A Representation of a Product-Service System During its Design Phase A Case Study of a Helium Liquefier

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1 A Representation of a Product-Service System During its Design Phase A Case Study of a Helium Liquefier Nicolas Maussang 1, Peggy Zwolinski 1, Daniel Brissaud 1 1 Laboratoire 3S, University of Grenoble, France Abstract More and more people are convinced that shifting from product selling to providing service is a way to tackle the environmental burden. The most expanded concept that gathers product and services together is Product-Service System (PSS). A global set of product and services is proposed to the customer and will satisfy the customer s needs. But in order to develop PSS, it is important for designers to have a representation of this set of product+services. Through an industrial example, we will try to show what could be the impact of this business transition on the design phase of physical products. Keywords Business transition, design representation, PSS 1 INTRODUCTION Environmental constraints become more and more present in our society as proved by the recent regulations and environmental standards [1, 2, 3, 4, 5]. Moreover, too many products are incinerated or landfilled only after a single use, even if the physical product keeps an important added value. In order to tackle these environmental considerations, it would be important to realise a decoupling between the economic growth and the environmental impact of the product [6].The economic wealth has grown in the past 30 years but it did not lead to a higher quality of life, while the environmental burden has exploded. One way to realise this decoupling could be to enhance the intensity of use of products and therefore to sell the use or a result to the customer instead of a physical products. Products are designed to fulfil customer's needs. Thus, the functions of the product are designed to meet customer's requirements. Nowadays, customers have increasing needs, so more and more enterprises are selling their products with additional services. The emergence of services added to the product leads to the emergence of two concepts, which are Extended Product and Product-Service System (PSS). The Extended Product principle deals with the sale of product and associated services and the necessary partnerships to realise these services. With this principle, the supplier is not anymore a product supplier but a value provider [7]. This new selling approach leads to another concept, which is Product-Service System (PSS). By selling the use of a product or the result provided by the product, the customer does not take care of the product that realises the functions whether these functions are efficient. For example, instead of selling a copier to an enterprise, one can sold a number of copies per months. By this way, a product can be used many times to constitute different PSS. The customer is not concerned with internal technical aspects of the copier and many components can be reused or exchanged between products. This trend could lead enterprises to create sustainable products because the more reused a product, the less manufactured new ones. The interest is the dematerialisation of the society. Because the physical product doesn t belong anymore to the customer, the producer can reuse some parts to refurbish the product. By this way, dematerialisation is seen as a mean to decrease resources consumption and wastes production [8]. But the sustainability of a product is still difficult to determine. Some methods exist to determine the environmental-cost of a product [9], but it is always determined after the design of the product, when last changes on the product are difficult to realise. In the PSS principle, a complete set of product and services is proposed to fulfil the customer's needs. But from the engineer's point of view, the gap between designing a product and designing a set of product and services is very important. Methods and tools exist to design a physical product, or to design services, but not to design an integrated solution of product-service. To have an efficient design process of these sets, designers should have services constraints that they have to integrate during the design phase of the product [10]. Some representations exist to model these sets, but a first obstacle when designing a product-service system is the definition of the frontier of the object to design. A more complex representation is needed, taking into account aspects from the business model that is also modified [11]. In the next section, we will describe the concept of PSS and we will show that this emergent concept is not so easy to introduce during the design process. In the third section, we will develop an industrial example. First, we will present the reasons and motivations of the industrial to sell supplementary services associated to the product. In a second part we will use the Functional Analysis representation on a set of product and services. Indeed, we think that these kinds of representations could help designers to really develop integrated product-services to fulfil customers needs [12]. 2 CONCEPT PSS 2.1 Product-Service System principle According to Goedkoop [13], PSS can be seen as a marketable set of product and services capable of jointly fulfilling the customer s needs. It means that both product and services are used to fulfil the customer s needs, but the ratio between the product value and the service value can vary, as illustrated in the figure 1. On the one hand, the product value can be more important than added service (purchase of a car with an extended guarantee), but on the other hand services can mainly 555

