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A through-life costing methodology for use in product-service-systems
Authors
Aguilar-Saven
Alonso
+118 more
Anagboso
Asiedu
Assaf
BAE Systems
Baines
Bankole
Bartolomei
Batista
Blanchard
Bohn
Boons
BS EN
BS EN IEC
BS ISO/IEC
Caldwell
Cavalieri
Chen
Cheung
Christensen
Cinquini
Clinton
Coccia
Conklin
Cooper
Cooper
Curran
Datta
Dhillon
Dhillon
Doost
Dunk
Durairaj
Early
Ellram
Ellram
Emblemsvåg
Emblemsvåg
Emblemsvåg
Erkoyuncu
Erkoyuncu
Ettore Settanni
Feldman
Ferrin
Field
Fiorello
Flood
Galloway
Geissdörfer
Glenn Parry
Goh
Grubbstrom
Gupta
Hansen
Heijungs
Heilala
Hitt
Hollnagel
Huang
Hypko
Jackson
James
Kaenzig
Kayrbekova
Keller
Kim
Korpi
Leontief
Linda B. Newnes
Lindahl
Lindholm
Lindholm
Makridakis
McNair
Meier
Mévellec
Möller
Naylor
Neely
Newnes
Nicolini
Nils E. Thenent
NIST
Nowicki
Ntuen
Olubodun
Prabhakar
Prasad
Pugh
Purchase
Romero Rojo
Roskam
Roy
Roy
Sampson
Sandborn
Schulze
Seddon
Settanni
Settanni
Settanni
Settanni
Sherif
Sherif
Shields
Simões
Smith
Stump
Tranfield
Tukker
Tysseland
Valerdi
van der Merwe
Veldman
Waghmode
Webster
Wilson
Xu
Yee Mey Goh
Publication date
1 January 2014
Publisher
'Elsevier BV'
Doi
Cite
Abstract
Availability-based contracts which provide customers with the use of assets such as machines, ships, aircraft platforms or subsystems like engines and avionics are increasingly offered as an alternative to the purchase of an asset and separate support contracts. The cost of servicing a durable product can be addressed by Through-life Costing (TLC). Providers of advanced services are now concerned with the cost of delivering outcomes that meet customer requirements using combinations of assets and activities via a Product Service System (PSS). This paper addresses the question: To what extent are the current approaches to TLC methodologically appropriate for costing the provision of advanced services, particularly availability, through a PSS? A novel methodology for TLC is outlined addressing the challenges of PSS cost assessment with regard to 'what?' (cost object), 'why/to what extent?' (scope and boundaries), and 'how?' (computations). The research provides clarity for those seeking to cost availability in a performance-orientated contractual setting and provides insight to the measures that may be associated with it. In particular, a reductionist approach that focuses on one cost object at a time is not appropriate for a PSS. Costing an advanced service delivered through a PSS is a problem of attributing the value of means to the economic activities carried out for specific ends to be achieved. Cost results from the interplay between monetary and non-monetary metrics, and uncertainties thereof. Whilst seeking to ensure generality of the findings, the application of TLC examined here is limited to a military aircraft platform and subsystems. © 2014 Elsevier B.V. All rights reserved
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