Citation:
R. Roy, P. Datta, F. Romero Rojo and J.A. Erkoyuncu. Cost of industrial product-service systems (IPS2). Proceedings of the 16th CIRP international conference on life cycle engineering (LCE 2009), 4-6th May 2009, Cairo, Egypt.
Abstract:
The motivation of this Keynote comes from the lack of research in estimating costs of an industrial
product-service system (IPS2 ). A competitive IPS2 framework has been developed by Cranfield
University for delivering sustainable customer value. This framework describes the capabilities of
solution providers and the constraints involved in delivering IPS2 . The paper builds on this framework
by considering cost at various stages of the life cycle. The framework will analyse the key drivers, the
major issues and how the cost evolves from traditional pure product perspective to IPS2 from the
point of view of the customer and the solution provider. The obsolescence, uncertainty, supply chain
and customer value areas are analysed in-depth because they are found to be the major drivers in
IPS2.
