Towards an operations strategy for the infusion of product-centric services into manufacturing:service systems implementation

The work in this chapter is concerned with product-centric servitization. This is where a portfolio of services are formed and integrated to support product availability and use. Such servitization can be a valuable source of revenue for a manufacturer, yet little attention has been given to the configuration of the wider operations strategy that needs to be in place to deliver integrated products and services successfully. Therefore, the purpose of this chapter is to put forward a generic set of characteristics for such operations. Our intention is that these characteristics will be valuable to practitioners contemplating sophisticated forms of servitization, as they suggest the likely and significant changes that will be needed to the operations strategy of a conventional manufacturing organisation.

Challenges of product-service systems:a real-life case study

A Product-Service System (PSS) is an integrated product and service offering that delivers value in use. This paper presents a real-life case study of a large company which has moved towards PSS. A research protocol has been created to conduct an extensive series of interviews with key personnel within the case study company. The results of the study and implications for research are explored.

State-of-the-art in product-service systems

A Product-Service System (PSS) is an integrated combination of products and services. This Western concept embraces a service-led competitive strategy, environmental sustainability, and the basis to differentiate from competitors who simply offer lower priced products. This paper aims to report the state-of-the-art of PSS research by presenting a clinical review of literature currently available on this topic. The literature is classified and the major outcomes of each study are addressed and analysed. On this basis, this paper defines the PSS concept, reports on its origin and features, gives examples of applications along with potential benefits and barriers to adoption, summarizes available tools and methodologies, and identifies future research challenges.

Product-service systems revisited

There is a growing interest around the potential value of service-led competitive strategies to UK based manufacturers. A Product Service-System (PSS) is one form of such a strategy and is based on integrated combination of products and services. This concept also embraces environmental sustainability. This paper aims to summarise the state-of-the-art of PSS research by presenting a review of literature currently available on this topic. The literature search is described and the major outcomes of the study are presented. On this basis, this paper defines the PSS concept, reports on its origin and features.

Market-driven strategies and the design of flexible production systems: evidence from the electronics industry

Links the concept of market-driven business strategies with the design of production systems. It draws upon the case of a firm which, during the last decade, changed its strategy from being “technology led” to “market driven”. The research, based on interdisciplinary fieldwork involving long-term participant observation, investigated the factors which contribute to the successful design and implementation of flexible production systems in electronics assembly. These investigations were conducted in collaboration with a major computer manufacturer, with other electronics firms being studied for comparison. The research identified a number of strategies and actions seen as crucial to the development of efficient flexible production systems, namely: effective integration of subsystems, development of appropriate controls and performance measures, compatibility between production system design and organization structure, and the development of a climate conducive to organizational change. Overall, the analysis suggests that in the electronics industry there exists an extremely high degree of environmental complexity and turbulence. This serves to shape the strategic, technical and social structures that are developed to match this complexity, examples of which are niche marketing, flexible manufacturing and employee harmonization.

A strategy formulation process for the delivery of technology enabled service delivery systems

The Product Service Systems, servitization, and Service Science literature continues to grow as organisations seek to protect and improve their competitive position. The potential of technology applications to deliver service delivery systems facilitated by the ability to make real time decisions based upon ‘in the field’ performance is also significant. Research identifies four key questions to be addressed. Namely: how far along the servitization continuum should the organisation go in a single strategic step? Does the organisation have the structure and infrastructure to support this transition? What level of condition monitoring should it employ? Is the product positioned correctly in the value chain to adopt condition monitoring technology? Strategy consists of three dimensions, namely content, context, and process. The literature relating to PSS, servitization, and strategy all discuss the concepts relative to content and context but none offer a process to deliver an aligned strategy to deliver a service delivery system enabled by condition based management. This paper presents a tested iterative strategy formulation methodology which is the result of a structured development programme.

PSS as a service based strategy for western manufacturers

A product-service system (PSS) is a subtle blend of products and services that are offered as an integrated solution to customers. Much existing work on PSS has originated from Scandinavia and has been motivated by a sustainability agenda. Although valuable, this form has limited appeal to western manufacturers. However, by expanding the concepts of PSS to also embrace leading thinking on large scale complex service systems and informated products and services, it is possible to put forward the basis of a service business model that offers the means to differentiate from competitors who simply offer lower priced products. This paper aims to build this case. It reports the state-of-the-art of PSS, defines the concept, reports on its origin and features, discusses examples of applications, and finally proposes a research strategy for future work on this topic.

The move to servitization (from a product service system point of view)

Product Service Systems (PSSs) emphasize the substitution of products with services. The term “Servitisation” was introduced by Sandra Vendermerwe in the 80s to represent the addition of services to increase a company’s competitive edge. Key to PSS, and Servitisation more generally, is the “informated product”. The informated product enables health monitoring of the product in use and can be key to a workable PSS. This paper reviews the evolution of servitisation and the associated business benefit. It also then reviews the concept of informated product reconfiguration techniques and remote services that enables PSS to be delivered.

