1st CIRP Industrial Product-Service Systems (IPS2) Conference, 2009
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Editors: Rajkumar Roy and Essam Shehab
Organised by: Cranfield University
Sponsored by:
- Mori Seiki – The Machine Tool Company;
- BAE Systems;
- S4T – Support Service Solutions: Strategy and Transition
ISBN: 978-0-9557436-5-8
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Item Open Access Identifying Risk and its Impact on Contracting Through a Benefit Based-Model Framework in Business to Business contracting: Case of the defence industry(Cranfield University Press, 2009-04-01) Ng, I.; Yip, N.; Rajkumar Roy; Essam ShehabTwo defence contracts for availability are studied in the attempt to better understanding the provision of service in a maintenance, repair and overhaul environment that is contracted on the performance of the equipment, rather than merely providing equipment. The nature of the contract changes the dynamics of the delivery, bringing behavioural issues into the forefront, with both customer and firm focused on value cocreation, rather than each party’s contractual obligation. Our study provides a customer focused approach that exposes gaps in the way organizations approach their service provision in MRO. We argue that customer involvement and behavioural issues in the co-creation process has to be factored into the design and delivery of traditional MRO delivery systems. This paper uncovers four areas that pose risks to performance based contracts and are crucial in the design of services under such a contractual environment and provides a research agenda for future studies in this area.Item Open Access Service Information in the Provision of Support Service Solutions: A State-of-the-art Review(Cranfield University Press, 2009-04-01) Kundu, S.; McKay, A.; Cuthbert, R.; McFarlane, D.; Saxena, Dhish; Tiwari, Ashutosh; Johnson, P.; Rajkumar Roy; Essam ShehabThe transition from the delivery of physical products to the delivery of product-service systems demands new forms of information system that are designed to support the lifecycles of both physical products and associated services. Information requirements for service solutions are dependent on the nature of the offering and the underpinning service agreement. In this paper we provide a survey of current practice, highlighting examples of best practice, and review literature in information support for service support solutions. Results are being used to inform the definition of a blueprint for future service information systems. Early conclusions will be reported.Item Open Access Cost evaluation method for service design based on activity based costing(Cranfield University Press, 2009-04-01) Kimita, K.; Hara, T.; Shimomura, Y.; Arai, T.; Rajkumar Roy; Essam ShehabAs our economy matures, customers have begun to demand more services in addition to just industrial products. To address this problem, designers require a novel engineering methodology, called Service Engineering (SE). SE aims to create value by combining services and products. SE focuses more on increasing customer satisfaction, while general service developers need to take into account economic cost in order to be successful in business. This paper proposes a method to evaluate service from the viewpoints of customer importance and economic cost. The proposed method is verified through its application to a practical case.Item Open Access A Method of Supporting Conflict Resolution for Designing Services(Cranfield University Press, 2009-04-01) Akiyama, Y.; Shimomura, Y.; Arai, T.; Rajkumar Roy; Essam ShehabRecently, the importance of service has been emphasized in various industries. However, few studies have focused on service design in spite of its great relevance. This paper proposes a methodology for service design, which enables designers to determine existing conflicts in design solutions and obtain basic strategies to solve them using computers. Two different approaches for detecting conflicts are proposed; one is the use of lexical expressions of functions, and the other involves the ranges of design parameters. At the end, the verification of the proposed methodology is carried out through application to an existing case.Item Open Access Multi Operator BTS Aesthetic Tower Design for Metropolitan City(Cranfield University Press, 2009-04-01) Windharto, A.; Setiawan, A.; Rajkumar Roy; Essam ShehabThe growth of wireless and mobile technology stimulate development of telecommunication infrastructure, Placement of BTS (Base Transceivers Station) tower in the city cause environmental problems by inadequate space while operators install their own Tower lead to “tower forest” that caused aesthetic disruption and other social problems. The method is Concurrent