IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v186y2017icp21-32.html
   My bibliography  Save this article

Mapping a product-service-system delivering defence avionics availability

Author

Listed:
  • Settanni, Ettore
  • Thenent, Nils Elias
  • Newnes, Linda B.
  • Parry, Glenn
  • Goh, Yee Mey

Abstract

Long-term support agreements such as availability-based contracts are often associated with the servitization of business models in such sectors as defence aerospace. In practice, there is no unambiguous way of linking availability and service outcomes from an operational perspective; rather, the focus tends to be placed almost exclusively on product-related metrics. To address this gap, this paper outlines a conceptual model of how advanced service outcomes should be delivered under an availability-based contract for defence avionics. The model is grounded on empirical evidence gathered through an in-depth case study in the UK defence sector. The research is one of the first attempts to shift the focus away from a notion of availability as a property designed into a piece of equipment, and to detect its emergence from the interactions between relevant socio-technical elements within the underpinning advanced service delivery system, or Product-Service-System (PSS), identified by analysis of empirical data. This research provides insights into where action should be taken within a PSS that would be difficult to obtain from the analysis of field reliability data alone. It also provides a conceptual model that can assist the formulation of scientific models based on quantitative data such as multi-echelon inventory systems for repairable items. While the transferability of the findings is limited by the specificity of the case, a detailed description is provided to facilitate comparison with other cases.

