scholarly journals An Approach for Choosing the Cost Effective Design for a Product-Service System While Maintaining its Desired Reliability

2019 ◽  
Vol 1 (1) ◽  
pp. 3041-3050
Author(s):  
Jannik Alexander Schneider ◽  
Iryna Mozgova ◽  
Roland Lachmayer
Keyword(s):  
Life Cycle ◽  
Business Models ◽  
Service System ◽  
Cost Effective ◽  
Life Cycle Costs ◽  
Product Service System ◽  
Product Service ◽  
Key Factor ◽  
The Cost ◽  
Product Costs

AbstractWith the spread of product-service systems as business models the life cycle costs are of increasing importance as a measurement of product cost. A key factor that drives these costs is the desired reliability of the products used to provide the service. Since the customer usually expects as uninterrupted service availability, it is imperative to achieve the the required reliability. Therefore a large variety of methods has been developed to maximize the reliability of a product. But these approaches focus on the maximization of the reliability and disregard the resulting product costs. This can lead to designs that over perform concerning their reliability requirements but also exceed their target costs. Which will result in the product-service system not being competitive in the marketplace or lowering the company's profit. This paper shows an approach on how to use markov chains to enable a quick comparison of life cycle costs from different product-service system designs With this it will be possible to make better informed decisions about the costs of a system while still meeting the reliability targets.

Simulation of Life Cycle Costs of a Product Service System

2011 ◽  
pp. 159-164 ◽  
Author(s):  
Gisela Lanza ◽  
Benjamin Behmann ◽  
Patrick Werner ◽  
Stephan Vöhringer
Keyword(s):  
Life Cycle ◽  
Service System ◽  
Life Cycle Costs ◽  
Product Service System ◽  
Product Service

scholarly journals IMPLEMENTATION OF MAINTENANCE STRATEGIES IN THE LIFE CYCLE COSTING OF PRODUCT-SERVICE SYSTEMS

2021 ◽  
Vol 1 ◽  
pp. 1827-1836
Author(s):  
Jannik Alexander Schneider ◽  
Johanna Wurst ◽  
Ines Gruetzmann ◽  
Iryna Mozgova ◽  
Roland Lachmayer
Keyword(s):  
Life Cycle ◽  
Service System ◽  
Life Cycle Costing ◽  
Service Systems ◽  
Product Service System ◽  
Component Design ◽  
Product Service ◽  
The Individual ◽  
The Cost ◽  
Product Service Systems

AbstractEstimating the costs of products during development to design a cost efficent product is a well established process. But in the case of Product-Service Systems estimating the costs of the individual product is not sufficent. Instead it is necessary to calculate the cost incured over the entire life cycle of the product. Because with Product-Service Systems the majority of costs is not incurred during manufacturing of the product but instead during the operation. One of the major cost components accruing during the operation of the product are the maintennace costs. Therefore, current life cycle costing models show the impoact of component design on the maintennace cost of the Product-Service System. But they do not show how different maintennace strategies that can have an impact on the overall life cycle costs of the Product-Service System. Thus, this paper shows a method for the implementation of different maintennace strategies into life cycle costing and applies it in an industrial use case.

scholarly journals Performance Assessment of Product Service System from System Architecture Perspectives

2012 ◽  
Vol 2012 ◽  
pp. 1-19 ◽  
Author(s):  
John P. T. Mo
Keyword(s):  
Case Studies ◽  
Support Services ◽  
Business Models ◽  
Service System ◽  
Case Study Research ◽  
Product Service System ◽  
Engineering Product ◽  
Product Service ◽  
New Business ◽  
Complex Engineering

New business models in complex engineering products have favoured the integration of acquisition and sustainment phases in capability development. The product service system (PSS) concept enables manufacturers of complex engineering products to incorporate support services into the product’s manufacturing and sustainment lifecycle. However, the PSS design has imposed significant risks to the manufacturer not only in the manufacture of the product itself, but also in the provision of support services over long period of time at a predetermined price. This paper analysed three case studies using case study research design approach and mapped the service elements of the case studies to the generic complex engineering product service system (CEPSS) model. By establishing the concept of capability distribution for a PSS enterprise, the capability of the CEPSS can be overlaid on the performance-based reward scheme so that decision makers evaluate options related to the business opportunities presented to them.

