A Cost-Engineering Method for Product-Service Systems Based on Stochastic Process Modelling: Bergamo's Bike-Sharing PSS
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Cost-determination in Product-Service Systems (PSS) presents a broad set of impacts across managerial and design decision-making processes. Most of the effort within PSS-costing literature is focused mainly on the development of techniques that address challenges regarding data availability, lifecycle representation, and uncertainty modelling. Less effort concentrates on the understanding of the PSS-cost nature and its differentiation from the traditional perspective of product-cost and service-cost. In that sense, the purpose of the paper is to provide a description of the PSS-cost nature, and construct a Cost-Engineering method aligned to such definition. This paper proposes a systems thinking approach in which the PSS-cost is observed as an emergent attribute that the PSS, as a complex system, exhibits when is operating. In order to capture the proposed PSS cost nature as an emergent attribute and derive useful managerial insights, a cost-engineering method based on Stochastic Process modelling, has been devised. The data output of the method represents all PSS-cost unrealized potential outcomes with their associated occurrence probability conditioned by a defined performance or/and functionality level. An empirical case study, the Bergamo's Bike-Sharing PSS, has been carried out in order to visualize the proposed method and its managerial implications.
Copyright 2017 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, providing that the work is properly cited.
Manufacturing Engineering not elsewhere classified