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In this post, I want to explain why Model-Based Systems Engineering (MBSE) and Sustainability are closely connected. I would claim sustainability in our PLM domain will depend on MBSE.
Can we achieve Sustainability without MBSE? Yes, but it will be costly and slow. And as all businesses want to be efficient and agile, they should consider MBSE.
What is MBSE?
The abbreviation MBSE stands for Model-Based Systems Engineering, a specialized manner to perform Systems Engineering. Look at the Wikipedia definition in short:
MBSE is a technical approach to systems engineering that focuses on creating and exploiting domain models as the primary means of information exchange rather than on document-based information exchange.
Model-Based fits in the digital transformation scope of PLM – from a document-based approach to a data-driven, model-based one. In 2018, I focused on facets of the model-based enterprise and related to MBSE in this post: Model-Based: System Engineering (MBSE).
My conclusion in that post was:
Model-Based Systems Engineering might have been considered as a discipline for the automotive and aerospace industry only. As products become more and more complex, thanks to IoT-based applications and software, companies should consider evaluating the value of model-based systems engineering for their products/systems.
I drew this conclusion before I focused on sustainability and systems thinking. Implementing sustainability concepts, like the Circular Economy, require more complex engineering efforts, justifying a Model-Based Systems Engineering approach. Let’s have a look.
If you want to learn more about why we need MBSE, look at this excellent keynote speech lecture from Zhang Xin Guo at the Incose 2018 conference below:
The Mission / the stakeholders
A company might deliver products to the market with the best price/quality ratio and regulatory compliance, perceived and checked by the market. This approach is purely focusing on economic parameters.
There is no need for a system engineering approach as the complexity is manageable. The mission is more linear, a “job to do,” and a limited number of stakeholders are involved in this process.
… with sustainability
Once we start to include sustainability in our product’s mission, we need a systems engineering approach, as several factors will push for different considerations. The most obvious considerations are the choice of materials and the optimizing the production process (reducing carbon emissions).
However, the repairability/serviceability of the product should be considered with a more extended lifetime vision.
What about upgradeability and reusing components? Will the customer pay for these extra sustainable benefits?
Probably Yes, when your customer has a long-term vision, as the overall lifecycle costs of the product will be lower.
Probably No if none of your competitors delivers non-sustainable products much cheaper.
As long as regulations will not hurt traditional business models, there might be no significant change.
However, the change has already started. Higher energy prices will impact the production of specific resources and raise costs. In addition, energy-intensive manufacturing processes will lead to more expensive materials. Combined with raising carbon taxes, this will be a significant driver for companies to reconsider their product offering and manufacturing processes.
The more expensive it becomes to create new products, the more attractive repairable and upgradable products will become. And this brings us to the concept of the circular economy, which is one of the pillars of sustainability.
In short, looking at the diagram – the vertical flow from renewables and finite materials from part to product to product in service leads ultimately to wasted resources if there are no feedback loops. This is the traditional product delivery process that most companies are using.
You can click on the image to the left to zoom in on the details.
The renewable loop on the left side of the diagram is the usage of renewables during production and the use of the product. The more we use renewables instead of fossil fuels, the more sustainable this loop will be. This is the area where engineers should use simulations to find the optimal manufacturing processes and product behavior. Again click on the image to zoom in on the details.
The right side of the loop, related to the materials, is where we see the options for repairable, serviceable, upgradeable, and even further refurbishment and recycling to avoid leakage of precious materials. This is where mechanical engineers should dominate the activities. Focussing on each of the loops and how to enable them in the product. Click on the image to see the relevant loops.
Looking at the circular economy diagram, it is clear that we are no longer talking about a linear process – it has become the implementation of a system. Systems Engineering or MBSE?
The benefits of MBSE
Developing products with the circular economy in mind is no longer a “job to do,” a simple linear exercise. Instead, if we walk down the systems engineering V-shape, there are a lot of modeling exercises to perform before we reach the final solution.
To illustrate the benefits of MBSE, let’s walk through the following scenario.
A well-known company sells lighting projects for stadiums and public infrastructure. Their current business model is based on reliable lighting equipment with a competitive price and range of products.
Most of the time, their contracts have clauses about performance/cost and maintenance. The company sells the products when they win the deal and deliver spare parts when needed.
Their current product design is quite linear – without systems engineering.
Now this company has decided to change its business model towards Product As A Service, or in their terminology LaaS (Lightening as a Service). For a certain amount per month, they will provide lighting to their customers, a stadium, a city, and a road infrastructure.
To implement this business model, this is how they used a Model-Based Systems Engineering approach.
Modeling the Mission
Before even delivering any products, the process starts with describing and analyzing the business model needed for Lightening as a Service.
Then, with modeling estimates about the material costs, there are exercises about the resources required to maintain the service, the potential market, and the possible price range.
It is the first step of using a model to define the mission of the service. After that, the model can be updated, adjusted, and used for a better go-to-market approach when the solution becomes more mature.
