Understanding the implications of service contracting in Product-Service businesses

Sarocha Phumbua, Benny Tjahjono

Research output: Contribution to conferencePaperpeer-review


Service contracting has been adopted in several industries especially for high value assets with long life time. Such a contract typically specifies asset usage information, availability or capability of the contracted assets required by customers, and the scope of services the manufacturers are obliged to support the assets. Consequently, such a contract imposes major risks to the manufacturers. This paper aims to explore approaches that be used to assist manufacturers to model service contracts in order to understand the risk and reward prior to committing a contract with customer. The work described in the paper involves the development of a simulation model from a case of the ship building industry. The use of the model in aiding contracting decisions is demonstrated through three experiments conducted at the case company. The outcomes have demonstrated the potential of the approaches in practice and contributed to the Product-Service Systems modelling paradigm.

Original languageEnglish
Number of pages10
Publication statusPublished - 1 Jan 2012
Externally publishedYes
EventOperational Research Society Simulation Workshop 2012 - Worcestershire, United Kingdom
Duration: 27 Mar 201228 Mar 2012
Conference number: 6


WorkshopOperational Research Society Simulation Workshop 2012
Abbreviated title(SW12)
Country/TerritoryUnited Kingdom
Internet address


  • Product-Service Systems
  • Service contract
  • Simulation

ASJC Scopus subject areas

  • Computational Theory and Mathematics
  • Computer Science Applications
  • Modelling and Simulation


Dive into the research topics of 'Understanding the implications of service contracting in Product-Service businesses'. Together they form a unique fingerprint.

Cite this