The application of simulation to product service systems:A review (WIP)

One innovative strategy among product manufacturers is to compete through the delivery of services to their clients. The range of advanced services provided by these manufacturers are underpinned by a system known as product-service systems (PSS). Based on a literature review, a description of a PSS with its dynamic behaviour is provided. Three PSS modelling and simulation methods (system dynamics, discrete event simulation and agent based simulation) and the nature of their application in the context of PSS are identified and discussed. Results indicate DES as the mostly used simulation approach accounting for over 50% papers reviewed due to its ability to model the dynamic behaviour of PSS over time. Previous and current research have focused on the design and in-service phase of PSS lifecycle phase. The choice of specific simulation method is dependent on the objectives intended, which include optimization of design configuration during the design and development phase and performance evaluation and optimization of resource utilization during the in-service phase of a PSS lifecycle. An area for further research is the application of simulation as a tool for cost analysis and cost estimation

Quantified economic and environmental values through Functional Productization: a simulation approach

Industrial companies rely on hardware and services from external providers to deliver functions that are critical to their operations, increasingly demanding solutions that not only meet technical and availability requirements but are sustainable too. Traditionally, industrial companies choose and purchase hardware and maintenance support to fulfil their functional requirements. An alternative arrangement, known as Functional Product (FP), involves external providers supplying customers with the functionality they require through contracts that specify guaranteed functional availability whilst giving providers freedom to choose and retain ownership of the supplied hardware and services. This paper describes an innovative simulation modelling and optimization approach to quantitatively compare economic and environmental values resulting from transition from traditional to FP arrangements. The approach is demonstrated through the analysis of a scenario involving a hydraulic drive system provider and set of customers in Sweden, with the results exhibiting simultaneous improvement in economic and environmental values at each stage of the transition