engineering-Integrated Digital Design for good quality, cost, delivery and so all important process can be conducted simultaneously. The result is 3D geometry and photorealistic image for decision makers. The Implementation are Aesthetic BTS Tower as lighting tower, church tower and adaptable for any city needs of icon and landmark.Item Open Access Dynamic IPS²-Networks and -Operations Based on Software Agents(Cranfield University Press, 2009-04-01) Meier, H.; Uhlmann, E.; Krug, C. M.; Völker, O.; Geisert, C.; Stelzer, C.; Rajkumar Roy; Essam ShehabThis article describes how an IPS² network should be build up by considering the dynamic behavior of the IPS² along its life-cycle. How the network partner could participate and how they allocate their capacities will be also discussed as questions regarding the commissioning by considering the business model. The realization of this concept is based on a multi-agent system. Therefore all service delivery involved IPS² objects like product, network partner and service technicians are represented by software agents. All this will be pointed out by an availability oriented maintenance scenario in the field of micro production.Item Open Access Environmental Impacts of Rental Service with Reconditioning – A Case Study(Cranfield University Press, 2009-04-01) Khumboon, R.; Kara, S.; Manmek, S.; Kayis, S.; Rajkumar Roy; Essam ShehabThis paper presents a combination of selling service and life time extension strategy which has previously been proposed by others but with no supporting environmental impact assessment. It aims at evaluating rental service with reconditioning using a photocopier as a case study. Life Cycle Assessment was employed to provide a quantitative comparison of rental service with reconditioning and traditional product selling. The findings indicate that the reconditioning is potentially a promising way for improving the environmental performance of the rental service. However, it is premature to draw the general conclusion with further environmental impact measurement being required since the approach is very dependent on specific environmental impact factors.Item Open Access Profitability of Industrial Product Service Systems (IPS²) – Estimating Price Floor and Price Ceiling of Innovative Problem Solutions(Cranfield University Press, 2009-04-01) Steven, M.; Rese, M.; Soth, T.; Strotmann, W.-C.; Karger, M.; Rajkumar Roy; Essam ShehabCompanies from industrialised nations are faced with the threat of competition from low-cost countries. We suggest Industrial Product Service Systems (IPS²) as a possible answer. But as the development and production can be quite expensive for the supplier, the question arises how the net benefits of an IPS² for the supplier can be determined to ensure that the IPS² is profitable. We establish a framework for the calculation of both the supplier’s revenues and costs of an IPS². Requirements induced by possible subsequent changes of the IPS² are emphasized. We propose a combination of the Net Present Value Approach and the Real Options Approach as a means of determining the quantified revenues and a combination of Direct Costing, Time-Driven Activity-Based Costing and the Real Options Approach for the calculation of the costs of an IPS² for a supplier over its life cycle.Item Open Access Metadata Reference Model for IPS2 Lifecycle Management(Cranfield University Press, 2009-04-01) Abramovici, M.; Neubach, M.; Schulze, M.; Spura, C.; Rajkumar Roy; Essam ShehabMetadata models are the nucleus of product data and lifecycle management. Current PLM solutions offer generic metadata models for physical products and consider only the product provider’s requirements. They are not sufficient to meet the new requirements and have to be extended in order to provide support for industrial product-service system (IPS²). Based on use case analyses, expert interviews and interviews with participants of the research project the different requirements of IPS2 providers and customers are identified and a proposal for a metadata reference model for IPS2 lifecycle management is introduced. This metadata model provides the foundation not only for basic PLM methods but also for advanced IPS2 management methods like IPS2 change management, IPS2 customer feedback management and IPS2 executive information management. The IPS² metadata reference model could be the basis for further standardisation activities.Item Open Access Strategy Assessment and Decision based Implications for Integrated Product-Service-Suppliers(Cranfield University Press, 2009-04-01) Schmitt, R.; Hatfield, S.; Rajkumar Roy; Essam ShehabIn order to provide effective Product-Service-Solutions, so-called Integrated Solutions, especially industrial SME face challenges regarding the