improving functional product availability software related measures planned and taken

Available online at www.sciencedirect.com ScienceDirect Procedia CIRP 59 (2017) 202 – 207 The 5th International Conference on Through-life Engineering Services (TESConf 2016) Improving Functional Product availability: software-related measures planned and taken John Lindstrưma* a) ProcessIT Innovations R&D Centre, Lulể University of Technology, SE_97187 Luleå, Sweden * Corresponding author Tel.: +46 920 491528 E-mail address: john.lindstrom@ltu.se Abstract The paper, based on an empirical study involving five companies, concerns software-related measures that are planned and taken by providers together with their customers to improve the availability of Functional Products (FP) or similar offers The manufacturing industry is showing an increasing interest in adding offerings based on additionally complex business models, as opposed to merely offering products and services This supports innovation and helps companies to stay competitive and profitable Considerable focus is placed on performance- or result-based business models Functional Products (FP) is one such business model, where the provider offers a function to customers at an agreed-upon level of availability, productivity or efficiency FP comprise four main constituents: hardware, software, service-support system and management of operation, which together deliver value to customers on a long-term basis The paper highlights nine software-related availability measures planned and taken by manufacturing companies and proposes additional potential software-related availability measures 2016 Authors Published by Elsevier B.V ©© 2016 TheThe Authors Published by Elsevier B.V This is an open access article under the CC BY-NC-ND license Peer-review under responsibility of the Programme Committee of the 5th International Conference on Through-life Engineering Services (http://creativecommons.org/licenses/by-nc-nd/4.0/) (TESConfunder 2016) Peer-review responsibility of the scientific committee of the The 5th International Conference on Through-life Engineering Services (TESConf 2016) Keywords: Availability; Functional Products (FP); products; software Introduction The paper, based on an empirical study involving five companies, concerns software-related measures that are planned and taken by providers together with their customers to improve the availability of Functional Products (FP) or similar offers A current trend for manufacturing companies is to incorporate service offers and soft parts into their regular product offers and also to extend the providers’ ownership of the product throughout the entire product lifecycle This is a business opportunity for the provider, but it is also a requirement from customers, since it allows them to focus on their core business and processes There are a number of additionally complex business models, compared to products and services, such as performance- or result-oriented business models, which may be used to stay innovative, competitive and profitable over time in global competition One example of such a business model is FP, and the concept of FP [1-4], incorporates hardware, software, service-support system and management of operation into a combined effort providing a function to customers with an agreed-upon level of availability or improved productivity or efficiency Thus, the FP concept has a basis in the cyber-physical systems and industrial internet-of-things paradigms Throughout the FP lifecycle, operation of the FP must be managed, further developed and optimized, since the intent with FP is to optimize long-term value for both the customer and the provider, i.e., create a sustainable win-win situation [5-7] Further, the concept of FP has similarities with, for instance, Functional Sales (FS) [8], Extended Products [9], Total Care Product (TCP) [1], ProductService System (PSS) and Industrial Product-Service Systems (IPS2) [10, 11], Servicizing [12], Service Engineering [13] or Through-life Engineering Services (TES) [14] in the sense of increasing the focus on soft parts such as services, knowledge and know-how etc., additionally offered The FP, originating from hardware aspects, has most commonalities with PSS/IPS2, TCP, TES and FS, however adding additional complexity development-wise FP availability can be seen as a function of reliability and maintainability [15] of the main constituents that are part of delivering the function 2212-8271 © 2016 The Authors Published by Elsevier B.V This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/) Peer-review under responsibility of the scientific committee of the The 5th International Conference on Through-life Engineering Services (TESConf 2016) doi:10.1016/j.procir.2016.08.018 John Lindström / Procedia CIRP 59 (2017) 202 – 207 The FP lifecycle, whose contracts for customer instances can range up to 30 years, contrasts significantly from offering the same hardware and software as a product with services Some of the significant differences are that the provider retains ownership, takes on risks and responsibilities which are transferred from the customer, and further co-creates value together with the customer In addition, as the provider is compensated for providing a function, the provider needs to honour the agreed-upon level of availability or contract parameter specified This requires that the provider can monitor the function and foresee potential problems before they occur and, preferably, act in a proactive manner rather than a reactive one when a problem or breakdown is a fact A trend is that the FP