Steering manufacturing firms towards service business model innovation

Increasingly, manufacturing firms are turning to services as a new way of creating and capturing value. Despite its potential benefits, many new product-service providers struggle to deploy service activities effectively, not least because they fail to refect the presence of service activities in their performance management systems. This article reports the results of an in-depth case study, which examines how manufacturers can steer the transition towards services. It shows that manufacturing firms need to emphasize two separate but related dimensions of the market performance of service activities: "service adoption," refecting the proportion of customers who purchase the manufacturer's services; and "service coverage," signaling the range of service elements or the comprehensiveness of the service contract that customers opt for. These two indicators, refecting service market performance, should be supplemented with a "complementarity index" designed to disclose whether the relationship between products and services is reinforcing or substitutive. When combined, these indicators allow manufacturing firms to deploy a service-based business model in an integrated and sustainable manner. © 2013 by The Regents of the University of California. All rights reserved.

Cluster analysis of heterogeneous rank data

Cluster analysis of ranking data, which occurs in consumer questionnaires, voting forms or other inquiries of preferences, attempts to identify typical groups of rank choices. Empirically measured rankings are often incomplete, i.e. different numbers of filled rank positions cause heterogeneity in the data. We propose a mixture approach for clustering of heterogeneous rank data. Rankings of different lengths can be described and compared by means of a single probabilistic model. A maximum entropy approach avoids hidden assumptions about missing rank positions. Parameter estimators and an efficient EM algorithm for unsupervised inference are derived for the ranking mixture model. Experiments on both synthetic data and real-world data demonstrate significantly improved parameter estimates on heterogeneous data when the incomplete rankings are included in the inference process.

Hybrid model predictive control applied to switching control of burner load for a compact marine boi

This paper discusses the application of hybrid model predictive control to control switching between different burner modes in a novel compact marine boiler design. A further purpose of the present work is to point out problems with finite horizon model predictive control applied to systems for which the optimal solution is a limit cycle. Regarding the marine boiler control the aim is to find an optimal control strategy which minimizes a trade-off between deviations in boiler pressure and water level from their respective setpoints while limiting burner switches.The approach taken is based on the Mixed Logic Dynamical framework. The whole boiler systems is modelled in this framework and a model predictive controller is designed. However to facilitate on-line implementation only a small part of the search tree in the mixed integer optimization is evaluated to find out whether a switch should occur or not. The strategy is verified on a simulation model of the compact marine boiler for control of low/high burner load switches. It is shown that even though performance is adequate for some disturbance levels it becomes deteriorated when the optimal solution is a limit cycle. Copyright © 2007 International Federation of Automatic Control All Rights Reserved.

Content Based Integration of Construction Site Images in AEC/FM Model Based Systems

The Architecture, Engineering, Construction and Facilities Management (AEC/FM) industry is rapidly becoming a multidisciplinary, multinational and multi-billion dollar economy, involving large numbers of actors working concurrently at different locations and using heterogeneous software and hardware technologies. Since the beginning of the last decade, a great deal of effort has been spent within the field of construction IT in order to integrate data and information from most computer tools used to carry out engineering projects. For this purpose, a number of integration models have been developed, like web-centric systems and construction project modeling, a useful approach in representing construction projects and integrating data from various civil engineering applications. In the modern, distributed and dynamic construction environment it is important to retrieve and exchange information from different sources and in different data formats in order to improve the processes supported by these systems. Previous research demonstrated that a major hurdle in AEC/FM data integration in such systems is caused by its variety of data types and that a significant part of the data is stored in semi-structured or unstructured formats. Therefore, new integrative approaches are needed to handle non-structured data types like images and text files. This research is focused on the integration of construction site images. These images are a significant part of the construction documentation with thousands stored in site photographs logs of large scale projects. However, locating and identifying such data needed for the important decision making processes is a very hard and time-consuming task, while so far, there are no automated methods for associating them with other related objects. Therefore, automated methods for the integration of construction images are important for construction information management. During this research, processes for retrieval, classification, and integration of construction images in AEC/FM model based systems have been explored. Specifically, a combination of techniques from the areas of image and video processing, computer vision, information retrieval, statistics and content-based image and video retrieval have been deployed in order to develop a methodology for the retrieval of related construction site image data from components of a project model. This method has been tested on available construction site images from a variety of sources like past and current building construction and transportation projects and is able to automatically classify, store, integrate and retrieve image data files in inter-organizational systems so as to allow their usage in project management related tasks.

Product life trade-offs: what if products fail early?

Increasing product life allows the embodied emissions in products to be spread across a longer period but can mean that opportunities to improve use-phase efficiency are foregone. In this paper, a model that evaluates this trade-off is presented and used to estimate the optimal product life for a range of metal-intensive products. Two strategies that have potential to save emissions are explored: (1) adding extra embodied emissions to make products more sturdy, increasing product life, and (2) increasing frequency of use, causing early product failure to take advantage of improvements in use-phase efficiency. These strategies are evaluated for two specific case studies (long-life washing machines and more frequent use of vehicles through car clubs) and for a range of embodied and use-phase intensive products under different use-phase improvement rate assumptions. Particular emphasis is placed on the fact that products often fail neither at their design life nor at their optimal life. Policy recommendations are then made regarding the targeting of these strategies according to product characteristics and the timing of typical product failure relative to optimal product life.

Measuring design investment in firms: Conceptual foundations and exploratory UK survey

The importance of design to company and national performance has been widely discussed, with a number of studies investigating the value or impact of design on performance. However, none of these studies has measured design investment as an input against which performance can be compared. As yet, there is no established way in which design investment might be measured. Without such a method, we cannot develop a reliable picture, akin to that for R&D spending, on the impact of design spending on company performance. This paper presents a conceptual framework for the measurement of design investment and applies this framework in a survey of UK firms. The framework describes design as being part of the creation and commercialization of new products and services. The survey highlights some surprising patterns of design spend in the reported sample and demonstrates the viability of the underpinning framework. A revised framework is proposed that situates design investment in the context of R&D. The model has implications for policy makers trying to understand the role and scale of design in the private sector, for managers wishing to optimize their design investments and for academics seeking to measure the value of design. © 2013 Published by Elsevier B.V.

Unified compression model for venice lagoon natural silts

Over the last 50 years, the city of Venice, Italy, has observed a significant increase in the frequency of flooding. Numerous engineering solutions have been proposed, including the use of movable gates located at the three lagoon inlets. A key element in the prediction of performance is the estimation of settlements of the foundation system of the gates. The soils of Venice Lagoon are characterized by very erratic depositional patterns of clayey silts, resulting in an extremely heterogeneous stratigraphy with discontinuous layering. The soils are also characterized by varying contents of coarse and fine-grained particles. In contrast, the mineralogical composition of these deposits is quite uniform, which allows us to separate the influence of mineralogy from that of grain size distribution. A comprehensive geotechnical testing program was performed to assess the one-dimensional compression of Venice soils and examine the factors affecting the response in the transition from one material type to another. The compressibility of these natural silty clayey soils can be described by a single set of constitutive laws incorporating the relative fraction of granular to cohesive material. © 2007 ASCE.