Product-Service Systems (PSS) raise interesting opportunities for the manufacturing firm as the function is provided to meet customer needs rather than the physical hardware itself. PSS offerings based on the manufacturer's knowledge about the product and the technology can increase its status as problem-solver and solution-provider, reduce life cycle cost and produce high revenue. However, PSS including, e.g. hardware, services, software and electronics are efficient and competitive only if developed for the specific purpose with features such as easy to maintain, upgradeable, with built-in sensors for collecting in-use and service data, and easy to use. This changes the requirements on the manufacturing firm's development process. Looking back historically, the last century gives an interesting changing landscape of the rationale for the product-development methods used in manufacturing firms. This article, based on the previous research in the product- and service-development fields, and on empirical results from studies at several manufacturing firms, looks into how the engineering work is affected by PSS and how it can be enhanced for PSS, especially in terms of required competencies and other capabilities. It results in recommendations for a new, functional product-development process.

Apparent from the latest pandemic, the dynamics and rate of change in society accelerate on a global scale. Ongoing mega-trends in society, such as digitalization, sustainability, and servitization, fundamentally changes the conditions for manufacturers when developing and providing new products. This study clarifies the combined impact and consequences on product development capabilities in manufacturing firms of the three mega-trends: (i) digitalization, (ii) sustainability, and (iii) servitization. The research is based on a pre-study, complemented with a semi-structured interview study at small, medium-sized, and large Swedish-based manufacturing companies, and a systematic literature review. The research makes evident that the main challenge is to empower engineers and development teams to model, present, evaluate, and develop expected and smart digitalized solutions in a time-limited environment and prioritize the most resource efficient and sustainable solution. Therefore, four complementary support resources are suggested: (i) a knowledge management platform, (ii) a data management platform, (iii) a set of criteria and metrics measuring progression, and (iv) support methods and tools to define, model, and evaluate solutions. When integrated into a digital platform, developers can simultaneously access and process the necessary information needed for sustainable, digitalized, and servitized solutions.

Purpose: – Manufacturing companies are increasingly making efforts to combine products and services into integrated offerings. However, the companies’ success in such transformation is linked with the presence of structured routines and processes, which the authors conceptualize as product-service systems (PSS) innovation capabilities. The purpose of this paper is to address the important question of how manufacturing companies can systematically build PSS innovation capabilities and does its presence or absence significantly influence PSS innovation. Design/methodology/approach: – This study is based on longitudinal data from an aerospace company, which acts both as an OEM providing through-life services for aircraft engines, as well as a developer of innovative subsystem technologies. Data has been collected over three years (2009-2012) and constitutes 40 in-depth explorative and semi-structured interviews with diverse respondents. For analysis of the data, the authors have used constant comparison technique leading to identification of three high-order categories. In addition, the authors gain from observations and secondary data which enable to achieve data triangulation and data validity. Findings: – The results objectively depict an overview of how the case company developed PSS innovation capabilities, though progression of routines over three early PSS development stages. More specifically, the authors find evidence for development of formalized routines related to customer interaction and innovative organizational climate during need phase, cross-functionality, and network partnering during solution-seeking phase, and competence and business case development during solution development phase. As these routines become more structured within the case company, they forge a path for PSS innovation capabilities development. Originality/value: – This study provides two distinctive contributions to emerging PSS literature. First, the authors propose and explain how PSS innovation capabilities are developed. Although prior studies acknowledge the importance of possessing specialized PSS innovation capabilities, limited studies have reported empirically how they are developed. Second, through adopting a longitudinal perspective, the authors reveal key routines and actions that drive PSS innovation during different development stages. To the knowledge, no prior study has combined insights from PSS literature and resource-based view to objectively explain capabilities development process.

In complex products the values of parameters are rarely exactly the required values, rather they often have a margin that might be designed in deliberately or be the incidental results of other design decisions. These margins play a critical role in design processes in managing engineering change and iteration. While engineers often talk about margins informally, designers and researchers also use other terms for specific margin concepts. This paper reviews the existing literature on related concepts and defines margins formally. It discusses the role margins play in handling uncertainty by distinguishing between buffer and excess. Buffer deals with uncertainty and excess with the remaining overcapacity of the design. Buffer can transition into excess of the design solution if the uncertainty can be reduced. The concepts are applied to the temperature margins of several candidate materials for a non-rotary jet engine component. This shows that a clear understanding of margins can help a company to select design alternatives.