PLM: future of production systems

7/29/2019 PLM: future of production systems

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The Future of Production Systems


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SERVICE

INDUSTRY

& PLM


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INTRODUCTION

Service business has been existing almost from thebeginning of civilization and yet we are stillexperiencing a trend towards a more and more service

oriented world Current service applications range from adding service

elements to industrial products for creating new serviceconcepts that are based on todays interconnected,

digital and globally networked business environment.

Today, leading service companies are proving thatservice development can be as precise as the

development of tangible products.


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INTRODUCTION

Challenges in applying the discipline of formal productprocesses are:

Service is intangible often existing only in moment of itsdelivery

It is difficult to make prototype and zero series to learn aboutdelivery in high volumes

Experiments with new services are conducted live on customer

Live tests magnify cost of failures(may ruin the brand)

Hard to define, design and test in conventional way


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WHAT IS A SERVICE

service is something very trivial. It is aneconomic activity which does not result

in ownership; the action or process of serving or an

act of assistance or a system supplying

a public need such as transport, orutilities such as water or a publicdepartment or organization run by the

state.


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A service is a process consisting of a series of a

more or less intangible activities that normally,but not necessarily always, take place ininteractions between the customer and serviceemployees and/or physical resources or goods

and/or systems of the service provider, whichare provided as solutions to customer problems.

WHAT IS A SERVICE

According to Finnish Professor Christian Gronroos


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A service is, a time perishable, intangible

experience performed for customeracting in the role of co-producer.

WHAT IS A SERVICE

According to Mona and Fitzsimmmons


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Two Core elements

Service is a process a sequence of

tasks that will provide an end result(standard or customized) to a customer(internal or external).

Services are physically intangible.

CORE ELEMENTS OF

SERVICES


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Heterogeneity It is a relatively difficult tostandardize service outcomes to some extent.Customers have individual, subjective expectations and

they evaluate the outcomes and delivery of service(against their own expectations).

Inseparability and simultaneity Many servicesare produced and consumed simultaneously and thecustomer is often present at the moment ofconsumption. Service consumption begins during theservice delivery.

CHARACTERISTICS OF

SERVICES


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CHARACTERISTICS OFSERVICES

Time perish ability The service providerscapacity to deliver a service is time-perishable. Capacityto deliver a service at a given time is wasted, not the

service offering itself or the resource for the service.

Customer participation(co-production) Customersare often active participants in the service process, e.g.giving the basic inputs needed in order to initiate aservice.

Transfer of ownership Service purchase doesnot result in transfer of ownership although it may

result in a transfer of right to receive a service.


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Labor intensity Services almost always involveconsiderable human activity, rather than a preciselydetermined process..

Intangibility - Usually services are claimed to bephysically intangible, i.e. non-physical, incapable ofbeing perceived by the senses.

Heterogeneity-An other common claim in theservice industry has been that it is relatively difficultto standardize service outcomes or processes

(variability in individual units of service production).

CHARACTERISTICS OF

SERVICES


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CATEGORIZING SERVICES

i. Industrial services (maintenance, operation, optimization, etc., inindustrial production processes)

ii. Transportation services (airlines, ferries, goods transportation,couriers)

iii. Hospitality services (hotels, restaurants)iv. Health care services (hospitals, clinics, dentist)

v. Government services (police, fire, mail)

vi. Financial services (banking, insurance, investments)

vii. Entertainment services (movies, concerts)viii. Professional Services (consulting, accounting, legal, design, project

management)

ix. Telecommunications services (fixed network access, mobilecommunication, attendant services)

x. IT Services (application hosting, workstation management)


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THREE PRODUCT TYPES


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WHY SHOULD SERVICES BE MADE

MORE TANGIBLE

Service production and delivery is becomingmore and more industrialized. The globalmegatrend towards a service society and the

ever growing demand for services in themarket

Start building carefully defined, modular,

configurable and easily repeatable serviceproducts, i.e. productizing and modularizingservices further, making them more productlike or tangible.


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REASONS FOR MAKING A

SERVICE TANGIBLE

Repeatability - A standardized servicedefinition makes it possible to repeat theservice multiple times exactly as defined.

