Economic and environmental impact of product service system: a leasing case

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Copyright: Khumboon, Rachata
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Abstract
Over the past years, there are a growing number of manufacturing companies who have shifted their focuses from selling physical products to selling services. The term of Product Service System (PSS) is recently proposed to describe this transition. As a category of PSS, the product leasing has been recognised as an approach to improve the economical and environmental performances. This is due to its underlying concept which remains the product ownership with manufacturer. Based on this scheme, the manufacturers have interests to reduce the operational costs and the environmental impacts by increasing product utilisation and extending product life through maintenance, product reuse, and remanufacturing. Although the product leasing is proposed to improve the environmental and economic performances, its implementation may not lead to achieving these benefits. This is due to the fact that there are some significant leasing factors which can affect their performances. Therefore, the objective of this research is to deliver a decision support model for designing a leasing system based on product leasing characteristics in order to improving cost, environmental impact and service quality performances. To achieve this objective, two research parts were proposed. They include 1) clustering the successful leasing case studies into groups, and 2) developing a decision support models for each leasing group. In the first part, the characteristics of leasing system which affect the cost, environmental impact and service quality were studied. Thirty six case studies were collected from the literatures and companies. The hierarchical clustering approach was used to classify leasing case studies into groups. In the second part, the decision support model was developed for each leasing group. This proposed model is employed for identifying the optimal values of service parameters which are the number of leasing, leasing period, number of reuse, number of remanufacturing, and distance between facilities. It was developed based on the optimised results generated by the multi-objective optimisation approach. To validate the proposed model, additional case studies were collected and applied. The successful results indicate that the developed model can be used to provide a guideline for both improving current leasing scenarios and moving from selling traditional product to leasing product.
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Author(s)
Khumboon, Rachata
Supervisor(s)
Kara, Sami
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Publication Year
2012
Resource Type
Thesis
Degree Type
PhD Doctorate
UNSW Faculty
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