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Service Uncertainty and Cost for Product Service Systems

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Book cover Complex Engineering Service Systems

Part of the book series: Decision Engineering ((DECENGIN))

Abstract

Service orientation in the defence and aerospace industries through availability contracts is creating challenges in cost estimation due to uncertainties. The chapter initially presents the topic of uncertainty in service delivery, which subsequently leads to a classification of uncertainties. Then, the current uncertainty-based service cost estimation processes are explained. By identifying the existing challenges, an improved framework to estimate costs is highlighted. This firstly involves enhanced understanding of the influence of uncertainties and cost estimation capabilities through the analytical hierarchy process and the Numeral, Unit, Spread, Assessment and Pedigree (NUSAP) Matrix approach. Secondly, it involves using agent-based modelling to represent the dynamism in service cost estimates. The chapter ends with a case study application of the approach.

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Authors and Affiliations

  1. Manufacturing Department, Cranfield University, Cranfield, Bedfordshire, MK 43 0AL, UK

    John Ahmet Erkoyuncu & Rajkumar Roy

  2. Indian Institute of Management Calcutta, Kolkata, India

    Partha Datta

  3. BAE Systems, Hampshire, UK

    Philip Wardle & Frank Murphy

Authors
  1. John Ahmet Erkoyuncu
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  2. Rajkumar Roy
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  3. Partha Datta
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  4. Philip Wardle
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  5. Frank Murphy
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Corresponding author

Correspondence to John Ahmet Erkoyuncu .

Editor information

Editors and Affiliations

  1. , Streatham Court, University of Exeter Business School, Rennes Drive, Exeter, EX4 4PU, United Kingdom

    Irene Ng

  2. , Bristol Business School, University of the West of England, Coldharbour Lane, Bristol, BS16 1QY, United Kingdom

    Glenn Parry

  3. PaCT Laboratory, Department of Psychology, Northumbria University, Newcastle upon Tyne, NE1 8ST, United Kingdom

    Peter Wild

  4. , Institute for Manufacturing, University of Cambridge, Charles Babbage Road 17, Cambridge, CB3 0FS, United Kingdom

    Duncan McFarlane

  5. , Institute of Manufacturing, University of Cambridge, Charles Babbage Road 17, Cambridge, CB3 0FS, United Kingdom

    Paul Tasker

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© 2011 Springer-Verlag London Limited

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Erkoyuncu, J.A., Roy, R., Datta, P., Wardle, P., Murphy, F. (2011). Service Uncertainty and Cost for Product Service Systems. In: Ng, I., Parry, G., Wild, P., McFarlane, D., Tasker, P. (eds) Complex Engineering Service Systems. Decision Engineering. Springer, London. https://doi.org/10.1007/978-0-85729-189-9_7

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  • DOI: https://doi.org/10.1007/978-0-85729-189-9_7

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  • Publisher Name: Springer, London

  • Print ISBN: 978-0-85729-188-2

  • Online ISBN: 978-0-85729-189-9

  • eBook Packages: EngineeringEngineering (R0)

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