Volume - Use of clear, precise and standardproduct and information models in service

design and production makes it possible to useIT-based support systems and automation inservice management and delivery in order tomultiply the production and delivery of the

service products.


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Quality

A standard service definition gives ability to deliverthe service with the same level of quality each time.

A standard service definition gives ability to measureand steer the service quality in production anddelivery.

A standard service definition gives ability to steerthe customers quality expectation and agree (e.g.SLA service level agreement) upon the quality to bedelivered to the customer.

REASONS FOR MAKING A

SERVICE TANGIBLE


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Efficiency

More efficient use of resources in service production ispossible through streamlined service delivery processesand well defined services.

More efficient use of resources and reduced time tomarket is possible through reutilization of productdefinition information when designing new serviceproducts.

Load balancing -

Load balancing in service production is easier due toknowledge and task transfer based on a standard way of

defining a service and through service definitions.

REASONS FOR MAKING

A SERVICE TANGIBLE


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Analytical development Each service has to be defined and documented precisely using

standard methodology for all products in order to be able to

develop the service further using analytical developmentmethods.

Customization and modularity Each service has to be defined based on common and

standardized information and product models in order to be

able to build and deliver customizable and modular services. Communication

Standard service definition makes it possible to communicatethe service deliverables and required customer inputs preciselyto markets and customers.

REASONS FOR MAKING

A SERVICE TANGIBLE


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PRODUCTIZING THE SERVICE

CONCEPT

First step is creating a comprehensive serviceconcept definition: Analyzing needs of a customer:

(a) Core needs

(b) Secondary needs, and then

How customer needs are met by the service

Figure 40. Service concept by Edvardson and Olsson (1996).


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SERVICE CONCEPT

A service concept includes always adefinition on a high level of the basic

principles of services to be delivered: A definition of possible service content and

the variation of different contents

A definition of basic service process(definition of the service delivery)

A definition of service deliverables on a high

level


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NEEDS OF CUSTOMERS

Service products match the needs of acustomer in two stages:

i. Basic / Core Needs

ii. Secondary Needs

Basic/core needs core functions: a customerexpects that these functions are part of the

product. The lack of these functions leadsdirectly to dissatisfaction. These functions alsousually determine the purchasing logic of thecustomer


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SECONDARY NEEDS

Performance needs the capability to meetthese needs are most often evaluated incustomer satisfaction surveys. Inability tomeet these needs impacts customersatisfaction.

Excitement needs if these needs arematched, the customer experience exceeds thecustomer expectations.


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Figure 41.

Scaled examples of the

possible benefit

potential out of service

productization

regarding different

types of service


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Table 5. Service definition grouping.


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Being able to build any kind of standardized service products

Being able to modularize service products

Being able to define the service levels

Being able to manage products in a companys product portfoliosimilarly

Being able to compare performance of delivery processes

Being able to integrate processes end-to-end

Being able to standardize the delivery of service products

Being able to bundle a number of products together easily

Being able to use standard IT-systems to support the delivery ofthe entire service portfolio


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In order to start utilizing the possibilities brought by IT and

automation, a standard definition for a service-product within a

company is needed. In addition to this a comprehensiveservice-product concept definition helps to realize practical

benefits ofcreation, and delivery of service products

An other practice that should be adapted from themanufacturing business by the service industry is the

logic and relationship of product design and delivery.

DEFINING SERVICE

PRODUCTs


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SERVICE PRODUCT PROCESSES

Figure 42. Service product development, the design documents or design dataand the service process (order-delivery process).


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DEFINING SERVICE

PRODUCTs

A service product is a product that has beendesigned through a carefully defined productdesign process and fulfils the following criteria:

Information and product models exist (a service productis a part of the information and product models), i.e. it ispossible to define a service product as tangible productsare defined, based on a common model.

A service definition exists and it includes thefollowing issues: Service content definition


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Service process definition (delivery) including tasks androles, resources, documentation for the process

Service deliverables from the customer perspective

Service KPIs (quality metrics)

Service implementation definition regarding, e.g. businesssupport systems in delivery, support, billing, etc.