Suggested Citation

  • Settanni, Ettore & Thenent, Nils Elias & Newnes, Linda B. & Parry, Glenn & Goh, Yee Mey, 2017. "Mapping a product-service-system delivering defence avionics availability," International Journal of Production Economics, Elsevier, vol. 186(C), pages 21-32.
    • Handle: RePEc:eee:proeco:v:186:y:2017:i:c:p:21-32
    DOI: 10.1016/j.ijpe.2017.01.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527317300270
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2017.01.018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schulze, Manuel & Seuring, Stefan & Ewering, Christian, 2012. "Applying activity-based costing in a supply chain environment," International Journal of Production Economics, Elsevier, vol. 135(2), pages 716-725.
    2. Romano, Pietro & Formentini, Marco, 2012. "Designing and implementing open book accounting in buyer–supplier dyads: A framework for supplier selection and motivation," International Journal of Production Economics, Elsevier, vol. 137(1), pages 68-83.
    3. Paul Dowdall, 2004. "Chains, networks and shifting paradigms: the UK defence industry supply system," Defence and Peace Economics, Taylor & Francis Journals, vol. 15(6), pages 535-550.
    4. Hansen, Klaus Reinholdt Nyhuus & Grunow, Martin, 2015. "Planning operations before market launch for balancing time-to-market and risks in pharmaceutical supply chains," International Journal of Production Economics, Elsevier, vol. 161(C), pages 129-139.
    5. Settanni, Ettore & Newnes, Linda B. & Thenent, Nils E. & Parry, Glenn & Goh, Yee Mey, 2014. "A through-life costing methodology for use in product–service-systems," International Journal of Production Economics, Elsevier, vol. 153(C), pages 161-177.
    6. Hoffman, Robert R. & Shadbolt, Nigel R. & Burton, A. Mike & Klein, Gary, 1995. "Eliciting Knowledge from Experts: A Methodological Analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 62(2), pages 129-158, May.
    7. Ngai, E.W.T. & To, Chester K.M. & Ching, Vincent S.M. & Chan, L.K. & Lee, Maggie C.M. & Choi, Y.S. & Chai, P.Y.F., 2012. "Development of the conceptual model of energy and utility management in textile processing: A soft systems approach," International Journal of Production Economics, Elsevier, vol. 135(2), pages 607-617.
    8. Sagasti, Francisco R & Mitroff, Ian I, 1973. "Operations research from the viewpoint of general systems theory," Omega, Elsevier, vol. 1(6), pages 695-709, December.
    9. Craig R. Carter & Dale S. Rogers & Thomas Y. Choi, 2015. "Toward the Theory of the Supply Chain," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(2), pages 89-97, April.
    10. Inger Lise Johansen & Marvin Rausand, 2014. "Defining complexity for risk assessment of sociotechnical systems: A conceptual framework," Journal of Risk and Reliability, , vol. 228(3), pages 272-290, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grubic, Tonci & Jennions, Ian, 2018. "Do outcome-based contracts exist? The investigation of power-by-the-hour and similar result-oriented cases," International Journal of Production Economics, Elsevier, vol. 206(C), pages 209-219.
    2. Li, Ai Qiang & Kumar, Maneesh & Claes, Björn & Found, Pauline, 2020. "The state-of-the-art of the theory on Product-Service Systems," International Journal of Production Economics, Elsevier, vol. 222(C).
    3. Korkeamäki, Lauri & Kohtamäki, Marko & Parida, Vinit, 2021. "Worth the risk? The profit impact of outcome-based service offerings for manufacturing firms," Journal of Business Research, Elsevier, vol. 131(C), pages 92-102.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hesping, Frank Henrik & Schiele, Holger, 2016. "Matching tactical sourcing levers with the Kraljič matrix: Empirical evidence on purchasing portfolios," International Journal of Production Economics, Elsevier, vol. 177(C), pages 101-117.
    2. Giovanna Culot & Matteo Podrecca & Guido Nassimbeni & Guido Orzes & Marco Sartor, 2023. "Using supply chain databases in academic research: A methodological critique," Journal of Supply Chain Management, Institute for Supply Management, vol. 59(1), pages 3-25, January.
    3. Suriyan Jomthanachai & Wai Peng Wong & Khai Wah Khaw, 2024. "An Application of Machine Learning to Logistics Performance Prediction: An Economics Attribute-Based of Collective Instance," Computational Economics, Springer;Society for Computational Economics, vol. 63(2), pages 741-792, February.
    4. Wen-Hsien Tsai & Shang-Yu Lai & Chu-Lun Hsieh, 2023. "Exploring the impact of different carbon emission cost models on corporate profitability," Annals of Operations Research, Springer, vol. 322(1), pages 41-74, March.
    5. Winkler, Lorenz & Kilic, Onur A. & Veldman, Jasper, 2022. "Collaboration in the offshore wind farm decommissioning supply chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    6. Thierry Sauvage & Tony Cragg & Sarrah Chraibi & Oussama El Khalil Houssaini, 2018. "Running the Machine Faster: Acceleration, Humans and Warehousing," Post-Print hal-02905068, HAL.
    7. Queiroz, Maciel M. & Fosso Wamba, Samuel, 2019. "Blockchain adoption challenges in supply chain: An empirical investigation of the main drivers in India and the USA," International Journal of Information Management, Elsevier, vol. 46(C), pages 70-82.
    8. Stefan Gold & Thomas Chesney & Tim Gruchmann & Alexander Trautrims, 2020. "Diffusion of labor standards through supplier–subcontractor networks: An agent‐based model," Journal of Industrial Ecology, Yale University, vol. 24(6), pages 1274-1286, December.
    9. Gomes, Leonardo Augusto de Vasconcelos & Flechas, Ximena Alejandra & Facin, Ana Lucia Figueiredo & Borini, Felipe Mendes, 2021. "Ecosystem management: Past achievements and future promises," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    10. Duran, Orlando & Afonso, Paulo Sérgio Lima Pereira, 2020. "An activity based costing decision model for life cycle economic assessment in spare parts logistic management," International Journal of Production Economics, Elsevier, vol. 222(C).
    11. Shabnam Rekabi & Ali Ghodratnama & Amir Azaron, 2022. "Designing pharmaceutical supply chain networks with perishable items considering congestion," Operational Research, Springer, vol. 22(4), pages 4159-4219, September.
    12. Henn, Nicolas & Lohwasser, Todor S., 2020. "The advances of community cloud computing in the business-to-business buying process," Discussion Papers of the Institute for Organisational Economics 6/2020, University of Münster, Institute for Organisational Economics.
    13. Burritt, Roger & Schaltegger, Stefan, 2014. "Accounting towards sustainability in production and supply chains," The British Accounting Review, Elsevier, vol. 46(4), pages 327-343.
    14. Gupta, Shivam & Modgil, Sachin & Choi, Tsan-Ming & Kumar, Ajay & Antony, Jiju, 2023. "Influences of artificial intelligence and blockchain technology on financial resilience of supply chains," International Journal of Production Economics, Elsevier, vol. 261(C).
    15. Fahian Anisul Huq & Mark Stevenson, 2020. "Implementing Socially Sustainable Practices in Challenging Institutional Contexts: Building Theory from Seven Developing Country Supplier Cases," Journal of Business Ethics, Springer, vol. 161(2), pages 415-442, January.
    16. Garvey, Myles D. & Carnovale, Steven, 2020. "The rippled newsvendor: A new inventory framework for modeling supply chain risk severity in the presence of risk propagation," International Journal of Production Economics, Elsevier, vol. 228(C).
    17. Cenamor, J. & Rönnberg Sjödin, D. & Parida, V., 2017. "Adopting a platform approach in servitization: Leveraging the value of digitalization," International Journal of Production Economics, Elsevier, vol. 192(C), pages 54-65.
    18. Duffner, Fabian & Mauler, Lukas & Wentker, Marc & Leker, Jens & Winter, Martin, 2021. "Large-scale automotive battery cell manufacturing: Analyzing strategic and operational effects on manufacturing costs," International Journal of Production Economics, Elsevier, vol. 232(C).
    19. Bortolotti, Thomas & Boscari, Stefania & Danese, Pamela, 2015. "Successful lean implementation: Organizational culture and soft lean practices," International Journal of Production Economics, Elsevier, vol. 160(C), pages 182-201.
    20. Francisco Brahm & Jorge Tarzijan, 2016. "Relational Contracts and Collaboration in the Supply Chain: Impact of Expected Future Business Volume on the Make-or-Buy Decision," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(3), pages 48-67, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:186:y:2017:i:c:p:21-32. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.