Exploring the financial consequences of the servitization of manufacturing

Commentators suggest that to survive in developed economies manufacturing firms have to move up the value chain, innovating and creating ever more sophisticated products and services, so they do not have to compete on the basis of cost. While this strategy is proving increasingly popular with policy makers and academics there is limited empirical evidence to explore the extent to which it is being adopted in practice. And if so, what the impact of this servitization of manufacturing might be. This paper seeks to fill a gap in the literature by presenting empirical evidence on the range and extent of servitization. Data are drawn from the OSIRIS database on 10,028 firms incorporated in 25 different countries. The paper presents an analysis of these data which suggests that: [i] manufacturing firms in developed economies are adopting a range of servitization strategies-12 separate approaches to servitization are identified; [ii] these 12 categories can be used to extend the traditional three options for servitization-product oriented Product-Service Systems, use oriented Product-Service Systems and result oriented Product-Service Systems, by adding two new categories "integration oriented Product-Service Systems" and "service oriented Product-Service Systems"; [iii] while the manufacturing firms that have servitized are larger than traditional manufacturing firms in terms of sales revenues, at the aggregate level they also generate lower profits as a % of sales; [iv] these findings are moderated by firm size (measured in terms of numbers of employees). In smaller firms servitization appears to pay off while in larger firms it proves more problematic; and [v] there are some hidden risks associated with servitization-the sample contains a greater proportion of bankrupt servitized firms than would be expected. © Springer Science + Business Media, LLC 2009.

Dynamic analysis of the brushless doubly-fed induction generator during symmetrical three-phase voltage dips

The Brushless Doubly-Fed Induction Generator (BDFIG) shows commercial promise as replacement for doublyfed slip-ring generators for wind power applications by offering reduced capital and operational costs due to its brushless operation. In order to facilitate its commercial deployment, the capabilities of the BDFIG system to comply with grid code requirements have to be assessed. This paper, for the first time, studies the performance of the BDFIG under grid fault ride-through and presents the dynamic behaviour of the machine during three-phase symmetrical voltage dips. Both full and partial voltage dips are studied using a vector model. Simulation and experimental results are provided for a 180 frame BDFIG.

Risk based lifetime costs assessment of a ground source heat pump (GSHP) system design: Methodology and case study

Space heating accounts for a large portion of the world's carbon dioxide emissions. Ground Source Heat Pumps (GSHPs) are a technology which can reduce carbon emissions from heating and cooling. GSHP system performance is however highly sensitive to deviation from design values of the actual annual energy extraction/rejection rates from/to the ground. In order to prevent failure and/or performance deterioration of GSHP systems it is possible to incorporate a safety factor in the design of the GSHP by over-sizing the ground heat exchanger (GHE). A methodology to evaluate the financial risk involved in over-sizing the GHE is proposed is this paper. A probability based approach is used to evaluate the economic feasibility of a hypothetical full-size GSHP system as compared to four alternative Heating Ventilation and Air Conditioning (HVAC) system configurations. The model of the GSHP system is developed in the TRNSYS energy simulation platform and calibrated with data from an actual hybrid GSHP system installed in the Department of Earth Science, University of Oxford, UK. Results of the analysis show that potential savings from a full-size GSHP system largely depend on projected HVAC system efficiencies and gas and electricity prices. Results of the risk analysis also suggest that a full-size GSHP with auxiliary back up is potentially the most economical system configuration. © 2012 Elsevier Ltd.

Numerical analysis of the settlement induced damage to Palazzo Loggia in Brescia

One of the main causes of failure of historic buildings is represented by the differential settlements of foundations. Finite element analysis provides a useful tool for predicting the consequences of given ground displacements in terms of structural damage and also assesses the need of strengthening techniques. The actual damage classification for buildings subject to settlement bases the assessment of the potential damage on the expected crack pattern of the structure. In this paper, the correlation between the physical description of the damage in terms of crack width and the interpretation of the finite element analysis output is analyzed. Different discrete and continuum crack models are applied to simulate an experiment carried on a scale model of a masonry historical building, the Loggia Palace in Brescia (Italy). Results are discussed and a modified version of the fixed total strain smeared crack model is evaluated, in order to solve the problem related to the calculation of the exact crack width.