Product Service Systems Facilitated By Availability Contracts
I am researching the optimum design for availability contracting when seeking to facilitate a Product Service System (PSS) through a servitization startegy. Kashani-Pour et al (2016) in their paper "Product-Service Systems Under Availability-Based Contracts: Maintenance Optimization and Concurrent System and Contract Design" propose that such contracts can take three forms: Fixed Price Contracts Capability Contracts Availability Contracts For me the issue with all of these is one of risk and how to mitigate and offset the risk to the revenue stream when seeking whole-live approaches. Consider the scenario of a long life complex manufactured engineering product (i.e. Cars, trains, aeroplanes, and shipping etc). A significant percentage of operators who use such products to provide a service…