The interaction of PSS and PHM - A mutual benefit case

Tonci Grubic, Ian Jennions, Tim Baines

Research output: Chapter in Book/Report/Conference proceedingConference publication

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.

Original languageEnglish
Title of host publicationAnnual Conference of the Prognostics and Health Management Society, PHM 2009
ISBN (Electronic)9781936263004
Publication statusPublished - 1 Jan 2009
EventAnnual Conference of the Prognostics and Health Management Society, PHM 2009 - San Diego, United States
Duration: 27 Sep 20091 Oct 2009

Publication series

NameAnnual Conference of the Prognostics and Health Management Society, PHM 2009

Conference

ConferenceAnnual Conference of the Prognostics and Health Management Society, PHM 2009
CountryUnited States
CitySan Diego
Period27/09/091/10/09

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