selection of appropriate business models regarding their internal organisation. Contingency Theory claims that a good fit between structural, strategic and external factors is necessary for a company’s success. The servitization strategy can be organised on a continuum of Individualisation and Standardisation. It is, therefore, vital to align business processes, organisational structure and leadership styles with the corresponding strategy. An assessment concept is presented which allows strategy identification as well as implementation guidelines for the organisational development of Integrated Solution Suppliers increasingly providing Product-Service-Solutions.Item Open Access Remanufacturing on a Framework for Integrated Technology and Product-System Lifecycle Management (ITPSLM)(Cranfield University Press, 2009-04-01) Guelere Filho, A.; Pigosso, D. C. A.; Ometto, A. R.; Rozenfeld, H.; Rajkumar Roy; Essam ShehabIn PSS context the product lifecycle needs to be managed in a holistic and structured way by using product life-cycle management (PLM) approach. The remanufacturing is an important strategy in this process, since the parts of a product that is being taken back at the end of its service can be remanufactured and new products send back to the market, fulfilling the needed functions. This paper aims to present a framework for ITPSLM composed by three business process (innovation management, technology development, productservice system development) and two support process (configuration management and business process management) and its relation to remanufacturing.Item Open Access Roadmap to Self-Serving Assets in Civil Aerospace(Cranfield University Press, 2009-04-01) Brintrup, Alexandra Melike; Ranasinghe, D. C.; Kwan, S.; Parlikad, A.; Owens, K.; Rajkumar Roy; Essam ShehabThe “intelligent object” paradigm first occurred in holonic manufacturing, where objects managed their production. The “self-serving asset” is a further evolution of those early concepts from manufacturing to usage phase. The usage phase bestows a different set of requirements including maximisation of the asset’s life-in-service and benefits to the asset’s stakeholders. Addressing these requirements with a selfserving asset may lead to more streamlined decision-making in service operations, reduce erroneous or suboptimal decisions, and enable condition-based maintenance. We present a future direction for service systems by considering self-serving assets in the aerospace industry, and outline a technology roadmap for the transformation.Item Open Access Industrial Services Reference Model(Cranfield University Press, 2009-04-01) Gerosa, M.; Taisch, M.; Rajkumar Roy; Essam ShehabThe need to integrate service providers into an existing customer supply chain requires the collective know-how of the coordination mode, including the ability to synchronize interdependent processes, to integrate information systems and to cope with distributed learning. About this topic the EU-funded InCoCo-S project is developing a new standard business reference model with key focus on operation & integration of business related services in supply chains. Based on the requirement analysis concrete business processes have been developed to integrate services in the existing customer supply chain both on a strategic and operational level.Item Open Access Commercializing Sustainable Innovations in the Market through Entrepreneurship(Cranfield University Press, 2009-04-01) Keskin, D.; Brezet, H.; Diehl, J. C.; Rajkumar Roy; Essam ShehabThe system innovations for sustainability require changes at multiple-domains (social, cultural, institutional and technological) and multiple-levels (micro-, meso-, and macro-levels) of the socio-technological system. From a sustainable production and consumption view, systems innovations can be enhanced through a PSS strategy at organisational level. This can be achieved through new entrepreneurial entries because of their potential in commercialising sustainable innovations and consequently bringing the necessary institutional change that favours such innovations. This paper aims at investigating how sustainability-driven entrepreneurs enhance the commercialisation of sustainable PSS and the consequences of this process and the potential role of design in it.Item Open Access Sensitivity Cost-Benefit Analysis to Support Knowledge Capture of Industrial Interests(Cranfield University Press, 2009-04-01) Paci, A. M.; Chiacchio, M. S.; Rajkumar Roy; Essam ShehabIn strategic industrial fields, emerging technologies are evolving into strategic enabling technologies for next generation products and services (IPS2). To this end a new approach to market knowledge capture needs early impact assessment of costs and value benefits considering