Complex Engineering Service Systems

This chapter examines the challenges in transforming a complex multi-organisational service enterprise. It builds on a review of relevant literature and an empirical analysis of the early experience and lessons learned by industry and MoD partners in the ATTAC (ATTAC (Availability Transformation: Tornado Aircraft Contract) is a long-term, whole-aircraft availability contract where BAE Systems take prime responsibility to provide Tornado aircraft with depth support and upgrades, incentivised to achieve defined levels of available aircraft, spares and technical support at a target cost.) enterprise which delivers a through life support programme in the defence sector. The transformation will be explored within three sections. The first illustrates and further develops current understanding of the drivers and challenges inherent in the move to service. In the second section, the need for a ‘holistic enterprise perspective’ for service delivery in complex engineering systems is discussed and illustrated through the ATTAC case study. Finally, the challenges in undertaking such a complex transformation process are discussed. The frameworks created may support future service enterprise leaders in identifying and communicating to all stakeholders the key drivers for the transition to through-life support services and assessing the key barriers which may be faced in managing their own transformation.

This chapter develops a two dimensional “Enterprise Image” capable of assisting independent provider and client stakeholders to take a holistic perspective of their roles in complex support enterprises. Though the case study describes a complex, through-life, availability contract in the Defence sector (Empirical data are taken from ATTAC (Availability Transformation: Tornado Aircraft Contracts), a long term, whole-aircraft availability contract where BAE Systems take prime responsibility to provide Tornado aircraft with depth support and upgrades, delivering defined levels of available aircraft, spares and technical support at a target cost.), the image is believed to be applicable in other sectors. This is particularly the case in public sector to private sector contracts where both primary providers and clients have multiple aims and further independent organisations provide key inputs necessary for successful outcomes. In this environment the prime providers may manage combinations of their own and client staff at the client’s premises using facilities provided by the client. Thus the provider may be directly dependent on actions by the client to fulfil the contract. This research contributes to provide a novel and structured mapping that illustrates the interfaces and dependencies that can emerge from complex, multi-organisational, contracts, provide a shared basis for co-operative discussion between stakeholders and thus raise opportunities for new resource configurations and integration mechanisms that create further value for clients and providers.

This chapter explores the nature of complexity that arises in high value contracts between large organisations. To develop a framework, a detailed case study was undertaken to identify the factors that create complexity. The case studied was the availability contract to provide depth maintenance and upgrade on Tornado aircraft between BAE Systems and the MOD. The contract, named ATTAC, is worth ~£1.3bn and the MOD engaged with BAE Systems precisely to enable them to more cost effectively manage the complex enterprise of over 22 organisations or business units that deliver this service. The work explores the operation from a range of perspectives, interviewing managers from across the organisations involved. The factors contributing to complexity are described in context and a framework is presented which clusters them into six key areas. It is proposed that this framework may then be used as a tool for analysis and management of complexity.

This chapter focuses on the translation of public sector client aspirations and fears into a specification of the services necessary for a complex, long-term service availability contract. The contract is complex in many senses including that many independent organisations must work together to deliver contracted service outcomes and long-term being in excess of 10 years. These factors imply the need for enterprise level management processes in addition to stakeholder centric management. The alignment between the contracted services and the client’s needs is investigated and the implications of partial mismatches are discussed. Particular issues raised are the effect on behaviours around contract operation; potentially missed opportunities to co-create value and build trust; and challenges to the achievement of enterprise-wide management processes. The research highlights the potential role of evolving and explicitly shared Client and Provider aspirations and fears as a basis for enterprise-wide management.

There is evidence that service transformation is bringing substantial benefits to traditional design and manufacturing organisations leading them to invest in transforming into service firms co-creating value with their customers. However there is lack of understanding in how these organisations can effectively and efficiently (re)design their service delivery to co-create value with customer to attain optimal benefits. This chapter explains the seven key attributes that are essential in value co-creation: complementary competencies, empowerment and control, behavioural alignment, process alignment, behavioural transformation, firm’s expectations and customer’s expectations. It describes how the seven attributes demand the need for organisational structural change. The chapter then describes how the six dimensions of organisational capability, i.e., competence, capacity, culture, structure, systems and infrastructure should be redefined for better value co-creation and proposes key actions organisations need to take to develop the capability for value co-creation. In doing so the chapter provides a starting point for organisations to understand and begin to plan how their organisational capability could be re-configured for enhanced co-creation of value.

