Designing flexible service systems: application to machine tools

Abstract

Service system design process is complex in nature and involves many stakeholders. The process becomes more critical in the context of machine tools due to market competition, complexity of services, competency requirements and cost constraints. The objective of this paper is to propose a generic approach for the design of a service system for machine tools which can support a variety of business models along with meeting customers' demand for flexibility. The proposed approach makes use of fundamental service design steps and offers flexibility to the customers to choose the services, service mechanisms, service levels and service frequencies as per their requirements considering the economic aspects, and thus underlines the involvement and participation of customers in the service design process. It also facilitates service designers to visualize the roles of stakeholders involved in the service process and highlights the importance of customer involvement for customer service assurance and better service experience. Application of the approach is discussed through a case study conducted in association with a leading Indian machine tool manufacturing group.