Life-Cycle-Oriented Product-Service-Systems in the Tool and Die Making Industry

The tool and die making industry from Western Europe, characterized by single and small series production, faces increasing global competition with low-wage countries. Challenges are the increasing product-derivatization, shorter product life-cycles and lower factor costs of global competitors. The Western European high quality tool and die making industry is not able to face the increasing cost pressure, caused by the international competition, by reducing the acquisition price. Therefore prices are insufficient as a differentiation criterion. However, differentiation is possible through individual services replenishing the product. The solution presented in this paper concerns the configuration of a customized life-cycle-oriented Product-Service-System that incorporates product and service modules to address clients’ preferences.