software constituent grows and becomes additionally important as more functionality is added, and it is commonly easier to add new functionality via Traditionally, most software than hardware-wise manufacturing companies have a hardware-centric approach towards availability management, whereas the software field offers new and interesting developments to improve availability As the software constituent can be different than the hardware one, by being situated on-board/locally, distributed/federated, centrally or cloud-based, etc., some additional consideration may be necessary in order to uphold the desired level of availability versus the cost level accepted Using central or cloud-based software commonly has an economy-of-scale advantage as long as it is possible to maintain the agreed-upon level of availability Depending on what the software does and how it is possible to combine onboard/local software with the other software options, information security, connectivity, response times (i.e., latency), criticality as well as the coupling to other parts of the FP limit where the software or parts of software need to reside Thus, the use of cloud services or central software may not be an option in many cases, although they are attractive from an economical and scalability point of view Thus, it is necessary to make an assessment of what software functionality is reasonable and adequate to have onboard/locally, distributed, centrally or in the cloud, so as to avoid availability issues In addition, changes in, for instance, EU and US data legislation require that management of the overall FP must adhere and adapt to the appropriate data legislation in cases where personal data is transferred The current research on FP has mostly been directed towards the hardware and service-support system by modelling and simulation of these two constituents (and in particular the reliability and maintainability) For instance, Löfstrand et al [16-17] propose a simulation framework and Reed et al [18-19] outline a language facilitating modelling of the service-support system A high-level outline of the challenges and need to model and simulate the whole FP has been made by Pavasson et al [20] and FP availability, legalities, information security, criticality and adequacy, when planning to use cloud services in FP have been assessed by Lindström et al [21] Currently, there is a lack of literature addressing FP availability focusing, in particular, on the software constituent Thus, the research question addressed in this paper can be formulated as: which software-related measures to improve FP availability are planned and taken by FP providers? The purpose of the paper is to highlight a number of software-related availability measures which can be used by FP (or similar offers) providers together with their customers in the manufacturing industry Related work Many products or similar offers which include hardware are used a lot longer than initially anticipated due to economic reasons, and thus the lifecycle is sometimes extended far beyond what was originally planned for [22] This causes issues related to asset management and in particular how to manage the availability level expected or agreed upon An asset management problem is how to manage the obsolescence [23] of the hardware and, in particular, of the often rapidly evolving software (including operating systems and platforms used to run the software) Additive manufacturing may solve some of the asset and obsolescence management issues related to hardware and spare parts, since it allows spares with the right quality and properties to be crafted on demand Further, Muñoz et al [24] posit that as software starts to become one of the most valuable assets in the aerospace industry, the portfolio of (critical) software should be monitored performance-wise in order to minimize costs and avoid risks It can be assumed that the same goes for many other industries as well (including the manufacturing industry and FP) Optimizing the level of availability versus cost is an everpresent concern, as is optimizing the FP lifecycle towards the duration of the customer contract and sustainable win-win situation between the provider and customer [5-6] Thus, the initial FP planning, design/development, realization and operation, are all subject to planning or taking measures regarding availability or improvement of it To avoid most of the expensive and long-term testing, simulations (preferably using data from actual monitoring of FP in operations or test activities) are a common tool to use either on a framework layer for the FP main constituents [16-17, 20, 25-27] or for important/vital components of FP [28-29] Up to now, most modelling and simulation efforts have targeted the hardware and service-support system constituents Guided by the simulations, the necessary actual testing can be performed and test cases mapped out based on simulation results in order to improve designs, system/component reliabilities as well as system/component maintainability Of great importance is to find or locate the potential large cost drivers (such as number of service engineers, number of locations for spare parts, which spare parts to have in stock, driving distances to customer sites, etc.), and decide upon how to deal with them in terms of improving reliability, maintainability or opting for re-design/re-thinking if deemed necessary [2, 25] New ideas are needed in order to minimize availability issues originating from the software in FP An idea is a concept including morning gymnastics tests and digital envelopes proposed to minimize errors in