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CIRP Journal of Manufacturing Science and Technology

CIRP Journal of Manufacturing Science and Technology

Archives Papers: 542
Elsevier
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Special issue on New research advances on Product Service System along the lifecycle
Sergio Cavalieri; Tulio Tollio; Elisabetta Ceretti;
Midlife upgrade of capital equipment: A servitization-enabled, value-adding alternative to traditional equipment replacement strategies
Muztoba A. Khan; Shaun West; Thorsten Wuest;
Keywords:Upgradability;Product-service systems;Servitization;Capital equipment;Replacement;Circular economy;Product lifecycle management;Life cycle;PSS
Abstracts:Fast-paced technology lifecycles continuously increase the uncertainty of decision-making processes when it comes to acquisition of new technological innovations. This is especially true in case of technology acquisitions by means of equipment replacement that is often capital intensive and time consuming. The midlife upgrade strategy, building on manufacturing servitization and product-service system (PSS) business models, presents a promising alternative to traditional equipment replacement. Midlife upgrades describe the extension of capital equipment’s remaining useful life by means of upgrading components, sub-systems or the like in response to certain triggers from users, environment, or market. However, the concept of midlife upgrade has thus far been discussed primarily from a theoretical perspective in literature. The state of the art lacks empirical evidence regarding the potential and outcome of successful midlife upgrades. In this paper, our objective is to empirically investigate the potential of midlife upgrade of capital equipment as a value-adding alternative to traditional equipment replacement in the context of servitization. To this end, first we develop a replacement decision framework based on the influencing factors and motivations behind equipment replacement. Then we present five case studies of capital equipment that have been upgraded during their middle of life to perform beyond their initial design specification. These case studies are analyzed based on the replacement decision framework with the goal of understanding whether the established influencing factors and motivations behind traditional equipment replacement are also applicable to capital equipment midlife upgrades and if so, to what extent. Our findings indicate that midlife upgrades have the potential to effectively postpone replacement while extending the remaining useful life of capital equipment and thereby facilitate the implementation of the circular economy. Our findings also suggest that midlife upgrades indeed present a value-adding alternative to traditional equipment replacement from the perspectives of both users and manufacturers, especially when provisioned with a servitized PSS business model.
Definition of a conceptual scale of servitization: Proposal and preliminary results
Luca Mastrogiacomo; Federico Barravecchia; Fiorenzo Franceschini;
Keywords:Servitization;Servitization scale;Servitization level;Service infusion;Product-service systems
Abstracts:The servitization process, i.e. the gradual shift from product-centred value propositions to complex product-service systems offerings, has led many manufacturing companies to modify their business models and internal organization. It is clear that this is a rather short-sighted definition not taking into account how much a company is product or service-oriented, i.e. its servitization level. The idea herein discussed is to formalize the concept of a servitization scale, trying to operationalize the concept of servitization level shared by researchers and practitioners. The goal is to provide a conventional tool to measure or compare the servitization level of different manufacturing companies. To provide a preliminary evidence the possible use of the proposed scale, the paper presents: (i) an in-depth analysis of the servitization level of medium-large size Italian companies in the manufacturing sector; (ii) some examples of possible applications of the scale to support the strategic decision-making process and planning of the servitization process.
