Skip to main content
SpringerLink
Log in

Enabling System-Oriented Service Delivery in Industrial Maintenance: A Meta-method for Predicting Industrial Costs of Downtime

  • Conference paper
  • First Online:
Exploring Service Science (IESS 2020)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 377))

Included in the following conference series:

Abstract

Nowadays, companies often outsource activities not directly related to their core business to service providers. Service providers—especially in physical services—heavily rely on complex information and optimization systems to increase their efficiency. As of now, most of those systems implement the concept of provider-oriented service delivery (POSD). Whilst POSD optimizes from a provider perspective, it neglects optimization potential on the customer side. Addressing this issue, scholars recently proposed the concept of system-oriented service delivery (SOSD). Although SOSD allows for significant cost reduction compared to POSD, it also requires additional customer cost data. In industrial maintenance, this additional cost data refers to the customer’s costs of downtime. Despite some pioneer work in this field, current knowledge does not suffice for the successful application of SOSD in the domain of industrial maintenance. Consequently, the objective of this work is to develop a method to determine a manufacturer’s costs of downtime.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Abedinnia, H., Glock, C.H., Grosse, E.H., Schneider, M.: Machine scheduling problems in production: a tertiary study. Comput. Ind. Eng. 111, 403–416 (2017)

    Article  Google Scholar 

  2. Chang, Q., Biller, S., Xiao, G.: Transient analysis of downtimes and bottleneck dynamics in serial manufacturing systems. J. Manuf. Sci. Eng. 132(5), 051015 (2010)

    Article  Google Scholar 

  3. Chen, Z.L.: Integrated production and outbound distribution scheduling: review and extensions. Oper. Res. 58(1), 130–148 (2009)

    Article  Google Scholar 

  4. Chopra, S., Meindl, P.: Supply Chain Management: Strategy, Planning and Operation, vol. 56, 3rd edn. Prentice-Hall, Upper Saddle River (2009)

    Google Scholar 

  5. Crumrine, D., Post, D.: Channel chat: when true cost of downtime is unknown. Bad Decis. Ensue 53(1), 55–60 (2006)

    Google Scholar 

  6. Edwards, D.J., Holt, G.D., Harris, F.C.: Predicting downtime costs of tracked hydraulic excavators operating in the UK opencast mining industry. Constr. Manag. Econ. 20(7), 581–591 (2002)

    Article  Google Scholar 

  7. Fahimnia, B., Farahani, R.Z., Marian, R., Luong, L.: A review and critique on integrated production-distribution planning models and techniques. J. Manuf. Syst. 32(1), 1–19 (2013)

    Article  Google Scholar 

  8. Field, J.M., et al.: Service operations: what’s next? J. Serv. Manag. 29(1), 55–97 (2018)

    Article  MathSciNet  Google Scholar 

  9. Fox, J.P., Brammall, J.R.: Determination of the financial impact of machine downtime on the Australia post large letters sorting process. In: 9th Global Congress on Manufacturing and Management (GCMM 2008), pp. 1–7. Gold Coast, Australia (2008)

    Google Scholar 

  10. Geraerds, W.: The cost of downtime for maintenance: preliminary considerations. University of Technology, Department of Industrial Engineering & Management Science, Eindhoven (1983)

    Google Scholar 

  11. Gitzel, R., Schmitz, B., Fromm, H., Isaksson, A., Setzer, T.: Industrial services as a research discipline. Enterp. Model. Inf. Syst. Arch. 11(4), 1–22 (2016)

    Google Scholar 

  12. Gregor, S., Hevner, A.R.: Positioning and presenting design science research for maximum impact. MIS Q. 37(2), 337–355 (2013)

    Article  Google Scholar 

  13. Hevner, A., Chatterjee, S.: Design science research in information systems. In: Hevner, A., Chatterjee, S. (eds.) Design Research in Information Systems: Theory and Practice. ISIS, vol. 22, pp. 9–22. Springer, Boston (2010). https://doi.org/10.1007/978-1-4419-5653-8_2