Service orientation in the defence and aerospace industries through availability contracts is creating challenges in cost estimation due to uncertainties. The chapter initially presents the topic of uncertainty in service delivery, which subsequently leads to a classification of uncertainties. Then, the current uncertainty-based service cost estimation processes are explained. By identifying the existing challenges, an improved framework to estimate costs is highlighted. This firstly involves enhanced understanding of the influence of uncertainties and cost estimation capabilities through the analytical hierarchy process and the Numeral, Unit, Spread, Assessment and Pedigree (NUSAP) Matrix approach. Secondly, it involves using agent-based modelling to represent the dynamism in service cost estimates. The chapter ends with a case study application of the approach.

Procuring complex performance where both the performance required and the infrastructure to support the requirement are complex, is the current frontier on procurement knowledge. Trends to bundle contracts for products and services together exemplify the challenge. These product-service bundles take the form of contracts for the use of the product (e.g., including long term maintenance and support) rather than just the product as an artefact. Such contracts bind a Prime contractor and the customer into complex long term agreements. Contractual incentive mechanisms have long been used to align the interests of customer and supplier in such projects. This chapter explores the use and role of incentives in complex engineering support environment, drawing on a case study from recent research on availability contracting to support fighter jets. The chapter presents the challenge to the conventional incentive mechanisms inherent in the combination of flexibility and cost control required in contracting for jet fighters availability.

In the present study, we investigated two outcome-based maintenance, repair and overhaul (MRO) service contracts in the attempt to better understand the effect of relational governance on firms’ boundary-spanners behaviours in co-producing complex engineering service. Our field interviews indicate that managers are heavily dependent on interpersonal relationships to promote mutual cooperation in service delivery. The role of legal contracts in monitoring behaviours seems insignificant. Furthermore, we noted that with the development of interpersonal relationship, cooperation moved from reciprocal to communal. That is, at the early stage of relationship, both parties cooperate conditionally according to the norm of reciprocity. When the relationship becomes more mature, both parties share a common identity and work towards their collective goals. To that end, service performance would then be greatly enhanced. Through a theory-in-use methodology, our study maps the practices of behaviour transformation in complex engineering service systems, effected through interpersonal relationship development.

The increase in the percentage of revenue gained by nations as a result of growth in the service sector has been accompanied by the use of performance-based contracts to support such services. These performance-based contracts tend to be long-term in nature and often involve multiple parties in their service operation. In order to support such a service operation, information is required for its design, delivery and evaluation. This chapter provides a review of models and frameworks for the design and development of services. It focuses on providing details of a framework which has been developed for the determination of, specifically, service information requirements in order to design, deliver and evaluate services provided against engineering assets. It provides some general analyses of problems encountered within service providing organisations, and highlights areas of good practice. Further areas of application for the proposed framework are also presented.

This chapter details the work on a demonstration to illustrate the impact of information in the context of complex engineering services. The demonstration is achieved via a simulation model which illustrates factors, such as different service contracts, different levels of product condition information required by and available to the service provider, other constraints on the service system and different service performance levels achieved. The contribution of this work is showing, through simulating several scenarios, how support services may be improved as a result of providing better product condition information feedback to the service provider. In addition, the model factors in a number of other variables which have a significant impact on the level of the service provided. Results from the simulation models are presented, and a discussion of areas for further work is also provided. This discussion includes some suggested next steps and future information-related questions which the model may seek to answer.

Increasing numbers of businesses are moving from the supply of physical products to the delivery of product-service systems. The resulting need to support information related to both physical artefacts and associated services has a number of implications for the design of information systems used to support product-service systems through their lives. The focus of this chapter lies on service in the context of product service systems. Designers of service solutions need to be able to answer the question, “What information is needed in service design to enable the delivery of service excellence?” A key prerequisite to answering this question lies in understanding service elements that need to be supported, performance requirements of the service and how the service elements are related to the required performance. This chapter introduces a service information blueprint that has been designed to support service designers in gaining this understanding. The service information blueprint is a general purpose model for service definition that has been used both to define “as-is” and “to-be” services, service breakdown structures and service performance indicators, and to specify relationships between service processes and service requirements.

