A framework for designing product service systems

In this competitive globalizing scenario, manufacturers are adopting a strategy of bundling products and services into an integrated solution to create sustainable competitive advantage. Servitizing manufacturers are increasingly transforming their processes and practices to build product-service systems (PSS). During this transformation they require substantial support to face stringent challenges. Research in the PSS domain is heading towards the development of a design theory and methodology that facilitates the systematic creation of viable PSS conceptual designs. In this paper, various proposed design methods are reviewed and research gaps are summarized. Primarily, it has been observed that the importance of the capabilities of the stakeholders involved in designing PSS has not been noted in the proposed methods. Regarding this capability view point, a framework for designing PSS has been proposed. This framework highlights the important features required in designing PSS such as co-creation, responsibilities and competences. Every step in the framework has been explained with a case study involving laser systems used for manufacturing cutting operation.

Opt-out options in new product co-development partnerships

We study three contractual arrangements—co-development, licensing, and co-development with opt-out options—for the joint development of new products between a small and financially constrained innovator firm and a large technology company, as in the case of a biotech innovator and a major pharma company. We formulate our arguments in the context of a two-stage model, characterized by technical risk and stochastically changing cost and revenue projections. The model captures the main disadvantages of traditional co-development and licensing arrangements: in co-development the small firm runs a risk of running out of capital as future costs rise, while licensing for milestone and royalty (M&R) payments, which eliminates the latter risk, introduces inefficiency, as profitable projects might be abandoned. Counter to intuition we show that the biotech's payoff in a licensing contract is not monotonically increasing in the M&R terms. We also show that an option clause in a co-development contract that gives the small firm the right but not the obligation to opt out of co-development and into a pre-agreed licensing arrangement avoids the problems associated with fully committed co-development or licensing: the probability that the small firm will run out of capital is greatly reduced or completely eliminated and profitable projects are never abandoned.

An optimal design process for an adequate product?

The 'optimal' or 'best' design process may be the shortest or cheapest process, or the one that leads to a particularly desirable product, or to a reliable and maintainable product, or to a manufacturable product, or some combination of all of these. It is likely to satisfy the aspirations of the organisation to invest an appropriate amount of resource in the development of a specific new market opportunity, set in the context of longer-term business goals. This paper describes the progress made in over ten years of research on process modelling undertaken at the Cambridge Engineering Design Centre to identify an 'optimal' design process with which to develop an 'adequate' product.

Reusing steel and aluminum components at end of product life.

Reusing steel and aluminum components would reduce the need for new production, possibly creating significant savings in carbon emissions. Currently, there is no clearly defined set of strategies or barriers to enable assessment of appropriate component reuse; neither is it possible to predict future levels of reuse. This work presents a global assessment of the potential for reusing steel and aluminum components. A combination of top-down and bottom-up analyses is used to allocate the final destinations of current global steel and aluminum production to product types. A substantial catalogue has been compiled for these products characterizing key features of steel and aluminum components including design specifications, requirements in use, and current reuse patterns. To estimate the fraction of end-of-life metal components that could be reused for each product, the catalogue formed the basis of a set of semistructured interviews with industrial experts. The results suggest that approximately 30% of steel and aluminum used in current products could be reused. Barriers against reuse are examined, prompting recommendations for redesign that would facilitate future reuse.

Change impact on a product and its redesign process: A tool for knowledge capture and reuse

Change propagates, potentially affecting many aspects of a design and requiring much rework to implement. This article introduces a cross-domain approach to decompose a design and identify possible change propagation linkages, complemented by an interactive tool that generates dynamic checklists to assess change impact. The approach considers the information domains of requirements, functions, components, and the detail design process. Laboratory experiments using a vacuum cleaner suggest that cross-domain modelling helps analyse a design to create and capture the information required for change prediction. Further experiments using an electronic product show that this information, coupled with the interactive tool, helps to quickly and consistently assess the impact of a proposed change. © 2012 Springer-Verlag London Limited.

Product intelligence: Theory and practice

Are there any benefits in allowing orders and products to be able to manage their own progress through a supply chain? The notion of associating (and even embedding) information management and reasoning capabilities with a physical product has been discussed for over ten years now. This talk will review the notions of product intelligence and examine the rationales for these models and the practicality of their implementation. Both theoretical and practical issues associated with product intelligence will be examined referencing a number of trial deployments in manufacturing, logistics and aerospace equipment servicing. © 2012 IFAC.

Product scheduling for thermal energy reduction in papermaking industries

Papermaking is considered as an energy-intensive industry partly due to the fact that the machinery and procedures have been designed at the time when energy was both cheap and plentiful. A typical paper machine manufactures a variety of different products (grades) which impose variable per-unit raw material and energy costs to the mill. It is known that during a grade change operation the products are not market-worthy. Therefore, two different production regimes, i.e. steady state and grade transition can be recognised in papermaking practice. Among the costs associated with paper manufacture, the energy cost is 'more variable' due to (usually) day-to-day variations of the energy prices. Moreover, the production of a grade is often constrained by customer delivery time requirements. Given the above constraints and production modes, the product scheduling technique proposed in this paper aims at optimising the sequence of orders in a single machine so that the cost of production (mainly determined by the energy) is minimised. Simulation results obtained from a commercial board machine in the UK confirm the effectiveness of the proposed method. © 2011 IFAC.

Achieving Csiszár's source-channel coding exponent with product distributions

We derive a random-coding upper bound on the average probability of error of joint source-channel coding that recovers Csiszár's error exponent when used with product distributions over the channel inputs. Our proof technique for the error probability analysis employs a code construction for which source messages are assigned to subsets and codewords are generated with a distribution that depends on the subset. © 2012 IEEE.

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.