    Chapter  Google Scholar 

  14. Ioannou, G., Sullivan, W.: Use of activity-based costing and economic value analysis for the justification of capital investments in automated material handling systems. Int. J. Prod. Res. 37(9), 2109–2134 (1999)

    Article  Google Scholar 

  15. Kieninger, A., Berghoff, F., Fromm, H., Satzger, G.: Simulation-based quantification of business impacts caused by service incidents. In: Falcão e Cunha, J., Snene, M., Nóvoa, H. (eds.) IESS 2013. LNBIP, vol. 143, pp. 170–185. Springer, Heidelberg (2013). https://doi.org/10.1007/978-3-642-36356-6_13

    Chapter  Google Scholar 

  16. Kieninger, A., Straeten, D., Kimbrough, S., Schmitz, B., Satzger, G.: Leveraging service incident analytics to determine cost-optimal service offers. In: Wirtschaftsinformatik, pp. 1015–1029 (2013)

    Google Scholar 

  17. Koltai, T., Lozano, S., Guerrero, F., Onieva, L.: A flexible costing system for flexible manufacturing systems using activity based costing. Int. J. Prod. Res. 38(7), 1615–1630 (2000)

    Article  Google Scholar 

  18. Kuechler, B., Vaishnavi, V.: On theory development in design science research: anatomy of a research project. Eur. J. Inf. Syst. 17(5), 489–504 (2008)

    Article  Google Scholar 

  19. Kuechler, W., Vaishnavi, V.: A framework for theory development in design science research: multiple perspectives. J. Assoc. Inf. Syst. 13(6), 395–423 (2012)

    Google Scholar 

  20. Lincoln, A.R.: Development of a dynamic costing model for assessing downtime and unused capacity costs in manufacturing. Ph.D. thesis, Georgia Institute of Technology (2013)

    Google Scholar 

  21. Liu, J., Chang, Q., Xiao, G., Biller, S.: The costs of downtime incidents in serial multistage manufacturing systems. J. Manuf. Sci. Eng. 134(2), 021016 (2012)

    Article  Google Scholar 

  22. Maravelias, C.T., Sung, C.: Integration of production planning and scheduling: overview, challenges and opportunities. Comput. Chem. Eng. 33, 1919–1930 (2009)

    Article  Google Scholar 

  23. March, S.T., Smith, G.F.: Design and natural science research on information technology. Decis. Support Syst. 15(4), 251–266 (1995)

    Article  Google Scholar 

  24. Naiknaware, D.M., Pimplikar, D.S.S.: Equipment costs associated with downtime and lack of availability. Int. J. Eng. Res. Appl. 3(4), 327–332 (2013)

    Google Scholar 

  25. Neely, A.: Exploring the financial consequences of the servitization of manufacturing. Oper. Manag. Res. 1(2), 103–118 (2008)

    Article  Google Scholar 

  26. Ostrom, A.L., et al.: Moving forward and making a difference: research priorities for the science of service. J. Serv. Res. 13(1), 4–36 (2010)

    Article  Google Scholar 

  27. Ostrom, A.L., Parasuraman, A., Bowen, D.E., Patrício, L., Voss, C.A.: Service research priorities in a rapidly changing context. J. Serv. Res. 18(2), 127–159 (2015)

    Article  Google Scholar 

  28. Park, B.J., Choi, H.R., Kang, M.H.: Integration of production and distribution planning using a genetic algorithm in supply chain management. In: Melin, P., Castillo, O., Ramírez, E.G., Kacprzyk, J., Pedrycz, W. (eds.) Analysis and Design of Intelligent Systems using Soft Computing Techniques. AINSC, vol. 41, pp. 416–426. Springer, Heidelberg (2007). https://doi.org/10.1007/978-3-540-72432-2_42