automation software [30] This may complement the other (software-related) availability measures taken or planned for FP In order to maintain the agreed-upon level of availability, planning and operation of FP require thorough risk management during the creation/delivery/capture of value for 203 204 John Lindström / Procedia CIRP 59 (2017) 202 – 207 both the provider and customer sides [31] As the software constituent of FP is expected to increase, an additional focus on software related risks will be necessary In addition, a number of long-term related aspects for FP need to be considered to minimize the risk level and uphold or improve the availability level for FP offers [32] Research approach The research approach employed in this study has been based on in-depth qualitative studies with six respondents representing five manufacturing companies The empirical studies were conducted using semi-structured open-ended interviews [33-34] with respondents working for companies active in the Faste Laboratory at Luleå University of Technology, Sweden, focusing on FP Innovation Further, two additional companies, Electrolux (which sells functional offers to customers) and Komatsu Forest (which develops forestry equipment with availability-oriented solutions) were also part of the empirical studies Thus, the respondents were well aware of and knowledgeable regarding FP The respondents were professionals responsible for marketing, services, strategy, development and sales at the following five international companies: x Bosch Rexroth AB (two respondents – technical product and service managers) x Gestamp Hardtech AB (one respondent – manager tool design and development) x Volvo CE (one respondent – chief project manager) x Komatsu Forest (one resp – Executive VP) x Electrolux (one resp – regional category manager) The purpose of having multiple companies with diverse focus was to ensure an advance in the understanding of availability-improving measures related to software taken or planned in the context of FP, considering the similarities and differences between the companies (cf [35]) Although the companies have different offerings, they all face the common challenge of how to best develop, market and sell FP and/or similar concepts such as TES or PSS/IPS2, either as a provider in a partner consortium or as part of their own offerings The companies are all manufacturing companies with roots in hardware development However, additional complimentary components have been added to their customer offerings What the additional components comprise and their weight or importance differs depending on industry and customer segments served Some of the companies aim to increase their revenue from soft parts; i.e., services, knowledge or knowhow, etc., as well as FP sold globally Thus, the FP planned or currently offered by the companies vary and have different emphasis on the composition of hardware, software, servicesupport system and management of operation Initially, semi-structured interviews were used, with openended questions [33-34] allowing the respondents to give detailed answers and the possibility to add extra information where deemed necessary [36] The duration of the interviews was between one and two hours In order to reduce response bias, the respondents came from various parts of the organizations as well as different levels i.e., strategic, tactical and operational units In order to strengthen the validity of the study, data were continuously displayed using a projector during the interviews, allowing the respondents to immediately read and accept the collected data If immediate reading and acceptance was not possible, the interview transcript was read and accepted afterwards by the respondent After that, the collected data were displayed and analyzed using matrices (cf [37]) The analyzed data were finally summarized into a matrix comprising software-related measures taken or planned to improve availability of FP or similar offers The findings were then categorized according to the area of concern, i.e., ‘monitoring/status/data’ and ‘management’ which were distinguishable after the analysis For reasons of confidentiality, only an aggregated view of the analysis (with relevant interview statements) is presented Findings – software-related availability measures planned and taken in the context of Functional Products (or similar offers) The findings below are categorized and sorted according to two categories: MSD (monitoring/status/data) and MGMT (management), as these were the distinguishable categories found after the analysis Table – software-related availability measures planned or taken # Measures Category We use the control system and a number of sensors and data extractors to extract information from the system and store the information centrally In this manner it is possible to deduct reference values for health indexes MSD We intend to increase the monitoring of the process, and for the analytics of some parts we will use data from actual measurements and compare with our theoretical models in order to ensure that the model and production process are aligned Thus, we will have a continuous learning in between the models and production processes We plan to make even larger analyses and simulations using historical data to be able to find additional systematic flaws/issues, pareto errors, and errors based on wrong assumptions/input Thus, the software and analytics supports our decision making regarding availability and what measures to take We use an internal cloud for the calculations, which provides us with redundancy and high availability