Advances in through life engineering services (decision engineering)

methodologies which enable manufacturing organisations make the transition toever increasing servitized product offerings the author introduced a strategy for-mulation methodology for co

Decision Engineering

Advances in Through-life Engineering Services

Louis Redding

Rajkumar Roy

Andy Shaw Editors

Decision Engineering

Series editor

More information about this series at http://www.springer.com/series/5112

Louis Redding • Rajkumar Roy

Andy Shaw

Editors

Advances in Through-life Engineering Services

123

Department of Manufacturing & MSAS

Cranfield University

Cranfield, Bedfordshire

UK

Andy ShawCranfield UniversityCranfield, BedfordshireUK

Decision Engineering

ISBN 978-3-319-49937-6 ISBN 978-3-319-49938-3 (eBook)

DOI 10.1007/978-3-319-49938-3

Library of Congress Control Number: 2017934464

© Springer International Publishing AG 2017

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Some food for thought!

When you as a designer design something that burdens a community with maintenance and old world technology, basically failed developed world technology, then you will crush that community way beyond bad design; you ’ll destroy the economics of that community, and often the community socially

Clifford Stoll

Any enterprise CEO really ought to be able to ask a question that involves connecting data across the organization, be able to run a company effectively, and especially to be able

to respond to unexpected events Most organizations are missing this ability to connect all the data together.

Tim Berners-Lee Failure is central to engineering Every single calculation that an engineer makes is a failure calculation Successful engineering is all about understanding how things break or fail.

Henry Petroski Design is a funny word Some people think design means how it looks But of course, if you dig deeper, it ’s really how it works.

Steve Jobs When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.

Henry Ford

A good scientist is a person with original ideas A good engineer is a person who makes a design that works with as few original ideas as possible There are no prima donnas in engineering.

Freeman Dyson Aviation is the branch of engineering that is least forgiving of mistakes.

Freeman Dyson

service and support provision for complex engineering products Continuingapplied research in this area is being undertaken by a number of centres in the UK,Europe and the USA which seeks to develop innovative solutions and promote theexchange of ideas within a rapidly growing community of researchers, academicsand industrial practitioners This has seen progress being increasingly disseminated

at the annual Through-life Engineering Services Conference (TESConf) which is

and begin an international journey As the conference starts it is internationaljourney it will initially be hosted by the Bremen Institute for MechanicalEngineering at the University of Bremen in Germany

with its co-collaborating research partners at Durham University (UK) have vided research focus and direction supported by funding from the Engineering andPhysical Sciences Research Council and key industrial partners but is now moving

pro-to an industrial funding programme This has demonstrated ongoing strong mitment from its key industrial supporters Rolls-Royce, BAE Systems, BabcockInternational, the UK Ministry of Defence and Bombardier Transportation.Through-life Engineering Services have also enjoyed support from the BritishStandards Institute who are now gathering momentum from industry for thedevelopment of a framework standard for through-life engineering services

of a UK national strategy in Through-life Engineering Services This is being led by

an industrial and academic steering committee co-chaired by Rolls-Royce and theHigh Value Manufacturing Catapult This initiative has captured the minds of alarge number of key senior industrialists and is seen as a key milestone by aca-demics and practitioners

This book contains a compendium of contributions from leading internationalacademics, researchers and practitioners who are continuing to develop Through-life

vii

Engineering Services so as to provide aligned technical and business solutions fororganisations seeking to compete through the adoption of ever-increasing serviceprovision in support of their manufactured products This publication builds upon the

chapters present the journey undertaken to realise the UK National Strategy forThrough-life Engineering Services They present the outputs from a series of work-

contributions relative to TES and the design function In this section the relationshipbetween warranty supporting the installed product base, and knowledge managementare introduced This is supported by the presentation of service support considerationsundertaken when designing a civil aerospace gas turbine

Part III goes on to discuss the role of data, diagnostics and prognostics withinsystem design engineering for through-life engineering services and supportingcomplex systems which include both autonomy and design of contracts The fol-lowing section offers contributions from academia and industry dealing with howreal systems and their components degrade It looks at novel techniques forassessing such degradation and damage to help inform the replace or repair deci-sion Section V discusses further the importance of system design and presents anovel solution employing modelling techniques within the UK Rail Sector.Building upon contributions within the previous book, Part VI presents contri-butions which address the important subjects of Cost Modelling, Planned

offers contributions which further address the importance of autonomous nance, self-healing and other emerging product support techniques

this connectivity is already becoming relevant and as contracting mechanismschange and mature not only is the ownership of the product becoming less certainbut also the ownership of the performance data it is producing in operation We, theeditors, look forward to many more years of interesting challenges in this new and

Rajkumar RoyAndy Shaw

The editors would like to acknowledge and thank for the guidance and support ofall who contributed to the preparation and writing of this manuscript The initialguidance relative to the scope of this text came from analysis of the outputs from a

two of the co-editors of this work, Mr A Shaw and Prof R Roy These eventswere attended by senior academics, industrial practitioners, researchers and con-sultants This was supported by an analysis of trends within the literature at the time

of preparation of the proposal for this work To all those who participated theeditors wish to express their gratitude

reviewers who upon receipt of the book proposal gave their strong support of thisproject and gave constructive comments as to how the book should be structuredand gave insight into the subject areas for inclusion