2 satisfy customer s needs rather than the physical product (taxi service). However, in the two cases, there is still a product to design, but with different modifications and improvements. Other considerations can be taken into account to justify this market shifting. In a more and more competitive market, enterprises have to develop new solutions or improvements in order to keep in touch with competitors. So service selling appears as a good alternative and a new business. According to Thoben [14], service selling can have two goals. For the customer, it permits to propose an attractive package and for providers it is a mean to stand out from competition. From environmental considerations, the inclusion and sale of services instead of the physical product could lead to turn away the customer from the physical product. It can be a way to promote dematerialisation that could lead to decrease the environmental burden [8]. In addition, the integrated design of services and physical product can contribute to the creation of sustainable products respecting the environment [15]. If we imagine a specific service for which an upgrade is often necessary, the customer pay for the PSS and he will be sure to have an efficient product at anytime, and moreover a product that respect regulations. 2.2 Typology of Product-Service System PSS can vary in terms of product value or service value. This variation comes from different customer s needs and it influences the service that is added to the physical product. SusProNet is a European network of industries and institutes focusing on the design of product and services for sustainable competitive growth. It tries to promote PSS and has made a characterization from a customer s point of view [16]: Product-Oriented Services (POS) Use-Oriented Services (UOS) Result-Oriented Services (ROS) For this categorization, it can be seen that the ratio between product value and service value is different (See figure 1). Figure 1: Typology of a PSS We will describe these three categories with the photocopier example. In the first category called Product- Oriented Services (POS), the physical copier is sold to the customer and he can add some services according to its specific needs. But the product is predominant on the associated services and belongs to the customer. In the second category : Use-Oriented Services (UOS), a customer buys only the use of a set of product and services, and services will ensure to the customer the working of the product. With the photocopier example, the customer buys a number of photocopies and services will ensure him to use the product without breakdown, or as less as possible. In this case, product does not belong anymore to the customer, but the provider owns the product and the associated services. In the last category : Result-Oriented Service (ROS), the customer only buys the result provided by the PSS and so services are predominant. In this case, a customer brings a document to a photocopying service, which will provide him the photocopies. 2.3 PSS is not only subcontracting In the ROS category, the customer pays for the result provided by the PSS. It could be possible to compare this approach with subcontracting, but actually PSS and subcontracting are completely different. Indeed, a product involved in a PSS will be optimised for the provider's use while a subcontractor will only use a product that he has purchased from any provider. In subcontracting, products are purchased by the subcontractor, they are used by the subcontractor and the customer pays him for the result provided. It could be compared to the ROS category of PSS in which the customer pays for the result provided by the set product-services. Now, if the provider who owns the PSS has to provide a result, it is obvious that he has to optimize the product in order to provide the expected result with as less effort as possible. For example, if a subcontractor buys a machine tool to produce technical parts for different customers, he buys a machine created by the machine-tool maker s designers. The subcontractor uses this machine and has not the choice to adapt the machine for its specific requirements. Now, if a PSS provider creates the product that he will gather with services together, the designer creates and optimises the system for the use of the provider. Thus, the designer has to optimize a product included in a PSS in order to minimize the input and output of the entire system. It will be a provider-optimised product, which will be designed, according to specific provider s needs. 