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

Baines et. al. 2007

Presentation by: Aisling Silke

+What is PSS?

PSS = Product Service Systems

These systems attempt to shift from the traditional ‘sale of product’ method to a ‘sale of use’ or ‘sale of service’ method.

The customer pays for using an asset, rather than its purchase.

“Ownerless Consumption: “The customer does not gain ownership of the asset, the ownership responsibilities remain with the manufacturer.”

+How do PSS work?

Bridges the gap between products and services.

The customer is paying for the service the product provides, as opposed to paying for the product itself.

Manufacturer remains responsible for maintenance, servicing, repairing item during use-phase.

Responsibility continues through after the use-phase also.

The manufacturer must recycle/refurbish/remanufacture the product after the consumer has ceased using the service it provides.

+Types of PSS

Product-oriented PSS

Product is sold in conventional manner and additional after-sales service is provided. Customers are trained in how to best use the product.

Use-oriented PSS

The manufacturer sells the “use of availability of a product that is not owned by the customer (e.g. leasing, sharing).” This method motivates the manufacturer to maximise the use of the product.

Result-oriented PSS (The optimum type of PSS)

“Companies offer a customized mix of services where the producer maintains ownership of the product and the customer pays only for the provision of agreed results.”

+Are PSS more sustainable?

Reduction in materials and manufacturing energy

“The PSS logic is premised on utilizing the knowledge of the designer-manufacturer to both increase value as an output and decrease material and other costs as an input to a system.”

When the manufacturer is responsible for the ‘take-back’, recycling and refurbishment of the product, it entices them to aim for a closed-loop system where they extract all recyclable materials from the products for reuse in future manufacturing.

+Can we apply PSS in the ICT sector?

YES!

Hardware and software systems

Database sharing

Printers and Photocopiers

Strengthened customer service; after-care, maintenance etc

Lease or rent products and/ or their services to customers

Regain the competitive edge in the market

+Thank you for listening

Any questions?

Baines et. Al. “State-of-the-art product-service systems.” Proceedings of the Institution of Mechanical Engineers, Part B; Journal of Engineering Manufacture. Sage, London. (2007).