Service interfaces

A service description (document for internal and externalpurposes) exists.

External communication materials exist.

SERVICE PRODUCT


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PLM IN SERVICEBUSINESS


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the lack of logical, semantic and coherentdefinitions of what a service product is andwhat are the preferred ways to define a

product.

Service functions or features are not itemized,

i.e. it is not possible to make a BOM (bill ofmaterial) like presentation of what the serviceconsists of, in a structured way.


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STANDARDIZED PRODUCT

DEFINITION IS VITAL TO

Modularize service products

Define service levels

Manage products in the product portfolio in the

same way Compare performance of various processes

Integrate processes end-to-end

Standardize delivery of service products Bundle a number of products together easily

to use standard IT-systems to support the

delivery of the entire service portfolio


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PRODUCT STRUCTURE FOR

MODULAR SERVICE PRODUCT DEF


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REQUIREMENT OF MODULAR

PRODUCT DESIGN

A product information model, including definitions forproduct and module and their relationships must bedefined.

A product management concept must set the limits andrequirements for the product and module design anddocumentation so that it is possible to form productsout of modules.

The product functions (the functions the customer willget) need to be itemized.

Naturally the products must be such that it is possible

to create them out of modules.


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TASK LIST

Itemizei. Make items out of product functions (see

next chapter: Making items out of productfunctions)

ii. Define a piece of service to be a module

iii. the module based on principles set in the

product management conceptiv. Define if the piece of service, the

module/item can be reused as a common

module in other products as well


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Structurizei.e. make a product structure out of the modules(resembling hierarchical BOM bill of materials) Build

a hierarchal structure out of the itemized pieces.

Build configuration rules

Set rules on how the itemized pieces of servicefunction together in the structure, i.e. if somemodel is mandatory or optional in the structure

TASK LIST


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Finalize the product definition

Finalize the service product definition using

necessary description and specification documentsto capture and document all remaining productdefinition information (e.g. product implementation)

TASK LIST


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Making Items out of product

functions

a systematic and standard way to identify, encode and name aproduct, a product element or module, a component, a materialor a service. Items are also used to identify documents.

From the viewpoint of product lifecycle management, it isessential that items and their classification should be uniformwithin each company.

It is essential also that items form separate classes,subclasses and groups at a suitable level of coarseness

according to the companys own or, alternatively, widerinternational standards. In the electronics industry, forexample, diodes might form a component class, with Zenerdiodes as a subclass. The clear and logical grouping of itemsinto different classes eases the management and retrieval ofindividual items.


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An example of service item

Figure 45.An example of a service item and its naming and coding.


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Al-Bukhari narrated from Abu Hurayrah, may Allah be pleased with him,that the Messenger of Allah was standing before the people one day when

a man came to him and said, Ò Messenger of Allah, what is Iman'

He said:(Iman is to believe in Allah, His Angels, His Books, His Messengers

and in the meeting with Him, and to believe in the Resurrection in the

Hereafter.) He said: Ò Messenger of Allah, what is Islam' He said: (Islam

is to worship Allah Alone and not associate anything in worship with Him,

to establish regular prayer, to pay the obligatory Zakah, and to fast in

Ramadan.) He said, Ò Messenger of Allah, what is Ihsan' He said: (Ihsan

is to worship Allah as if you see Him, and if you do not see Him, then He

sees you.) He said, Ò Messenger of Allah, when will the Hour come' He

said:


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The one who is asked about it does not know more than the one who is

asking, but I will tell you of some of its signs: when the servant woman

gives birth to her mistress, that is one of its signs; when the barefoot

and naked become leaders of the people, that is one of its signs. The

timing of the Hour is one of the five things which no one knows except

Allah: (Verily, Allah, with Him is the knowledge of the Hour, He sends

down the rain, and knows that which is in the wombs....)) Then theman went away, and the Prophet said, (Bring him back to me.) They

went to bring him back, but they could not find him. He said (That was

Jibril who came to teach the people their religion)

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PLM: future of production systems