Quantified economic and environmental values through Functional Productization - A simulation approach

Industrial companies rely on hardware and services from external providers to deliver functions that are critical to their operations, increasingly demanding solutions that not only meet technical and availability requirements but are sustainable too. Traditionally, industrial companies choose and p...

Full description

Saved in:
Bibliographic Details
Published in:Environmental impact assessment review 2018-05, Vol.70, p.71-80
Main Authors: Reed, Sean, Karlberg, Magnus, Kyösti, Petter, Sas, Daria
Format: Article
Language:English
Subjects:
Availability
Centre - The Faste Laboratory
Centrumbildning - Fastelaboratoriet
Computer Aided Design
Computer simulation
Control Engineering
Customers
Datorstödd maskinkonstruktion
Economic impact
Economic models
Environmental impact
Functional product
Hardware
Optimization
Ownership
PSS
Reglerteknik
Simulation
Transitions
Values
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Industrial companies rely on hardware and services from external providers to deliver functions that are critical to their operations, increasingly demanding solutions that not only meet technical and availability requirements but are sustainable too. Traditionally, industrial companies choose and purchase hardware and maintenance support to fulfil their functional requirements. An alternative arrangement, known as Functional Product (FP), involves external providers supplying customers with the functionality they require through contracts that specify guaranteed functional availability whilst giving providers freedom to choose and retain ownership of the supplied hardware and services. This paper describes an innovative simulation modelling and optimization approach to quantitatively compare economic and environmental values resulting from transition from traditional to FP arrangements. The approach is demonstrated through the analysis of a scenario involving a hydraulic drive system provider and set of customers in Sweden, with the results exhibiting simultaneous improvement in economic and environmental values at each stage of the transition. •Literature suggests sustainability benefits from Functional Product adoption.•Simulation approach used to quantify impact from transition to Functional Products.•Compares optimal solutions to functional provision at each stage of transition.•Results show simultaneous improvement in economic and environmental values.•First quantitative evidence to support hypothesized sustainability benefits.
ISSN:0195-9255
1873-6432
1873-6432
DOI:10.1016/j.eiar.2018.03.006