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 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 Product service value analysis: two complementary points of view(Cranfield University Press, 2009-04-01) Alix, T.; Ducq, Y.; Vallespir, B.; Rajkumar Roy; Essam ShehabProduct Service System is an innovation strategy, used by manufacturers to increase their competitiveness, while satisfying specific customer needs. Here the focus is on the additional services associated to products and precisely on their value to determine their position in firms’ portfolio and by extension their legitimacy to reach the implied objective of profitability. The study rests on the use of the value analysis methodology and compares the value of the offer for the manufacturer taking account of its expected benefits and the value of the same offer for customers defined by the way of expected quality criteria.Item 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 ShehabThe 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.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 Life Cycle Cost-Orientated Service Models for Tool and Die Companies(Cranfield University Press, 2009-04-01) Schuh, G.; Boos, W.; Kozielski, S.; Rajkumar Roy; Essam ShehabAs the success of a company’s service provision is founded in its business model, the latter needs to be redesigned to align strategic and operational objectives. Therefore at RWTH Aachen University a new approach to service models for the European tooling industry links products and services by means of a direct calculation of life cycle costs. Tool and die makers are enabled to offer product-service-systems, which allow expanding the range of service provision by directly addressing the cost-effectiveness of the whole product-service-system. Hence the minimisation of life cycle costs of tools and dies can be used as a new sales pitch for services in this unique industry.Item Open Access Strategies for Designing and Developing Services for Manufacturing Firms(Cranfield University Press, 2009-04-01) Tan, A. R.; Matzen, D.; McAloone, Timothy Charles; Evans, Stephen; Rajkumar Roy; Essam ShehabProduct/service-systems (PSS) are in effect an approach to designing integrated products and services with a focus on both customer activities and product life cycle considerations. Literature offers a range of serviceoriented design strategies from product-oriented DfX approaches to more customer-oriented approaches such as integrated solutions and service design. These design strategies are mapped out in relation to how applicable they are to different types of services. Case studies from two industrial companies are used to confront the existing literature in order to begin to understand how manufacturing companies may align their business strategies with their product and service development activities.Item 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 ShehabExisting 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.Item Open Access Development of an Extended Product Lifecycle Management through Service Oriented Architecture.(Cranfield University Press, 2009-04-01) Cassina, J.; Cannata, A.; Taisch, M.; Rajkumar Roy; Essam ShehabThe aim of this work is to define new business opportunities through the concept of Extended Product Lifecycle Management (ExtPLM), analysing its potential implementation within a Service Oriented Architecture. ExtPLM merges the concepts of Extended Product, Avatar and PLM. It aims at allowing a closer interaction between enterprises and their customers, who are integrated in all phases of the life cycle, creating new technical functionalities and services, improving both the practical (e.g. improving usage, improving safety, allowing predictive maintenance) and the emotional side (e.g. extreme customization) of the product.Item Open Access A product-service system representation and its application in a concept design scenario(Cranfield University Press, 2009-04-01) Kim, Y. S.; Wang, E.; Lee, S. W.; Cho, Y. C.; Rajkumar Roy; Essam ShehabProduct-service systems (PSS) can give diverse value provision to consumers reflecting their individual needs, while also addressing multiple issues from manufacturers’ viewpoints. We propose graph and ontological representations of PSS, consisting of values, product and service elements, and their relations. PSSs may also be included as subsystems in a larger PSS. We illustrate a case scenario of PSS concept design starting from an existing product. Diverse requirements of stakeholders of the product life-cycle are transferred to persona generation. From state parameters of these personas, we identify operations to improve the personas’ values, and implement each operation as a sub-PSS.Item 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 ShehabThe 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.Item Open Access An Infodynamic Engine Approach to Improving the Efficiency of Information Flow in a Product-Service System(Cranfield University Press, 2009-04-01) Durugbo, Christopher; Tiwari, Ashutosh; Alcock, Jeffrey R.; Rajkumar Roy; Essam ShehabIn this paper, literature was used to identify and present a worked example of the use of an Infodynamic engine. It shows that: (a) Product-Service System (PSS) information flows can be characterised by such an engine; (b) the engine can measure the efficiency of information flow in a PSS; (c) the engine can be used as a tool to make recommendations about improvements in information flow efficiency in a PSS.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 A Periodicity Metric for Assessing Maintenance Strategies(Cranfield University Press, 2009-04-01) Meselhy, K. T.; ElMaraghy, W. H.; ElMaraghy, H. A.; Rajkumar Roy; Essam ShehabThe maintenance policy in manufacturing systems is devised to reset the machines functionality in an economical fashion in order to keep the products quality within acceptable levels. Therefore, there is a need for a metric to evaluate and quantify function resetting due to the adopted maintenance policy. A novel metric for measuring the functional periodicity has been developed using the complexity theory. It is based on the rate and extent of function resetting. It can be used as an important criterion for comparing the different maintenance policy alternatives. An industrial example is used to illustrate the application of the new metric.Item Open Access Use-Oriented Business Models and Flexibility in Industrial Product-Service Systems(Cranfield University Press, 2009-04-01) Richter, A.; Sadek, T.; Steven, M.; Welp, E. G.; Rajkumar Roy; Essam ShehabToday’s corporate environments are characterized by growing dynamics and uncertainties. Here, flexibility gains importance as a critical success factor. This is especially true for long-term customer-supplier relationships. As a solution to the mentioned uncertainties connected with such a business relationship, one can think of flexible systems. The contribution at hand focuses on contracts to control for customer-supplier relationships. By reallocating property rights in use-oriented business models it is possible to distribute incentives and risks to better balance the interests of customers and suppliers. Our contribution points out the importance of flexibility and describes the opportunity to detect the optimal degree of flexibility of an IPS².Item 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 ShehabContracting 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.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 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 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 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 A Method to Analyze PSS from the Viewpoints of Function, Service Activity, and Product Behavior(Cranfield University Press, 2009-04-01) Hara, T.; Arai, T.; Shimomura, Y.; Rajkumar Roy; Essam ShehabAs our economy matures, combination of tangible products and intangible services becomes a key issue toward a harmonious balance with economic growth and environment conscious. This paper aims to present a method for analyzing structures of service processes described in the modeling method the authors have proposed. It includes three indices of service delivery process according to customer satisfaction elements: (1) visibility to receiver, (2) interactivity with receiver, and (3) degree of receiver participation. Through an application case study, it is found that the method can indicates the features of services, and contributes to acquirement of clues for improving services.
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