPS system for showcase purposes. As part of an improvement of the existing system, Axiomatic Design (AD) was applied as the scientific design theory. Starting from the identification of the Customer Attributes, Functional Requirements were derived and the Design Parameters for the new design were defined by means of the AD decomposition and mapping process. In this paper, the application of AD for product improvement is described step-by-step based on the example of the redesign of the CPPS demonstration model.