1. Educational Challenges on Service Management – Horst Meier Slide 1 Educational Challenges on Service Management AIM 2007, Bari Prof. H. Meier Chair of Production Systems Ruhr-University Bochum, Germany

2. Educational Challenges on Service Management – Horst Meier Slide 2 1.Industrial Services History and definitions Economic demands and educational challenges 2.International study courses on service engineering 3.Service engineering in Bochum 4.Conclusions: Future demands on education Educational Challenges on Service Management

3. Educational Challenges on Service Management – Horst Meier Slide 3 Development of industrial services Service Marketing Service Management Service Quality Service Engineering Industrial Product Service Systems 1970 1980 1990 2000 2006

4. Educational Challenges on Service Management – Horst Meier Slide 4 Product Service Systems P S Past „Service Products” Machine independent service Today „Extended Products“ Machine oriented service Future „Product Service Systems” Simultaneous and interfering product and service engineering P S S S P P S P S P

5. Educational Challenges on Service Management – Horst Meier Slide 5 Industrial Product-Service-Systems – IPS 2 : An IPS 2 is an integrated product and service offering that delivers values in use. That means in detail: IPS² is a new product understanding consisting of integrated product and service shares. IPS² comprises the integrated and mutually determined planning, development, provision and use. The option of partial substitution of product and service shares over the lifecycle. This integrated understanding leads to new, customer-adjusted solutions. IPS² enable innovative function-, availability- or result-oriented business models. Rajkumar Roy, Cranfield, UK Definition of Industrial Product-Service-Systems

6. Educational Challenges on Service Management – Horst Meier Slide 6 1.Industrial services History and definitions Economic demands and educational challenges 2.International study courses on service engineering 3.Service engineering in Bochum 4.Conclusions: Future demands on education Educational Challenges on Service Management

7. Educational Challenges on Service Management – Horst Meier Slide 7 Total market volume of the interviewed German business companies in the production machine and plant construction industry: 43,4 billion €: Reference: Mercer Management Consulting 2003, Umfrage unter 200 Unternehmen des Maschinen-Anlagenbaus trading with new machines (2,3%) commission installation training final inspection spare parts and after market equipment (18%) repairing remedy of defects (11%) maintenance financial services retrofitting consulting (16%) other second hand machines (8%) 0% 5% 10% 15% 20% 25%50%75% Profit in % of turnover turnover Turnover and profit

8. Educational Challenges on Service Management – Horst Meier Slide 8 dissatisfaction of the consumer by increasing the level of technology Motivation for the supplier: rise of customer loyalty opening of new business fields development of market shares information about the use of its products to create innovations Challenge for the supplier: create new business models to identify and evaluate chances and risks development of service processes industrialization and automation of services new understanding of products: innovative product-service-systems suitable development processes Motivation for the customer focusing on core competences to make new technologies accessible reduction of capital lock-up Challenge for the customer: to evaluate chances and risks identification of core competencies to calculate own processes openness to the supplier: transparent processes organization Internet (remote service) Ramp-Up Schulung TeleserviceInstandhaltung Simulation optimierung Modernisierung... ToolingMaintenance Personnel Prozess optimierung Supplies... MES / PPS QA Optimization new service-based business models From Leadership in Technology to Leadership in Utilization

9. Educational Challenges on Service Management – Horst Meier Slide 9 Challenges for Future Engineers  Understand and identify the real demands of the customers first  Develop proper business models  Innovation creation by integrated industrial product-service-systems  Design service processes  Modeling and simulation of digital service processes  Establish a suitable service organization  Industrialization of service processes (standardization and automation) IPS² Designer Customer Service Provider Supplier manual semi-automated automated W W W

10. Educational Challenges on Service Management – Horst Meier Slide 10 Educational Challenges PP S P S P S S P S P S P P S P S S Individual modules Integrated Product-Service- Modules Industrial Product- Service- Systems  Paradigm shift for a new product understanding  How to apply an integrated engineering process  To teach suitable methods and tools for an integrated product-service-engineering modeling and simulation of service processes automation by means of digital service processes real time service execution system

