Abstract
Product service system (PSS) is becoming a popular business model, where companies offer product based service to customers to realize steady recurring revenue. However, to provide PSS-based service to customers in reliable way, PSS need to be supplemented with a field repair kit onsite, in case of parts failure and PSS shutdown. The field repair kit consists of frequently used spare parts in multiple quantities. However, mismatch in spare parts type and quantities in the field repair kit will results in sub-par performance of PSS for both customer and company. In this paper, a case study involving industrial PSS repair kit optimization is presented. In the case study, the field repair kit for complex industrial printing system is cost optimized, while satisfying the system availability requirement, specified by the maintenance contract between the company and the customer. Key analysis steps and results are presented to offer insight into the PSS field repair kit optimization, offering useful references to industrial practitioners.
Highlights
Research on the product service system (PSS) [1,2] is increasing as many leading global industries are shifting their focus toward product based services
The results show that in order to meet the PSS availability requirement of 95%, the total cost of the field repair kit must increase by more than 60% over that of the originally proposed field repair kit composition in Scenario
Cost savings realized by the adjustment of the field repair kit inventory should be balanced against the expected PSS confidence level for meeting availability requirement promised to customers
Summary
Research on the product service system (PSS) [1,2] is increasing as many leading global industries are shifting their focus toward product based services. For the amusement park ride example previously mentioned, the ride apparatus must be operational during park business hours to provide customers with a satisfactory ride experience Not meeting this availability requirement, due to ride apparatus failure, will result in loss of customers and revenue. Product design teams rely on their prior experiences to determine the types and quantities of spare parts in field repair kits. This often result in a sub-optimal field repair kit, containing some spare parts that are never used, or carrying less-than-necessary quantities of some spare parts that are always used This mismatch of spare parts inventory may cause unacceptable downtime and lost revenue for PSS customers and providing companies.
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