%0 Journal Article %T Performance Assessment of Product Service System from System Architecture Perspectives %A John P. T. Mo %J Advances in Decision Sciences %D 2012 %I Hindawi Publishing Corporation %R 10.1155/2012/640601 %X New business models in complex engineering products have favoured the integration of acquisition and sustainment phases in capability development. The product service system (PSS) concept enables manufacturers of complex engineering products to incorporate support services into the product¡¯s manufacturing and sustainment lifecycle. However, the PSS design has imposed significant risks to the manufacturer not only in the manufacture of the product itself, but also in the provision of support services over long period of time at a predetermined price. This paper analysed three case studies using case study research design approach and mapped the service elements of the case studies to the generic complex engineering product service system (CEPSS) model. By establishing the concept of capability distribution for a PSS enterprise, the capability of the CEPSS can be overlaid on the performance-based reward scheme so that decision makers evaluate options related to the business opportunities presented to them. 1. Introduction Recent trend around the world among the owners of complex engineering systems such as aircraft or oil refinery is to include consideration for the sustainment of the system at the very early stages of system development. According to the Defence Materiel Organisation in Australia [1], the asset acquisition project is considered a continuum of four phases, which can be generalised as a capability systems lifecycle as shown in Figure 1. The goal is to ultimately attain desired capability levels that can be measured as a performance outcome of systems in-service. Figure 1: Capability systems lifecycle. There are two different contracting regimes in Figure 1.(i)System acquisition agreements including functional and performance specification of the final system, that is, the tendering and contracting activities in the acquisition phase.(ii)Sustainment agreements specifying outcomes and performance requirements for in-service support, that is, the in-service support contracts in the sustainment phase.Although it is still early stage process development, the Australian Defence intends to adopt a more integrated approach by contracting for acquisition and sustainment simultaneously in some of their new system acquisitions. Similarly, the Ministry of Defence [2] in UK is managing a general shift in defence acquisition away from the traditional pattern of designing and manufacturing successive generations of platforms. Instead, a new paradigm centred on support, sustainability, and the incremental enhancement of existing capabilities from %U http://www.hindawi.com/journals/ads/2012/640601/