Product Service Systems and supply network relationships: An exploratory case study

Purpose - In recent years there has been increasing interest in Product Service Systems (PSSs) as a business model for selling integrated product and service offerings. To date, there has been extensive research into the benefits of PSS to manufacturers and their customers, but there has been limited research into the effect of PSS on the upstream supply chain. This paper seeks to address this gap in the research. Design/methodology/approach - The research uses case-based research which is appropriate for exploratory research of this type. In-depth interviews were conducted with key personnel in a focal firm and two members of its supply chain, and the results were analysed to identify emergent themes.b Findings - The research has identified differences in supplier behaviour dependent on their role in PSS delivery and their relationship with the PSS provider. In particular, it suggests that for a successful partnership it is important to align the objectives between PSS provider and suppliers. Originality/value - This research provides a detailed investigation into a PSS supply chain and highlights the complexity of roles and relationships among the organizations within it. It will be of value to other PSS researchers and organizations transitioning to the delivery of PSS. © Emerald Group Publishing Limited.

Exploring the process of whole system design

This paper explores the adoption of a whole system approach to a more sustainable and innovative design. A case study methodology was utilised to gain improved understanding of whole system design and those factors that substantially influence its success. The paper presents a framework of those factors including the requirement for trans-disciplinary skills, the dynamics of a flattened hierarchy and the need to identify relationships between parts of the system to ultimately optimise the whole. Knowing the factors that influence the process of whole system design provides designers with the knowledge necessary to more effectively work within, manage and facilitate that process. This paper uses anecdotes taken from operational cases, across design contexts, to demonstrate those factors. © 2010 Elsevier Ltd. All rights reserved.

Buyer-supplier partnerships during product design and development in the global automotive sector: Who invests, in what and when?

This paper explores the concept of partnerships between buyers and suppliers in the global automotive sector during product design and development. Partnerships are often the goal in a shift away from adversarial arms-length relationships. The objective of this research is to provide empirical evidence to explain the levels of mutual investment expected and achieved in partnerships from both buyer and supplier perspectives. During this research, 25 employees from 12 global supplier organisations who were in partnership with a specific vehicle manufacturer (VM) were interviewed. Twelve employees from this VM were also interviewed. The research showed the differences between partnerships and non-partnerships and the disparities in the expectations of investment from each partner. For suppliers and buyers to get the most out of partnerships, clear expectations and investments needed over time should be understood and agreed early in the relationship. © 2009 Elsevier B.V.All rights reserved.

Strategies for designing and developing services for manufacturing firms

Product/service-systems (PSS) are in effect an approach to designing integrated products and services with a focus on both customer and product life cycle activities. A range of service-oriented design strategies can be found in current literature, from product-oriented DfX approaches to more customer-oriented approaches, such as integrated solutions. In this article, design strategies related to different types of services are mapped. Case studies from two industrial companies are used to confront the existing literature in order to improve the understanding of how manufacturing companies may align their product and service development activities with their business strategies. © 2010.

Zero carbon manufacturing facility - Towards integrating material, energy, and waste process flows

The increasing pressure on material availability, energy prices, as well as emerging environmental legislation is leading manufacturers to adopt solutions to reduce their material and energy consumption as well as their carbon footprint, thereby becoming more sustainable. Ultimately manufacturers could potentially become zero carbon by having zero net energy demand and zero waste across the supply chain. The literature on zero carbon manufacturing and the technologies that underpin it are growing, but there is little available on how a manufacturer undertakes the transition. Additionally, the work in this area is fragmented and clustered around technologies rather than around processes that link the technologies together. There is a need to better understand material, energy, and waste process flows in a manufacturing facility from a holistic viewpoint. With knowledge of the potential flows, design methodologies can be developed to enable zero carbon manufacturing facility creation. This paper explores the challenges faced when attempting to design a zero carbon manufacturing facility. A broad scope is adopted from legislation to technology and from low waste to consuming waste. A generic material, energy, and waste flow model is developed and presented to show the material, energy, and waste inputs and outputs for the manufacturing system and the supporting facility and, importantly, how they can potentially interact. Finally the application of the flow model in industrial applications is demonstrated to select appropriate technologies and configure them in an integrated way. © 2009 IMechE.

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.

A comparison of four sustainable manufacturing strategies

Effective use of materials is one possible component of a sustainable manufacturing strategy. There are many such strategies proposed in the literature and used in practice, with confusion over what they are, what the differences among them may be and how they can be used by practitioners in design and manufacture to improve the sustainability of their product and processes. This paper reviews the literature on sustainable manufacturing strategies that deliver improved material performance. Four primary strategies were found: waste minimisation; material efficiency; resource efficiency; and eco-efficiency. The literature was analysed to determine the key characteristics of these sustainable manufacturing strategies and 17 characteristics were found. The four strategies were then compared and contrasted against all the characteristics. While current literature often uses these strategy titles in a confusing, occasionally inter-changeable manner, this study attempts to create clear separation between them. Definition, scope and practicality of measurement are shown to be key characteristics that impact upon the ability of manufacturing companies to make effective use of the proposed strategy. It is observed that the most actionable strategies may not include all of the dimensions of interest to a manufacturer wishing to become more sustainable, creating a dilemma between ease of implementation and breadth of impact. © 2008 Taylor & Francis.