11. Educational Challenges on Service Management – Horst Meier Slide 11 International Educational Challenges Customer Advantage  Function-oriented  Availability-oriented  Result-oriented Processes  Network design  Service Process design  Communication and Information technologies Resources  Qualification  IT-Support Systems  Locations Educational Challenges  Demand and risk analysis of international Business models  Designing of service processes distributed world wide  Establishing global service supply chains  How to provide service processes time and place independent  How to train and support global human resources best Challenges of industrial services Ramp-Up Training Teleservice Maintenance Commissioning Process optimization Upgrading... Current Chinese/German Research Project

12. Educational Challenges on Service Management – Horst Meier Slide 12 1.Industrial services 2.International study courses on service engineering 3.Service engineering in Bochum 4.Conclusions: Future demands on education Educational Challenges on Service Management

13. Educational Challenges on Service Management – Horst Meier Slide 13 International study courses Master courses on “Service”: Service Engineering and Management (Universidade do Porto) Product-Service-Systems Design (Politecnico di Milano, together with Glasgow School of Art Köln International School of Design University of Art and Design Helsinki Les Ateliers/ENSCI Paris Konstfack - University College of Arts Crafts and Design Stockholm State Academy of Art and Design Stuttgart Other offers: Service engineering focusing the Information technology Building services engineering Service design as a part of business administration

14. Educational Challenges on Service Management – Horst Meier Slide 14 Example for International Study Courses: Porto Universidade do Porto: Master on Services Engineering and Management It aims at developing competences to conceive, design, implement and operate technology enabled service systems. English proficiency is required.

15. Educational Challenges on Service Management – Horst Meier Slide 15 Example for International study courses: Milano Politecnico di Milano: Master of Science in Product- Service-Systems Design It starts from the experience of the MEDes programme (Master of Science of European Design). This is a European network formed by six design universities in Europe, including the Politecnico. All tuition, examinations and subject materials will be in English

16. Educational Challenges on Service Management – Horst Meier Slide 16 1.Industrial services 2.International study courses on service engineering 3.Service engineering in Bochum 4.Conclusions: Future demands on education Educational Challenges on Service Management

17. Educational Challenges on Service Management – Horst Meier Slide 17 Service Engineering First lecture summer semester 2007 1.Service based business models 2.Procedure models and assigned methods 3.Service process development 4.Service management systems 5.Remote service systems 6.Augmented reality 7.Service robotic 8.Calculation and controlling 9.Service contracting 10.Industrial lectures

18. Educational Challenges on Service Management – Horst Meier Slide 18 Business Models productservice occurrence of IPS 2 P S function- oriented availability- oriented result- orientiert IPS 2 - use models supplier consortium pay on order pay on availability pay on production value proposition architecture of value creation turn over model

19. Educational Challenges on Service Management – Horst Meier Slide 19 Specification of Innovative Business Models Pay on production Pay on availability Pay on service order Turn over model SupplierCustomer operating personnel Supplier CustomerService initiative Function oriented Availability oriented Result oriented SupplierCustomer Production responsibility Supplier Customer/ Supplier maintenance personnel IPS² specific technical, organizational and qualification demands

20. Educational Challenges on Service Management – Horst Meier Slide 20 Eight Step Procedure Model and Assigned Methods and Tools VI. ImplementationVII. Use by customers VIII. Feedback Control Gate Analysis, validation and integration of feedback Build principle solutions Identification und Analysis Integrated design Identify specifications Requirements P S Customer

21. Educational Challenges on Service Management – Horst Meier Slide 21 Service Process Development problem of the customer requirements analysis Product Service System customer processes supplier processes OEM processes part processes choice of optimal part process provider by criteria: - reaction time - abilities/competence - price - risk service process library The customer is always part of the process!