This chapter discusses the extensive support solutions being used and adapted in the UK Defence Environment to deliver what are described as Contracts for Availability (CfA) and Contracts for Capability (CfC). They aim to provide operational availability through an integrated and effective support solution, generally by industry, or a combination of industry and the Ministry of Defence (MoD). The chapter considers the academic theory for availability and capability before reviewing how the defence environment currently delivers CfA and CfC. It identifies the issues and diversity of current contracts in the military environment where operational availability and capability are vital yet are required in variable ways with periods of both dormancy and high intensity. The chapter analyses the practical delivery of availability and capability using defence examples which compare and contrast the different support solutions currently being delivered.

Health and Usage Monitoring Systems (HUMS), Reliability Centred Maintenance (RCM), Condition Based Maintenance (CBM) and Prognostic Health Management (PHM) are enablers for engineering and support planning and are not being exploited to their full potential in the military environment. This chapter explores the nature of the techniques and the challenges for their adoption in the military environment. It shows that there is a connection not only between engineering solutions that involve one or more of these techniques which aim to provide effective support solutions, but that there is also a compelling case for their adoption to improve operational availability to benefit both the user and those who provide support solutions. The chapter first reviews the nature of failure and the consequential need for maintenance. It then reviews the techniques of RCM and CBM before looking at the processes of HUMS and PHM. Operational availability and its constituent parts and enablers are not commonly understood by either the user community or the support solution provider. Consequently HUMS and Prognostics are not yet generally recognised as being able to improve operational availability and make support solutions more effective. The benefits of RCM and CBM on in-service equipments are likewise not being exploited fully.

Contracting for availability and contracting for capability are becoming increasingly common practices in the defence world. With these new service-oriented contracts, the responsibility for through-life support, including maintenance, has been shifted from the user to the service provider. In this new environment, innovative approaches to improving maintenance and reliability are necessary and create new, unique opportunities for value co-creation between stakeholders. This chapter focuses on investigating the applicability and implementation of an approach to predictive maintenance which combines prognostic modelling with Condition Based Maintenance (CBM) and its role in providing improved service provision for the repair and maintenance of complex systems. The role of prognostic modelling and Health and Usage Monitoring Systems as the emerging technologies that enable a value-oriented approach to maintenance are discussed. Bayesian networks are discussed as a modelling framework that is appropriate to capture uncertainties related to predictive maintenance. Special focus is placed on reviewing practical challenges and proposing solutions to them. The discussion is summarised in the form of a practitioner’s guide to implementing prognostic modelling and CBM.

Condition based maintenance modelling can be used to maximise the availability of key operational components that are subject to condition monitoring processes, such as vibration or oil based monitoring and thermography. This chapter addresses the operational need for a component replacement decision analysis problem utilising available condition monitoring data and incorporating various prognostic modelling options for the estimation of remaining useful life which is essential in a prognostics model. Guidelines are presented in the chapter which enable the selection of an appropriate prognostic model for a given application based on the characteristics of the scenario and the availability of historical data to train the model. Consideration is then given to scenarios where historical data are scarce or unavailable and new modelling developments are presented to cater for this contingency. The objective of the modeling process is to maximise availability whilst avoiding the occurrence of costly component failures. The developed model has been programmed into a prototype software package for facilitating the implementation of the methodology.

This chapter presents a methodology that has been developed to assist in the planning, scheduling and outsourcing associated with maintenance and service contracting of complex engineering systems. The methodology is based on the delay-time modelling concept and can be used to construct and specify a model of the failure and inspection maintenance processes for a given system or asset. The resulting process model can be used for optimising the maintenance service interval with respect to a number of different criteria including system cost, downtime, availability or reliability. It also caters for a number of analytical scheduling options. Most notably, the model can be used to determine the optimal inspection interval for multiple types of maintenance and service, and can also be used for validatory purposes or to improve the actual maintenance processes. This chapter also discusses the application of the methodology in the context of fixed service life contracts and the potential for incorporating technology insertion processes over time in the modelling process. The model developed can be programmed into a software package to facilitate the actual use of the methodology. The chapter concludes with some simple examples to demonstrate the concepts.