Modular system design and control for flexible assembly

Flexible Assembly Systems (FASs) are normally associated with the automatic, or robotic, assembly of products, supported by automated material handling systems. However, manual assembly operations are still prevalent within many industries, where the complexity and variety of products prohibit the development of suitable automated assembly equipment. This article presents a generic model for incorporating flexibility into the design and control of assembly operations concerned with high variety/low volume manufacture, drawing on the principles for Flexible Manufacturing Systems (FMS) and Just-in-Time (JIT) delivery. It is based on work being undertaken in an electronics company where the assembly operations have been overhauled and restructured in response to a need for greater flexibility, shorter cycle times and reduced inventory levels. The principles employed are in themselves not original. However, the way they have been combined and tailored has created a total manufacturing control system which represents a new concept for responding to demands placed on market driven firms operating in an uncertain environment.

A classification model for product-service offerings

Organisations have been approaching servitisation in an unstructured fashion. This is partially because there is insufficient understanding of the different types of Product-Service offerings. Therefore, a more detailed understanding of Product-Service types might advance the collective knowledge and assist organisations that are considering a servitisation strategy. Current models discuss specific aspects on the basis of few (or sometimes single) dimensions. In this paper, we develop a comprehensive model for classifying traditional and green Product-Service offerings, thus combining business and green offerings in a single model. We describe the model building process and its practical application in a case study. The model reveals the various traditional and green options available to companies and identifies how to compete between services; it allows servitisation positions to be identified such that a company may track its journey over time. Finally it fosters the introduction of innovative Product-Service Systems as promising business models to address environmental and social challenges. © 2013 Elsevier Ltd. All rights reserved.

Review of the application of flexible, measurement-assisted assembly technology in aircraft manufacturing

Aircraft assembly is the most important part of aircraft manufacturing. A large number of assembly fixtures must be used to ensure the assembly accuracy in the aircraft assembly process. Traditional fixed assembly fixture could not satisfy the change of the aircraft types, so the digital flexible assembly fixture was developed and was gradually applied in the aircraft assembly. Digital flexible assembly technology has also become one of the research directions in the field of aircraft manufacturing. The aircraft flexible assembly can be divided into three assembly stages that include component-level flexible assembly, large component-level flexible assembly, and large components alignment and joining. This article introduces the architecture of flexible assembly systems and the principles of three types of flexible assembly fixtures. The key technologies of the digital flexible assembly are also discussed. The digital metrology system provides the basis for the accurate digital flexible assembly. Aircraft flexible assembly systems mainly use laser tracking metrology systems and indoor Global Positioning System metrology systems. With the development of flexible assembly technology, the digital flexible assembly system will be widely used in current aircraft manufacturing.

The organisation of innovation: collaboration, cooperation and multifunctional groups in UK and German manufacturing

Marked differences exist between the institutional and social context for innovation in the UK and Germany. The question addressed here is how these different contexts affect the objectives and organisation of innovation in UK and German manufacturing. In particular, the paper examines the extent to which UK and German plants engage in inter-plant collaboration and cooperation and multifunctional working as part of their innovative activity, and explores the reasons for differences in these patterns of involvement. The investigation is based on a large-scale, comparative survey of manufacturing plants in the two countries. In Germany, institutional and social norms are found to encourage collaborative inter-plant innovation, but aspects of the German skills training and industrial relations systems make the adoption of more flexible internal systems more difficult. In the UK, by contrast, the more adversarial nature of inter-firm relations makes it more difficult to establish external collaborations based on mutual trust, but less restrictive labour market structures make it easier for UK plants to adopt multifunctional working. This is linked to differences in attitudes to the property rights and transaction cost problems inherent in innovation.

Computer integrated manufacturing control

Many manufacturing companies have long endured the problems associated with the presence of `islands of automation'. Due to rapid computerisation, `islands' such as Computer-Aided Design (CAD), Computer-Aided Manufacturing (CAM), Flexible Manufacturing Systems (FMS) and Material Requirement Planning (MRP), have emerged, and with a lack of co-ordination, often lead to inefficient performance of the overall system. The main objective of Computer-Integrated Manufacturing (CIM) technology is to form a cohesive network between these islands. Unfortunately, a commonly used approach - the centralised system approach, has imposed major technical constraints and design complication on development strategies. As a consequence, small companies have experienced difficulties in participating in CIM technology. The research described in this thesis has aimed to examine alternative approaches to CIM system design. Through research and experimentation, the cellular system approach, which has existed in the form of manufacturing layouts, has been found to simplify the complexity of an integrated manufacturing system, leading to better control and far higher system flexibility. Based on the cellular principle, some central management functions have also been distributed to smaller cells within the system. This concept is known, specifically, as distributed planning and control. Through the development of an embryo cellular CIM system, the influence of both the cellular principle and the distribution methodology have been evaluated. Based on the evidence obtained, it has been concluded that distributed planning and control methodology can greatly enhance cellular features within an integrated system. Both the cellular system approach and the distributed control concept will therefore make significant contributions to the design of future CIM systems, particularly systems designed with respect to small company requirements.

Servitization of manufacturing

The servicisation agenda is arguably one of the most important facing western manufacturers. In a world of severe international competition, it can be the basis of distinct competitive advantage, and a means to differentiate a company's products from goods produced in low cost economies. The concept of Product Service Systems (PSS) is, in particular, a special case of servicisation. With PSS, the market proposition is designed as a system that exploits synergies between products and services while, at the same time, seeks to reduce the economic and environmental costs of delivery. Although key to sustaining western manufacturing operations, major issues arise with design and management of engineering, manufacturing and supply chain activities for successful implementation of such a service-led competitive strategy. This session includes presentations which examine the opportunities and challenges associated with servicisation in more detail.