The editors would like to express their sincere gratitude to all the contributingauthors of the chapters herein who took time from their busy schedules to contribute

to this work Particular thanks are offered for the provision of their informed insightand support when constructing this compendium of chapters

Finally, the editors wish to thank Springer Publishing for their proactive supportthroughout the undertaking of this work without which the contributions containedherein would not have been brought to the reader

ix

Louis Redding

Andy Shaw and Paul Tasker

Engineering Services: Workshop Outputs Analysis and Final

Andy Shaw and Paul Tasker

Louis Redding

Andrew Harrison

Charles Dibsdale

in Through-Life Engineering Services

Jay Lee, Chao Jin and Zongchang Liu

xi

8 Development and Operation of Functional Products: Improving

Knowledge on Availability Through Use of Monitoring and

Sebastian Adolphy, Hendrik Grosser and Rainer Stark

Eckart Uhlmann, Christian Gabriel, Abdelhakim Laghmouchi,

Claudio Geisert and Niels Raue

Haitao Liao, Ye Zhang and Huairui Guo

Life Testing Data

Sri Addepalli, Yifan Zhao and Lawrence Tinsley

Youichi Nonaka, Takahiro Nakano, Kenji Ohya, Atsuko Enomoto,

Amir Toossi, Lloyd Barson, Bradley Hyland, Wilson Fung

and Nigel Best

Piotr Sydor, Rohit Kavade and Christopher J Hockley

John Thompson and Laura Lacey

Part VI Cost, Obsolescence, Risk and TES Contract Design

Engineering Services in Life Cycle Costing (LCC) and Design

Paul Baguley

Ahmed Raza and Vladimir Ulansky

Maintenance Optimization and Concurrent System and Contract

Amir Kashani Pour, Navid Goudarzi, Xin Lei and Peter Sandborn

Michael Knowles, David Baglee and Pankaj Sharma

M Farnsworth, R McWilliam, S Khan, C Bell and A Tiwari

Michael Abramovici, Mario Wolf and Matthias Neges

Jonathan Pelham

Neha Prajapat, Ashutosh Tiwari, Xiao-Peng Gan, Nadir Z Ince

and Windo Hutabarat

A Martinetti, A.J.J Braaksma and L.A.M van Dongen

A Structured Approach Aiding Initial Spare Parts Assortment

A Martinetti, A.J.J Braaksma, J Ziggers and L.A.M van Dongen

27 The Design of Cost and Availability in Complex Engineering

Duarte Rodrigues, John Erkoyuncu and Andrew Starr

Davood Sabaei, Alessandro Busachi, John Erkoyuncu,

Paul Colegrove and Rajkumar Roy

Chapter 1

Introduction

Louis Redding

develop They are being adopted by manufacturing organisations at increasing rates

as companies seek to move towards offering advanced service solutions in support

of their product offerings This chapter introduces the second book in a plannedseries of contributions by the editors It presents further developments relative to themotivation, theory and practice relating to TES The chapter offers to the reader adeveloping and strengthening rationale for the adoption of TES solutions It pre-sents the book structure and gives insight as to the methods used by the editors to

from this compendium of contributions from eminent scholars and practitionerswho are currently conducting state of the art research into TES, or applying itsprinciples to achieve strategic advantage through the control and mitigation of risk

As manufacturing organisations seek to maintain and improve upon their strategic

observed The drivers for the adoption of PSS and servitization initiatives within the

combat increasing competition from low cost economies, (ii) the need to increase

or (iii) a combination of the two The origins of both concepts are discussed at greatlength within the literature as researchers and academics seek to further understandthe contents and mode of application for each It is also recognised that there is a

L Redding ( &)

Cran field University, Cranfield, Bedfordshire, UK

e-mail: louis.redding@cran field.ac.uk

L Redding

Jaguar Land Rover Plc, Gaydon, UK

© Springer International Publishing AG 2017

L Redding et al (eds.), Advances in Through-life Engineering Services,

Decision Engineering, DOI 10.1007/978-3-319-49938-3_1

1

servitization continuum (Table1.1) Here one sees at either end of this continuum

along the scale which offer various increasing levels of service Whilst the mainfocus within the literature is centred upon the manufacturing company wishing toadd increasing levels of service to its customer offering it should not be overlookedthat the pure service provider may wish to move towards the manufacturer byadding elements of production to its offering by acquisition or vertical integration

ways

further sought to clarify the levels of service that are offered at differing levels of

design and production of the product which is then sold as a single unsupportedtransaction This entity is rare as consumer protection and optional warranty sys-tems are, or are increasing becoming, the norm driven by customer and transac-tional protection legislation As the organisation moves towards offering a service

than exchange equipment and spare parts as required

the addition of maintenance, repair and overhaul (MRO) being offered in support ofthe product If there are franchise service providers (i.e car dealerships etc.) aligned

to this post sale support then training of maintenance teams is also provided by theOriginal Equipment Manufacturer (OEM) to ensure quality of MRO support and

Table 1.1 Main and sub categories of products and services [ 11 ]

