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
References
[1]
Defence Materiel Organisation, Performance Based Contracting Handbook—Guiding Principles and Performance Framework, Version 2. 0, Australian Department of Defence, 2007, http://www.defence.gov.au/dmo/asd/publications/asd_pbc_v2.pdf.
[2]
Ministry of Defence, “Defence Industrial Strategy,” Defence White Paper, The UK Defence White Paper, 2005.
[3]
S. Brammer and H. Walker, “Sustainable procurement in the public sector: an international comparative study,” International Journal of Operations & Production Management, vol. 31, no. 4, pp. 452–476, 2011.
[4]
H. Corsten and R. G？ssinger, “Output flexibility of service enterprises—an analysis based on production theory,” International Journal of Production Economics, vol. 104, no. 2, pp. 296–307, 2006.
[5]
D. J. A. Sherwin, “A review of overall models for maintenance management,” Journal of Quality in Maintenance Engineering, vol. 6, no. 3, pp. 138–164, 2000.
[6]
F. T. S. Chan, H. C. W. Lau, R. W. L. Ip, H. K. Chan, and S. Kong, “Implementation of total productive maintenance: a case study,” International Journal of Production Economics, vol. 95, no. 1, pp. 71–94, 2005.
[7]
A. S. B. Tam, W. M. Chan, and J. W. H. Price, “Optimal maintenance intervals for a multi-component system,” Production Planning and Control, vol. 17, no. 8, pp. 769–779, 2006.
[8]
G. Abdul-Nour, M. Demers, and R. Vaillancourt, “Probabilistic safety assessment and reliability based maintenance policies: application to the emergency diesel generators of a nuclear power plant,” Computers & Industrial Engineering, vol. 42, no. 2–4, pp. 433–438, 2002.
[9]
S. Colombo and M. Demichela, “The systematic integration of human factors into safety analyses: an integrated engineering approach,” Reliability Engineering and System Safety, vol. 93, no. 12, pp. 1911–1921, 2008.
[10]
Y. Shen, “Selection incentives in a performance-based contracting system,” Health Services Research, vol. 38, no. 2, pp. 535–552, 2003.
[11]
C. J. Heinrich and Y. Choi, “Performance-based contracting in social welfare programs,” The American Review of Public Administration, vol. 37, no. 4, pp. 409–435, 2007.
[12]
K. A. Chatha, J. O. Ajaefobi, and R. H. Weston, “Enriched multi-process modelling in support of the life cycle engineering of Business Processes,” International Journal of Production Research, vol. 45, no. 1, pp. 103–141, 2007.
[13]
Defence Materiel Organisation, ASDEFCON (Support) V3. 0 Performance Management Framework, Version 3. 0, Australian Department of Defence, 2011, http://www.defence.gov.au/dmo/gc/asdefcon/asdefcon_support/vers_3/PPBC_Framework.pdf.
[14]
I. C. L. Ng, G. Parry, D. McFarlane, and P. Tasker, “Towards a core integrative framework for complex engineering service systems,” in Complex Service Systems: Concepts and Research, I. C. L. Ng, P. Wild, G. Parry, D. McFarlane, and P. Tasker, Eds., Springer, London, UK, 2011.
[15]
T. Abe, “What is service science,” Research Report 246, The Fujitsu Research Institute, Economic Research Centre, Tokyo, Japan, 2005.
[16]
A. Tukker, “Eight types of product-service system: eight ways to sustainability? Experiences from suspronet,” Business Strategy and the Environment, vol. 13, no. 4, pp. 246–260, 2004.
[17]
T. S. Baines, H. W. Lightfoot, S. Evans et al., “State-of-the-art in product-service systems,” Journal of Engineering Manufacture, vol. 221, no. 10, pp. 1543–1552, 2007.
[18]
J. Spohrer, P. P. Maglio, J. Bailey, and D. Gruhl, “Steps toward a science of service systems,” Computer, vol. 40, no. 1, pp. 71–77, 2007.
[19]
P. Johansson and J. Olhager, “Linking product-process matrices for manufacturing and industrial service operations,” International Journal of Production Economics, vol. 104, no. 2, pp. 615–624, 2006.
[20]
A. D. Neely, “Exploring the financial consequences of the servitization of manufacturing,” Operations Management Research, vol. 1, no. 2, pp. 103–118, 2009.