MSD We will have both on-board/local and centralized software to monitor and diagnose equipment The analytic tools will reside in the (internal) clouds, and the (historical) data we save are combined with data from other sources as well, such as service records, environmental conditions, etc A framework like this supports the back office when making, e.g., cross-searches for problems/issues and finding root causes or problem patterns MSD The equipment is in continuous contact with the central service system and potential problems or errors and error codes are stored in the service system The central service system quickly relays response or work orders, often automatically, to a service/repair technician (via his/her mobile phone) Commonly, this enables the service/repair technician to be on site within an hour or two In the future, if the number of equipment parts of functional offers sold is scaled up, potentially, a centrally made analysis and prioritizetion of response/work orders may become necessary MSD Currently, we keep a majority of the software on-board/ locally and use federated processing in order to as much as possible prior to sending data to other systems We can MSD John Lindström / Procedia CIRP 59 (2017) 202 – 207 in order to keep high quality on the output as well as high level of availability pertaining to the function However, there is an inherent risk in adding additional functionality in terms availability, but the increased pressure to keep costs down will lead to further addition of functionality Thus, there will be a need for improved risk awareness/management limit so that only flags, errors/issues or relevant operations data are sent as well as how often they are sent The backoffice can then connect to any equipment where there is a diagnosis need and retrieve additional data and analyze that in greater detail Currently, depending on laws/regulations, security and customer wishes, we only use internal clouds and information systems for analytics of big data We have a communications connection with the machine and measure what it is used for and how much This gives us an indication as to what is worn and torn and which components, oils/parts which need to be replaced/ serviced MSD The software will be further modularized to enhance change management, i.e., patches and upgrades MGMT Some customers want the data storage/analytics functionality locally, whereas other customers consider it no problem to have a centralized or cloud solution Reasons for local software are security requirements, which vary between industries, or lack of communications/network coverage/bandwidth One current issue with the data storage is the cost associated with large amounts of data MGMT We have not yet had any security breaches We use satellitelinks for internet access in some locations, which is expensive but works well The communications set-up depends on the location and what is available, and commonly we use telecom operators’ mobile networks (or other types of networks) Thus, we depend on the telecom operators and in order to make the agreements stronger, we try to make the agreements together with our customers MGMT Table comprises nine software-related availability measures, and the findings point towards an increase in use of monitoring and analysis/use of collected data combined with meta- and stored historical data Further, monitoring of health status, wear and tear, and simulation of availability will increase Thus, ‘design for monitoring/diagnostics’ will likely be part of the FP providers’ development strategies and lifecycle planning further on In addition, management of software, including connectivity, local/on-board versus central versus cloud software, and security concerns, is of growing interest In particular, security and new legislation or regulatory frameworks will impact future FP software set-ups The findings corroborate the literature (see related work), however, they also indicate a further increase in software in FP integration/automation of service measures to maintain the desired FP availability level and prevent serious failures and breakdowns Further, as the amount of data grows, a decision whether to use streaming data, stored data, or a combination of these, as well as how much data should be stored and for how long, is needed Quantitative analytics can be applied where suitable to find problem patterns or emerging problem areas To sum up, the measures address both how to use software to improve FP availability as well as how to improve the availability of the software constituent To complement the above findings, Table presents reflections and ideas for the future from the respondents: Table - reflections made by the respondents # Reflections In the future we want to be better at detecting wear, which is a very slow process We need to find out exactly where and simulate the process, and hope that the theoretical calculations and simulations will render results that closely approximate real conditions In the future, we want to build additional functionality into our function (i.e., tools), and be able to measure input/output and monitor the function Our software is to a large extent in the (internal) cloud and more will end up there in the future Currently, we have servers in different parts of the world sending us data as well as in between the servers In the future, we may also add more software locally in the function to enhance control of the process As of now, we not have a lot of local/on-board software in the function – but the new ideas for measurements and enhanced monitoring will likely require that