2.4 Transition over a service selling? Like in a Business-to-Business (B2B) or Business-to- Customer (B2C) context, some sets of product-services are sold. Actually, this new selling approach can be seen as a way to have a differentiation with competitors. Thus, we can say that the market is shifting from product selling to product and added services selling (See Figure 2). For the product-selling category, the product is only sold alone to the customer and a guarantee period goes with the product. For the sale of the product and associated services, the product is sold with complementary services. For instance, it is possible to have a maintenance contract agreement that is a contract which ensures the delivery and starting up of the system, etc. These new services are actually added on the physical product sold to the customer. Now the question is: can we have an evolution toward a service selling society and what will it means for the design of products? Figure 2: Business transition This new selling approach and the PSS concept will lead to change systems. According to Tukker [17], there are three means to make changes. It is possible to: Optimize the system; Redesign the system; Propose innovation for the system. 556 PROCEEDINGS OF LCE2006

3 Considering the product-service green mobility in a city, one can optimize the existing products while thinking about low CO2 emissions car. If the product-service green mobility has to be redesigned, solutions around car sharing can be proposed as new way of travel to go from A to B. In the last case, innovations can be proposed while considering a global system where people have limited displacements and adapted means of transport (bike, train, buses, etc.) 3 HELIUM LIQUEFIER CASE STUDY 3.1 Context Air Liquide is an international company founded in 1902 and specialised in providing medical gases and related services for research and industry: automotive industry, chemicals, electronics, etc. The company usually provides gases and installations, but is more and more concerned with the selling of services associated to their products. In this paper, we will focus on a particular example that is a standard helium liquefier called Helial (see figure 3). In the first part of this case study, we will present the motivations of the industrial to sell more services with products. In a second part, we will use a Functional Analysis representation to model the product alone and then the product with added services. The objective is to highlight the differences between a representation of the product alone and the representation of a set of product and services. Then we will highlight what could be helpful for designers during the design phase of the product. Figure 3: Helial system The helium liquefier is mainly sold to laboratories that need liquid helium for specific experimentations. The liquefier provides liquid helium to the customer who has an experiment that requires very low temperature. During the experiment, helium become gaseous and a recovery installation (previously installed in the lab) get back gaseous helium to the storage of the machine and it works in closed-loop. Consequently, the liquefier is able to provide liquid helium from the gaseous helium recovered. There is sometimes some helium lost. In this case, an external supplier introduces supplementary helium in the system. 3.2 Motivations Customer's needs and satisfaction One of the most important motivations for the gas provider to expand its range of services was to complete the customer's needs. New services like a remote control of the stock of gazes were created. This service informs both the provider and the customer about the level of gases and the customer is automatically supplied with gases. Consequently, the customer does not care about refilling his gas storage. As shown by this example, new services can increase the customer satisfaction, and by this way the provider can stand out from competition. Another example is a turnkey helium liquefier that is sold to the customer. In order to decrease the period to start the system, a technical expert is present during the first three weeks after the installation of the system. Its role is to start and adjust the key parameters. This service increases customers satisfaction because they have not to adjust parameters at the beginning of the installation: the customer enjoys using immediately the system without spending time for the starting period of the machine. Cost effectiveness (maintenance, technical trip, etc.) As mentioned before, the helium liquefier system is a turnkey installation and the customer has just to assist to a training course to use the system. As it is a very complex and automated system, it is absolutely necessary to adjust the key parameters of the system during the starting of the installation. If the system is just installed on the customer's site, the customer can encounter some problems during the starting period. This can decrease the customer's satisfaction and conducts the provider to solve the problem by sending technical experts. While sending an expert to start the installation, the provider saves money because it is cheaper to send one time an expert for the starting rather than several times when many problems appear, induced by a non-adapted use of the product. On the other hand, the training course is also an important service that permits to the customer a good appropriation of the system. By this way, the provider maximises the self-resolution when a problem occurs. Another service proposed to the customer is a remote control of the system. This service permits to know the system parameters at any time. When a problem