[21]
Z. J. M. Shen and M. S. Daskin, “Trade-offs between customer service and cost in integrated supply chain design,” Manufacturing and Service Operations Management, vol. 7, no. 3, pp. 188–207, 2005.
[22]
IfM and IBM, “Succeeding through Service Innovation,” A Discussion Paper, University of Cambridge, Cambridge, UK, 2007.
[23]
I. C. L. Ng, G. Parry, L. Smith, and R. Maull, “Value co-creation in complex engineering service systems: conceptual foundations,” in Proceedings of the Forum on Markets and Marketing: Extending the Service Dominant Logic, pp. 24–26, Cambridge, UK, September 2010.
[24]
R. D. Behn and P. A. Kant, “Strategies for avoiding the pitfalls of performance contracting,” Public Productivity and Management Review, vol. 22, no. 4, pp. 470–489, 1999.
[25]
G. Doucet, J. G？tze, P. Saha, and S. Bernard, “Coherency management: using enterprise architecture for alignment, agility, and assurance,” Journal of Enterprise Architecture, vol. 4, no. 2, pp. 9–20, 2008.
[26]
V. Veneziano, S. Jones, and C. Britton, “Adding a systemic view to the requirements engineering processes,” in Proceedings of the 9th International Workshop on Database and Expert Systems Applications, pp. 321–325, Florence, Italy, September 1999.
[27]
H. Shen, B. Wall, M. Zaremba, Y. Chen, and J. Browne, “Integration of business modelling methods for enterprise information system analysis and user requirements gathering,” Computers in Industry, vol. 54, no. 3, pp. 307–323, 2004.
[28]
P. Bernus and L. Nemes, “A framework to define a generic enterprise reference architecture and methodology,” Computer Integrated Manufacturing Systems, vol. 9, no. 3, pp. 179–191, 1996.
[29]
P. D. Denton, D. Little, R. H. Weston, and A. Guerrero, “An enterprise engineering approach for supply chain systems design and implementation,” International Journal of Services and Operations Management, vol. 3, no. 2, pp. 131–151, 2007.
[30]
J. P. T. Mo and L. Nemes, “Issues using EA for merger and acquisition,” in Coherency Management: Architecting the Enterprise For Alignment, Agility, and Assurance, G. Doucet, J. G. G？tze, P. Saha, and S. Bernard, Eds., Chapter 9, pp. 235–262, Author House, 2010.
[31]
D. Kwon, W. Oh, and S. Jeon, “Broken ties: the impact of organizational restructuring on the stability of information-processing networks,” Journal of Management Information Systems, vol. 24, no. 1, pp. 201–231, 2007.
[32]
G. J. Molloy and C. A. O'Boyle, “The SHEL model: a useful tool for analyzing and teaching the contribution of human factors to medical error,” Academic Medicine, vol. 80, no. 2, pp. 152–155, 2005.
[33]
Y. H. Chang and C. H. Yeh, “Human performance interfaces in air traffic control,” Applied Ergonomics, vol. 41, no. 1, pp. 123–129, 2010.
[34]
M. Felici, M. A. Sujan, and M. Wimmer, “Integration of functional, cognitive and quality requirements. A railways case study,” Information and Software Technology, vol. 42, no. 14, pp. 993–1000, 2000.
[35]
W. Lei and D. Le, “Risk evaluation of human factors in flight deck system,” in Proceedings of the 2nd IEEE International Conference on Advanced Management Science (ICAMS '10), pp. 381–385, Chengdu, China, July 2010.
[36]
S. Chattopadhyay and J. P. T. Mo, “Modelling a global EPCM (Engineering, Procurement and Construction Management) enterprise,” International Journal of Engineering Business Management, vol. 2, no. 1, pp. 1–8, 2010.
[37]
S. Chattopadhyay, D. S. K. Chan, and J. P. T. Mo, “Business model for virtual manufacturing: a human-centred and eco-friendly approach,” International Journal of Enterprise Network Management, vol. 4, no. 1, pp. 39–58, 2010.
[38]
S. Chattopadhyay, D. S. K. Chan, and J. P. T. Mo, “Modelling the disaggregated value chain—the new trend in China,” International Journal of Value Chain Management, vol. 6, no. 1, pp. 47–60, 2012.
[39]
F. R. Serra and M. P. Ferreira, “Emerging determinants of firm performance: a case study research examining the strategy pillars from a resource-based view,” Management Research, vol. 8, no. 1, pp. 7–24, 2010.
