Capturing and enhancing provider value in product-service systems throughout the lifecycle: A systematic approach

Matschewsky, Johannes; Lindahl, Mattias; Sakao, Tomohiko

doi:10.1016/j.cirpj.2018.08.006

Cited by 30 publications

(15 citation statements)

References 55 publications

(114 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As with a lifelong warranty, the provider needs to maintain the products and cover service requests. A benefit for providers is to better understand their customers, but it also means that providers have more responsibility (Matschewsky et al, 2020). The second research question investigates operational implications of a shift from product-to service-based offerings.…”

Section: Rq1 What Are the Resource Efficiency Implications Of A Manufmentioning

confidence: 99%

Simulation Modelling of a Shift to Service-Based Offerings : Resource efficiency and operational implications in the context of the circular economy

Wasserbaur

2021

Linköping Studies in Science and Technology. Dissertations

View full text Add to dashboard Cite

Section: Rq1 What Are the Resource Efficiency Implications Of A Manufmentioning

confidence: 99%

Simulation Modelling of a Shift to Service-Based Offerings : Resource efficiency and operational implications in the context of the circular economy

Wasserbaur

2021

Linköping Studies in Science and Technology. Dissertations

View full text Add to dashboard Cite

“…The perceived value might also be higher, especially for business-tobusiness transactions (Meier et al, 2010). The provider or company offering the PSS may also experience a change in the value they experience (Matschewsky, Lindahl, & Sakao, 2018).…”

Section: Alternatives and Functional Unitmentioning

confidence: 99%

Life Cycle Costing : Supporting companies towards a circular economy

Kambanou

2021

Linköping Studies in Science and Technology. Dissertations

View full text Add to dashboard Cite

Increased consumption has resulted in the depletion of non-renewable resources and an explosion in waste. A circular economy proposes to sustain economic growth but decouple it from resource consumption by keeping products and materials in the economy. Established companies have an important role to play because they can implement maintenance, repair, remanufacture, recycling and other circular measures for their offerings, thus facilitating their retention in the economy. When applying circular measures for existing products, their costs and revenues change across the lifecycle, sometimes significantly, thereby calling into question the financial viability of the more circular offering. Life cycle costing (LCC), an existing method for calculating the costs of a product or service across the lifecycle, can help companies take stock of these changes. LCC can also be used in conjunction with life cycle assessment (LCA), a method for assessing the environmental impacts of a product or service across the lifecycle.The aim of this research, therefore, is to explore how LCC can be used to support established companies in selecting and implementing circular measures for their offerings. The research is conducted through case studies involving four companies, and data is collected through literature reviews, document and cost data sets analysis, interviews and focus groups. The findings are based on six publications.The identified uses for LCC go beyond the ones that lead to its selection and are commonly discussed in the literature. Firstly, the difference in material cost between the alternatives being compared can be calculated from the LCC results. This can be used as an indicator of the alternatives' comparative circularity performance. LCC can also provide input to designers on which parts of the offering to prioritize applying a circular measure, as well as cost exchangeability. One of the most significant uses is that LCC can help create awareness, build up an understanding and provide a forum for discussing the challenges associated with implementing circular measures, such as the changing financial incentive structure, uncertainty, improvement areas for information systems and mismatches in stakeholders' financial incentives. This use is critical in helping individuals and companies overcome mind-set and cultural barriers to a circular economy. Finally, LCC can spread the lifecycle idea and evidence the need for life cycle management (LCM), but may lead to a narrower understanding of the term life cycle and put the focus exclusively on resources rather than environmental impacts.Another finding is that companies, despite the many uses, may not use LCC because it contests elements of their extant practices, such as collective knowledge, mind-set of individuals and symbolic and material objects. It is the outcome of this contestation that will play a significant role in determining if LCC is used.

show abstract

“…1. compare company fLCC if BAU and circular offering are functionality equivalent and of equal value for the customer; if not then compare company fLCC, revenue and customer fLCC Research confirms that value can change considerably after the improvement, for both the companies (Matschewsky, Lindahl, & Sakao, 2018) and the customer (Mont, Plepys, Whalen, & Nußholz, 2017;Tukker, 2015) and additionally the application of circular measures e.g. repurposing makes defining a product complicated.…”

Section: Lcc and The Financial Perspectivementioning

confidence: 99%

Using life cycle costing (LCC) to select circular measures: A discussion and practical approach

Kambanou

Sakao

2020

Resources, Conservation and Recycling

Self Cite

View full text Add to dashboard Cite

The implementation of circular measures in businesses constitutes a solution to future resource scarcity, which has yet to gain momentum. To select and implement such measures, companies, with limited resources need practical and easy-to-use guides that help them understand the financial outcomes while leading them towards more circular solutions. To this end, a guideline based on Lifecycle Costing (LCC), which fulfils the aforementioned criteria, has been created. The guideline directs the companies towards measures at the top of the CE hierarchy and LCC is used to assess profitability and provide information on material circularity. Its development follows the Design Research Methodology (DRM) and is based on using LCC at three case companies when selecting circular measures and on literature. Insights on the companies' process and decision criteria as well as the LCC results are presented. One identified critical criterion is the profitability of a circular measure, but comparing the LCC of alternatives is only an adequate measure of profitability, if the alternatives are functionally equivalent and of equal value for the customer, otherwise revenue and customer costs need to be compared as well. In addition, because labour is included in LCC, by categorizing the costs companies can be guided towards exchanging material costs with labour costs. Concerning circularity, in this comparative context, the difference in material cost between the alternatives can be used to measure circularity performance without additional effort. Finally, customization of products was also identified in the company research as a barrier to the implementation of various circular measures.

show abstract

Capturing and enhancing provider value in product-service systems throughout the lifecycle: A systematic approach

Cited by 30 publications

References 55 publications

Simulation Modelling of a Shift to Service-Based Offerings : Resource efficiency and operational implications in the context of the circular economy

Simulation Modelling of a Shift to Service-Based Offerings : Resource efficiency and operational implications in the context of the circular economy

Life Cycle Costing : Supporting companies towards a circular economy

Using life cycle costing (LCC) to select circular measures: A discussion and practical approach

Contact Info

Product

Resources

About