A conceptual framework for product service system design for machine tools

2016 ◽  
Vol 23 (5) ◽  
pp. 1227-1248 ◽  
Author(s):  
Pankaj U. Zine ◽  
Makarand S Kulkarni ◽  
Arun K. Ray ◽  
Rakesh Chawla
Keyword(s):  
Machine Tool ◽  
Conceptual Framework ◽  
Machine Tools ◽  
Business Models ◽  
Service System ◽  
Product Service System ◽  
Content Type ◽  
Business Context ◽  
Product Service ◽  
Key Issues

Purpose – The purpose of this paper is to propose a conceptual framework for product service system (PSS) design for machine tools and discuss the PSS implementation issues focusing on the Indian machine tool business sector. Design/methodology/approach – The paper opted for an exploratory survey conducted in the Indian machine tool sector including 39 in-depth interviews with employees of different organizations representing middle and senior management having decision-making authority. It also involves proposing a framework to address the stakeholder’s requirements for services that offers foundation for PSS designers. Findings – The paper helps get an insights about key issues for PSS implementation by the Indian machine tool sector. The hybrid PSS model proposed in the paper can address the stakeholder’s requirements for flexibility in business models through different business phases. Practical implications – The paper offers suggestions for the development of PSS for machine tools for designers and identify issues to be considered particularly in Indian machine tools business context. Originality/value – This paper provides an insight to judge the feasibility of PSS concept for machine tools in Indian context and offers framework for PSS designers.

An Analysis of Industrial Practice for Estimating the In-Service Costs of a Product Service System

2011 ◽  
Author(s):  
Xiaoxi Huang ◽  
Linda Newnes ◽  
Glenn Parry
Keyword(s):  
Service Provider ◽  
Strong Correlation ◽  
Service Provision ◽  
Service System ◽  
Product Service System ◽  
Industrial Practice ◽  
For Profit ◽  
Machine Failure ◽  
Product Service ◽  
The Cost

An extensive range of companies have moved from providing a tangible product to offering long-term integrated product service solutions. The revenue from such offerings, in particular at the in-service stage of a product service system, has become a key area for profit generation within some companies. However, estimating the cost of providing such a service is one of the major challenges that companies encounter. The research in this paper presents a new framework for estimating the cost of in-service provision for a product service system. Within this framework the service cost factors are identified through a review of the literature and an analysis of industrial practice. Analysing seven years data of the service demanded by customers for a Chinese machine manufacturer and service provider, the key relationships are identified and described. The service provider in this study offers repair and maintenance services to ensure the machines are available for use at the customer’s sites. The results from the study found that there is not a strong correlation between the distance from the service provider to customer companies and the number of call outs for after-sales service. It was also found that there was no strong evidence to show that when there is convenient and economical transportation links between the service provider and the customer, the demand for after-sales service increases. However, there was a strong correlation between machine failure rate and the number of years in service. It was also found that preventative maintenance, which occurred after the second year of machine service, did not improve the reliability of the machine during the in-service phase. Based on the initial findings and outcomes of the study the next stage of the research is then discussed, describing how the framework will be used to estimate the cost of the in-service provision for a product service system.

scholarly journals Configuring New Business Models for Circular Economy through Product–Service Systems

2019 ◽  
Vol 11 (13) ◽  
pp. 3727 ◽  
Author(s):  
Marina P. P. Pieroni ◽  
Tim C. McAloone ◽  
Daniela C. A. Pigosso
Keyword(s):  
Circular Economy ◽  
Customer Value ◽  
Business Models ◽  
Service System ◽  
Service Systems ◽  
Product Service System ◽  
Product Service ◽  
New Business ◽  
Product Service Systems ◽  
New Business Models

Product—service systems (PSSs) are often outlined as potential enablers of new business models for circular economy. However, not all business models based on product-service systems have superior circularity potential. This research demonstrates how the application of a previously developed business model configurator for circular economy can support the design and assessment of customer value, economic and resource decoupling potential for product-service system business models in practice. By applying action research in two Nordic manufacturing companies from the furniture sector, different business model concepts based on product-service systems were proposed and assessed. Results indicate positive uptake by companies regarding the usefulness of the obtained outcomes. This research identified two key findings about ‘product-service system business models for circular economy’: (i) their configuration should fulfil certain simultaneous conditions—i.e. superior customer value, economic growth, and resource decoupling potential—to contribute to circular economy; and (ii) they are often ‘niche solutions’, fulfilling specific needs and customer segments, and more likely to flourish with certain types/characteristic of products, segments or geographical locations. Lastly, a framework outlining the conditions and trade-offs for assessing the circularity potential of business models based on product-service systems is introduced as one of the key contributions.

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