the broad variety of factors of sustainability in medium-long term. This paper presents the framework for new IPS2 and a new methodology for Sensitivity Cost-Benefit Analysis (SCBA). SCBA aims to evaluate new IPS2, based on RTD potential, applying the AHP (Analytic Hierarchy Process) technique. The evaluation results support stakeholders in market knowledge capture about new IPS2 based on new enabling technologies.Item Open Access Business Implications of Integrated Product and Service Offerings(Cranfield University Press, 2009-04-01) Lindahl, M.; Sakao, T.; Öhrwall Rönnbäck, A.; Rajkumar Roy; Essam ShehabThis paper explores the business implications of Integrated Product and Service Offerings (IPSOs). The objective is to show examples of the business implications of IPSOs from a supplier’s perspective, and to suggest specifications for supporting methods needed for such an industrial company. The paper is largely based on empirical case studies of 120 Swedish manufacturing companies of all sizes. Results from the case studies show that both small and large companies that conduct the transition towards IPSOs face several important strategic challenges, some of them associated with high risk.Item Open Access Product/Service Systems Experiences – an International Survey of Swedish, Japanese, Italian and German Manufacturing Companies(Cranfield University Press, 2009-04-01) Lindahl, M.; Sakao, T.; Sundin, E.; Shimomura, Y.; Rajkumar Roy; Essam ShehabProduct/Service Systems have recently grown in manufacturers’ interest. This paper presents an international survey of manufacturers from Sweden, Japan, Italy and Germany. The results show that customer connection and demands along with increased competition were main driving forces for product/service systems. Also, most product/service systems include physical products, maintenance and repairs. Staff working with product development, marketing and after sales were the major actors in product/service system development. As in traditional product sales, most product/service systems still have the ownership of physical products transferred to the customer/user. Physical products used in product/service systems are seldom adapted for product/service systems.Item Open Access The Practical Challenges of Servitized Manufacture(Cranfield University Press, 2009-04-01) Baines, Tim S.; Lightfoot, Howard; Rajkumar Roy; Essam ShehabServitization is now widely recognised as the process of creating value by adding services to products. Since this term was first coined in the late 1980s it has been studied by a range of authors who have specifically sought to understand the methods and mechanisms of service-led competitive strategies for manufacturers. This paper reports on the experiences of a large company as they have moved towards servitized manufacture. This has been based on an extensive series of interviews with key personnel. The results of the study and implications for research are all reported.Item Open Access Affordability Assessment of Industrial Product-Service System in the Aerospace Defence Industry(Cranfield University Press, 2009-04-01) Bankole, O. O.; Roy, Rajkumar; Shehab, Essam; Wardle, P.; Rajkumar Roy; Essam ShehabThe Industrial Product-Service System (IPS2) takes a whole life cycle view in order to consider the total cost of the IPS2 offering. This paper focuses on the concept of customer affordability which aims to review current practice in industry and with interaction between customer and solution providers to identify factors affecting affordability. It secures a standard definition and proposes a measurement technique called the Affordability Index (AI) within the aerospace defence industry. A preliminary Affordability Capability Audit Tool is developed to give an indication of the confidence level about the AI. It identifies challenges in industry and outlines opportunities for further research scope.Item Open Access Innovative Service-Based Business Concepts for the Machine Tool Building Industry(Cranfield University Press, 2009-04-01) Biege, S.; Copani, G.; Lay, G.; Marvulli, S.; Schröter, M.; Rajkumar Roy; Essam ShehabDuring the last decade, machine tool building companies have been forced to put innovative offers on the market. Due to the technical features of their products and the prevailing organizational structures in this sector, especially product-service systems are a promising way of creating a unique selling point. In this paper, potential new business concepts for machine tool builders will be presented which aim at fulfilling basic customer needs like the increase in quality, flexibility, productivity and the reduction of lead times, costs and risks. For the implementation of these product-service systems, practical examples are given.