Part of the business modeling is also the intention to deliver serviceable and upgradeable products. As the company now owns the entire lifecycle, this is the cheapest way to guarantee a continuous or improved service over time.
Modeling the Functions
Providing Lighting as a Service also means you must be in touch with your installations in real time. Power consumption needs to be measured and analyzed in real-time for (predictive) maintenance, and the light-providing service should be as cheap as possible during operation.
Therefore LED technology is the most reliable, and connectivity functions need to be implemented in the solution. The functional design ensures installation, maintenance and service can be done in a connected manner (cheapest in operation – beneficial for the business).
Modeling the Logical components
As an owner of the solution, the design of the logical components of the lighting solution is also crucial. How to address various lighting demands efficiently? Modularity is one of the first topics to address. With modular components, it is possible to build customer-specific solutions with a reduced engineering effort. However, the work needs to be done by generically designing the solutions and focusing on the interfaces.
Such a design starts with a logical process and flow diagrams combined with behavior modeling. Without already having a physical definition, we can analyze the components’ behavior within an electrical scheme. Decisions on whether specific scenarios will be covered by hardware or software can be analyzed here. The company can define the lower-level requirements for the physical component by using virtual trade-offs on the logical models.
At this stage, we have used business modeling, functional modeling and logical modeling to understand our solution’s behavior.
Modeling the Physical product
The final stage of the solution design is to implement the logical components into a physical solution. The placement of components and interfaces between the components becomes essential. For the physical design, there are still a lot of sustainability requirements to verify:
- Repairability and serviceability – are the components reachable and replaceable? Reducing the lifecycle costs of the solution
- Upgradeability – are there components that can behave differently due to software choices, or are there components that can be replaced with improved functionality. Reducing the cost of creating entirely new solutions.
- Reuse & recyclable – are the materials used in the solution recyclable or reusable, reducing the cost of new materials or reducing the cost of dumping waste.
- RoHS/ REACH compliance
The image below from Zhang Xin Guo’s presentation nicely demonstrates the iterative steps before reaching a physical product
Before committing to a hardware implementation, the virtual product can be analyzed, behavior can be simulated, and it carbon impact can be calculated for the various potential variants.
The manufacturing process and energy usage during operation are also a part of the carbon impact calculation. The best performing virtual solution, including its simulations models, can be chosen for the realization to ensure the most environmentally friendly solution.
The digital twin for follow-up
Once the solution has been realized, the company still has a virtual model of the solution. By connecting the physical product’s observed and measured behavior, the virtual side’s modeling can be improved or used to identify improvement candidates – maintenance or upgrades. At this stage, the virtual twin is the actual twin of the physical solution. Without going deeper into the digital twin at this stage, I hope you also realize MBSE is a starting point for implementing digital twins serving sustainability outcomes.
The image below, published by Boeing, illustrates the power of the connected virtual and physical world and the various types of modeling that help to assess the optimal solution.
Conclusion
For sustainability, it all starts with the design. The design decisions for the product contribute for 80 % to the carbon footprint of the solution. Afterward, optimization is possible within smaller margins. MBSE is the recommended approach to get a trustworthy understanding and follow-up of the product’s environmental impact.
What do you think can we create sustainable products without MBSE?
After all my writing about The road to model-based and connected PLM, a topic that interests me significantly is the positive contribution real PLM can have to sustainability.
To clarify this statement, I have to explain two things:
- First, for me, real PLM is a strategy that concerns the whole product lifecycle from conception, creation, usage, and decommissioning.
Real PLM to articulate the misconception that PLM is considered as an engineering infrastructure of even system. We discussed this topic related to this post (7 easy tips nobody told you about PLM adoption) from my SharePLM peers.
- Second, sustainability should not be equated with climate change, which gets most of the extreme attention.
However, the discussion related to climate change and carbon gas emissions drew most of the attention. Also, recently it seemed that the COP26 conference was only about reducing carbon emissions.
Unfortunately, reducing carbon gas emissions has become a political and economic discussion in many countries. As I am not a climate expert, I will follow the conclusions of the latest IIPC report.
However, I am happy to participate in science-based discussions, not in conversations about failing statistics (lies, damned lies and statistics) or the mixture of facts & opinions.
The topic of sustainability is more extensive than climate change. It is about understanding that we live on a limited planet that cannot support the unlimited usage and destruction of its natural resources.
Enough about human beings and emotions, back to the methodology
Why PLM and Sustainability
In the section PLM and Sustainability of the PLM Global Green Alliance website, we explain the potential of this relation:
The goals and challenges of Product Lifecycle Management and Sustainability share much in common and should be considered synergistic. Where in theory, PLM is the strategy to manage a product along its whole lifecycle, sustainability is concerned not only with the product’s lifecycle but should also address sustainability of the users, industries, economies, environment and the entire planet in which the products operate.
