Sustainable Value Proposition Design in a Product-Service System

Many companies have started to add services to their tangible products in order to defend themselves from increased competition from low-cost economies. Research regarding the transition towards product-service systems (PSS) and how the PSS providers' business models are affected exists, but there is a lack of research regarding how the suppliers to the PSS providers are affected by the transition towards PSS. Therefore, this thesis studies the situation for a supplier/partner to an OEM that has changed their business model to a PSS providing one. As the first step in a development of a new business model aims this thesis to provide guidelines for how to set up value propositions suitable for a supplier/partner in this new environment. When technologically complex products, such as aircraft engines, are provided through PSS offerings it is hard to translate customer needs into quality parameters, which makes it hard to sustain the value to customer over time. Therefore, how to keep the value offering sustainable over time is also investigated in this thesis. The aim of this study was to investigate how a sustainable value proposition can be designed for a product and technology supplier/partner to an OEM that offers PSS solutions. The research has been performed through studying relevant literature and collecting empirical data from a case company through semi-structured interviews and a workshop. The case company in this research is Volvo Aero Corporation (VAC). The empirical findings show that VAC wants to offer product-service bundled solution, which fit the whole spectra of PSS value propositions, to their partners/customers. To be able to deliver these different types of product-service bundled solutions different value propositions that suit the different kinds of PSS offerings are needed. Requirements that must be fulfilled to be able to offer and deliver the different types of value propositions exist in terms of securing sufficient information access, aligning the incentives of all actors involved and achieving an internal consensus of what is delivered

An Ontology for Product-Service Systems

Industries are transforming their business strategy from a product-centric to a more service-centric nature by bundling products and services into integrated solutions to enhance the relationship between their customers. Since Product- Service Systems design research is currently at a rudimentary stage, the development of a robust ontology for this area would be helpful. The advantages of a standardized ontology are that it could help researchers and practitioners to communicate their views without ambiguity and thus encourage the conception and implementation of useful methods and tools. In this paper, an initial structure of a PSS ontology from the design perspective is proposed and evaluated

A business process modelling approach to improve OEM and supplier collaboration

Nowadays, Small and Medium sized Enterprises (SMEs) are facing fast changes in technological advancement. These changes encourage them to be more innovative and to offer their Original Equipment Manufacturers (OEMs) quality products with ever shorter deadlines, which is not an easy task. This project (BENEFITS) aims to provide innovative solutions to keep the most exploitable SME’s skills within its local regions. This paper focuses on Business Process Modeling (BPM) and process interactions during the development phases of innovative products. Due to the specific needs and requirements in terms of Product Lifecycle Management (PLM)-based solutions for SMEs and OEMs, this work explores the relationship between them and their suppliers, based on ICT technologies and focuses on SMEs adoption of PLM. Such relationship needs the Business Process Modeling and Notation (BPMN) for representing all tasks that must be done for the collaborative process planning. Two existing information models (NIST and PPRO) serve as an information model to investigate the way of implementing design processes in the context of PLM

PLM-based approach for collaborative design between OEM and suppliers : case study of aeronautic industry.

To achieve different assembly operations on the aircraft structure, the aeronautic OEM needs to create and manage various fixture tools. To cope with these needs, the OEM begun to adopt the supplier integration into the tooling development process. This paper presents a conceptual PLM-based approach to support new business partnership of different suppliers. The new business partnership aims to improve the role of supplier in the different tasks of design, configuration and fabrication of the tooling. The use of the PLM concepts is proposed to enhance the collaboration between OEM and the equipment's suppliers. UML models are proposed to specify the structure of the PLM solution. These models describe the relation between the aircraft assembly project, and the tooling design process

Improving root cause analysis through the integration of PLM systems with cross supply chain maintenance data

The purpose of this paper is to demonstrate a system architecture for integrating Product Lifecycle Management (PLM) systems with cross supply chain maintenance information to support root-cause analysis. By integrating product-data from PLM systems with warranty claims, vehicle diagnostics and technical publications, engineers were able to improve the root-cause analysis and close the information gaps. Data collection was achieved via in-depth semi-structured interviews and workshops with experts from the automotive sector. Unified Modelling Language (UML) diagrams were used to design the system architecture proposed. A user scenario is also presented to demonstrate the functionality of the system

A Conceptual Framework and Simulation Modeling Of Engineering Change Management in a Collaborative Environment

