Product-service system (PSS) or particularly industrial product-service system (IPS²) is started to gain more attention as innovative strategy to face the competitive global market. Service aspect from IPS² offering is believed could provide more values for customer than the standalone physical product. This new concept is not fully developed yet. There are some particular areas around IPS² concept which are needed to be more explored and one of them is the cost dimension aspect. Cost is obviously important for company as basic information to support decision making process. Traditional costing system is no longer able to facilitate the company's transformation. The following work will present the analysis of current costing systems and a new assessment framework proposed to address the needs of IPS² environment, particularly for IPS² function-oriented business model. The proposed framework is developed based on the literature findings. Considering the specific characteristics of IPS² business model, lean accounting is the best choice from current costing systems to be adjusted into the proposed framework. Lean accounting with its value stream costing (VSC) is able to provide comprehensive cost information to support company's long transformation journey towards a fully and successful IPS² company.

The societal and environmental crises in recent decades have promoted a social awareness of existing challenges to sustainability. While product–service systems (PSS) are considered a promising way to achieve a sustainable future, PSS features also create barriers that hinder the widespread implementation of PSS in society. Recent studies have therefore increasingly focused on the challenges to PSS implementation. However, the existing literature fails to facilitate a strategic plan or practical guide for PSS design activity despite taking into account the importance of visioning in PSS design. This paper, therefore, proposes a strategic planning method for PSS development and implementation by combining technology roadmap and transition scenarios. To illustrate its applicability and validity, the proposed approach is applied to a PSS development project for solving wildlife damage in a suburban city of Tokyo. The case study was conducted as a participatory workshop, which involved relevant stakeholders to develop a roadmap toward a sustainable future PSS vision based on the proposed method. The result of this application demonstrates that the proposed approach enables the formulation of a long-term PSS design strategy, while comprehensively converging the perspectives and knowledge of each stakeholder participating in the PSS development.

One of the most promising business models towards economic circularity is product-service system (PSS). Despite its great potential benefits, shifting the traditional business model of a manufacturer into PSS business model commonly refers to service transition and triggers inconsistencies between strategic direction and organization arrangement at an operational level. The absence of alignment between the service transition strategy and the PSS business model is greatly emphasized as a crucial enabler, risk factor and key success factor of the service transition. However, limited academic works have concretely contributed to the strategic alignment. Through a systematic literature review, this paper proposes a PSS business alignment that enables the manufacturer to identify the strategic objective of its service transition strategy and align it with PSS business model. The theoretical version of the proposed framework is redefined and redeveloped through two cycles of action research involving 11 Japanese companies.

Servitization requires the acquisition and development of service-oriented capabilities. Research has contributed considerably to the investigation of the necessary capabilities for successful servitization and the introduction of numerous service-based capabilities. However, previous studies typically focus on proposing a general set of capabilities or processes for servitization. There is limited knowledge of how a manufacturing company can identify the necessary capabilities and plan the corresponding development actions following its servitization context. Through two phases of a case study, this research proposes a service-oriented strategy formulation method. The method supports the analysis of manufacturing companies’ servitization contexts that lead to appropriate identification of the necessary capabilities for successful servitization. This method further guides the formulation of service-oriented strategies as the strategic logic in how manufacturing companies implement servitization, including the corresponding actions to develop the required capabilities. Finally, the application in a Japanese office machinery manufacturer illustrates the applicability and usability of the proposed method in facilitating the formulation of service-oriented strategies for the servitization of manufacturing companies.

SARS-CoV-2 has become a global pandemic, causing many disruptions in multiple sectors. The World Health Organization has urged the public to wear face masks as part of the countermeasure. As the demand for face masks increased, research on the environmental sustainability of face masks production started to emerge. However, the scope of the prior studies is limited to environmental impacts during the manufacturing process. Broadening the research scope is critical to acquire a comprehensive environmental impact analysis. Therefore, this study investigates the life cycle impact assessment of disposable face mask production, from raw material extraction to the point of sale, by adopting the life cycle assessment method. Disposable face masks are assessed for a single person, over one functional unit (FU) of 30 12-h days. The ReCiPe approach was used with a Hierarchist perspective. The results reveal that disposable face mask manufacture contributes significantly to enormous environmental impact categories. As a solution, this study proposes a reconfiguration of the manufacturing process, by altering the design and material proportion of the earloop to minimise the environmental impact. The investigation indicates that the proposed design might decrease the global warming contribution, from 1.82593 kg CO₂ eq. to 1.69948 kg CO₂ eq.

As one of the differentiation strategies towards the strained global competitive market, the concept of Product-Service System (PSS) is emerging. Product-Service System (PSS) is a concept of service system, which is represented with functional deliveries from a provider to a receiver in which products and/or services are the devices for transmitting the functions. In general, actual PSSs in business are forming a complicated consortium in which various multi-stakeholders are involved. The success of product/service design relies in great measure upon the accurate understanding and satisfying of multi-stakeholder requirements, but none of the available PSS design methodologies touch upon how to incorporate and realize the multi-stakeholder requirements in PSS design. This paper intends to fill in this research gap by proposing a practical method to capture and analyze the dependency of multi-stakeholder requirements to enable the development of valuable PSS design which satisfies these requirements. The rationality of PSS design is measured using Life Cycle Costing (LCC) in order to ensure the realization of multi-stakeholder requirements persist to lay within the company’s capabilities. The proposed method was found effective in a case study application to concretize multi-stakeholder requirements in design embodiment of PSS offering. The complex requirements from multiple stakeholders were structured and reflected in the PSS design structure.