    Chapter  Google Scholar 

  29. Peffers, K., Rothenberger, M., Tuunanen, T., Vaezi, R.: Design science research evaluation. In: Peffers, K., Rothenberger, M., Kuechler, B. (eds.) DESRIST 2012. LNCS, vol. 7286, pp. 398–410. Springer, Heidelberg (2012). https://doi.org/10.1007/978-3-642-29863-9_29

    Chapter  Google Scholar 

  30. Ritchie, J., Lewis, J.: Qualitative Research Practice, 1st edn. SAGE, London (2003)

    Google Scholar 

  31. Saldana, J.: The Coding Manual for Qualitative Researchers, 2nd edn. SAGE, London (2013)

    Google Scholar 

  32. Salonen, A., Tabikh, M.: Downtime costing—attitudes in swedish manufacturing industry. In: Koskinen, K.T., et al. (eds.) Proceedings of the 10th World Congress on Engineering Asset Management (WCEAM 2015). LNME, pp. 539–544. Springer, Cham (2016). https://doi.org/10.1007/978-3-319-27064-7_53

    Chapter  Google Scholar 

  33. Saunders, M., Lewis, P., Thornhill, A.: Research Methods for Business Students, 5th edn. Pearson Education, Harlow (2009)

    Google Scholar 

  34. Solomon, M.M.: Algorithms for the vehicle routing and scheduling problems with time window constraints. Oper. Res. 35(2), 254–265 (1987)

    Article  MathSciNet  Google Scholar 

  35. Wolff, C., Kühl, N., Satzger, G.: System-oriented service delivery: the application of service system engineering to service delivery. In: 26th European Conference on Information Systems (ECIS), Portsmouth, United Kingdom (2018)

    Google Scholar 

  36. Wolff, C., Reuter-Oppermann, M., Kühl, N.: On the impact of the customer base on the added value through system-oriented service delivery in industrial maintenance. In: 52nd Hawaii International Conference on System Sciences, Grand Wailea, Hawaii, USA, pp. 1896–1905 (2019)

    Google Scholar 

  37. Wolff, C., Schmitz, B.: Determining cost-optimal availability for production equipment using service level engineering. In: 19th IEEE Conference on Business Informatics (CBI), Thessaloniki, Greece, pp. 176–185 (2017)

    Google Scholar 

  38. Wolff, C., Voessing, M.: A framework for the simulation-based estimation of downtime costs. In: Satzger, G., Patrício, L., Zaki, M., Kühl, N., Hottum, P. (eds.) IESS 2018. LNBIP, vol. 331, pp. 247–260. Springer, Cham (2018). https://doi.org/10.1007/978-3-030-00713-3_19

    Chapter  Google Scholar 

  39. Özbayrak, M., Akgün, M., Türker, A.: Activity-based cost estimation in a push/pull advanced manufacturing system. Int. J. Prod. Econ. 87(1), 49–65 (2004)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Karlsruhe Service Research Institute, Karlsruhe Institute of Technology, Karlsruhe, Germany

    Clemens Wolff, Niklas Kühl & Gerhard Satzger

Authors
  1. Clemens Wolff
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Niklas Kühl
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Gerhard Satzger
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Clemens Wolff .

Editor information

Editors and Affiliations

  1. University of Porto, Porto, Portugal

    Henriqueta Nóvoa

  2. University Politehnica of Bucharest, Bucharest, Romania

    Monica Drăgoicea

  3. Karlsruhe Institute of Technology (KIT), Karlsruhe, Germany

    Niklas Kühl

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Wolff, C., Kühl, N., Satzger, G. (2020). Enabling System-Oriented Service Delivery in Industrial Maintenance: A Meta-method for Predicting Industrial Costs of Downtime. In: Nóvoa, H., Drăgoicea, M., Kühl, N. (eds) Exploring Service Science. IESS 2020. Lecture Notes in Business Information Processing, vol 377. Springer, Cham. https://doi.org/10.1007/978-3-030-38724-2_7

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-38724-2_7

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-38723-5

  • Online ISBN: 978-3-030-38724-2

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics

Search

Navigation