An investigation of customer delight during product evaluation: Implications for the development of desirable products

This paper reports findings from three research methods used to study customer delight during product evaluation. The results are framed in terms of existing models, high-lighting inadequacies in the assumptions these models make. Implications for product development are proposed in the form of practical strategies for understanding and delighting customers. © IMechE 2007.

Understanding luxury in the premium automotive industry

This paper summarises the findings of investigations to date in understanding what luxury and premiumness mean to the high-end automotive consumer. Existing writings on luxury and premiumness are considered. An exploratory study was carried out in two countries using 309 respondents and 18 prestige cars. A "stream of consciousness" approach was used to capture respondent's views on a selection of vehicles. The codified transcripts were used to identify key differences between the top and bottom rated vehicles, in terms of the nature and quantity of emotional responses elicited. This paper describes some of these key product differences that were self-reported to impact upon a luxury response. Finally, suggestions are made as to the next steps required for this research. © 2007 ACM.

Beyond theory: An examination of lean new product introduction practices in the UK

Interest is growing around the application of lean techniques to new product introduction (NPI). Although a relatively emergent topic compared with the application of 'lean' within the factory, since 2000 there has been an exponential rise in the literature on this subject. However, much of this work focuses on describing and extolling the virtues of the 'Toyota approach' to design. Therefore, by way of a stock take for the UK, the present authors' research has set out to understand how well lean product design practices have been adopted by leading manufacturers. This has been achieved by carrying out in-depth case studies with three carefully selected manufacturers of complex engineered products. This paper describes these studies, the detailed results and subsequent findings, and concludes that both the awareness and adoption of practices is generally embryonic and far removed from the theory advocated in the literature. © IMechE 2007.

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.

Building more sustainable solutions in production-consumption systems: the case of food for people with reduced access

In new product development, the ability to integrate different dimensions of sustainability at a value chain level is still a complex, problematic goal. As product-service approaches are increasingly enabling the introduction of more sustainable paths, this paper describes the authors' experience thus far when building insights into conditions for the implementation of integrated solutions in a process of co-development and testing in real life conditions, which are driven by a social need focusing on food for people with reduced access. Throughout this process, which brought together producers, consumers and other stakeholders to design and test industrialised, sustainable solutions, empirical evidence demonstrates feasibility and usefulness of the approach and insight into the conditions for implementing interactive, comprehensive multi-stakeholder processes in real life situations. In addition, results show that the delivery of innovative solutions enabled to offer social added value, economic profits and environmental improvements under specific experimental conditions. © 2006 Elsevier Ltd. All rights reserved.

KM your way to CMMI

Purpose - The purpose of this paper is to describe two related fields - knowledge management (KM) and capability maturity model integrated (CMMISM) and highlight their imilarities. Design/methodology/approach - The KM framework used for this comparison is the one established and used at Israel Aircraft Industries, while the CMMISM source of information is none but the original document produced by the CMMISM product team at the Carnegie Mellon University, as well as papers published on the subject. Findings - Knowledge management is a rather young discipline promising to maximize innovation and competitive advantage to organizations that practice knowledge capture, documentation, retrieval and reuse, creation, transfer and share to its knowledge assets in a measurable way, integrated in its operational and business processes. The capability maturity model integrated deals with the ways an organization has to follow, in order to maintain well mapped processes, having well defined stages, because of the assumption that in mature organizations, it is possible to measure and relate between the quality of the process and the quality of the product. Though KM and CMMISM take different approaches to the achievement of competitive advantage, they seem to be supporting as well as dependent of each other. Originality/value - Practitioners as well as researchers in the field of knowledge management and in the implementation of the CMMISM standard will find comfort in realizing how mutually supportive are these two fields. © Emerald Group Publishing Limited.

Step by step: Breaking outsourcing down into manageable phases

The phases of the outsourcing process and the actions required are discussed. The most difficult and the most important phase of o a successful outsourcing process is to know what activities to outsource. The criteria for suppliers selection must be developed and should cover the reasons why the activity is being outsourced, the expected benefits and potential dangers. Contract negotiation is a very important phase of the outsourcing contract in which rules of the outsourcing are set. The transfer of activity phase corresponds to the reassignment of control of the outsourced activity from the outsourcer to the contractor.

One style does not fit all

The different types of outsourcing and the management requirements for each of them are discussed. An outsourcing has a high strategic importance to the buying company when it is aligned with the organization's long term strategies and when its results are either positive or negative. Functional outsourcings are characterized by both low strategic importance and financial impact, and the products/services that fall in this category belong to support activities which are highly standardized. Leverage outsourcings are those that have a low strategic importance, but high financial impact to the outsourcer, and they concentrate on operational aspects, leaving strategic issues.