Developing a Production Structure Model Using Service-Dominant Logic—A Hypergraph-Based Modeling Approach

To make a fundamental shift toward value orientation, manufacturing companies strategically move to integrate services into their portfolio. While manufacturing firms rely on production information systems as the backbone of their operations, these systems are based on product structureProduct structure models (e.g., bill of materials). This poses a problem because services do not adhere to the goods-dominant perspective of product structuresProduct structure . To solve this divide, this paper proposes an integrative mathematical model for both production systemsProduction service system and service systemsService systems . The model draws upon concepts of service-dominant logic and is based on hypergraph theory. To illustrate that the production structure modelProduction structure model includes both product structures and process structures, we further demonstrate that the production structure model can be transformed into either. Therefore, our theoretical contribution lies in introducing a structural model into production systems that is compatible with structures of a service systemService systems model. For practice, the model enables the development of production information systems that can plan and control products, services, and hybrids.