Technical product‐service systems: some implications for the machine tool industry

Abstract

Purpose

The purpose of this paper is to develop a technical product‐service systems (t‐PSS) for the BoX^® (Big OptiX) ultra precision free‐form grinding machine which has been designed and developed at Cranfield University. BoX is a new machine concept where advanced mass production and ultra precision technologies are combined.

Design/methodology/approach

This work utilises the machine as a demonstration case study to investigate t‐PSS for the machine tool providers. It develops three t‐PSS business models for the BoX machine: product‐, use‐ and result‐oriented.

Findings

The paper discusses the stakeholders' responsibilities, cash flows, application sectors, and consequently benefits and shortcomings of the three business approaches.

Practical implications

The enhancement of competition from low cost economies, vibrant market requirements and increasing customer demands cannot be addressed merely by the latest achievements in technology. As a response to this, the modern manufacturing industry is shifting its orientation towards t‐PSS. t‐PSS is an integrated product and service offering that delivers value in use.

Originality/value

The novelty of this paper lies in identifying and analysing the key implications of t‐PSS on machine tool industry using the BoX machine as an example case study.

Citation

Azarenko, A., Roy, R., Shehab, E. and Tiwari, A. (2009), "Technical product‐service systems: some implications for the machine tool industry", Journal of Manufacturing Technology Management, Vol. 20 No. 5, pp. 700-722. https://doi.org/10.1108/17410380910961064