Design of Competitive Maintenance Service for Durable and Capital Goods Using Life Cycle Simulation

Abstract

Maintenance is crucial in the life cycles of such durable goods as computers, cars, and office equipment and of such capital goods as machine tools and industrial robots. We developed a life cycle simulation model for analyzing maintenance in a life cycle while varying user behavior in a competitive environment to study the economic feasibility of integrating maintenance with other services from an auto manufacturer's perspective. We found that the feasibility of integration depends on user preference for specific service content and purchase timing and on the types of service content provided and discounted by competitors. We also found that a comprehensive maintenance package must be carefully designed considering the diversity of user behavior if sales are to be raised over those of on-the-spot maintenance.