Understanding the benefits of product-service system for involved parties in remanufacturing
Abstract: This study aims to
analyse the benefit provided by interested parties in remanufacturing including
manufacturing companies, original equipment manufacturers and customers.
Existing studies examining Produc-Service System (PSS) focus on relationship
between two parties, either between OEMs and customers or between
remanufacturers with customers. This study attempts to fill the gap by
investigating how the PSS offers benefit to OEMs, remanufacturers and
customers.
Methodology: This research used case study method to examine the practice
of PSS in remanufacturing companies. Qualitative approach was employed to
analyse emerging problems in the case companies and the researcher collaborate
with the involved parties to create new knowledge. Thus, this process can offer
theoretical insights as well as practical insights.
Findings: All parties involved in PSS consistently gain benefit from
adopting the practice. From the perspective of remanufacturers, the major
benefit of remanufacturers adopting PSS is that it can help reduce the
uncertainties regarding time, quantity and quality of returned cores. Due to
reduced uncertainties, remanufacturers gain benefit from higher profitability
and more environmental friendly products. These benefits provide multiplier
effects to both customers and OEMs.
Practical implications: This study offers benefits to managers in the
sense that it provides guidance for managers of remanufacturers to better
manage remanufacturing operation so that it becomes more environmentally
friendly and economically profitable.
Originality/value: It is the first time that the benefits of PSS to
support remanufacturing are viewed from integrative perspective – i.e.
manufacturers, remanufacturers, and customers.
Keywords: remanufacture,
product service system, sustainability, operations management, environmental
issues, reverse logistics
Author: Anjar Priyono
Journal Code: jptindustrigg170007
