Integrated Vehicle Health Management (IVHM)An enabler to the ‘servitization’ of products within the UK manufacturing sector – a model approach

Lou ReddingDoctoral ConsortiumAnnual Conference of the Prognostics and Health Management SocietySan Diego, USASept 28th – Oct 1st, 2009

Presentation Agenda

• IVHM a Definition• Significant Benefits• Research Aim and Objectives• Research Framework – Current and Future• Questions

IVHM – A Definition

“..the capture of [asset] condition, both current and predicted, and the use of this information to enhance operational decisions, support actions, and subsequent business performance”

(Benedettini et al – 2009)

Relationships with this research

PSS

CBM

IVHM

Forces acting upon the business model

Figure : Business Model’s place in the firm (ref: Ostenwalder et al - 2005)

Social Environment

Business Models

Legal Environment

Competitive forces

Demand

Technology Change

Organisation

Strategy

ICT

IVHM – Significant Benefits

Benefits

Effective CBM

Increased Utilisation

Improved LogisticsImproved

product development

Performance based

solutionsConcurrent engineering

Informed design

Improved supply chain

models

Superior Inventory

control

Lean & Agile

responses

Match limitations to requirements Improved

operations management

‘Fix’ or ‘Fly’ decisions

Reduced manning

costs

Fleet management

Increased detection

Reduced waste

removals

Maximise component

life

Decreased turn around

time

Reactive to proactive

maintenance

Reduced inspections

Open vs Closed loop advantages

Improved control of business risk

within a PSS Framework

Research Aim

“To map high value IVHM applications in use within the UK and then to create a decision tool that will enable the evaluation of potential benefits of new and alternative applications”.

Research Objectives – slide 1 of 4

1. To Identify and understand the level of awareness within UK manufacturing companies of the principles of IVHM. [Survey]

2. To understand the extent to which IVHM has been, or is being, adopted as part of a competitive strategy within UK mainstream manufacturing• Who are the stakeholders driving IVHM?• How is IVHM data used within organisational

infrastructures? [Literature, Survey, Case Studies]

Research Objectives – slide 2 of 4

3. To identify from those companies stating use or awareness, the specific capabilities required to develop IVHM applications.

• Company characteristics• Core competences• Product Characteristics [Case Studies]

Research Objectives – slide 3 of 4

4. To identify examples of success/failure within UK manufacturing [Literature & Case Studies]

5. To identify enablers/inhibitors to IVHM application and adoption. [Literature & Case Exemplars]

(e.g. risk, cost, functionality, strategic position)

6. To identify means of quantification of benefits.• Are existing financial models valid?• Are existing operational and commercial models

valid? [Literature & Case Exemplars]

Research ObjectivesSlide 4 of 4

7. To construct a verified and validated simulation model or decision framework that will inform UK based manufacturing companies based upon organisational “pull”.

[Model Construction & Case Exemplars]

Research Framework – Stage 1 - An Overview of the literature

Conduct “Scope” Study

Identify “Key” Words

Identify Search Strings

Identify Data

Sources

Discard

Define Abstract

audit criteria

Document Reasons

Analysis & Draft

Report

Audit Abstracts

Accept

Full Descriptive Analysis• Authors

• Authors by location• Dates

• Sectors

Thematic Analysis• Outline what is known

• Identify consensus• Identify emergence

• Audit trail

Gaps Identified to date.

Gap 1. There are few cited examples of IVHM existing

outside the aerospace and military sectors

Gap 2. The are no documented case studies within the

literature of failed applications

Gap 3. There is a need for a generic frame work/tool

that enables the potential user to assess the

technical, commercial, financial, and business

case for introducing IVHM outside of aerospace

and military sectors

Gaps Identified to date

Gap 4. A decision process is required to identify the

level of IVHM adoption to be applied to an

asset.

Gap 5. Identification of additional KPI’s better suited to

emerging business models facilitated by

‘servitization’ and the introduction of IVHM

Gap 6. All the literature is technology ‘pushed’, but to

what extent is demand being customer

‘pulled’?

Gaps Identified to date.

Gap 7. All models and solutions have been designed

and published by engineers for engineers.

[little or no contributions have been made

outside of this group – business community]

Gap 8. Of the cost/benefit models, there are potential

difficulties with the time scale of ‘whole’ life PSS

solutions. [How do you assess twenty plus year

cash flows in volatile markets]..... Requires a

financial NOT engineering appraisal.

Gaps Identified to Date

Gap 9. Non aerospace data mining methodologies are

required in order to construct algorithms.....

[We are at the start of the ‘s’ curve]

1. Bibliographic data base containing 1300 papers from academic journals, conference papers, reports and proceedings. [Complete]

2. State of the art literature review to form Chapter 2 of the thesis [1st Draft Complete and Submitted]

3. Potential for Journal Paper December 2009.

4. Gap Analysis within the literature.

Stage 1:- Deliverables

Stage 2 - Addressing Objective 1 and Part of Objective 2

• Understanding of the level of awareness of the principles of IVHM within mainstream UK manufacturing

• To start to understand the level at which the adoption of IVHM is being used to inform competitive strategy

Selection Method For Planned Survey

No

Yes

Yes No

No Yes

Yes No

IdentifyData Bases

Define SearchParameters

Construct listOf potentialcompanies

Are thereComplexproducts

Is thereAfter sales

support

Is supportProductcentric

DiscardIs it B2B

Discard

Add to Data Set

Products or System of Sub Assemblies where

Failure leads toSignificant consequence

Taken from the literature

Bibliographic & Company

Population at each stage of Data Framing

Framing the data set

304 Companies after review of Web sites

1837 Companies who had a turnover ≥ 10,000,000 GBP

77710

Companies who

had a UK based manufacturing

operation

2,752,710 Companies based in the UK

Framing of Target Population for Survey

Only 0.01% (304) companies listed are UK manufacturers with a turnover ≥ 10,000,000 GBP, and have products support IVHM

Only 0.07% of companies listed are product manufacturers with a turnover which is ≥ 10,000,000 GBP

Only 2.8% (77710) of those companies listed are manufacturing products

There are 2752710 trading companies within the UK listed on FAME on 15-05-09

Survey Response Rate

• 304 Surveys Distributed• 54 Surveys Returned• Response Rate at September 14th

= 18% My analysis will start in October and a survey paper will

be submitted at the end of October 2009

Project Timing and Summary

Review

paper Jan 10

Survey

paper Oct 09

Publish case

studies Aug 11

Jan 09 Jan 10 Jan 11 Nov 11

Literature Review

Survey to meet objectives 1 & 2

Structured Interviews

Model/framework construction

Writing Up

Verification & validation

Case studies and exemplars

Any Questions?

My contact details are:

IVHM Centre

Conway House

Cranfield University

Cranfield

Bedford MK43 0AL

United Kingdom

T: +44(0)1234 755769

E: l.e.redding@cranfield.ac.uk

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