Pure

manufacturer

… the organisation provides manufactured goods at a single point contract transaction with no additional service or manufacturer support (The customer consumer adopts all the risks relating to product functionality and availability for use)

Product oriented

PSS

… the organisation provides manufactured goods and the ownership of those goods passes to the customer/consumer at the point of sale Additional services are provided by way of service bundles ranging from base (parts and/or service) to intermediate (warranties)

Use oriented

PSS

… the manufacturer produces a product and retains ownership of that product and seeks to sell the use or function of the product to the consumer This model appears in leasing contracts, but more complex long term, and through life availability contracts are emerging With these contracts the manufacturer retains the risk relating to product function.

accompanyingfield service either by the franchisee or third party service providersand product support organisations [e.g Automobile Association (AA) and RoyalAutomobile Club (RAC)] It is at this stage we see the emergence of conditionbased monitoring in support of the product during use This is seen as the base linefor the emergence of rudimentary TES solutions.

we see support agreements and risk to revenue agreements emerging Typically, theproducts supported are high value engineering products (aeroplanes, trains, ships,cars, machine tools etc.) The developing business models which seek to acquirerevenue from the use of the product through operating franchise agreements (forexample Airlines and Train Operating Companies) and latterly availability con-tracting are facilitated by these advanced services

methodologies which enable manufacturing organisations make the transition toever increasing servitized product offerings the author introduced a strategy for-mulation methodology for companies seeking to compete through Integrated

Expanding upon the knowledge gained in compiling the previous edited book on

Advanced Services when acknowledging that these service offerings are provided

Through-life Engineering Services enabled Service Delivery Systems.

Fig 1.1 Increasing levels of service as organisations ‘servitize’

requirements for definitions Namely, for a definition to be meaningful it shouldhave dimension, application, purpose and context After a thorough review ofliterature relative to TES and closely aligned concepts conducted between 2008 to

offered:

Through-life Engineering Services are …the…[product of the]… application of explicit and tacit ‘in-service knowledge’ supported by the use of monitoring, diagnostic, prognostic, technologies and decision support systems …[which are applied]… whilst the product is in use, and …[or during]… maintenance, repair, and overhaul (MRO) functions to mitigate degradation, restore ‘as design’ functionality, maximise product availability, thus reducing whole life-cycle cost [ 17 ]

evolve this contribution whilst meeting the criteria of robustness Namely that ofmeeting the elements of dimension, application, purpose, and context The latestones to be offered were during the launch of the TES National Strategy held at theInstitution of Engineering and Technology, London (2016), and in the advertising

They being:

Through-life Engineering Services (TES) is a ‘whole life’ product support strategy that ensures that the product ’s function is available for use throughout the product’s design life The concept covers all life stages from conception, through design, manufacture, opera- tional use, to final end of life disposal [Professor Raj Roy, London July: 2016]

Through-life engineering services, (TES) comprise the design, creation and in-service sustainment of complex engineering products with a focus on their entire life cycle, using high-quality information to maximise their availability, predictability and reliability at the lowest possible through-life cost [Roy and Sheridan: Press, July: 2016]

aligned and when ones reads them together it is felt that they collectively offer anidentity for Through-life Engineering Services which meets the dimensions of a

once an international standard (ISO) appears

academics, researchers, post-graduate students, and industrial practitioners who areseeking to understand the principles and motivation behind the adoption of TES

solutions Typically, those studying, conducting research, or working in the

• Maintenance, Repair and Overhaul (MRO) activities which are either standalone in support of existing product offerings, or part of an integrated advancedservice offering within a Product Service System (PSS)

• Life-cycle Engineering (LCE)

• Life-Cycle Cost Engineering

• Asset Management (AM)

• Product Life-cycle Management (PLM)

• Design for Service

• Warranty and Quality Management and Engineering

• Those engaged in the development and execution of Availability Contraction

• Consultants operating in the field of Product Service Systems and the nance arena

mainte-In addition to those listed above, this book could be of interest and a valuable

the following areas:

• MSc Through-life Engineering Services

• MSc Aircraft Management Systems

• MSc Through-life Systems Sustainment

• MSc Integrated Vehicle Health Management

• MSc/PGCert Cost Engineering

• Any MSc Course relating to Maintenance, Repair and Overhaul (MRO)

• Any MSc Course relating to engineering and risk elements of Product-ServiceSystems

author sought to address the following questions:

i What areas of TES should be discussed?

ii How is the decision made as to what to include and exclude from anyemerging themes?

iii How to select the authors who contribute to the text?

iv How to align the work to current and emerging research interests and therequirements of practitioners?

v Who will be the potential readers of the text and how the contribution canmeet their needs?

with the methodology employed to ascertain the emergent themes being discussed

findings from industrial surveys, a state of the art literature review, and practitioner

publication were:

• Data, Diagnostics and Prognostics,

• Component Degradation and Design,

• System Degradation and Design,

• Cost, Uncertainty, Risk, and Standards,

• Autonomous Maintenance

same rhetorical questions as above to inform the structure of this work In seeking

to answer these questions the following data sources where referred to:

• Published Proceedings of the 1st International Conference on Through-life

Firstly all of the contributions to the literature documented in the Conference

detailed sub groups Also keynote papers that were presented at each conferencewere read and grouped in accordance with their focus and emerging theme Thisgenerated 25 sub-groups which were then re-analysed during assessment of

