From Product to Product-Service System

The Demarcation of Producer Responsibilities in the Transition from Linear to Circular Service System

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Abstract

Context - In the construction industry of today, buildings are seen as finished products rather than ongoing processes. The business model of facades as a product service system is a promising strategy to change these practices. A pilot project at Delft University of Technology sparks the interest of Alkondor Hengelo, to explore their tasks and responsibilities as pioneers in this new way of supplying facades. Suppliers would retain the ownership of a leased PSS façade and guide a project through its entire service life and beyond, managing materials in a circular way. The two main challenges were identified as 1. Going from a linear model to circularity, and 2. The ongoing involvement in a PSS instead of handing over their product. The first steps of implementing the façade leasing model have been taken, however the full strategy yet needs to be outlined, to understand how value is added for suppliers and clients and where technical barriers are found.

Objective - Ideally, a PSS would optimize façade performance and provide all services that are needed to do so. This adds value for the client and creates a steady source of income for the supplier. As the pathway to a full PSS is best approached in smaller steps, it should be defined: What set of tasks would the façade supplier take on in a basic stage of servitization, and what could be added on to form a more advanced service agreement? For façade suppliers, it is important to make the best use of the investment into their product, as they would not only be acting as producers, but also operate and safeguard the product and its performance throughout the entire cradle-to-cradle life cycle. Therefore, it should be designed for optimal operation and output during use, and designed for circularity, to achieve a high residual value after the first use. Different design criteria and considerations are therefore given, as a reference for future designers of circular facades as PSS.