The Interaction of PSS and PHM - a mutual benefit case

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Published Mar 26, 2021
Tonci Grubic Ian Jennions Tim Baines

Abstract

In the PHM literature a majority of the research deals with solving technically related issues and there is a lack of material addressing the business benefits of such technology. Although PHM has the potential of creating a true paradigm shift, little consideration has been given to PHM being used for revenue generation other than the frequently cited case of maintenance cost reduction and certainly not as a new and powerful business model enabler. The thesis offered here is that a Product-Service System (PSS), which offers a bundle of products and services where emphasis shifts from selling a product to selling the use of a product, is the true business reason for adopting PHM. This paper presents an approach and the tools developed to support a cost/benefit analysis of deploying PHM technologies on a machine tool, where PHM is being used to support a PSS business model. The paper also introduces a model which could frame future research direction, exploring the further benefits PHM technology could bring to a business and the changes necessary to realise those benefits.

How to Cite

Grubic, T. ., Jennions, I. ., & Baines, T. . (2021). The Interaction of PSS and PHM - a mutual benefit case. Annual Conference of the PHM Society, 1(1). Retrieved from https://papers.phmsociety.org/index.php/phmconf/article/view/1655
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Keywords

condition based maintenance (CBM), deployed applications, economics and cost-benefit analysis

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Section
Technical Research Papers