Upon review it can be seen that the major foci in these literature sources whichtogether contained 253 papers/chapters from eminent scholars and leading practi-

• Design and Manufacture for TES

• Service Informatics

• Autonomy, Self-Healing, and Repair

• TES Modelling Solutions

Table 1.2 Analysis of TES Themes is Previous Publications

Proceedings 1st conference 2012

Proceedings 2nd conference 2013

Proceedings 3rd conference 2014

Proceedings 4th conference 2015

1st edited book 2015

Advanced ICT, IOT,

and cyber security

These are seen as being of major interest in relation to TES Significantly, yetunsurprisingly, the development and understanding of component and systemdegradation, Maintenance Repair and Overhaul (MRO), Life-cycle planning andObsolescence, and cost all continue to attract a very strong focus.

Interestingly the drive for standards appears later as the conference series

Conference several large manufacturing organisations where already applying TESgeneric solutions to their operations in the form of Integrated Vehicle Health

adopted It is only after they prove to be of strategic advantage do standards andcodes of practice emerge At this point the author puts forward the hypothesis that

A manufacturer that has already established working codes of practice in TES

Whilst BSI are continuing to work in this area in conjunction with EPSRC Centre

literature at associated conferences, and media there has been little if any bution relative to standards or codes of practice relating to TES in answer to the callfor contributions to this book The author suggests that until the pull for interna-

market driver in of itself for adoption, then TES must be still in the early stages ofevolution with a coherent identity still forming

It is also important to note that interest in the links between ICT, Internet ofThings (IOT), Cyber Security, and Augmented Reality are also emerging in theliterature as presented at the TES Conference (2015) This was presented as a future

connected society

Finally, it is important to note that there appears to be an awakening within theliterature directly related to TES aligned issues that appear with the human inter-face Whilst contributions are only just appearing this interface will become of

par-ticular interest

The next stage was to review the literature themes which emerged from a series

of workshops which were conducted with invited industrial practitioners This datawas analysed together with the outputs from a recent meeting of the TES NationalStrategy Steering Committee and a TES White Paper that is currently in draft Thethree one-day workshops were held during 2015/6 in the UK Cities of Bristol,

Coventry and Glasgow and was attended by practitioners who came from several

It is seen that the majority of those attending are from the Industrial ProductionSector (Aerospace, Manufacturing, Maritime, Automotive, and Electrical) (61%)

attendance (14%) Whilst this data is only an observation of those attending it is

that TES and IVHM solutions appeared within the Aerospace sector it could be

applications

It is also of interest to note the sectors that are absent from those listed above

TES can be seen as a risk mitigation strategy for companies who generate revenuethrough availability contracting as successful application can maximise the productsavailability for use It therefore follows that an understanding of cost models isrequired when applying TES or informing a future strategy for a TES enabled

Manufacturing,

14, 17%

MariƟme, 12, 15%

It is seen that the views of the practitioners generally align with the findingswithin the literature Whilst the vast majority of all contributions within the liter-

engi-neering and management issues are also emerging

When seeking to bundle similar themes four top level themes emerge from the

contain the literature and science relative to sensors, algorithms, system ing, technology and analytics, design related tools and techniques, manufacture,communication science, condition monitoring, and an understanding of component

well served within the body of knowledge and continue to evolve

simulation modelling etc., supported by the management focused disciplines of cost

Management, Change Management, Culture and Communication, Virtual (Remote)Teams, and skills and development

Table 1.3 Themes emerging from industrial workshops

Bristol workshop

TES national strategy steering committee

TES white paper

Glasgow workshop

Coventry workshop

As both the hard and soft dimensions develop there naturally follows a need for

manufac-turing organisations start to engage with such bodies as the TES National StrategyGroup and the British Standards Institute

Finally, any solution needs to be fully aligned to the needs of the market and thestakeholders operating within the market The need to understand this alignment iscritical to the success of any TES initiative as demonstrated by the early adopters ofTES and IVHM, open discussion across practitioners was emerging during the TESworkshops held in 2016

It is against the learning and knowledge gained from the aforementioned studiesthat the chapter submissions from academics, researchers and practitioners havebeen grouped into themes

Having reviewed all of the abstracts that were submitted in response to the chaptercall and the following subsequent full chapters, the collective subject matter wasgrouped into themes in line with the learning from the process as described in

following sections, namely:

• Part I: Developing a strategy for Through-life Engineering

• Part II: Through-Life Engineering and the Design Process

• Part III: The Role of Data, Diagnostics and Prognostics in Through-lifeEngineering Services

• Part IV: Component Degradation and Design in Through-life EngineeringServices

• Part V: System Degradation and Design in Through-life Engineering Services

Fig 1.3 Emergent dimensions of TES

• Part VI: Cost, Obsolescence, Risk and TES Contract Design

• Part VII: Autonomous Maintenance and Product Support

TES and its related technological applications As was seen in the previous section,

The editors cannot include everyone or every focus and it is hoped that the tributions which are to be found in this second book of the series gives the readerfurther insights from which to continue to build upon their understanding of theprinciples and applications relative to TES Finally, the editors hope that the con-tents herein will continue to promote both learning and development of theconcepts

