Knowledge Test Flashcards
Definition of Product-Service (PS)
A mix of tangible products and intangible service designed and combined so that they are jointly capable of fulfilling final customer needs.
NB: This concerns only the offer to a client.
“Product Service Systems put simply, are when a firm offers a mix of both products and services, in comparison to the traditional focus on products”
Definition of Product-Service Systems
The organisational structure that provides the product-service to customers
Different PSS
- Product-oriented
- Use oriented
- Result oriented
Explain product-oriented PSS
Ownership of the tangible product is transferred from the manufacturer to the customer (sold), while included in the original act of sale are additional services (eg. maintenance, repair, re-use, recycling, training, consulting, etc.)
Use-oriented PSS
Ownership of the tangible product is retained by the service provider
Functions of the product sold via modified distribution and payment systems
Eg. carpooling.com enabled drivers to offer available seats and passengers to book a ride. People choose who they want to ride with, how much space they need, and what they are willing to pay.
Result-oriented PSS
Selling the result or capability instead of a product
The producer maintains ownership of the product and the customer pays only for the provision of agreed results
Eg. Zipcar provided a fleet of cars strategically located around the city. Users access the cars with a smart card, paid for in advance. They can either pay a fixed hourly fee or a membership programme that bills for actual use.
What are the implications for the manufacturers by PS?
Retained ownership of products:
Increased responsibility through product life
- May have a high economic impact and risk
Possibliites for re-manufacturing
- Opening for “smart” and “circular” business
- Where and how to remanufacture? Logistics, Design..?
Changed revenue-streams
- “Spare parts sales” not a good source of revenue
Opportunities for technology changes post-manufacturing
- Can replace systematically obsolete or poor technologies
- Can extend life through technology replacements and upgrades
What is the implication of servitization for the industry?
Use focus increase the importance of customer relationship through life
- Availability of product functionality increase in importance
Increased ownership after the product comes with risk and opportunity
- Risk? Revenue from “spare parts sales”
- Opportunity? Maintain a relationship with the customer and better control of oners technologies in the “field”
Definition of Servitization
Creating value by shifting from selling products to providing product-services
The impact of digitalization
- From analogue to digital
- Impact on our business processes, services, economic models etc.
- Impact on our lives (eg. employment and universal basic income)
The steps of servitization in industry
- From ownership to accessibility
2. Transfer of responsibility
Explain ‘From ownership to accessibility’
- Value increasingly associated with the use of the product, as opposed to ownership.
- Product technologies require increasingly specialized know-how
Explain ‘Transfer of responsibility’
The responsibility of products increasingly retained with the manufacturer. It is transferred from user to provider.
What are the consequences of servitization for manufacturers?
Shifting to servitisation impact
- Business models: The way to offer solutions and ensure revenue
Shifting preferences and behaviour of users
- Creates, and threaten, established products and business models
Obsolescence
- Technology in products have largely different life cycles
Definition of Maintenance
A combination of all technical, adminstrative and managerial actions during the life-cycle of an item, and intended to remain it in, restore it to a state in which it can perform the required function.
Draw the maintenace tree
See picture
How do you calculate OEE?
Overall Equipment Effectiveness
OEE = AvailabiltyOperational EffeicneyQuality Rate
Avalability = 100*((planned production time - downtime)/planned production time)
Opertional effiecency = 100((Design cycle timeProduct amount)/actual running time)
Quality rate = 100*((produced amount-defect amount)/produced amount)
Challenges for maintenance organizations
Maintenance generation 4.0; Design for eliminating failures, holistic view, IT solution and even more extensive collaboration
What are the two main contributors to OEE losses?
- Low availability
(Mycket downtime) - Low operational efficiency
Reactive vs preventive maintenance
- A 70/30 ratio
(70 reactive) - Cost of reactive actions x3 times the cost of preventive actions
- OEE assessments indicates a postive trend a 60/40 ratio