Conference article

Hierarchical Planning for Industrial Product Service Systems

M. Steven
Faculty of Management and Economics, Ruhr-University Bochum, Germany

A. Richter
Faculty of Management and Economics, Ruhr-University Bochum, Germany

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Published in: Proceedings of the 2nd CIRP IPS2 Conference 2010; 14-15 April; Linköping; Sweden

Linköping Electronic Conference Proceedings 77:19, p. 151-157

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Published: 2012-10-11

ISBN: 978-91-7393-381-0

ISSN: 1650-3686 (print), 1650-3740 (online)

Abstract

Industrial Product Service Systems (IPS²) are an innovative business model for engineering enterprises; integrating products and services. A substantial portion of later operating costs is determined by decisions in the design phase. This leads to a hierarchical problem structure: On the strategic planning level; configuration of IPS² is accomplished regarding customers’ requirements and uncertainties. Revenues and (adaptation) costs during the subsequent delivery phase have to be anticipated. The operative planning level is concerned with the use of a given IPS². Later changes of business models are only possible within the scope of the strategic plan. The more uncertainties strategic planning faces; the more flexibility has to be provided in order to assure a successful coordination of both levels.

Keywords

Strategic Planning; Flexibility; Hierarchical Planning; Uncertainty; Cost Model

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