4 Cavalieri S, Pezzotta G (2012) Product-service systems engineering: state of the art and research challenges Comput Ind 278 –288 doi: 10.1016/j.compind.2012.02.006

5 Goedkoop MJ, Van Halen CJG, Te Riele HRM, Rommens PJM (1999) Product service systems, ecological and economic basics Econ Aff 132 doi: 10.1111/j.1365-294X.2004 02125.x

6 Baines T (2015) Servitization : the theory and impact In: Proceedings of the spring servitization conference, p 312 ISBN 978 1 85449 492 4

7 Vandermerwe S, Rada J (1988) Servitization of business: adding value by adding services Eur Manag J 6(4):314 –324 doi: 10.1016/0263-2373(88)90033-3

8 Baines T, Lightfoot H, Smart P (2011) Servitization within manufacturing J Manuf Technol Manag 22(7):947 –954 doi: 10.1108/17410381111160988

9 Tukker A, Tischner U (2004) New business for old Europe Suspronet, pp 132 –148 http:// www.ncbi.nlm.nih.gov/pubmed/18048240

10 Tukker A (2004) Eight types of product-service system: eight ways to sustainability? Experiences from suspronet Bus Strat Environ 13(4):246 –260 doi: 10.1002/bse.414

11 Tukker A, Tischner U (2006) Product-services as a research field: past, present and future.

Re flections from a decade of research J Clean Prod 14(17):1552–1556 doi: 10.1016/j.jclepro 2006.01.022

12 Baines TS, Braganza A, Kingston J, Lockett H, Martinez V, Michele P et al (2007) State-of-the-art in product service-systems Proc Inst Mech Eng Part B J Eng Manuf 221(Part B):1543 –1552 doi: 10.1243/09544054JEM858

13 Ang G, Baines T, Lightfoot H (2010) A methodology for adopting product service systems as

a competitive strategy for manufacturer In: CIRP IPS2 Conference, pp 489 –496 http://www ep.liu.se/ecp/077/063/ecp10077063.pdf

14 Baines TP (2011) Service-led competitive strategies: an inaugural lecture by prof tim baines Aston Business School http://www.aston.ac.uk/aston-business-school/staff/academic/oim/ tim-baines/

15 Redding LE (2014) A strategy for service delivery systems Strategic Change, 23:287 –302 doi: 10.1002/jsc

16 Redding LE (2012) A strategy formulation methodology for companies seeking to compete through IVHM enabled service delivery systems Cran field University, Cranfield, Bedfordshire, UK

17 Redding LE (2015) Chapter 2: Through-life engineering services: de finition and scope—a perspective from the literature In: Redding LE, Roy R (ed) Through-life engineering services: motivation, theory, and practice, 1st edn Springer; pp 13 –28

18 Redding LE, Roy R (ed) (2015) Through-life engineering services: motivation, theory, and practice, 1st edn Springer

19 Roy R, Shehab E, Hockley C, Khan S (ed) (2012) In: Proceedings of the 1st international conference on through-life engineering services Enduring and cost-effective engineering support solutions Cran field University Press, Cranfield

20 Roy R, Tiwari A, Shaw A, Bell C, Phillips P (ed) (2013) In: Proceedings of the 2nd international through-life engineering services conference Elsevier, Cran field

21 Roy R, Tomiyama T, Tiwari A, Tracht K, Shahab E, Shaw A (ed) (2014) In: Proceedings of the 3rd international conference in through-life engineering services Elsevier, Cran field

22 Roy R, Tiwari A, Tracht K, Shehab E, Menhen J, Erkoyuncu JA, Tapoglou N, Tomiyama T (ed) (2015) In: Proceedings of the 4th international conference on through-life engineering services, Procedia CIRP Elsevier, pp 1 –288

23 Unknown (2015) Through-life engineering services: annual report 2014/5 Cran field University Press, Cran field, Bedfordshire, UK

24 Shaw A (2016) Interim report on TES national strategy workshops, unpublished draft Cran field University, Cranfield, Bedfordshire

25 Benedettini O, Baines TS, Lightfoot HW, Greenough RM (2009) State-of-the-art in integrated vehicle health management Proc Inst Mech Eng Part G J Aerosp Eng 223(Part G):157 –170.

26 Scandura P (2005) Integrated vehicle health management as a system engineering discipline In: 24th Digital Avionics Systems Conference, vol 2, pp 7.D.1 –1–7.D.1–10 doi: 10.1109/ DASC.2005.1563450

27 Esperon-Miguez M, John P, Jennions IK (2013) A review of integrated vehicle health management tools for legacy platforms: challenges and opportunities Prog Aerosp Sci 19 –34.

