“…As customer's individual needs of PSS intensifies, the costs of providing PSSincreaserapidly. However,the key to solving the conflict between personalization and low cost is to fulfill the modular design for physical product and service aiming to customer needs.By establishing a series of standard physical product and service modules can make internal modules less diversified, which also can reduce production costs and reduce environmental influences (Ulrich, 1991).In order to enhance the potential after the integrationof physical product and service, Aurich first proposed a modular design framework for PSS, and established modular principles for technical PSS (Aurich et al, 2006;Aurich et al, 2007;Aurich et al, 2009). Then, Li presented a modular generalized product and service system with four levels, were namely customer requirement layer, service solution decision layer, parts layer, and instance implementation layer (Li, 2013).The customer requirement layer mainly obtainsinformation on user needs, and classifies the needs into functional service needsand non-functional service needs.…”