occurs, it is possible to know exactly where the problem is located. Consequently, the maintenance is easier for the provider because when the customer calls to solve a problem, the provider can immediately find and fix the problem. Another advantage with this remote control concerns maintenance cost effectiveness. Actually, there are many contracts all over the world, from Europe to Asia through America. As the maintenance technicians are in France, it is cheaper to identify problems by phone and/or remote control rather than by sending a technician in the country. But in order to have an efficient technical assistance to assume a maintenance service, it is necessary to have the right information. It is why a specific part has been created and installed on the product to generate data and to communicate with the maintenance service by net. Information (experience feedback, optimisation of system) The remote control making the maintenance easier has another important function. It permits to have an experience feedback used to optimise the system. For example, when the same problem occurs on several systems, it means that an improvement has to be done to avoid it. On the other hand, it permits to have information to design new systems with less error that cause problems in the past years. Product (environment) For the moment, the product with additional services are sold and belong to the customer. It can be imagined that in a near future the use or the result associated to the product could be sold to the customer and then, this product will not belong to the customer anymore. From this perspective, the provider could operate on its product and thus bring improvements if necessary. If a new regulation appears to limit polluting emissions or to control the product end of life, the provider could modify their products that require improvements to be adapted to this new regulatory. Another strategy could conduct to the 13 th CIRP INTERNATIONAL CONFERENCE ON LIFE CYCLE ENGINEERING 557

4 reuse of the product as soon as the contract between a customer and the industrial is finished. By reusing product, raw materials and energy to produce the product will be saved. Here, a remanufacturing strategy will prevent the increase of waste produced. Unfortunately, the helium liquefier is highly customized according to the customer s specifications, and for the moment it is difficult to reuse an existing product for new customers. 3.3 Functional analysis for the external representation of the PSS The scope in this article is to show to designers what could be the advantages of a service society. To do that, designers need a representation of the PSS to help them during the design phase. With the helium liquefier example, we will show how it is possible to represent the product-services set during the design phase while using functional analysis. In the figure 2, it can be seen that the business market could shift from selling a product to selling a service but this transition is not so direct and easy to do for an enterprise. Representation of the product sold alone In this case, the customer s needs related to the function performed by a helium liquefier sold without services are identified. While using the graph of interactors, the functions provided by the product are represented. Figure 4: Functional Analysis on the product sold alone The interaction function IF1 is the system permits to the customer to have liquid helium and the second interaction function IF2 is the system permits to obtain liquid helium from the customer s recovery installation. And the adaptation function is the adaptation of the liquefier to the gas supplier. The gas supplier will supply in gaseous helium the system if necessary (description made in section 3.1). The interaction function that permits to the customer to have liquid helium will be fulfilled by the function of liquefaction. It is the core function of the technical system. It will always be the main function because the system has been created to obtain liquid helium. Through this function, the customer will be able to have liquid helium at anytime he wants it. Representation of the product and associated services When the set product and services is sold to the customer, new functions can be described. As seen previously, the helium liquefier system has a remote control that permits its provider to know the input and output parameters when a problem occurs. This helps maintenance experts to fix problems and to have an efficient maintenance. The functions associated to the maintenance service can be seen as maintenanceoriented function. Figure 5: Functional Analysis on the set product-services The functions described in this case are: IF1: the system enables the customer to have liquid helium; IF2: the system is able to liquefy helium from the customer s recovery installation; AF1: the system must be supplied in gaseous helium by a gas supplier; AF2: the liquefier is adapted to the technical assistance. The interaction function is the same than in the first case, because the customer is always the owner of the product. The difference in this case is the adding of a remote control for an easier maintenance. It is possible to model this new function. This function traduces the ability for the technical assistance to know the parameters