22. Educational Challenges on Service Management – Horst Meier Slide 22 Elements of a Service Management System Source: VDMA Internet Asset-, Configuration-, Contract-, Call- Management, Dispatch Remote service Service Portal Customers Engineers Subcontractors Knowledge Office Integration Call Center ERP-/PPS- System Mobile service support systems

23. Educational Challenges on Service Management – Horst Meier Slide 23 The use of modern information and communication technology combined with multimedia-based tools features the opportunity to achieve sustained improvement of the own competitive position in spite of great geographic distance. OEM-Producer Customer Supplier In house experts Fieldbus LAN Control center In house experts  Video/Audio conferencing  Helpdesk  Application Sharing  E-Mail  Data transfer Tools  Contracts  Master data (Products, Customers, Suppliers)  technical documentation  Object list, drawings, circuit diagrams  Software/-versions  Failure database, knowledge base  Installation reports Data  Service-Management  Project management  Workflow-Management  ERP/PPS Organization Remote Service Systems

24. Educational Challenges on Service Management – Horst Meier Slide 24 Augmented Reality for Service: Technicians’ support Source: C-LAB, Siemens AG  Overview of VR/AR technologies tools and methods  Advantages and disadvantages of AR  How to apply AR for industrial services  How to establish an AR system  Industrial examples Tracker Localization of parts and malfunctions Disassembling / Assembling instructions

25. Educational Challenges on Service Management – Horst Meier Slide 25 14Law, contracts and pricing 14.1Basic law of contracts Comparison of relevant contract types Basic principles of liability/responsibility 14.2Contract types depending on the value proposition 14.3Drafting of a service agreement 14.4Example Remote service agreement 14.5Calculating and pricing for service agreements Vertrag kommt von vertragen Agreement is derived from „to agree“ Law, Contracts and Pricing

26. Educational Challenges on Service Management – Horst Meier Slide 26 Industrial Contributions: e.g. Remote Service in Practice

27. Educational Challenges on Service Management – Horst Meier Slide 27 1.Industrial services 2.International study courses on service engineering 3.Service engineering in Bochum 4.Conclusions: Future demands on education Educational Challenges on Service Management

28. Educational Challenges on Service Management – Horst Meier Slide 28 Conclusions: Future demands on education Service engineering has to become a part of mechanical engineering (similar situation with industrial management in the past) First study courses and lectures on “Service” arise There are only a few proper methods and tools for an integrated product service engineering Business games and industrial examples can help to support the paradigm shift in product understanding There is a lack of special textbooks for students of mechanical engineering There is a need for international curriculums

29. Educational Challenges on Service Management – Horst Meier Slide 29 Thanks for Your Attention Prof. Dr.-Ing. Horst Meier Chair of Production Systems Ruhr-University of Bochum D-44780 Bochum Phone: +49 234/32-26310 email: meier@lps.rub.de www.lps.ruhr-uni-bochum.de

30. Educational Challenges on Service Management – Horst Meier Slide 30 Service Robotics for Industrial Applications Future Requirements:  Manlike kinetic skills (e.g. gripping)  Remote controlled or automatically controlled  Navigation in unknown dynamically changing surroundings  Mechanical interaction with humans: Safety features and equipment  Communicational interaction with humans source: SFB588

31. Educational Challenges on Service Management – Horst Meier Slide 31 Definitions on Service Engineering The process of determining the integrity of material and services in order to measure and maintain operational reliability, approving modifications of design, and following through by conforming with specifications and standards. Academic Press Dictionary of Science and Technology, 1995 The goal of Service Engineering is to develop scientifically-based design principles and tools (often culminating in software), that support and balance service quality and efficiency, from the likely conflicting perspectives of customers, servers, managers, and society. (Service Engineering is to be compared against the more prevalent Industrial Engineering and Service Management). Avishai Mandelbaum, 1998

32. Educational Challenges on Service Management – Horst Meier Slide 32 Introduction of my Chair Engineering sciences combine basic and applied research for innovations. It is characterized by high interdisciplinary collaboration. Research in Industrial Production Systems involves technical, organizational and human aspects. Human Technique Organization Goals of Production systems QualityCosts Time Production Management Production Management  Manufacturing Execution Systems  Supply Chain Management  Digital Factory Industrial Product Service Systems  Service Engineering  Remote Service  Service Supply Chain Technologies and Automation Technologies and Automation  Incremental Sheet Metal Forming  Ring Rolling  Selective Laser Melting Manufacturer Customer LAN