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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
*
*[email protected]

Abstract

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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

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