Hostname: page-component-78c5997874-fbnjt Total loading time: 0 Render date: 2024-11-10T17:18:03.307Z Has data issue: false hasContentIssue false
  • English
  • Français

THE IMPORTANCE OF CONSIDERING FLEET SIZE IN THE LIFECYCLE COST ANALYSIS OF PRODUCT SERVICE SYSTEMS

Part of: Design Innovation, Information and Knowledge

Published online by Cambridge University Press:  11 June 2020

J. A. Schneider ,
M. M. Gatzen  and
R. Lachmayer
J. A. Schneider*
Affiliation:
Leibniz Universität Hannover, Germany
M. M. Gatzen
Affiliation:
Baker Hughes, United States of America
R. Lachmayer
Affiliation:
Leibniz Universität Hannover, Germany
*
*schneider@ipeg.uni-hannover.de

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

The use of product-service systems business models is increasing in today's economy. Because the products that provide the service to the customers incur cost during their lifetime, the method of lifecycle costing finds wide-spread use. However, this paper shows the current methods have some inaccuracies when determining lifecycle costs. The methods do not consider the required number of products necessary to provide the offered service to the customers. This paper describes a new framework for lifecycle costing that includes these cost components.

Keywords

design evaluationcost managementproduct-service systems (PSS)lifecycle costing
Type
Article
Information
Proceedings of the Design Society: DESIGN Conference , Volume 1 , May 2020 , pp. 1365 - 1374
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
The Author(s), 2020. Published by Cambridge University Press