Part I

Developing a Strategy for Through-life

Engineering Services

Chapter 2

The Development of a UK National

Strategy for Through-Life Engineering

Services: Rationale and Process

Andy Shaw and Paul Tasker

National Strategy for Through-life Engineering Services (TES) from initial cussions with industry as to the need, through the issuing of a number of sectorstrategies in the UK, which omitted any reference to TES, to the design of thestrategy development workshops Initial industrial soundings are detailed whichsupported the need for the UK National Strategy as is the creation of an emergentindustrial momentum The importance of coherence of vision is underlined byextensive work with the voluntary industrial steering committee The methodologyadopted to generate the launch event white paper and cross-sectoral industrialeconomic study is given in detail Pilots, tests and the consequent evolution of theworkshops are described together with the range and depth of industrial engage-ment with the process The chapter begins with a description of the industrialengagement strategy of the EPSRC Centre for Innovative Manufacturing inThrough-life Engineering Services from which the UK National Strategy was born

The EPSRC Centre for Innovative Manufacturing in Through-life Engineering

extensive contacts with relevant industrialists through the establishment of a ThinkTank to better guide research directions and outputs in order to achieve maximumimpact Over time it was observed that the UK government was developing a

reference to the service and support of complex engineered products

A Shaw ( &)
P Tasker

Cran field University, Cranfield, England

e-mail: andy.shaw@cran fieldmanufacturing.com

© Springer International Publishing AG 2017

L Redding et al (eds.), Advances in Through-life Engineering Services,

Decision Engineering, DOI 10.1007/978-3-319-49938-3_2

17

The concept of generating enhanced value by combining the provision ofcomplex engineered products with associated services has been well documentedunder a number of different headings including product service systems and

assets such as trains and aircraft have prompted the investigation of differentbusiness models, and these have been championed by some key customers such asthe UK Ministry of Defence (MOD) with availability contacting for both Tornado

With practice varying between sectors and best practice sometimes hidden insector silos, there is an opportunity to bring coherent and joined up thinking to a

advantage Early consultation with the industrial network created by Centreestablished the need for the development of a coherent strategy for the UK TheCentre, its advisory board and executive committee decided to pursue the devel-

as a National resource

The industrial network of the Centre was brought together in mid-2014 at theInstitution of Mechanical Engineers in London for a dinner where a series of sectorleaders spoke of the growing importance of TES to their industries Chris White MPco-chair of the all-party parliamentary manufacturing group, gave the keynotespeech Interest and momentum was generated in building closer ties between

UK National Strategy in TES

Following the dinner in London an event was organised in parallel to the 2014

These were Knowledge Management, Lifecycle Management and Lifecycle

session in the four key areas explored led to a growing belief among the industrialand academic participants that there was a need for a TES National Strategy

In May 2015 a further and much larger workshop was held at the RoyalAcademy of Engineering in London to address this need and move the debate on

A group of about 70 senior engineers, business leaders and government tatives gathered to collate their views on TES, the market position, the market

strategy could deliver

The key questions addressed were:

• How important is TES capability to the UK?

• What are the opportunities for innovation and development in TES?

• What are the barriers for realising these opportunities, at pace?

• What steps might mitigate these barriers?

The EPSRC Centre commissioned Raj Mehta, a consultant and formerOperations Director at Bombardier Transportation and General Manager at British

that by 2025, the global market for maintenance, repair and overhaul(MRO) services in civil air will be $89 billion, whilst in the UK the repair andmaintenance (RAM) industry as a whole, as summed over all the SIC codes relating

He also pointed out that there is strong evidence that TES accounts forhigh-value employment with wage rates about one and a half times the average

National Statistics, and defence and aerospace company annual reports to compilehis data

This report formed the backdrop to the workshop activities Delegates were

TES, and then to write these points on colour-coded Post-It notes to populate a

and the opportunities and actions to move to the future stare The strategicframework was in the form of a template divided into four layers to assist the

This provided a comprehensive collection of comments from industry on whereTES is, the actions required and barriers to progress, and a vision of how the TES

were:

• In future, customers will only buy services—product-only providers won’t exist

—leading to polarized manufacturing—between throw-away and circulareconomy TES is vital for (the missing link for) sustainability and the circulareconomy

• The UK leads today TES is mission critical for long term growth/export in high

• Government contracts, especially infrastructure, energy and transport are criticaland could provide a game changer for TES and competitiveness in the future.Government can lead with value for money in government contracting

2 The Development of a UK National Strategy for Through-Life … 19

• Need better cost models and data: need to move from “open-loop” to

“closed-loop” business with multi-functional management and collaborativebehaviors Needs new skills, training

• TES creates multi-functional, high-value jobs (average wages in engineeringservices are one and a half times those in mainstream manufacturing (RajMehta)

• The importance of standards and regulation—need to be enablers and supportcross-industry knowledge transfer (e.g aero/defence, auto into nuclear/energyand transport, e.g rail)

• Is it a race to the bottom?—we really need to define cost and value for TES

main points: there was a big market that the UK would otherwise lose out on, and

complex assets A report on the event was produced and circulated to participants

A white paper was prepared based on the outputs of the workshop and this formed

Over the summer of 2015 Rolls-Royce and the High Value Manufacturing(HVM) Catapult agreed to co-chair a national working group to bring about thedevelopment of this strategy A launch event incorporating the publication of the

early September 2015 with key representation from industry, Members ofParliament, civil servants and academia Sixty participants heard of the importance

University, Chris White MP and Barry Sheerman MP, co-chairs of the all-partyparliamentary manufacturing group and a panel of industrial and research specialist.The panel comprised David Benbow of Rolls-Royce, Vaughan Meir and AlanMurdoch of BAE Systems, Rob Cowling of Bombardier Transportation, MarkClaydon-Smith of the Engineering and Physical Sciences Research Council

