Service/Product Engineering: a new discipline for value production:

1. Service/Product Engineering:a new discipline for value production: Tatsunori Hara, Tamio Arai Department of Precision Engineering, The University of Tokyo, Japan Yoshiki Shimomura, Department of System Design, Tokyo metropolitan University, Japan and Tomohiko Sakao Mitsubishi Research Institute, Japan International Conference on Production Research June 30 - August 2, 2007, Valparaiso, Chile

2. Table of Contents • Motivation & Service/Product Engineering • Why is Service/Product Engineering needed ? • Research domain on Service/Product Engineering • Our Proposals • Challenge of Service/Product Engineering • Service modeling method • Tool for service design (Service Explorer) • Demonstration of Service Explorer • An escalator operating service • Discussion & Conclusion

3. You are a manufacturer of car. What kinds of services can you imagine that relate your car ? ？

4. Various services that relatecar

5. Why is Service/Product Engineering needed ? As economy matures… • Manufacturers are required to supply more services in addition to material products to customer • Many services are sustained by products • Good combination of products and services becomes a key issue Servicizing ? Servification ? Product-Service System ? Service Science ? Function Sales ? Service/Product Engineering (SPE) [Arai & Shimomura 2004] A new methodology to create value by combining products and services

6. Research domain on SPE *have worked on mainly *be working on currently *future works Customer Representation ValueRepresentation Activity model (Process model) Function & attribute model Multi-agents system Modeling Design logic Function evaluation ServiceCAD Design review Satisfactionmodel Evaluation (Analysis) Effective use of knowledge Design Subjectivityevaluation Best practice & case base Dynamic simulation the view point of “engineering”

7. Table of Contents • Motivation & Service/Product Engineering • Why is Service/Product Engineering needed ? • Research domain on Service/Product Engineering • Our Proposals • Challenge of Service/Product Engineering • Service modeling method • Tool for service design (Service Explorer) • Demonstration of Service Explorer • An escalator operating service • Discussion & Conclusion

8. Definition of service RSP: Receiver State Parameter Definition of service in SPE • An activity between a service provider and a service receiver to change the state of the receiver • The state change means satisfaction • The delivery of “service contents” through “service channels” • Most business activities can be regarded as this widely-defined service RSPs • Indicator of the state change • The state change of the receiver is expressed by set of RSPs • RSP relates receiver’s value and requirement

9. Product Challenge of SPE. Difference of design process Product Plannning ProductDesign ProductProduction Shortening lead time by releasing partial Spec Product Info Product Info Product Value Value ProductionPlanning Service ActivityDesign Service Activity time time (b) Concurrent engineering (a) Primitive engineering Optimizing value by starting with value Design Proposed Method Remarks Product Design Info : Information Spec : Specification : Output from a process ValueDesign Product Info Product Service ContentsDesign Value Service Activity Info • Concurrent design • Interactive design The role of Product design and product production will change in SPE; from product production to value production Service Activity Design Front loaded design time (c) Service/Product engineering

10. Overview of modeling method View model (Function structure for an RSP) Who is a receiver ? What is his/her value ? Scenario using Persona Value (RSP) RSP Persona Service Contents State Parameter Scenario What do you provide? Functions of physical products Functions of Service activities Service Blueprint[Shostack 1981] Conventional Engineering methods How do you provide? Physical product (hardware/software) Service activitiesby manpower

11. Service Explorer (since 2002～) Service Explorer: a computer-aided design tool Advantages • Design environment that can seamlessly analyze everything from individual customers up to constructing entities • Design review tool, for example, among managers, marketers, and engineers So far… • Distributed into 15 companies in Japan (through Service Engineering Forum) • Used in 2 real cases in Europe (through academic members) Language • Java 2 SE 5.0 Platform & frameworks • Eclipse RCP • EMF, GEF, GMF

12. Conceptual Scheme of Service Explorer • Design Working Space : Provides functions for model building • Case Base : Stores service cases & best practices • Design Organizer : Controls and supports design activities (processes) • Evaluator : Evaluates and simulates services based on characteristics of them • Reasoning Engines : Enables designers to generate design solutions, and to give some clues towards innovative ideas *See my paper about the detailed architecture and methods

13. Table of Contents • Motivation & Service/Product Engineering • Why is Service/Product Engineering needed ? • Research domain on Service/Product Engineering • Our Proposals • Challenge of Service/Product Engineering • Service modeling method • Tool for service design (Service Explorer) • Demonstration of Service Explorer • An escalator operating service • Discussion & Conclusion

14. An escalator operating service Demonstration of Service Explorer 1 Value design and service contents design Step supports its customers’ use of elevators and escalators, while using them as advertising places. Function design of service contents 2 Step 3 Service activity design Step

15. Persona: Naomi Kimura Hierarchy of important state parameters 1) Value design and service contents design • Homemaker with two young kids • Scenario: shopping with kids on a Sunday • Go to a building by car; go to a shop by using elevator; and enjoy shopping For action of “going to a shop using elevator” Ends LOV (List of Values) [Kahle 1986] Means Identified RSPs

16. View models for RSPs 2) Function design of service contents • Described the function structures for RSPs • Associated functions with entities • A view model that corresponds to the RSP “Security and safety of the service” • The view model consists of functions that represent products and service activities

17. Physical Environment Service Blueprint 3) Service activity design • Service activities were designed to actualize functions in the view models • Actors: user, elevator, staff • Followings are specified • Service delivery process • Interactions between the receiver and provider • Physical environment around the receiver • Some of activities are related to functions in the view models • Combining elevator advertisement and operation data of elevators, new service such as pay-per-view advertising can be designed Line of Interaction User Elevator Visible Invisible Staff (guard or maintenance staff) Visible Invisible Service activities with the BPMN (Business Process Modeling Notation) according to a Service Blueprint

18. Table of Contents • Motivation & Service/Product Engineering • Why is Service/Product Engineering needed ? • Research domain on Service/Product Engineering • Our Proposals • Challenge of Service/Product Engineering • Service modeling method • Tool for service design (Service Explorer) • Demonstration of Service Explorer • An elevator/escalator operating service • Discussion & Conclusion

19. Conclusion Key Issues in the future Discussion & Conclusion • Service/Product Engineering is a new methodology to create value by combining services and products • Comparison with P.E. and C.E. was referred • A modeling method for services and a tool for service design were demonstrated • They worked well as a hub for existing studies in marketing and traditional engineering field • SPE has considerable potential to be a new engineering discipline • Methodology to specify RSPs • Evaluation the balance value to be received and cost to be paid • Methodology to improved the described service

20. Thank you for your attention !!