Product Service Systems

Question 1

What is a PSS?

Answer 1

A combination of products and services that work together to offer more value to the customer. Involves transitioning from product based models to service oriented ones.

• Focus on sustainability by promoting the extension of the lifetime of products by introducing complementary services, instead of promoting purchases of new products

Question 2

What are drivers pushing PSS?

Answer 2

1. Intensified competition on market
2. Evolving customer needs
3. Growing environmental concerns

Question 3

Give an example of a PSS?

Answer 3

A car sharing service
A phone with service/repair included

Question 4

What is servization?

Answer 4

The process where business evolve from selling just physical products to offering complete solutions combining goods, services, support and knowledge

Question 5

How does PSS promote sustainability?

Answer 5

Reducing material consumption
Extending product life spans
Promoting closed-loop systems (recycle and reuse)

Question 6

Describe the models of PSS according to Tukker

Answer 6

• Tucker has three classifications of PSS:

1. Product oriented (PO): The product is central and services complement it. Like phone with repair included
2. Use oriented (UO): Customers don’t own the product but pay to use it (leasing or renting)
3. Result oriented (RO): Customers pay of a functional result rather than a specific product or service
   - using strategic consults in company, canteen service at company.

Question 7

What is red ocean and blue ocean? How are these related to PSS?

Answer 7

• Red ocean: Represents highly competitive markets with lots of similar products
• Blue ocean: Represents new, unexplored market spaces that are created by offering product or services

PSS can help companies move from red ocean to blue ocean

Question 8

What is a hybrid value?

Answer 8

The combined value products and services create together in a business

Question 9

What are the 5 tactical tools of PSS?

Answer 9

1. Contractual tactics
2. Marketing tactics
3. Product and service design tactics
4. Sustainability tactics
5. Network tactics

Question 10

What are the steps for designing a PSS?

Answer 10

1. Exploring opportunities: create SWOT
2. Generating ideas
3. Designing PSS solutions
4. Evaluating the detailed PSS
5. Implementing the PSS

Question 11

What is service design?

Answer 11

It about meeting the needs of customers with flexible service offerings

• Consider different service scenarios, Blue-printing, Gap-analysis, QFD

Question 12

What is Product Life Cycle Management (PLM)?

Answer 12

• A system used to manage products throughout their entire life cycle, includes designing, making, selling, supporting, and eventually disposing of the product.
• Good support and approach for product development processes to manage each step efficiently
• Empathizes the full usage of product and minimizing environmental impact

Question 13

What is circular economy?

Answer 13

Extending the life of a material/product

Question 14

What are the material flows?

Answer 14

1. Biological flows: Can safely return to the environment after use. They decompose and help nature grow. Food
2. Technical flows: Man-made materials that can be reused or recycled, staying in the system without becoming waste. Plastic or metal

Question 15

What is the 6R methodology?

Answer 15

A method for endow-life management focusing on reducing waste, improve resource efficiency and support circular economy (closed loop system)

1. Reduce
2. Reuse
3. Recycle
4. Recover
5. Redesign
6. Remanufacture