1st CIRP Industrial Product-Service Systems (IPS2) Conference, 2009

Permanent URI for this collection

https://dspace.lib.cranfield.ac.uk/handle/1826/3541

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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Now showing 1 - 20 of 40

Open Access
Industrial Services Reference Model
(Cranfield University Press, 2009-04-01) Gerosa, M.; Taisch, M.; Rajkumar Roy; Essam Shehab
The 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.
Open Access
The Chinese Service Industry as a Challenge for European SME: A Systematic Approach for Market Entry
(Cranfield University Press, 2009-04-01) Schmitt, R.; Schumacher, S.; Scharrenberg, C.; Rajkumar Roy; Essam Shehab
Compared to industrial firms, the market share of foreign companies in the Chinese service industry is rather low. Especially western small and medium-sized service providing enterprises face different problems when they try to establish a business in China. Therefore an approach has been developed within a research project, which aims to support these companies in planning and successfully realising a service market entry in China. Methods are presented, which allow a systematic benchmark and selection of the target markets and a detailed definition and agreement of the cooperation between the Chinese and the western company.
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 Shehab
The “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.
Open Access
Engineering Network Configuration: Transition from Products to Services
(Cranfield University Press, 2009-04-01) Zhang, Y.; Srai, J.; Gregory, M.; Iakovaki, A.; Rajkumar Roy; Essam Shehab
Existing approaches to the design and operation of engineering networks are largely product-oriented and pay little attention to the intangible, customer-involving and relationship-based nature of services. With the trend of servitization in manufacturing companies and the emergence of service science, manufacturers, particularly those who are engaged with complex and long-lifecycle products and systems, need to update their engineering networks to support integrated product-service offering. This paper develops a conceptual framework to demonstrate the configuration features of product- and service-oriented engineering networks. It will provide theoretical insight and practical guidance on the design and operation of integrated product and service systems.
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 Shehab
This 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.
Open Access
Challenges for Industrial Product/Service Systems: Experiences from a learning network of large companies
(Cranfield University Press, 2009-04-01) Sundin, E.; Ölundh Sandström, G.; Lindahl, M.; Öhrwall Rönnbäck, A.; Sakao, T.; Larsson, T. C.; Rajkumar Roy; Essam Shehab
In Sweden, there are a growing number of manufacturers that are using the approach of industrial product/service systems. This paper explores how manufacturers and university researchers have started a workshop series where important and topical product/service system issues are elucidated. The companies face many challenges in order to achieve a good product/service system business. Many challenges are related to changing different peoples’ mindset within the company and/or with external companies and customers. Having a learning network approach of dealing with these challenges has been perceived as a good manner of tackling the questions raised within the product/service system providing companies.
Open Access
The Practical Challenges of Servitized Manufacture
(Cranfield University Press, 2009-04-01) Baines, Tim S.; Lightfoot, Howard; Rajkumar Roy; Essam Shehab
Servitization 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.
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 Shehab
This 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.
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 Shehab
The 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.
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 Shehab
In 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.
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 Shehab
Metadata 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.
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 Shehab
In 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.
Open Access
Obsolescence Challenges for Product-Service Systems in Aerospace and Defence Industry
(Cranfield University Press, 2009-04-01) Romero Rojo, Francisco Javier; Roy, Rajkumar; Shehab, Essam; Wardle, P. J.; Rajkumar Roy; Essam Shehab
The aerospace and defence industries are moving towards new types of agreement such as availability contracts based on Product-Service System (PSS) business models. Obsolescence has become one of the main problems that will impact on many areas of the system during its life cycle. This paper presents the major challenges to managing obsolescence for availability contracts, identified by means of a comprehensive literature review and several interviews and forums with experts in obsolescence management. It is observed that there is a lack of understanding of the impact of obsolescence on whole life cost. Experts agree that the development of a framework to support estimation, management, and mitigation of these costs is desirable, but the difficulty in forecasting future obsolescence issues constrains industry to a reactive approach rather than proactive.
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 Shehab
Companies 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.
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 Shehab
The 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.
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 Shehab
As 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.
Open Access
Cost modelling techniques for availability type service support contracts: a literature review and empirical study
(Cranfield University Press, 2009-04-01) Datta, Partha Priya; Rajkumar Roy; Essam Shehab
The research in this paper is focused on enhancing existing knowledge in cost estimation models at the bidding stage of service support contracts. The difficulty of this task lies in the long lasting contracts, which in some cases may reach even 40 years. The paper first reports the existing knowledge through detailed review of literature. The paper studies different service support contracts and reports the cost modelling techniques used in availability type contracts in the context of defence and aerospace industry. The contribution of this paper is to identify the key areas of improvement and business priorities in the area of cost modelling of availability type service support contracts.
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 Shehab
Two 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.
Open Access
Uncertainty challenges in service cost estimation for product- service systems in the aerospace and defence industries
(Cranfield University Press, 2009-04-01) Erkoyuncu, John Ahmet; Roy, Rajkumar; Shehab, Essam; Wardle, P.; Rajkumar Roy; Essam Shehab
Contracting for availability is expected to become more prevalent for product -service systems (PSS) in the aerospace and defence industries. These contracts tend to transfer responsibilities for the operational phase from the customer to the supplier. In parallel, with operational life spans spanning several decades, the ability to deal with uncertainty in cost estimation for support activities is becoming critical. This paper outlines challenges within this process derived from literature as well as issues that were highlighted during interviews with four major defence and aerospace organisations.
Open Access
Analysis of Integrated Product and Service Offerings from Current Perspectives of Providers and Customers
(Cranfield University Press, 2009-04-01) Sakao, T.; Sundin, E.; Rajkumar Roy; Essam Shehab
This paper reports the current status of how companies address IPSO (Integrated Product and Service Offerings)-typed business. It will consist of perspectives both from providers and customers mainly from Sweden and Germany. Especially, it selects how providing firms address uncertainty as one focal issue. As a result of interviews, factors from customers are the major source of uncertainty for an experienced company, while services are the major for little experienced companies. In addition, there was found to be a reasonable wish of providers to obtain a formalized way leading to quantitative management of uncertainty. On the other hand, customer incentives are not always clear. While some customers find the IPSO preferable from economic reasons other customers have the opposite recognition.