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 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.

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.

A Study on the Core Competency for Product-Service System

2015 ◽  
Vol 29 (2) ◽  
pp. 171-195 ◽  
Author(s):  
Hong, Yong-pyo ◽  
Young Jun Kim
Keyword(s):  
Service System ◽  
Core Competency ◽  
Product Service System ◽  
The Core ◽  
Product Service

QFD APPROACH FOR QUALITY IMPROVEMENT OF A SUSTAINABLE PRODUCT-SERVICE SYSTEM

2019 ◽  
Vol 1 (1) ◽  
pp. 76
Author(s):  
Nur Indrianti ◽  
Devika Kumala ◽  
Tri Wibawa
Keyword(s):  
Quality Improvement ◽  
Quality Function Deployment ◽  
Service System ◽  
Design Tool ◽  
Productivity Index ◽  
Product Service System ◽  
Goods And Services ◽  
Product Service ◽  
Service Productivity ◽  
Sustainability Concept

Increasing awareness of the importance of services has given rise to the concept of product-service system where goods and services are sold as an integrated package to customers. On the other hand, the emerging sustainability concept has escalated the demand for sustainability for industries. Consequently, it is necessary to build strategies that lead the company to achieve sustainability goals while keeping competitiveness. Drawing on the necessity service and sustainability concept in the quality improvement of the product-service system, this study aims to develop a systematic design tool by filling the gap to the previous studies. We used Quality Function Deployment (QFD) approach by considering customer requirements (VoC) and stakeholder requirements (VoSt), instead of VoC only, based on the service and sustainability dimensions. We refer to the proposed QFD approach as QFDSPS. We introduce service productivity index (SPI) to measure the performance of the system. Thus, in the proposed methodology, the strategies for quality improvement were defined as subject to VoC, VoSt, and SPI. The methodology was implemented in a Javanese restaurant which meets the characteristics of a product-service system. The result shows that the proposed method can be implemented. The implications due to the implementation of the method are also discussed.

Sustainable product-service system hierarchical framework under uncertainties: The pharmaceutical industry in Ecuador

2021 ◽  
Vol 294 ◽  
pp. 126188
Author(s):  
Yeneneh Tamirat Negash ◽  
Liria Salome Calahorrano Sarmiento ◽  
Ming-Lang Tseng ◽  
Korbkul Jantarakolica ◽  
Kimhua Tan
Keyword(s):  
Pharmaceutical Industry ◽  
Service System ◽  
Product Service System ◽  
Hierarchical Framework ◽  
Product Service ◽  
Sustainable Product

scholarly journals EVALUATING PROTOTYPING SUPPORT IN EARLY TRANSFORMATIVE PSS DESIGN

2021 ◽  
Vol 1 ◽  
pp. 1411-1420
Author(s):  
Ryan Michael Ruvald ◽  
Andreas Larsson ◽  
Christian Johansson Askling ◽  
Alessandro Bertoni ◽  
Tobias Larsson
Keyword(s):  
Service System ◽  
Product Service System ◽  
Product Service ◽  
Support Tools ◽  
Innovative Solutions ◽  
Service System Design ◽  
Efficient Planning ◽  
Design Projects ◽  
Planning And Construction ◽  
Process Product

AbstractPrototypes are an established tool for rapidly increasing learning, communication and decision making rationale for design projects. The proven success has spawned a litany of approaches and methods for building and planning the efficient planning and construction of prototypes. Translating these methods into simple usable tools to assist novice designers has generated broadly applicable canvases to support prototyping across the design process. Product Service System design has similarly introduced prototyping methods and tools into the process. Presently there is a lack of support for generating early phase tangible prototypes for functional PSS design aimed at more radically innovative solutions instead of currently dominant traditional products with traditional add-on services. This work explores the viability of utilizing existing prototyping support tools in the context of early PSS design through workshops with student designers and practitioners. The data from these workshops illuminates the alignments and misalignment gaps presented as guidelines to enable better support for early PSS designers.

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