University

At the launch a number of organisations agreed to contribute to a steeringcommittee for the National Strategy development under the joint chairs ofRolls-Royce and the HVM Catapult Organistions volunteering included the UKMinistry of Defence (MOD), UK Government Department for Business Innovationand Skills (BIS), Innovate UK, the EPSRC, BAE Systems, Babcock International,Bombardier Transportation, Siemens UK, Si2 Partners, the ManufacturingTechnologies Association (MTA), Aerospace Defence and Security (ADS), and the

This steering committee convened for thefirst time in late October 2015 and set

a challenging timetable for the strategy development with a target publication date

of early summer 2016 It would go on to meet a further six times endorsing anddirecting the strategy development process Three regional workshops were

December 2015 with two further workshops in Glasgow and Ansty near Coventrytaking place in January 2016

The design of these workshops was evolutionary and as new key themes were

on as complete a picture of the issues as it was possible to generate In total eightydelegates attended the workshops and their output formed the starting point for adetailed piece of analytic work which synthesized these outputs into the National

Table 2.1 Themes for the strategy and their source

2 The Development of a UK National Strategy for Through-Life … 21

2.4 The Presentation of the Strategy and the Next Steps

were presented at an event held at the IET in London and introduced by ChrisWhite MP in early July 2016 Around one hundred delegates heard presentations onthe strategy, its development, the potential markets and the future of research in thisfield The development team formed a panel and answered questions on the reportswhich were distributed to the delegates at the end of the event

The team called for volunteers to help form a sector council in TES and anumber of individuals from attending organisations have stepped forward The UKMOD have ordered a print run of 100 copies of the strategy document to issue totheir staff and supply and support chains Work is now ongoing to stand up the

Acknowledgements The authors wish to acknowledge the support of the EPSRC Centre for Innovative Manufacturing in Through-life Engineering Services in supporting the development of this strategy.

8 Mehta R (2015) UK support and service industry: a high value employer and a net exporter EPSRC centre for innovative manufacturing in through-life engineering services http://www through-life-engineering-services.org/downloads/Final_UK_Support_and_Service_Industry pdf Accessed 23 Aug 2016

9 Tasker P (2015) Making things work engineering for life —developing a strategic vision EPSRC centre for innovative manufacturing in through-life engineering services http://www.

Accessed 23 Aug 2016

10 Hughes A, Hughes J (2016) Through-life engineering services (TES): market and data review EPSRC centre for innovative manufacturing in through-life engineering services http://www.

23 Aug 2016

11 EPSRC Centre for Innovative Manufacturing in Through-life Engineering Services (2016) Making things work better for longer: sector report http://www.through-life-engineering-

12 EPSRC Centre for Innovative Manufacturing in Through-life Engineering Services (2016) A national strategy for engineering services: delivering UK economic growth by making things work better for longer http://www.through-life-engineering-services.org/downloads/

2 The Development of a UK National Strategy for Through-Life … 23

Chapter 3

The Development of a UK National

Strategy for Through-Life Engineering

Services: Workshop Outputs Analysis

and Final Strategy Creation

Andy Shaw and Paul Tasker

workshops It also covers the parallel work strand to validate and develop aneconomic case for sector focus on Through-life Engineering Services Analysismethodologies are described and the resulting collated outputs listed Next thedrafting process is developed and stages of consultation and revision given Thesearch for a publishing authority within the UK government is discussed as are the

described and its key recommendations listed The full strategy is listed as anappendix to this chapter for ease of reference

The previous chapter outlined the journey that has taken place to develop theNational Strategy for Through-life Engineering Services This chapter will coverthe objectives of each workshop, their design and operation and the output results.Over 140 separate organisations took part in the National Strategy developmentwith many sending multiple delegates to the various workshops and events

A Shaw ( &)
P Tasker

Cran field University, Cranfield, England

e-mail: andy.shaw@cran fieldmanufacturing.com

© Springer International Publishing AG 2017

L Redding et al (eds.), Advances in Through-life Engineering Services,

Decision Engineering, DOI 10.1007/978-3-319-49938-3_3

25

3.2 The Initial Workshop at the Royal Academy

of Engineering

3.2.1 Objectives, Activities and Templates

views on the developing area of Through-life Engineering Services (TES).Delegates were asked to identify key issues and themes for development over the

support for the concept of a National Strategy The workshop drew on a wide range

of companies, trade associations, and academics and a select group of key ernment departments

3.2.2 Direct Workshop Outputs

Several delegates made general observations which commented on how mature theTES discipline has become and they were impressed with the high level of seniorengagement

A number remarked that TES:

• Should be a de facto method for managing scarce resources and extendingproduct life Reference was made to TES being an essential or key enabler forthe circular or sustainable economy of the future

Headline case for a National Strategy in TES: Q1 – How important is TES capability to the UK?

