Addressing Uncertainty in Estimating the Cost of Availability Products-Services-Systems. Epistemology and Ontology
A product service system (PSS) is a business model that provides a comprehensive value proposition that combines products and services, rather than simply offering products. They can build long-term relationships with customers and provide added value over the entire product lifecycle.
An ontology is a formal definition of concepts and relationships in a particular domain that helps to share knowledge and integrate information in that domain, and is one of the tools that can help in the design and implementation of a PSS. A PSS contains information about products, services, and the processes that deliver them, and expressing this information in unified terms and concepts can facilitate a common understanding among the multiple stakeholders involved in the design and implementation of a PSS. This corresponds to, for example, defining terms and concepts for products and services in PSS using an ontology, which facilitates communication and information sharing during the design and development phases.
In addition, since PSS contains a vast amount of information, the use of ontologies enables structuring and categorizing data related to products and services. This makes it easier to search for and access information related to the PSS and to gain insights useful for improving customer satisfaction and service quality.
In this section, we discuss this PSS and ontology in Chapter 7 of “Ontology Modeling in Physical Asset Management,” “Dealing with Uncertainty in Estimating the Cost of Product-Service-Systems for Availability. Epistemology and Ontology” as a basis.
From an article in Cloud ERP Portal. Product Service System (PSS) is an abbreviation for Product Service System, which is a method to achieve sustainable consumption. In the traditional manufacturing industry, the mainstream business model is based on selling products, but in the Product Service System, the mainstream business model is based on selling services instead of selling products. However, the product-service system is one that provides services to customers based on the idea of “selling services, not goods. Companies in Europe, the U.S., and other parts of the world are shifting from product sales to product-service systems, with some companies aiming to reduce their environmental impact and efficiently fulfill their EPR (Extended Producer Responsibility).
In order to consider the product-service system, we will discuss the difference between products and services. A product is something whose value does not change even after a certain amount of time has passed since it was purchased, such as hardware products including home appliances and automobiles. A service, on the other hand, is not something that has a clear value at the time of purchase, but something that brings value to the customer through continued use.
For example, a smartphone appears to be a product with value from the time it is purchased, but the longer it is used, the more value it brings to the user through the use of applications, communication with friends, and the photos that remain on the phone. In this sense, a smartphone is not a product but a service.
There are two main types of product service systems: utilization-type PSS and life-extension-type PSS. An activity-based PSS is a product service that allows multiple users to share a single product used by a company or individual.
Products that are influenced by trends, such as bags and other fashion items, products that are owned even if they are used infrequently, such as automobiles and household tools, products that are temporarily needed, such as baby items, and products that have high initial and maintenance costs, such as houses and solar panels, are examples of utilization-type PSS.
Car sharing, which is becoming more widespread, and movies themselves are also active PSSs, but the fact that multiple users can watch one movie content and enjoy various contents with one service, which is a service other than “watching a movie,” can be said to be a major feature of active PSSs.
A life-extension PSS is a product that aims to reduce the need for replacement or disposal by extending the life of the product through maintenance, repair, or upgrade. Examples include products that are expensive and require special skills for repair, such as aircraft and electronic equipment, and products that require regular maintenance to maintain their appearance, such as furniture.
A Product Service System (PSS) is required to create value in the services attached to the product. In order to create value, it is important to know the characteristics of the service. In this section, we will discuss the four essentials of creating value in services.
The first is intangibility, which refers to the absence of a visible form or shape. In the case of car sharing, the car is visible and can be touched, but the service of “car sharing = sharing a car with multiple users” is invisible. Therefore, the service can be said to be intangible.
Next, Heterogeneity, services cannot be standardized, and even if there are multiple services with the same content, the way the service is provided differs from provider to provider, and they are rarely all provided in the same form. If all services are mechanical and single, they will not meet the needs of customers and will not improve the quality of the service.
Even if the service content and delivery method are the same, each customer will receive it differently. Each customer feels differently, and the quality of the service is affected by this, giving the service individuality and “heterogeneity.
The third is Inseparability, which refers to the fact that provision and consumption take place simultaneously. Unlike ordinary products, services cannot be held for a long time. For example, the service of “sharing a car with multiple users” in car sharing is provided only during the time when the user is using the car sharing service. In other words, the provision of the car-sharing service and its consumption are simultaneous.
The last element is perishability. Since services are intangible and simultaneous, they disappear as soon as they are provided. For example, in car sharing, the service of “sharing a car with multiple users” occurs only during the time when the car is in use, but the service disappears as soon as the use ends.
This paper describes an approach using ontology to estimate the cost of this PSS.
Rolls-Royce has been providing engine overhaul and repair services for the past 50 years, and as an OEM, providing these services provides additional revenue as well as knowledge and expertise in how the products are used. When it comes to Rolls-Royce support services, the well-known term “Power by the Hour®” has been in use for several years now. Rolls-Royce registered this trademark in November 1965, indicating that product service offerings are not a new phenomenon, and according to The Economist (2011), Rolls-Royce’s foray into the service industry could serve as a lesson for other industries in the UK. However, this phenomenon is not yet fully understood.
