Stefan N. Grösser Arcadio Reyes-Lecuona Göran Granholm Editors Dynamics of Long-Life Assets From Technology Adaptation to Upgrading the Business Model Dynamics of Long-Life Assets Stefan N. Grösser • Arcadio Reyes-Lecuona Göran Granholm Editors Dynamics of Long-Life Assets From Technology Adaptation to Upgrading the Business Model Editors Stefan N. Grösser Göran Granholm School of Management VTT Technical Research Centre Bern University of Applied Sciences of Finland Ltd. Bern Espoo Switzerland Finland Arcadio Reyes-Lecuona E.T.S.I. de Telecomunicación Universidad de Málaga Málaga Spain ISBN 978-3-319-45437-5 ISBN 978-3-319-45438-2 (eBook) DOI 10.1007/978-3-319-45438-2 Library of Congress Control Number: 2017932015 © The Editor(s) (if applicable) and the Author(s) 2017. This book is an open access publication. 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Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Foreword The recent global financial crisis has underlined the importance of the real economy and a strong industry with industrial activities integrated in rich and complex value chains, linking multinationals to small or medium enterprises across sectors and countries. Economies with a solid manufacturing base focusing on high-tech or medium-tech activities and with integrated value chains have proved to be more resilient to the economic downturn and better placed to achieve higher growth in times of rebound. A strong industrial base is of key importance for Europe’s economic competi- tiveness. With scarce natural and energy resources and ambitious social and environmental goals, EU companies cannot compete on low price and low quality products. They must turn to innovation, productivity, resource-efficiency and create high value-added in order to compete in global markets. Europe’s comparative advantage in the world economy lies and will continue to lie in high value-added goods and services. And for this, it will have to rely on innovation and techno- logical advancement as its main source of competitiveness. Use-it-Wisely, a EUR 8.6 million industrial project supported under the European Commission’s Seventh Research and Innovation Framework Programme over the last 39 months, has attempted to achieve this. It has investigated tools and methodologies to help industries adapt to an environment characterised by constant change. The approach has built on the idea of a continuous, incremental upgrade process based on close collaboration between involved actors throughout the pro- duct life cycle. Managing this process requires a holistic understanding of the causal effects of various factors to support strategic decision making regarding technology upgrades, service development and introduction of novel business models. Solutions based on virtual and augmented realty and 3D scanning technologies were applied. The tools and models developed in this project were implemented and tested in six different industries. They comprised service inspection of power turbines, modular upgrades of mobile rock crushers, space applications engineering, v vi Foreword production systems in truck production, marine vessel data management, and office furniture supporting a radical, circular economy approach. The project’s diversity has proved to be its particular strength: interacting with seemingly unrelated fields of industry has contributed to an unprecedented transfer of knowledge, experience and technological know-how amongst the involved researchers and industrial practitioners, providing fertile ground for new ideas and solutions. The European Commission is happy with this project’s outcomes and as the official responsible for the monitoring of this project’s activities I recommend the study of the material contained in this book. January 2017 Dr. Erastos Filos European Commission Directorate-General for Research and Innovation Brussels, Belgium Acknowledgements This work was made possible through a collaborative research project jointly funded by the European Commission through the contractual public–private part- nership (PPP) on Factories of the Future (FoF), and the twenty organisations par- ticipating in the project. We want to thank all project partners for their genuine engagement, enthusiasm, and collaborative effort. Special thanks go to the con- tributing authors and to all researchers, engineers, and other staff making possible the results reported in this book. Moreover, we are indebted to Paul McDonnell and Stephen Walker of Carr Communications for their magic abilities to alter and improve figures in the chapters. Finally, we would like to thank the Project Officer Dr. Erastos Filos and Project Technical Adviser Dr. Marco Sacco for their valuable insights and assistance throughout the project. The research leading to these results has received funding from the European Community’s Seventh Framework Programme under grant agreement No. 609027 (Project Use-it-wisely). vii Contents Part I Introduction and Setting the Scene Dynamics of Long-Life Assets: The Editors’ Intro .................. 3 Göran Granholm, Stefan N. Grösser and Arcadio Reyes-Lecuona The Challenge ............................................... 9 Arcadio Reyes-Lecuona The Use-it-Wisely (UIW) Approach.............................. 21 Göran Granholm and Stefan N. Grösser Part II Tools and Methods Innovation Management with an Emphasis on Co-creation........... 45 Dominic Hurni and Stefan N. Grösser Complexity Management and System Dynamics Thinking ........... 69 Stefan N. Grösser Managing the Life Cycle to Reduce Environmental Impacts.......... 93 Tiina Pajula, Katri Behm, Saija Vatanen and Elina Saarivuori Virtual Reality and 3D Imaging to Support Collaborative Decision Making for Adaptation of Long-Life Assets................ 115 Jonatan Berglund, Liang Gong, Hanna Sundström and Björn Johansson Operator-Oriented Product and Production Process Design for Manufacturing, Maintenance and Upgrading ................... 133 Gu van Rhijn and Tim Bosch Fostering a Community of Practice for Industrial Processes .......... 151 Alyson Langley, Harshada Patel and Robert J. Houghton ix x Contents Extending the System Model ................................... 169 Mauro Pasquinelli, Luis Molina-Tanco, Arcadio Reyes-Lecuona and Michele Cencetti Part III From Theory to Practice Collaborative Management of Inspection Results in Power Plant Turbines............................................... 193 Daniel Gonzalez-Toledo, Maria Cuevas-Rodriguez and Susana Flores-Holgado Rock Crusher Upgrade Business from a PLM Perspective ........... 209 Simo-Pekka Leino, Susanna Aromaa and Kaj Helin Space Systems Development .................................... 233 Mauro Pasquinelli, Valter Basso, Stefano T. Chiadò, Carlo Vizzi and Michele Cencetti Adaptation of High-Variant Automotive Production System Using a Collaborative Approach ................................ 255 Jonatan Berglund, Liang Gong, Hanna Sundström and Björn Johansson Supporting the Small-to-Medium Vessel Industry .................. 277 Nikos Frangakis, Stefan N. Grösser, Stefan Katz, Vassilis Stratis, Eric C.B. Cauchi and Vangelis Papakonstantinou Sustainable Furniture that Grows with End-Users.................. 303 Tim Bosch, Karin Verploegen, Stefan N. Grösser and Gu van Rhijn Comparing Industrial Cluster Cases to Define Upgrade Business Models for a Circular