State-of-the-art in product-service systems (2007)

TitleState-of-the-art in product-service systems
AuthorsT S Baines, H W Lightfoot, et. al
SourceInstitution of Mechanical Engineers
SummaryThe concept of Product-Service System (PSS) is the special case of servitization. A PSS is used in a market to extend the functionality of the product by including various services. The main focus is on the sale of use rather than the sale of the product. Some authors regard PSS as the action of sustainability. It is also expected that a pure PSS will lower down the environmental degradation done by the various enterprises. This is very important for the manufacturers working in the developed countries. So, the study considers the various factors in the PSS and coming up with the relevant databases which are necessary for the development. Most of the people differently regard both the products as well as the services. So, it’s better to understand the difference between both of them. We need to understand the concept of servitization in services as well as products. Nonetheless, it even considers various business models. At the same, the customers only use the assets. For this, they need to buy the equipment, and then monitor performance, and then the disposal of equipment.

With PSS, we cannot transfer the ownership of the assets. In the case of a photocopier, the producer will provide the document management solution. Their applications of PSS. For example, it provides the range of vegetables grown ecologically to the way as it is represented by the DuPont Flooring System (USA). This company, rather than providing the floor covering has shifted on to provide various other services like installation, tailored maintenance, and recycling, etc. Thus with various such advantages, the manufacturers want to include the PSS in their businesses. But, it’s the cost factor which hinders them from doing the same. At the same, if the upcoming research is properly implemented in the system. Then this system will emerge as the best method ever used.