This inadequate understanding is not supported by the literature, which is complicated by the lack of a clear definition of what constitutes and defines a service as distinct from a product, even though research in this area has attempted to address this issue for over 200 years (Parry et al. 2011); Harker (1995) humorously describes services as “things you can’t drop on your feet.” His work supports the commonly used IHIP characteristics of services: intangible – service provision may require a physical object, but services exist only in relation to other things; the IHIP definition is useful, with the exception of the production of high-value investment goods and (2006) argue that products and services should no longer be considered “isolated artifacts” as long as the performance of the former is supported by the latter and satisfies customer requirements for product-related functions. (2006) suggest that products and services should no longer be regarded as “isolated artifacts.
Vandermerwe and Rada (1988) use the term servitization to describe this move by companies to capture more value through the provision of services associated with their products. Vandermerwe and Rada (1988) use the term servitization to describe this move by firms to capture more value through service offerings associated with their products. The portfolio of product and service offerings by firms has been studied in the academic literature and is often referred to as a “product-service system” (PSS).
Baines and Lightfoot (2013) point out that a special case of servitization is the provision of “advanced services” by product-service systems tied to incentive-laden contracting mechanisms such as performance-based, performance-based, and availability contracts. Meier et al. (2010) emphasize that delivery systems like PSS are socio-technical systems that are knowledge-intensive in nature. However, the purpose of this chapter is not to provide an extensive review of PSSs; Tukker (2014) provides an analysis of the current product service literature; Tukkers’ findings on PSS conceptualization and terminology, as well as design methodologies (pp. 15-16), provide clear insight into some of the challenges. In particular, … . tools are still lacking, and there may be a lack of emphasis on the requirements that should drive PSS design and how to organize the co-creation process” and “It is striking, however, that quantitative research methods that analyze quantitative data from case studies are still rarely applied. Such research is desirable in the future…” He stated.
This chapter aims to provide an approach to address the challenges of dealing with uncertainty in the context of estimating the cost of a PSS for availability. cavalieri and Pezzotta (2012) comprehensively treat a PSS as a “system” and its dynamic behavior on a time Hypko et al. (2010) emphasize that manufacturers that focus on providing advanced services are more likely to face uncertainty in outcomes related to economic development and deal with uncertain revenues, while manufacturers that only provide equipment and support are more likely to deal with uncertain maintenance costs. Therefore, it is crucial for advanced service providers to absorb good knowledge of their customers and their core business processes in order to gain a competitive advantage over other potential providers. To this end, Erkoyuncu et al. (2011a) highlight the lack of a framework that supports the understanding of the interconnections between economic agents involved in the provision of advanced services by PSS in terms of the activities that take place in the provision of such services. In this regard, priority is given to capturing and visualizing the dynamic nature of supply and demand for services, especially for the purpose of modeling cost uncertainty.Thenent et al. (2014) point out the theoretical and practical difficulties in achieving a common understanding of PSS among stakeholders. These difficulties can be particularly insidious and misleading when defining how advanced services will be delivered for the purpose of estimating their costs. We conclude with suggestions for future research, focusing on the interplay between epistemology and ontology in the presence of uncertainty.”
7.1 Introduction 7.2 Why Is Uncertainty Important in Modelling a PSS? 7.3 Systems-Based Approach to Cost Modelling for PSS 7.4 Uncertainty in Classic Service Cost Estimation 7.5 Uncertainty in a System-Based Model 7.6 Addressing Uncertainty in PSS 7.6.1 Are We Measuring the Right Things? 7.6.2 Towards an Ontology for PSS 7.7 Conclusions
Application of AI Technology to Product-Service Systems
In Product-Service Systems (PSS), AI technology can be applied in various aspects. The following are examples of application of AI technology to PSS.
- Understanding and predicting customer needs: AI technologies can be used to analyze customer behavior data and preference information to understand customer needs and requirements. Machine learning and data mining techniques can be used to predict customer preferences and trends, enabling the provision of individually customized products and services.
- Predictive maintenance and maintenance of products: Utilize sensor data and anomaly detection algorithms to monitor product status in real time and predict potential failures and problems. This enables preventive maintenance and timely maintenance to improve product availability and reliability.
- Real-time support and troubleshooting: Utilize AI technology to help resolve problems and failures that occur during product use. This will be done through a mechanism that combines natural language processing and chatbot technology to provide real-time support by troubleshooting through customer interaction.
- Product Design and Optimization: AI technology will be used to design and optimize products. This will utilize generative models and evolutionary algorithms to automatically optimize product design parameters and features to provide the best product to meet customer requirements and constraints.
- Predictive Analytics and Demand Forecasting: AI technology is used to forecast market demand and analyze trends. This involves analyzing time-series and market data and building demand forecasting models to help forecast product demand and optimize production planning.
The application of these AI technologies will enable PSS to achieve more effective customer satisfaction and business performance, as well as contribute to data-driven decision making and efficient resource utilization.
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