A method to improve integrated product service offerings based on life cycle costing

Although a few papers have reported on life cycle cost (LCC) analysis of integrated product service offerings (IPSOs), insight on how to improve IPSOs based on LCC analysis is missing. This paper presents a method and an Excel and MATLAB-based tool that support IPSO design by employing LCC analysis, both from the provider and customer perspectives. This method takes advantage of exchangeability between products and services, being enabled within IPSO design. The method has been applied to an existing IPSO and potential improvements have been identified, e.g. one cheap component causing high LCC that could be reduced significantly by redesign.