References

Asiedu, Y. and Gu, P. (1998), “Product life cycle cost analysis: State of the art review”, International Journal of Production Research, Vol. 36 No. 4, pp. 883–908.CrossRefGoogle Scholar
Bescherer, F. (2005), Established Life Cycle Concepts in the Business Environment–Introduction and terminology, Laboratory of Industrial Management Report Series.Google Scholar
Bull, J.W. (1993), Life cycle costing for construction, 1. ed., Blackie Academic & Professional, London.Google Scholar
Cerri, D. et al. (2014), “Introduction to a Model for Life Cycle Optimisation of Industrial Equipment”, In: Fukuda, S., Bernard, A., Gurumoorthy, B. and Bouras, A. (Eds.), Product Lifecycle Management for a Global Market: 11th IFIP WG 5.1 International Conference, PLM 2014, Yokohama, Japan, July 7-9, 2014, Revised Selected Papers, IFIP Advances in Information and Communication Technology, Vol. 442, Springer Berlin Heidelberg, Berlin, Heidelberg, pp. 193–200.CrossRefGoogle Scholar
Dowlatshahi, S. (1992), “Product design in a concurrent engineering environment: an optimization approach”, International Journal of Production Research, Vol. 30 No. 8, pp. 1803–1818.CrossRefGoogle Scholar
Dožić, S. and Kalić, M. (2015), “Three-stage airline fleet planning model”, Journal of Air Transport Management, Vol. 46, pp. 30–39.CrossRefGoogle Scholar
Ehrlenspiel, K. et al. (2007), Cost-efficient design, Springer, Heidelberg, New York.CrossRefGoogle Scholar
Emblemsvag, J. (2001), “Activity-based life-cycle costing”, Managerial Auditing Journal, Vol. 16 No. 1, pp. 17–27.CrossRefGoogle Scholar
Fabrycky, W. and Blanchard, B. (1991), Life Cycle Cost and Economic Analysis.Google Scholar
Farr, J.V. (2011), Systems life cycle costing: Economics analysis, estimation, and management, Engineering management book series, Taylor & Francis, Boca Raton.CrossRefGoogle Scholar
Goedkoop, M. et al. (1999), “Product service systems, ecological and economic basics”, Econ. Aff., Vol. 36Google Scholar
Goh, B.H. and Sun, Y. (2016), “The development of life-cycle costing for buildings”, Building Research & Information, Vol. 44 No. 3, pp. 319–333.CrossRefGoogle Scholar
Griffis, F.H. Jr. (1968), “Optimizing haul fleet size using queueing theory”, American Society of Civil Engineers Proceedings, Journal of the Construction Division, Vol. 94 No. n CO1, pp. 75–88.Google Scholar
Helber, S. (2014), Operations Management Tutorial, Helber, Hildesheim.Google Scholar
International Electrotechnical Commission (2015), International Electrotechnical Vocabulary (IEV) - Part 192: Dependability, IEC 60050-192.Google Scholar
International Electrotechnical Commission (2017), Dependability management - Part 3-3: Application guide - Life cycle costing, IEC 60300-3-3.Google Scholar
Johannknecht, F. (2018), Lebenszyklusorientiertes Kostenmanagement für Produkt-Service Systeme: Dissertation, Berichte aus dem iPeG, 2017, Band 5, PZH Verlag, Garbsen.Google Scholar
Johannknecht, F. et al. (2016a), “Holistic Life Cycle Costing Approach for Different Development Phases of Drilling Tools”, In: International Petroleum Technology Conference, Bangkok, Thailand, 2016-11-12, International Petroleum Technology Conference.Google Scholar
Johannknecht, F., Gatzen, M.M. and Lachmayer, R. (2016b), “Life Cycle Cost Model for Considering Fleet Utilization in Early Conceptual Design Phases”, Procedia CIRP, Vol. 48, pp. 68–72.CrossRefGoogle Scholar
Johannknecht, F., Herrmann, M. and Lachmayer, R. (2019), “Kostenmanagement von Produkt-Service-Systemen. Managing Costs of Product-Service Systems”, Die Konstruktion, No. 6.CrossRefGoogle Scholar
Kunz, M., Söllner, M. and Leimeister, J.M. (2013), Exploring Business Models for IT-enabled Product-Service-Systems.Google Scholar
Lindholm, A. and Suomala, P. (2004), The Possibilities of Life Cycle Costing in Outsourcing Decision Making.Google Scholar
Lindholm, A. and Suomala, P. (2007), “Learning by costing: Sharpening cost image through life cycle costing?”, International Journal of Productivity and Performance Management, Vol. 56 No. 8, pp. 651–672.CrossRefGoogle Scholar
List, G.F. et al. (2003), “Robust optimization for fleet planning under uncertainty”, Transportation Research Part E: Logistics and Transportation Review, Vol. 39 No. 3, pp. 209–227.CrossRefGoogle Scholar
McAloone, T.C. (2011), “Boundary Conditions for a New Type of Design Task: Understanding Product/Service-Systems”, In: Birkhofer, H. (Ed.), The Future of Design Methodology, Vol. 15, Springer London, London, pp. 113–124.CrossRefGoogle Scholar
McAloone, T.C. et al. (2011), “Orthogonal views on product/service-system design in an entire industry branch”, In: Culley, S.J. (Ed.), Product and systems design, DS / Design Society, Design Society, Glasgow, pp. 77–87.Google Scholar
Rosskopf, M., Lehner, S. and Gollnick, V. (2014), “Economic–environmental trade-offs in long-term airline fleet planning”, Journal of Air Transport Management, Vol. 34, pp. 109–115.CrossRefGoogle Scholar
Salem, O., AbouRizk, S. and Ariaratnam, S. (2003), “Risk-based Life-cycle Costing of Infrastructure Rehabilitation and Construction Alternatives”, Journal of Infrastructure Systems, Vol. 9 No. 1, pp. 6–15.CrossRefGoogle Scholar
Schreiber, D., Gembarski, P.C. and Lachmayer, R. (2017), Modeling and configuration for Product-Service Systems: State of the art and future research.Google Scholar
Soth, T. (2011), Entwicklung eines Kostenmanagement-Systems für hybride Leistungsbündel, Ruhr-Universitaet Bochum.Google Scholar
Tukker, A. (2004), “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.CrossRefGoogle Scholar
White, G.E. and Ostwald, P.F. (1976), “Life cycle costing”, Management accounting, Vol. 57 No. 7, pp. 39–42.Google Scholar
Woodward, D.G. (1997), “Life cycle costing—Theory, information acquisition and application”, International Journal of Project Management, Vol. 15 No. 6, pp. 335–344.CrossRefGoogle Scholar
You, P.-S. and Hsieh, Y.-C. (2014), “A study on the vehicle size and transfer policy for car rental problems”, Transportation Research Part E: Logistics and Transportation Review, Vol. 64, pp. 110–121.CrossRefGoogle Scholar