If you read further, you will bump on the term System Thinking. Again there might be confusion here between Systems Thinking and Systems Engineering. Let’s look at the differences
Systems Engineering
For Systems Engineering, I use the traditional V-shape to describe the process. Starting from the Needs on the left side, we have a systematic approach to come to a solution definition at the bottom. Then going upwards on the right side, we validate step by step that the solution will answer the needs.
The famous Boeing “diamond” diagram shows the same approach, complementing the V-shape with a virtual mirrored V-shape. In this way providing insights in all directions between a virtual world and a physical world. This understanding is essential when you want to implement a virtual twin of one of the processes/solutions.
Still, systems engineering starts from the needs of a group of stakeholders. So it works to the best technical and beneficial solution, most of the time only measured by money.
System Thinking
The image below from the Ellen McArthur Foundation is an example of system thinking. But, as you can see, it is not only about delivering a product.
Systems Thinking is a more holistic approach to bringing products to the market. It is about how we deliver a product to the market and what happens during its whole life cycle. The drivers for system thinking, therefore, are not only focusing on product performance at the most economical price, but we also take into account the impact on resource extraction in the world, the environmental impact during its active life (more and more regulated) and ultimately also how to minimize the waste to the eco-system. This means more recycling or reuse.
If you want to read more about systems thinking more professionally, read this blog post from the Millennium Alliance for Humanity and the Biosphere (MAHB) related to Systems Thinking: A beginning conversation.
Product as a Service (PaaS)
To ensure more responsibility for the product lifecycle, one of the European Green Deal aspects is promoting Product as a Service. There is already a trend towards products as a service, and I mentioned Ken Webster’s presentation at the PLM Roadmap & PDT Fall 2021 conference: In the future, you will own nothing, and you will be happy.
Because if we can switch to such an economy, the manufacturer will have complete control over the product’s lifecycle and its environmental impact. The manufacturer will be motivated to deliver product upgrades, create repairable products instead of dumping old or broken stuff because this is cheap for selling. PaaS brings opportunities for manufacturers, like greater customer loyalty, but also pushes manufacturers to stay away from so-called “greenwashing”. They become fully responsible for the entire lifecycle.
A different type of growth
The concept of Product as a Service is not something that typical manufacturing companies endorse. Instead, it requires them to restructure their business and restructure their product.
Delivering a Product as a Service requires a fast feedback loop between the products in the field and R&D deciding on improving or adding new features.
In traditional manufacturing companies, the service department is far from engineering due to historical reasons. However, with the digitization of our product information and connected products, we should be able to connect all stakeholders related to our products, even our customers.
A few years ago, I was working with a company that wanted to increase their service revenue by providing maintenance as a service on their products on-site. The challenge they had was that the total installation delivered at the customer site was done through projects. There was some standard equipment in their solution; however, ultimately, the project organization delivered the final result, and product information was scattered all around the company.
There was some resistance when I proposed creating an enterprise product information backbone (a PLM infrastructure) with aligned processes. It would force people to work upfront in a coordinated manner. Now with the digitization of operations, this is no longer a point of discussion.
In this context, I will participate on December 7th in an open panel discussion Creating a Digital Enterprise: What are the Challenges and Where to Start? As part of the PI DX spotlight series. I invite you to join this event if you are interested in hearing various digital enterprise viewpoints.
Doing both?
As companies cannot change overnight, the challenge is to define a transformation path. The push for transformation for sure will come from governments and investors in the following decades. Therefore doing nothing is not a wise strategy.
Early this year, the Boston Consultancy Group published this interesting article: The Next Generation of Climate Innovation, showing different pathways for companies.
A trend that they highlighted was the fact that Shareholder Returns over the past ten years are negative for the traditional Oil & Gas and Construction industries (-18 till -6 %). However, the big tech and first generation of green industries provide high shareholders returns (+30 %), and the latest green champions are moving in that direction. In this way, promoting investors will push companies to become greener.
The article talks about the known threat of disrupters coming from outside. Still, it also talks about the decisions companies can make to remain relevant. Either you try to reduce the damage, or you have to innovate. (Click on the image below on the left).
As described before, innovating your business is probably the most challenging part. In particular, if you have many years of history in your industry. Processes and people are engraved in an almost optimal manner (for now).
An example of reducing the damage could be, for example, what is happening in the steel industry. As making steel requires a lot of (cheap) energy, this industry is powered by burning coal. Therefore, an innovation to reduce the environmental impact would be to redesign the process with green energy as described in this Swedish example: The first fossil-free production of steel.
On December 9th, I will discuss both strategies with Henrik Hulgaard from Configit. We will discuss how Product Lifecycle Management and Configuration Lifecycle Management can play a role in the future. Feel free to subscribe to this session and share your questions. Click on the image to see the details.
Note: you might remember Henrik from my earlier post this year in January: PLM and Product Configuration Management (CLM)
Conclusion
Sustainability is a topic that will be more and more relevant for all of us, locally and globally. Real PLM, covering the whole product lifecycle, preferably data-driven, allows companies to transform their current business to future sustainable business. Systems Thinking is the overarching methodology we have to learn – let’s discuss
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