Engineering Change Management (ECM) in a collaborative environment is a complex process and is crucial to the Original Equipment Manufacturer (OEM) to ensure low product development time and cost. In this thesis, the ECM in a collaborative environment has been studied and a conceptual framework to support the process is presented. New Product Development (NPD) and ECM processes have been modeled and simulated to study the associated process dynamics. An extensive review of the literature indicated that the research on ECM in a collaborative environment is very limited. The review also highlighted that, (i) the ECM frameworks from past research do not support a flexible ECM workflow and (ii) the ECM process in a collaborative environment has never been modeled and studied. A Service Oriented Architecture (SOA) based conceptual framework for ECM process in a collaborative environment, which supports an agile ECM process, is presented along with a case study to demonstrate its implementation. NPD and ECM process templates have been developed. These developed process templates can be used to model and the study the dynamics of the NPD and ECM processes within an organization and in a collaborative environment. The process templates are later used to model and simulate the ECM process, within an organization and a sample collaborating network. The effects of various process parameters and ECM management policies on the NPD lead time have been studied

The Industrialisation Process of Asian Small and Medium Firms

National governments throughout the Asia-Pacific Region have identified small and medium enterprises as an important source of economic growth and employment. In the past, SME business strategies have focused on production, relying on their subcontracting and sales contacts with large firms for technological innovation and marketing and on abundant domestic labour forces for comparative advantage. Recently, structural problems in the region arising from the Japanese recession, currency appreciation and rising labour costs have upset these relationships forcing SMEs to move offshore (DFI) to restore cost competitiveness and to upgrade their internal technological and organisational capacities to international standards in order to compete for contracts within more open, international markets. This paper analyses this process of change, analysing the development of SMEs within four Asian countries using a six stage evolutionary model. The majority of SMEs in these countries are still in the earlier second (dependency) or third (internalisation) stages. The more advanced SMEs have moved into the fourth (externalisation) stage, where firms develop independent technology and marketing capacities. To the extent that localisation (stage five) had occurred, it involved local embedded relationships which had limited scope for further internationalisation. Little evidence of regional integration or networking among SMEs was found.Asia-Pacific, industrialisation process, Asian small and medium enterprises

Conceptualising the impact of information asymmetry on through-life cost: case study of machine tools sector

Information asymmetry (IA) in terms of contextual variety and importance is one of the most challenging aspects of through-life costing in product-service systems (PSS). IA is an imbalance in the information, data and knowledge shared among the parties involved in a contractual agreement. In manufacturing systems under PSS, interaction and effective communication among several parties who are involved in a contractual agreement, rely on the continuity and accuracy of information and context. In such systems, contextual variety exhibits complexity and uncertainty in through-life costing and subsequently in PSS cost assessment. Although the economic aspect of PSS has been studied previously, the impact of IA on through-life cost and for different PSS solutions has not been detailed. Considering manufacturing value chains, this paper introduces a new concept of PSS-hierarchy to perform through-life costing in the presence of IA for various PSS solutions. Moreover, this paper proposes a generic life-cycle model for different PSS solutions to assess the total cost of ownership (TCO). The proposed model has been developed to support decisions on contract design in manufacturing systems. This study considers the manufacturer, service provider and customer perspectives to develop the TCO model using a machine tool manufacturing case study

Integrating IVHM and Asset Design

Integrated Vehicle Health Management (IVHM) describes a set of capabilities that enable effective and efficient maintenance and operation of the target vehicle. It accounts for the collection of data, conducting analysis, and supporting the decision-making process for sustainment and operation. The design of IVHM systems endeavours to account for all causes of failure in a disciplined, systems engineering, manner. With industry striving to reduce through-life cost, IVHM is a powerful tool to give forewarning of impending failure and hence control over the outcome. Benefits have been realised from this approach across a number of different sectors but, hindering our ability to realise further benefit from this maturing technology, is the fact that IVHM is still treated as added on to the design of the asset, rather than being a sub-system in its own right, fully integrated with the asset design. The elevation and integration of IVHM in this way will enable architectures to be chosen that accommodate health ready sub-systems from the supply chain and design trade-offs to be made, to name but two major benefits. Barriers to IVHM being integrated with the asset design are examined in this paper. The paper presents progress in overcoming them, and suggests potential solutions for those that remain. It addresses the IVHM system design from a systems engineering perspective and the integration with the asset design will be described within an industrial design process