Influencing factors of successful transitions towards product-service systems: A simulation approach

Product-Service Systems (PSS) are new business strategies moving and extending the product value towards its functional usage and related required services. From a theoretical point of view the PSS concept is known since a decade and many Authors reported reasonable possible success factors: higher profits over the entire life-cycle, diminished environmental burden, and localization of required services. Nevertheless the PSS promises remain quantitatively unproven relaying on a simple theory that involves a few constructs with some empirical grounding, but that is limited by weak conceptualization, few propositions, and/or rough underlying theoretical logic. A plausible interpretation to analyze the possible evolution of a PSS strategy could be considering it as a new business proposition competing on a traditional Product-Oriented (PO) market, assumed at its own equilibrium state at a given time. The analysis of the dynamics associated to a possible transition from a traditional PO to a PSS strategy allows investigating the main parameters and variables influencing an eventual successful adoption. This research is worthwhile because organizations undergoing fundamental PSS strategy are concerned about change and inertia key processes which, despite equilibrium theory and because of negative feedback loops, could undermine, economically, the return of their PSS proposition. In this paper Authors propose a qualitative System Dynamics (SD) approach by considering the PSS as a perturbation of an existing PO market featured by a set of known parameters. The proposed model incorporates several PSS factors able to influence the success of a PSS proposition under a set of given and justified assumptions, attempting to place this business strategy in a dynamic framework.

Industrialization as a key element of sustainable product-service solutions

Product-service systems are seen by many authors to offer potential for significant sustainability benefit. Manufacturing companies are said to be essential to such a change through their influence over product performance and over the use and end-of-life stages. Yet linking these stages such that the producer is incentivized to improve the performance of later stages is still a challenge. This paper argues for placing the producer at the centre of a new arrangement: by seeking to utilize the producer's knowledge of designing and the knowledge of volume production, through creation of platforms, while cooperating closely with other actors. The paper describes three case studies that have used such an approach to design and implement new food production systems. Based on 12 months of action research observations, 10 participating organizations from the cases were studied, and the implemented solutions assessed for environmental, economic and social performance. The results demonstrate a high level of sustainability benefit is achievable using platforms and partners to design product-service systems, while highlighting that changes to production arrangements are necessary but not sufficient to improve whole life-cycle environmental performance of product-service systems, and that producers need to cooperate closely with other actors to achieve the claimed benefits.

Environmental priorities in strategic product development

This paper reports some results from a major research project on the integration of environmental issues into design in the electrical and electronic industry. Product development practice and ecodesign methods were examined along with qualitative data from 19 manufacturers, using interviews and an action research methodology. A four-stage framework for ecodesign practice resulted: first, to make an environmental assessment from a life cycle viewpoint; then to communicate the analysis and collect feedback; thirdly to prioritize the environmental issues and finally to complete the design using relevant tools and methods. This 'ARPI' framework (analyse, report, prioritize, improve) applies to both strategic and operational levels. Initial testing of the framework in collaborating companies highlighted difficulties with communication with design teams; the role of 'ecodesign champions' is explained. Other challenges are the development of customized tools and the training of designers. The study concludes that the prioritization step is critical, as it simplifies and clarifies the tasks in design that take place after formulation of the specification. Copyright (C) 2000 John Wiley and Sons, Ltd. and ERP Environment.

Prognosis of underground structures deterioration based on in-situ measurements

The stability of the underground structure is very important not only from the point of view of the structure itself, but also from the point of view of other structures. Therefore, the evaluation of the process of deterioration can help us very much. In the first part of the paper the ageing of the structures in the scope of their life cycle will be described. The whole process of deterioration is important but limited to certain time intervals and is able to give signals about changes in macro-scale. The second part of the paper is focused on the adaptation of new methods: micro technology of monitoring - such as MEMS (Micro Electrical Mechanical Systems) and wireless technologies for data transfer. It is obvious that such new technologies have to be assessed for the ability to deliver data continuously and for their safety and solidity. At the end of the paper the application of the measurements on the Prague metro's lining is mentioned. © 2007 Taylor & Francis Group.

Development of a tool for rapidly assessing the implementation difficulty and emissions benefits of innovations

Consumer goods manufacturers aiming to reduce the environmental impact associated with their products commonly pursue incremental change strategies, but more radical approaches may be required if we are to address the challenges of sustainable consumption. One strategy to realize step change reductions is to prepare a portfolio of innovations providing different levels of impact reduction in exchange for different levels of organizational resource commitment. In this research a tool is developed to support this strategy, starting with the assumption that through brainstorming or other eco-innovation approaches, a long-list of candidate innovations has been created. The tool assesses the potential greenhouse gas benefit of an innovative option against the difficulty of its implementation. A simple greenhouse gas benefit assessment method based on streamlined LCA was used to analyze impact reduction potential, and a novel measure of implementation difficulty was developed. The predictions of implementation difficulty were compared against expert opinion, and showed similar results indicating the measure can be used sensibly to predict implementation difficulty. The assessment of the environmental gain versus implementation difficulty is visualized in a matrix, showing the trade-offs of several options. The tool is deliberately simple with scalar measures of CO 2 emissions benefits and implementation difficulty so tool users must remain aware of other potential environmental burdens besides greenhouse gases (e.g. water, waste). In addition, although relative life cycle emissions benefits of an option may be low, the absolute impact of an option can be high and there may be other co-benefits, which could justify higher levels of implementation difficulty. Different types of consumer products (e.g. household, personal care, foods) have been evaluated using the tool. Initial trials of the tool within Unilever demonstrate that the tool facilitates rapid evaluation of low-carbon innovations. © 2011 Elsevier Ltd. All rights reserved.

The flow of steel into the construction sector

Half of the world's annual production of steel is used in constructing buildings and infrastructure. Producing this steel causes significant amounts of carbon dioxide to be released into the atmosphere. Climate change experts recommend this amount be halved by 2050; however steel demand is predicted to have doubled by this date. As process efficiency improvements will not reach the required 75% reduction in emissions per unit steel output, new methods must be examined to deliver service using less steel production. To apply such methods successfully to construction, it must first be known where steel is used currently within the industry. This information is not available so a methodology is proposed to estimate it from known data. Results are presented for steel flows by product for ten construction sectors for both the UK and the world in 2006. An estimate for steel use within a 'typical' building is also published for the first time. Industrial buildings and utility infrastructure are identified as the largest end-uses of steel, while superstructure is confirmed as the main use of steel in a building. The results highlight discrepancies in previous steel estimates and life-cycle assessments, and will inform future research on lowering demand for steel, hence reducing carbon emissions. © 2012 Elsevier B.V. All rights reserved.

Integrating design attributes, knowledge and uncertainty in aerospace sector

The delivery of integrated product and service solutions is growing in the aerospace industry, driven by the potential of increasing profits. Such solutions require a life cycle view at the design phase in order to support the delivery of the equipment. The influence of uncertainty associated with design for services is increasingly a challenge due to information and knowledge constraints. There is a lack of frameworks that aim to define and quantify relationship between information and knowledge with uncertainty. Driven by this gap, the paper presents a framework to illustrate the link between uncertainty and knowledge within the design context for services in the aerospace industry. The paper combines industrial interaction and literature review to initially define the design attributes, the associated knowledge requirements and the uncertainties experienced. The framework is then applied in three cases through development of causal loop models (CLMs), which are validated by industrial and academic experts. The concepts and inter-linkages are developed with the intention of developing a software prototype. Future recommendations are also included. © 2014 CIRP.