Q2 – What are the opportunities for innovation and

Fig 3.1 Template used at the royal academy of engineering workshop

• Needs multi-skilled people, engineering and other skills, and could be a means

to up-skill the UK industrial workforce

• While the UK appears to lead in some areas, more needs to be done to developthis leadership position in order to grow the UK share of the global market

• There is an opportunity to accelerate capability growth and competitiveness by

maintenance, refurbishment and improvement of UK infrastructure and this

were a service customer

consensus was that such an approach could help with all these main points: therewas a big market that the UK would otherwise lose out on, and much to commend a

• In future, customers will only buy services—product-only providers won’t exist

—leading to polarized manufacturing—between throw-away and circulareconomy TES is vital for (the missing link for) sustainability and the circulareconomy

• The UK leads today TES is mission critical for long term growth/export in high

• Government contracts, especially infrastructure, energy and transport are criticaland could provide a game changer for TES and competitiveness in the future.Government can lead with value for money in government contracting

• Need better cost models and data: need to move from “open-loop” to

“closed-loop” business with multi-functional management and collaborativebehaviors Needs new skills, training

• TES creates multi-functional, high-value jobs (average wages in engineeringservices are one and a half times those in mainstream manufacturing (RajMehta))

• The importance of standards and regulation—need to be enablers and supportcross-industry knowledge transfer (e.g aero/defence, auto into nuclear/energyand transport, e.g rail)

• Is it a race to the bottom?—we really need to define cost and value for TES

the product of the comments from the strategy posters developed independently by

and most important points and conclusions from the entire workshop

Discussing these points in plenary, delegates commented:

things that are very serviceable, by creators, suppliers and competitors, companiesmay go through this cycle: a trough of despair and frantic competition with people

3 The Development of a UK National Strategy for Through-Life … 27

maturity in which some people will be good at maintaining, others design and

Where is the cash?

without actually generating a lot of extra money? I can see senior accountants

Response: If you do TES properly you can optimise both ends; minimise costs(especially material) and maximise revenue Where else can you do this?

Maturity of the conversation, need to make Services a more attractive

for manufacturing? The connection of the circular economy and sustainability withTES

TES is not a panacea—In defence there is a lot of transportation, so it makesmanagerial sense to compartmentalise the purchase with the service A lot of theseindustries are transport-based, freight based industries, but an example like hospitalPPIs were a disaster for service and product buyers

add value

Headline case for a National Strategy in TES:

TES will be key to manufacturing productivity and high value jobs in the circular

economy of the future

Q1 – How important is TES capability to the UK?

TES is critical to the UK taking a dominant share in the [>£500bn] global market for engineering support and services creating high value employment Without a focus on TES the |UK will progressively loose competitive advantage in high-value manufacturing

Q2 – What are the opportunities for innovation and

development in TES?

Making the most of the potential of our high value manufacturing economy by exploiting the provision of services combined with sophisticated engineering products Key to this is better through-life cost modelling and data

Q3 – What are the barriers for realizing these

opportunities, at pace?

Lack of understanding and technology to focus on through-life analysis and models across industry driven by “short termism”, tensions between local and global optimisation, IP concerns, skills shortages and fragmented institutions including government and infrastructure

Q4 – How might government help mitigate these

barriers?

Government leadership in contracting for service and availability of high value manufactured products and infrastructure, and in the integration of capability across current initiatives Industry and government

to shape future technologies, standards and skills across the supply chain

State NOW c2015 Actions / Opportunities / Barriers FUTURE State c2030

Strong focus on new product

introduction with low regard

for through-life service and

support

TES provides a link to new business models critical to the realisation of the circular economy.

Opportunities:

Lead transition, use EU legislation?

Leverage skills, share scarce resources

Challenges:

Move from closed to open-loop business TES seen as only aftermarket / support Government contracts, especially infrastructure, energy and transport are critical and could provide a game changer for TES and competitiveness in the future Government can lead with VFM in government contracting

Opportunities:

Long term VFM for government contracts

Challenges:

Government as a service customer?

The UK leads today TES is mission critical for long term growth / export in HV manufacturing – if we don’t continue to lead we’ll lose

Opportunities:

To differentiate UK capabilities Export reliability and availability?

Fragmented and adversarial

minimum cost new product

introduction and bought-in

spares and services

Recognition and stake holding of in-use value delivered by collaborative entreprises

Reducing profit on new product

introduction and excessive

profit on spares and repairs

Inability to predict value in use

and at end of life

Reward for ensuring predictable high value manufacturing assets and infrastructure

Cost of ownership and data

viewed in silos and

inadequately understood

resulting in suboptimal

solutions

Relationships between performance and cost of ownership fully understood:

ability to take timely action from design and in-service data

Fig 3.2 Consolidated output from all teams at the royal academy of engineering workshop

Base level education—Engineers that we employ have probably never heard of

typical engineering training course?

presented at the National Strategy kick-off event at the Houses of Parliament

3.3.1 Objectives, Activities and Templates

The objectives of these workshops were to broaden the engagement in the NationalStrategy development by engaging more companies and organisations from aroundthe UK and getting them to contribute to the process in some detail In this way they

discussions of the Steering Committee The process was so designed that new

subsequent workshops

TES landscape with noun/verb pairs, write them on a Post-it® and add them to it inthe relevant phase or area of the diagram This process was designed to get the

Use

Refresh Create

Ecosystem

Fig 3.3 The descriptive

template of the TES landscape

3 The Development of a UK National Strategy for Through-Life … 29