Further, we are also considering allowing our customers to use and access parts of our simulators/analytic tools – which may increase our level of professional services and revenue Potentially, additional software can be integrated into the hardware if our future knowledge/monitoring of functions in operation show the need for that In the future, we expect to have most software on-board/locally (in case there is no or bad connectivity) and a majority of the pre-processing of data on-board as well This also depends on high sampling rates, and it would not be justified to send all data possible as we not have any use for that However, for efficiency reasons, any complex and demanding/expensive computations will be made in our internal clouds We will need to work more with distributors and encourage them to use the new monitoring/diagnosis tools, as today some of them are reluctant to so That will benefit the whole value-chain, including the customers The on-board software keeps the equipment in order and generates error codes in case of issues/problems, which in turn are sent to a central service system The service system can be located at our premises or at the customer Currently, we not have any plans to use a cloud solution, partly due to connectivity issues However, we will continue to investigate possibilities like cloud solutions Future-wise, the amount of on-board and central software will likely increase due to more functionality that needs to be added successively as new requirements arise Our on-board software is connected to a cloud service, where data is stored We will probably have more software on-board in the future than today, and we want to be able to change/adjust the software and configurations/settings as well as get more relevant data and parameters for analytic purposes Further, based on data collected, we want to be able to optimize the operation of the machines (during run-time) We rely on other parties regarding spare parts and service personnel, and must therefore make rather advanced agreements The agreements need to clearly specify requirements and related measurements/KPIs Reflections 1-7 point to the fact that there will be considerably more software in the FP in the future and, further, that a lot more of the FP functionality will reside in the software, since that will be easier and more flexible to manage and change Thus, software management in terms of continuous development, maintenance, bug fixing and patching, operating system maintenance and migrations, security, digital preservation, etc., will require greater effort, additional competencies and resources Many companies will thus need to become more software-centric, compared to having been hardware-centric, and understand softwarerelated availability Where will the measures to improve FP availability matter most? This is a valid question to justify efforts and cost towards an increase in availability and a potential competitive edge on the market Depending on how the FP delivers the function and to which extent the main constituents are involved, an analysis should provide the answer when addressing the hardware, software, service-support system or management of operation A common approach is to increase the reliability of key components in the hardware, improve the hardware maintainability, and combine with an adequate 205 206 John Lindström / Procedia CIRP 59 (2017) 202 – 207 service-support system set-up Further, use of self-repair/reconfiguration is an additional possibility However, extending or adapting the service-support system is often expensive if a large geographic area with many customers is to be covered If the connectivity is good and the software provides a lot of functionality, it is likely that measures applied here will render a good effect In addition, also in scenarios with low connectivity, e.g., local monitoring with a weekly analysis may also provide beneficial results Regarding management of operation, improvements in simulations and measurements of availability can give a good long-term effect and provide decision support based on facts (which are collected via monitoring and from other operational data originating from the service-support systems and other software logs) Where is it easiest to take measures? Hardware measures normally require a physical visit to provide service or replace parts (in case of re-design, remanufacture or if a part is broken or worn) In addition, if it is possible to predict problems, repair of hardware components and service may be carried out in a proactive manner based on facts from monitoring Thus, the hardware commonly involves personnel-intensive measures Changing or adapting the service-support system is commonly expensive and may also involve negotiations with trade unions, etc Still, such changes regarding the number of service-support personnel, localization, number and content of spare parts storage and their geographic distribution, etc., may be necessary in order to uphold the agreed-upon availability level If new knowledge needs to be added, it often demands time and resources if the service-support system is extensive Concerning the software, if the FP are connected and accessible, and remote changes or updates are acceptable, it will be efficient to as much software changes, updates and addition of new functionality as possible remotely (in an automated fashion) In the future, automated service measures may also be initiated remotely Concerning distributed, central and cloud software, these are preferably managed from where the best expertise is available Further, the combination of