Addressing uncertainty in estimating the cost for a product-service-system delivering availability: Epistemology and ontology

Abstract

Over the last 50 years Rolls Royce defense has provided overhaul and repair services for its engines. 1 They offer their customers a product with supporting services. As an Original Equipment Manufacturer (OEM), service provision provides additional revenue as well allowing the provider firm to gain knowledge and expertise of how their products perform in use. The term often associated with Rolls Royce support services is the well–known phrase “Power by the Hour ”–though it has been a number of years since they used this term themselves. Rolls Royce registered the trademark in November 1965, which shows that a product service offer is not a new phenomenon. According to The Economist (2011), Rolls–Royce’s expansion into services could offer lessons for Britain’s other industries. However, the phenomenon does remain poorly understood.