[40]
S. A. Seuring, “Assessing the rigor of case study research in supply chain management,” Supply Chain Management, vol. 13, no. 2, pp. 128–137, 2008.
[41]
A. Lewis, A. Elmualim, and D. Riley, “Linking energy and maintenance management for sustainability through three American case studies,” Facilities, vol. 29, no. 5, pp. 243–254, 2011.
[42]
E. Holschbach and E. Hofmann, “Exploring quality management for business services from a buyer's perspective using multiple case study evidence,” International Journal of Operations & Production Management, vol. 31, no. 6, pp. 648–685, 2011.
[43]
X. Zhang, D. P. van Donk, and T. van der Vaart, “Does ICT influence supply chain management and performance?: a review of survey-based research,” International Journal of Operations & Production Management, vol. 31, no. 11, pp. 1215–1247, 2011.
[44]
G. Kucza and H. Gebauer, “Global approaches to the service business in manufacturing companies,” Journal of Business & Industrial Marketing, vol. 26, no. 7, pp. 472–483, 2011.
[45]
N. N. Grünbaum, “Identification of ambiguity in the case study research typology: What is a unit of analysis?” Qualitative Market Research, vol. 10, no. 1, pp. 78–97, 2007.
[46]
R. K. Yin, “Case study methods,” in Complementary Methods for Research in Education, J. L. Green, G. Camilli, P. B. Elmore, A. Skukauskaite, and E. Grace, Eds., Chapter 6, pp. 111–122, American Education Research Association, Washington, DC, USA, 3rd edition, 2006.
[47]
L. K. Huang, “Top management support and IT adoption in the Taiwanese small and medium enterprises: a strategic view,” International Journal of Enterprise Network Management, vol. 2, no. 3, pp. 227–247, 2008.
[48]
M. Bielli and A. Bielli, “Innovation paths management in collaborative enterprise clusters,” International Journal of Enterprise Network Management, vol. 2, no. 4, pp. 366–376, 2008.
[49]
S. Yang, M. Sammut, T. Kearney, and J. P. T. Mo, “Engine condition monitoring with ignition signals,” in Proceedings of the Intelligent Vehicle & Road Infrastructure Conference, Melbourne, Australia, February 2005.
[50]
J. P. T. Mo, “Case study—farley remote operations support system,” in Enterprise Integration Handbook, P. Bernus, L. Nemes, and G. Schmidt, Eds., Chapter 21, pp. 739–756, Springer, New York, NY, USA, 2003.
[51]
G. A. Rathwell and T. J. Williams, “Use of the purdue enterprise reference architecture and methodology in industry,” in Model and Methodologies For Enterprise Integration, pp. 12–44, Chapman & Hall, London, UK, 1996.
[52]
Y. Kamio, F. Kasai, T. Kimura, Y. Fukuda, I. Hartel, and M. Zhou, “Providing remote plant maintenance support through a service virtual enterprise,” in Global Engineering and Manufacturing in Enterprise Networks, vol. 224, pp. 195–206, VTT Symposium, Helsinki, Finland, December 2002.
[53]
C. Clifton and C. F. Duffield, “Improved PFI/PPP service outcomes through the integration of Alliance principles,” International Journal of Project Management, vol. 24, no. 7, pp. 573–586, 2006.
[54]
J. P. T. Mo, M. Zhou, J. Anticev, L. Nemes, M. Jones, and W. P. Hall, “A study on the logistics and performance of a real virtual enterprise,” International Journal of Business Performance Management, vol. 8, no. 2-3, pp. 152–169, 2006.
[55]
W. P. Hall, “Managing technical documentation for large defence projects: engineering corporate knowledge,” in Proceedings of the Global Engineering, Manufacturing and Enterprise Networks, pp. 370–378, Melbourne, Australia, November 2000.
[56]
L. Nemes and J. P. T. Mo, “Collaborative networks in Australia—challenges and Recommendations,” in Collaborative Networked Organizations, L. M. Camarinha-Matos and H. Afsarmanesh, Eds., pp. 97–102, Kluwer Academic, New York, NY, USA, 2004.
[57]
Y. Xiaoli and M. Shanley, “Industry determinants of the “merger versus alliance” decision,” Academy of Management Review, vol. 33, no. 2, pp. 473–491, 2008.