of the system in order to be able to diagnosis a failure. To fulfil these needs, technical parts have to be added on the current system. These new parts have been represented by hatched areas both on the system and on technical assistance side. These hatched areas concerned the product but also technical parts to be added in the environment of the product, to adapt the related services. Ca ne parle pas de la seconde IF2! And for a service? The real issue could be what will happen if services will be sold and not products anymore? Even in a total service selling society (meaning that intangible value creates quality of life), products will be necessary to satisfy customer's need [18]. Figure 6: Functional Analysis on a pure service In this case, functions are: IF1: the Product-Service System Helium Liquefier permits to the service provider to provide liquid helium to the customer; IF2: the PSS is able to provide liquid helium from the recovery installation of the customer. In this service providing, the core function of the product is still the same: to transform gaseous helium into liquid helium. The main difference here is the owner: it is now the provider of the helium liquefier who owns the Product-Service System Helium Liquefier and who proposes to the customer to buy an amount of liquid helium per day for example. In this case, it can be imagined that the system will be installed in the 558 PROCEEDINGS OF LCE2006

5 customer s firm and that the provider could have a remote control on the whole system. This representation is based on a specific scenario, but according to the needs of the customer, maybe it would be better to have a technician on the customer s site. But from an external point of view, the chosen representation of the product cannot show the modifications brought to the product. This is why it is necessary to represent the product from an internal point of view : the Functional Bloc Diagram. 3.4 Functional analysis for the internal representation of the PSS : Bloc Diagram of the system In this paragraph, the internal functional analysis of a product sold alone is first described then the same representation is adapted to a service provided to a customer. The tool for the representation is the Functional Bloc Diagram. Our objective is to highlight the differences that could happen if the designer creates a product for product selling or for service selling. The product in a product selling When the product is sold alone to the customer, the simplified Functional Bloc Diagram (FBD) is detailed in the figure 7. All components are organised in order to fulfil the customer s needs. Links between parts and with outer elements are symbolised with line. Between the parts it is a physical link, and between for example the customer and the local PC it is a visual and sensitive link because the customer touches the keyboard and visualises the information shown on the PC screen. Consequently, the interaction functions are realised through these links and the parts of the system. IF1 is symbolized with a broken line and go through several components. IF2 is symbolized with a continuous line and go from the recovery installation to the liquid helium. The gas supplier and the buffer tank are asterisked which symbolizes the adaptation function. There is no connection most of the time between these two outer agents that is why no link has been represented. The product in a service selling The product s parts linked to the service sold to the customer are presented in figure 8. IF1 is symbolized with a broken line. This function has several branches because it can be represented with several sub-functions. Finally these branches represent these different functions that will contribute to supply the customer with liquid helium. IF2 is symbolized with a continuous line. For example, let us imagine that an amount of liquid helium per day is provided to the customer. The product components can be quite similar than in the product selling case, but some parts can be optimised for the service provider (the orange components on the figure 8). Currently, when the product is sold alone, the customer commands the system with the local PC that acts on the helium liquefier and by this way obtains liquid helium. Now if a service provider provides liquid helium to the customer, the provider has to control the system and needs all information concerning the overall PSS. That is why database storage and a remote control can be installed between the service provider and different components. The service provider must be able to know at any time the state of the system in order to guarantee the service to the customer. If we compare the figure 7 and 8, the orange components are the added parts for the PSS helium liquefier. As shown with the remote control, it is mainly the remote information flow that permits the provider to control and adjust the system. In the figure 8, it is assumed that the customer orders liquid helium through an interface that could control the distribution valve box, but this is a particular scenario and another one could be taken in consideration. Consequently, it is obvious that a PSS cannot be designed if the scenario is not defined. For each use case, special adjustments (and consequently new components) are necessary at the interface of the product, the service provider, and the customer. For the development of a PSS it is necessary to detail the use case in order to fit the product s components. 