The Interaction of PSS and PHM - a mutual benefit case

Tonci Grubic, Ian Jennions, and Tim Baines
Submission Type: 
Full Paper
phmc_09_49.pdf126.3 KBSeptember 17, 2009 - 6:58am

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 reductions 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.

Publication Control Number: 
Submission Keywords: 
condition based maintenance (CBM)
deployed applications
economics and cost-benefit analysis
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