provider/customer down-time cost, duration of FP contracts, and how many variations of FP are provided, will affect the design for availability The FP customers’ total cost and revenue from using FP in production processes depend a lot on how the FP is designed, developed, realized and operated As the FP contract duration may span up to 30 years, there may be considerable changes in the software that were not foreseeable, due to the development of society, technology and legal and regulatory frameworks Discussion and conclusions The paper highlights nine software-related availability measures for FP, whereof six concern monitoring/status/data and three concern management of software The measures address how software can improve FP availability as well as how to improve the availability of the software constituent The most important software-related measures found are: x Deduction of reference values for health indexes x The monitoring of FP will cover many parameters (including software-related ones) and the analytics will become further advanced and predict problems x The functionality based on software in FP will increase, and the use of cloud services will also increase where adequate connectivity is available Thus, software availability needs to be ensured early by for instance modeling and simulations x FP software will reside on-board/locally, centrally and in the cloud, and be modularized to facilitate high availability, large scale management and cost effectiveness Customer preferences and the level of security will guide where the software can reside as well as where data is processed and stored The longer the FP lifecycle, the more demanding the FP software constituent will become due to changes in society, technology and obsolescence, etc Further, security is an issue of critical importance, as more and more FP will be connected to the provider via the Internet or other means Most of the measures proposed are likely applicable for other concepts, which are similar to FP, such as TES and PSS/IPS2, as the amount of software is anticipated to significantly increase in them as well As the FP providers mainly have been hardware-centric in the past, they need to become more software-centric To quickly grow the knowledge on software, the FP providers can look at how the software providers strategize, plan and act Further, the FP providers should start to simulate the software in the same manner as the hardware and service-support system – preferably all together in the same simulation framework If the management of operation constituent is possible to add to the simulation framework as well, the whole FP could be simulated and optimized more efficiently The software industry has historically used a number of strategies and methods to address availability such as, e.g., using local software, redundancy, mirroring, or having scalability/elasticity or abundant capacity During recent years developments, including virtualization of servers and various cloud services, have further enabled availability (as well as cost) improvements As large parts of the world modernize ICT-infrastructures and roll out fibre networks and highcapacity mobile networks, connectivity has improved considerably However, the new strategies and methods have weaknesses and may be fraught with, for instance, distributed denial-of-service (ddos) attacks, sophisticated viruses, and other attacks where software/file systems/databases are destroyed, made un-operable, or data are encrypted with a hostile key in order to blackmail the organization in question Recent and emerging countermeasures include new types of anti-ddos firewalls [38] as well as improved incident management by means of automating parts [39] in order to enable an adequate prioritization and quick actions/countermeasures when necessary However, new attack vectors will appear, which will create problems Finally, new recommendations to secure and improve availability of software/cloud services are being published regularly [c.f 40-42] This initial research has been limited by involving only five companies, and additional companies and research approaches will be used in future research Finally, the paper has highlighted nine actual and a number of potential software-related measures to improve the John Lindström / Procedia CIRP 59 (2017) 202 – 207 availability of FP or similar offers As the FP software constituent is expected to increase in the future, it is necessary to plan, simulate and coordinate the software-related measures with those for the hardware, service-support system and management of operation in order to get a good overall result A possible way to model and simulate the software availability in FP would be to extend the FP simulation framework in [16-17] to also include the software constituent Acknowledgements The research was funded by the VINNOVA Excellence Centre the Faste Laboratory and the ProcessIT Innovations R&D Centre, Luleå University of Technology, Sweden References [1] Alonso-Rasgado, T ,Thompson, G and Elfstrom, B-O (2004) The design of functional (total care) products, Jour of Eng Design, Vol 15, No 6, pp515-540 [2] Lindström, J., Karlsson, L., Löfstrand, M and Karlberg, M (2012) A development process for Functional Products: hardware, software, service support system and management of operation, International Journal of Product Development, Vol 16., No 3/4, pp284-303 [3] Lindström, J., Plankina, D., Nilsson, K., Parida, V., Ylinenpää, H and Karlsson, L (2013) Functional Products: Business Model Elements, proceedings of 5th CIRP Int 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