4 CONCLUSION AND OUTLOOK The Product-Service System principle is becoming more and more important in the research area. It is seen as a way to tackle the environmental burden because it permits to obtain dematerialisation of the society. This dematerialisation could lead to decrease the waste created at the end-of-life of the product and to save raw materials because products will be reused in different PSS. Consequently, the provider has to optimise its product in order to use it again several times: it should be a way to design sustainable product. Thus, providing services instead of selling product could be very profitable, but the question is now what are the consequences on the product definition? Through the industrial example, we have shown the differences between a product sold alone and a product developed for a service providing. In our example, we have focused on a helium liquefier which provides an amount of liquid helium to a customer. In this case, it is obvious that the provider has to think about a new interface between the PSS and the customer and moreover this interface will depend on the scenario detailed for the use of PSS. Another point highlighted is the fact that designers need to add specific new parts and especially parts that could increase the information exchange between the system and the provider. If a provider has to command several systems that are worldwide spread, he doesn t want to mobilise a technical expert on site. He certainly prefers to command them from its production site with the same expert. In order to maximise the use of the product by different customers, we think that the designers will have to optimise the span product s life but in this case, many questions are raised: which criteria have to be adapted? Is it only the product s life for a specific customer that has to be increased, or a global life lasting? How is it possible to determine the consequences on the design of the product? All these questions are still without answers, and the big issue now is to determine how they can impact the design phase when shifting from a product selling to a service selling society. ACKNOWLEDGEMENTS We would like to thank the Air Liquide Advanced Technologies Division for the information about the Helial system. REFERENCES [1] ISO 14001:2004, Environmental Management Systems Requirements with guidance for use. [2] ISO 14004:2004, Environmental Management Systems General Guidelines on Principles, Systems and Technical Supports. [3] ISO/TR 14062:2002, Environmental Management Integrating Environmental Aspects into Product Design and development. 13 th CIRP INTERNATIONAL CONFERENCE ON LIFE CYCLE ENGINEERING 559

6 [4] Extended Producer Responsibility (EPR), UNEP Production and Consumption branch Environmental Management Tools, [5] Waste of Electrical Electronic Equipments (WEEE), Décret N of 20 July 2005, Official Journa l of the French Republic, download from [6] Tukker A., 2005, The Relevance of Sustainable Consumption Policies for Realising Decoupling, 10 th ERSCP, Antwerp. [7] Jansson K., Kalliokoski P, Hemilä J., 2003, Extended Product in One-of-a-kind Product Delivery and Service Networks, echallenges, Bologna [8] Manzini E., Vezzoli C., Clark G., 2001, Product- Service System: Using an Existing Concept as a New Approach to Sustainability, Journal of Design Research, Volume1 Issue 1. [9] Vogtländer J., Bijma A., Brezet H., 2002, Communicating the Eco-efficiency of Products and Services by Means of the Eco-costs/value Model, Journal of Cleaner Production, Volume 10 - Issue 1, pp [10] Maussang N., Zwolinski P., Brissaud D., 2005, Design of Product-Service Systems, 10 th ERSCP, Antwerp. [11] Meier H., 2004, Life Cycle-Based Service Design for Innovative Business Models, Annals of the CIRP, 53/1: [12] Maussang N., Zwolinski P., Brissaud D., 2006, Which Representation for sets of Product and Associated Services during the Design Process?, IDMME 06, Grenoble. [13] Goedkoop M. van Halen C., te Riele H, 1999, PSS : Ecological and Economical Basics, downloadable from [14] Thoben K.-D., Eschenbächer J., Jagdev H., 2001, Extended Product: evolving traditional product concepts, ICE2001, Bremen [15] Bahmra T., Evans S., van der Zwan F., Cook M., 2001, Moving from Eco-Products to Eco-Services, Journal of Design Research, Volume1 Issue 1. [16] Tischner U., Verkuijl M., Tukker A., 2002, SusProNet Report, First Draft Report of PSS Review. [17] Tukker A., 2004, Product-Services and Life Cycle Management, (presentation) UNEP Life Cycle Initiative LCM Workshop, Chalmers University, Gothenburg. [18] Prudhomme G., Zwolinski P., Brissaud D., 2003, Integrating into the Design Process the Needs of Those Involved in the Product Life-cycle, Journal of Engineering Design, Volume 14 Issue 3, pp CONTACT Nicolas Maussang Laboratoire 3S, Domaine Universitaire BP Grenoble Cedex 9, FRANCE nicolas.maussang@hmg.inpg.fr Figure 7: Functional Bloc Diagram of a product sold alone 560 PROCEEDINGS OF LCE2006

7 Figure 8: Functional Bloc Diagram of service sold 13 th CIRP INTERNATIONAL CONFERENCE ON LIFE CYCLE ENGINEERING 561

8 562 PROCEEDINGS OF LCE2006

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