The primary objective of this work is to use simulation methods for the development of optimal service support procedures using an integrated Product, Process and Resource (PPR) structure. Mid life fatigue modifications required on a sub-system within an existing aerospace platform have been used to demonstrate the utility of this approach in supporting the transition of an original equipment manufacturer (OEM) to availability contracting. Other objectives of the work were to show how significant cost drivers can be identified and quantified through the virtual development of work breakdown structures (WBS) for service support processes and to show how the mechanisms used to develop optimal processes, can produce animated instructional materials which enhance organisational learning as processes evolve. This supports the effective communication of methods and work breakdown structures between the technical author and service personnel. Although this work has been completed using an aerospace sub-system as a demonstrator, the outcomes are equally applicable to other platforms which utilise complex engineering systems. The results of this work have system level significance in reducing risk in service provision through the support of value co-creation. The simulation outputs also provide data for higher level cost modelling which in turn, informs the strategy required for supply chain engagement through incentivisation.

In the current climate, the industrial sector is increasingly characterised by longer product life cycles and asset availability demands. There is likely to be a reduction in the number of major acquisition projects in the future. This, combined with organisational changes and the fact that both governmental and commercial sectors are steering towards contracting for capability, has led to an internal shift in manufacturing centric companies. These traditional companies are now providing service offerings for their products, thereby reducing customer oriented risk. The services aspect includes the use of new technologies and methods for managing technical products over their life cycle and ensuring that customers’ required capability and availability demands are met. This imposes new challenges on subsequent maintenance, repair and capability enhancement procedures. A framework for the development of a Maintenance Dashboard is proposed. The underlying purpose being to establish an approach that supports the decision-making process on whether to maintain, repair, upgrade or update a given asset. Through incorporating maintenance and capability enhancement, both facets are considered in their entirety as opposed to in isolation. The proposed framework aims to direct key asset status information at the various stakeholders involved while an asset is deemed ‘active’, thus aiding consistent decision-making which may ultimately be related to KPI management.

Technology insertion provides the means to proactively sustain and enhance the functionality and associated performance levels of legacy product platforms. It aims to deliver in-service technological innovations in response to the need for new capabilities that address emerging threats, obsolescence concerns and affordability issues. Platform modernisation via technology insertion is an interaction between the three principal stakeholders of end-user, acquisition authority and product-service system provider. To bring these three groups together for the vision setting and planning activities, a transformation mapping approach has been developed. It requires the participants to populate three visual templates that respectively map the future strategic context, the portfolio/fleet of complex product platforms and the key functional systems that generate utility. The adoption of this approach provides the ability to outline future capability requirements, determine product development options, and align these with the associated technology upgrade paths against the time dimension. To illustrate the implementation of the method, a case study from the defence industry is employed to depict the typical outputs that can be generated.

Delivering contracted performance levels for service based on the sustainment of complex engineering systems is a necessary but not sufficient condition for user satisfaction. Service is received in a context that is shaped by the state of mind of the customer—perceptions, biases, memories, intentions and patterns of thinking. Service teams need to understand the “mind of the customer”, complementing the “voice of the customer” used in requirements development. The chapter considers how service solutions are designed and suggests that the state of mind of the customer needs greater consideration during solution development. The service team functions in the social dimension to understand the customer’s mind and harmonises the service solution. The dominant thinking style in social space is characterised as “service thinking”, complementing the system thinking style which dominates in the conceptual space of product-service systems.

The chapter is concerned with presenting an approach to the high-level and integrative modelling of service systems. The challenge of such an approach is to provide a high-level view, without overloading the representation with too many theoretical concepts, or too much detail of the final implementations of a service system. The concern is with feasible or desired configurations and the potential trade-offs implied by specific configurations; rather than an optimised specific implementation.

This chapter examines the contributions made within this book and seeks to add to the development of the framework for complex engineering service systems. Particular focus is placed upon emergent value, which is co-created as customer variety permeates processes.