Remanufacturing with upgrade PSS for new sustainable business models
Giacomo Copani; Sarah Behnam;
Keywords:Re-manufacturing;Upgrade;Sustainable Product Service Systems;Business model;Circular economy
Abstracts:Starting from mid ‘90s, Eco-efficient Product Service Systems (PSSs) were indicated in literature as enablers toward a more sustainable and resource-efficient industry through re-use and remanufacturing. In this regard, academicians and practitioners outlined several advantages (environmental and economic) but also many barriers hindering their implementation, such as market acceptance and economic sustainability. Thus, the diffusion of re-use and remanufacturing PSS is currently limited and mainly restricted to markets accepting also out-dated products (e.g. B2B or emerging countries). To cope with this limitation, product upgrade in re-manufacturing was recently introduced. Upgrade cycles allow embedding technological innovation into products while remanufacturing, thus reaching advanced performances and satisfying evolving customers’ preferences over time. If coupled with the offering of advanced services, remanufacturing with upgrade would open the way to new disruptive PSSs able to revolution customers’ consumption behaviour, as well as the manufacturing business model of companies. The new remanufacturing with upgrade business models will make remanufacturing one of the main pillars of companies’ business value generation, allowing improved management of technology cycles and of products obsolescence. Thus, overall economic and environmental benefits will be maximised. However, the implementation of such business models represents a challenge for manufacturers. The evolution from a pure manufacturing towards a manufacturing/remanufacturing company, together with the transition from a product to a service-based offering, entails considerable changes in all the business model variables. Drawing on the theory of business model innovation process, incremental or radical innovation paths can be hypothesised for this transition. Despite the focus of recent research on Product Service Systems and on Circular Economy, remanufacturing-with-upgrade business models are rarely cited in literature and there is limited empirical evidence of companies having embraced them. To set the research framework in alignment with previous theory, this paper proposes a structured definition and configuration of innovative remanufacturing-with-upgrade business models. By looking at existing examples of companies having undertaken this type of business model innovation, different typologies of remanufacturing and upgrade business models are proposed. Companies were classified according to the identified PSS typologies and conclusions are derived, together with future research perspectives.
PSS cost engineering: A model-based approach for concept design
Alessandro Bertoni; Marco Bertoni;
Keywords:Product-Service Systems;Cost engineering;Concept design;Product development;Life cycle cost;Aerospace
Abstracts:Manufacturing companies are increasingly moving toward delivering combinations of products and services to provide higher value to their customers. The development of such Product Service Systems (PSS) escalates in complexity when several products developed by different suppliers need to be integrated into a unique system. For first tier suppliers, it is a great challenge to model and simulate the impact of changing design variables at the micro-level on both hardware properties and governing behaviors of services over the entire life-cycle of the PSS. The paper describes a model-based approach developed to estimate the life cycle cost of a PSS hardware already at a concept design stage. The proposed approach computes the relative cost efficiency of a set of design variants using as input the data generated by the simulations run in the Computer Aided Engineering (CAE) environment. The approach allows the exploration of the design space of a PSS given by the variation of the geometry of a Computer Aided Design (CAD) model, building on the computation of customized cost modules selected by a generic list of PSS cost dimensions. For each evaluated design case, the model produces as output a unique monetary figure of the cost expected to incur by owning or using the asset throughout the lifetime. The work has been conducted in collaboration with a tier-one aerospace component manufacturer, and the application of the model is exemplified through a case study related to the development of a turbine rear structure (TRS) for commercial jet engines. The approach is most suitable for the development of complex systems in which new products and components are integrated into a shared product platform. The results are discussed in relation to the current literature on PSS cost engineering, highlighting challenges to be addressed to increase cost estimation accuracy and increase uncertainty identification and awareness.
Capturing and enhancing provider value in product-service systems throughout the lifecycle: A systematic approach
Johannes Matschewsky; Mattias Lindahl; Tomohiko Sakao;
Keywords:Servitization;PSS design;PSS evaluation;PSS value;Provider value;PSS implementation;PSS management
Abstracts:Although the transition from product seller to product-service system (PSS) provider implies fundamental changes in both value creation for customers and value capture by the provider, prior research has largely focused on the investigation and enhancement of customer value through PSSs. In contrast, a discussion of the changes in how providers attain value and support to enhance this in industrial practice is lacking at this time. This article presents a systematic, empirically-based approach to analyze and enhance PSS providers’ value capture throughout the lifecycle. This is achieved by two methods provider value analysis (PVA) facilitates a structured assessment of the value capture during the provision of PSSs in the use phase of the lifecycle, while provider value evaluation (ProVa) operationalizes the results of this analysis in the design phase to facilitate an improved value capture in the coming iteration. As the approach was developed in close collaboration with a large-scale PSS provider, the article further reports the results of its application in a case study spanning two years. As a result of using PVA, value dimensions of broad relevance for PSS providers are presented, supported by findings of applying the method at an additional PSS provider. Through the approach presented and case study results attained, the article points out how the design and management of a PSS, focusing on the provider’s value and available benefits throughout the lifecycle, can be enhanced in industry, while extending the academic body of knowledge on the value capture of PSS providers and its implications for PSS design and provision.
