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Authors:A.W. Thompson: School of Engineering, Blekinge Institute of Technology, Sweden
H. Ny: School of Engineering, Blekinge Institute of Technology, Sweden
P. Lindah: School of Engineering, Blekinge Institute of Technology, Sweden
G. Broman: School of Engineering, Blekinge Institute of Technology, Sweden
M. Severinsson: AuraLight International AB, Karlskrona, Sweden
Publication title:Benefits of a Product Service System Approach for Long-life Products: The Case of Light Tubes
Conference:Proceedings of the 2nd CIRP IPS2 Conference 2010, 14-15 April, Linköping, Sweden
Publication type: Abstract and Fulltext
Issue:077
Article No.:011
Abstract:Products designed for long-life often have significant potential for better sustainability performance than standard products due to less material and energy usage for a given service provided, which usually also results in a lower total cost. These benefits are not always obvious or appealing to customers, who often focus on price. Long-life products are therefore at an inherent disadvantage: due to lower volume of sales that results from the products’ longer-life, the margins (price) often need to be higher. In this paper, we demonstrate that when the revenue base is shifted to be the service of light (instead of the sales of light tubes), there is an opportunity for a “win-win-win” for the light user, the long-life light provider and society. Through a product-service system approach, resulting in a well-communicated total offer, the full array of benefits becomes clearer to the customer, including that they avoid the high initial cost.
Language:English
Keywords:sustainability performance, long-life products, product-service system, value chain, modeling
Year:2010
No. of pages:7
Pages:83-89
ISBN:978-91-7393-381-0
Series:Linköping Electronic Conference Proceedings
ISSN (print):1650-3686
ISSN (online):1650-3740
File:http://www.ep.liu.se/ecp/077/011/ecp10077011.pdf
Available:2012-10-11
Publisher:Linköping University Electronic Press, Linköpings universitet

REFERENCE TO THIS PAGE
A.W. Thompson, H. Ny, P. Lindah, G. Broman, M. Severinsson (2010). Benefits of a Product Service System Approach for Long-life Products: The Case of Light Tubes, Proceedings of the 2nd CIRP IPS2 Conference 2010, 14-15 April, Linköping, Sweden http://www.ep.liu.se/ecp_article/index.en.aspx?issue=077;article=011 (accessed 7/31/2014)