A knowledge-based collaborative platform for PSS design and production
Farouk Belkadi; Nikoletta Boli; Luis Usatorre; Elaheh Maleki; Kosmas Alexopoulos; Alain Bernard; Dimitris Mourtzis;
Keywords:PSS lifecycle;PSS development;ICP4Life;Designer;Planner
Abstracts:By adopting PSS paradigm (Product–Service System), companies are growing to new business fields that require hard changes in the industrial practices. PSS realizes smart integration of physical, cyber and organizational elements to deliver added value to the customer, through a long-term relationship and solution-centered offers. This complexity makes the management of whole PSS lifecycle challenging. The paper presents a new development aided tool, part of the ICP4Life European platform, as an innovative answer to this challenge. Designed as a collaborative knowledge-based solution, the platform originality is to support all PSS design, production and usage planning of industrial PSS, at both methodological and technical aspects. The main idea is to encapsulate a collection of potential verified solutions as knowledge fragment, able to achieve a product–service with certain performance value with regard to a set of requirements. This knowledge asset is then used to support collaboratively the stakeholders by several innovative functionalities along the PSS development project.
Collaborative on-demand Product-Service Systems customization lifecycle
Michael P. Papazoglou; Amal Elgammal; Bernd J. Krämer;
Keywords:Collaborative & networked factories;Human-centered manufacturing;Smart manufacturing;PSS lifecycle;Product configuration;Product customization;Manufacturing knowledge
Abstracts:Product-Service Systems (PSS) are being revolutionized into smart, connected products, which changes the industrial and technological landscape and unlocks unprecedented opportunities. The intelligence that smart, connected products embed paves the way for more sophisticated data gathering and analytics capabilities ushering in tandem a new era of smarter supply and production chains, smarter production processes, and even end-to-end connected manufacturing ecosystems. This vision imposes a new technology stack and lifecycle models to support and capacitate smart, connected products and services. The main contribution of this article is a novel PSS customization lifecycle methodology with underpinning technological solutions that enable collaborative on-demand PSS customization by supporting companies to evolve their product-service offerings by transforming them into smart, connected products. This is facilitated by the proposed lifecycle through formalized knowledge-intensive structures and associated IT tools that provide the basis for actionable PSS and production “intelligence” and a move toward more fact-based manufacturing decisions. The basic building blocks of the proposed PSS customization lifecycle and its technological stack are implemented in an integrated tool-suite and validated via large-scale industrial case studies. The PSS customization lifecycle described in this paper, paves the way for a new direction in highly-connected, knowledge-enabled smart factories, where devices, production equipment, production processes, and human-operators are connected, offering decision-making support on the basis of production knowledge and data.
At the origins of Product Service Systems: Supporting the concept assessment with the Engineering Value Assessment method
Alice Rondini; Marco Bertoni; Giuditta Pezzotta;
Keywords:PSS value;Early design;IPA;TOPSIS;Customer value;Provider value;Assessment criteria;Assessment factors
Abstracts:In recent years, the economic circumstances spur many companies in changing their traditional product-oriented value proposition toward a more customised and sustainable offer referred as Product-Service Systems (PSS). The main advantages of the new solutions are related to their customisation which can grant an improved customer experience. However, while pursuing greater differentiation from competitors and ‘locking-in’ customers and ‘locking-out’ competitors, many of the above-cited companies either miss interesting business opportunities or bet on the wrong solution concept. Early stage engineering phase plays a crucial role concerning the subsequent lifecycle phases, guiding the identification and the selection of valuable solutions while preventing commitment of resources on poor design alternatives. In the light of the criticality of this phase, this paper builds on empirical studies in the manufacturing industry and highlights the need for systematic procedures, methods and metrics able to encompass customer satisfaction together with the producer’s value perspective during the early design assessment. The outcome of the paper is the Engineering Value Assessment (EVA) method. It is a 2 step procedure composed of multi-criteria decision-making methods with specific criteria for a comprehensive value assessment of PSS from both the customers’ and the provider’s perspectives. The EVA also guides the identification of trade-off between the two through the Importance-Performance Analysis. Verification activities in the power and automation industry highlight the main benefits and the implications of the EVA method in guiding the decision making in the early stages of design and in balancing the trade-off between customer and provider value during the PSS assessment phase. Further developments and improvements are also discussed.
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