Within the design community, a growing number of researchers have shown interest in extending the value context to include design, such that designers focus on maximizing the 'value' of the product or service, rather than simply satisfying a set of requirements. Thus, by applying a value-driven approach to design, the design community hopes to show that the magnitude of cost and schedule overruns may be reduced, or even eliminated. However, a common criticism of value-driven approaches is that they are difficult to implement, and not sufficiently pragmatic to be used for large scale engineering problems. Further, some argue that less rigorous methods appear to provide reasonable results in practice, and so rigor is not necessary. To reconcile these disparate viewpoints, it must be shown that value-driven approaches contribute to the design process, and can be implemented in practice at a reasonable cost. In response, I propose that the cause for the lack of practicality in value-driven approaches is attributable to the lack of well established and verified methods and tools. This dissertation presents research that attempts to address this deficiency by first developing a better understanding of effectiveness for methods that seek to enable value-driven design. This investigation leads to a concise set of desired characteristics for methods for guiding the development of value-models which then motivate the creation of a Systematic Method for Developing Value Models (SMDVM). To evaluate the SMDVM, it is applied to the design and retrofit of buildings for energy efficiency. A simulation workbench is developed as a tool to automate the development and analysis of value models for building design and retrofit contexts. The workbench enables architects, engineers, and other practitioners to easily incorporate uncertainty into analyses of building energy consumption, as part of a value-driven approach to design and retrofit.

The research presented in this thesis develops an improved design methodology for designing complex systems. While traditional methods have been able to create complex systems, their success is usually overshadowed by long delays and expensive overruns. The method developed within this research is known as Value Seeking System Design (VSSD) and builds upon the foundations of the System Engineering (SE) and Value Driven Design (VDD) approaches. Creation and implementation of the new design environment is provided, including a method on how to create the value model for any complex system. Key conclusions from this work include a need to redefine the process in which stakeholder needs are currently defined and captured as well as a need to create an improved value model. Defining all stakeholders’ needs as requirements constrains the designer to a rigid solution space, which may not include the “best” solution for the stakeholder. Similarly not including the social aspects within a value model causes the designer to make poor value trades. To overcome these problems the VSSD technique incorporates desirements and their associated design desirability functions within the design process to create a non-rigid solution space while the value model has been redeveloped to easily incorporate the performance, economic and social aspects of a design, to allow a more accurate and balanced value trade off analysis to occur. Benchmarking the VSSD approach against the current state of the art methods (SE and VDD) highlighted the advantages of adapting a value approach to complex system design compared to traditional requirement based techniques. Additionally while all three approaches were capable of designing complex systems the VSSD approach was demonstrated to be an improved design methodology as it possessed the benefits inherent within both the SE and VDD approaches without suffering from their limitations.

In design and optimization of a complex system, there exist various methods for defining the relationship between the system as a whole, the subsystems and the individual components. Traditional methods provide requirements at the system level which lead to a set of design targets for each subsystem. Meeting these targets is sometimes a simple task or can be very difficult and expensive, but this is not captured in the design process and therefore unknown at the system level. This work compares Requirements Allocation (RA) with Distributed Value Driven Design (DVDD). A computational experiment is proposed as a means of evaluating RA and DVDD. A common preliminary design is determined by optimizing the utility of the system, and then a Subsystem of Interest (SOI) is chosen as the focal point of subsystem design. First the behavior of a designer using Requirements Allocation is modeled with an optimization problem where the distance to the design targets is minimized. Next, two formulations of DVDD objective functions are used to approximate the system-level value function. The first is a linear approximation and the second is a nonlinear approximation with higher fidelity around the preliminary design point. This computational experiment is applied to a series hybrid vehicle where the SOI is the electric motor. In this case study, RA proves to be more effective than DVDD on average. It is still possible that the use of objectives is superior to design targets. This work shows that, for this case study, a linear approximation as well as a slightly higher fidelity approximation are not well suited to find the design alternative with the highest expected utility.

Recently trade-off among producers, customers and society/ environment is one of the most popular concerns in industry. This issue conducts the decision making by manufacturers on the selection between two alternative techniques, ECM and MM. The purpose of this study was to explore the problem in how to assess the value of a product/ service in the early stages of the design activity. Through the simulation tool of System Dynamics, a model helps to quantify all the values which were involved. The result of this model was that the coming 10 years NPVs of two alternatives were assessed. Contrasting the alternatives on different manufacturing processes and market conditions, the decision makers could find out an appropriate scenario with an appropriate technique. This approach was verified to ensure the accuracy and practicability.

Global challenges such as increasingly competitive markets, low-cost competition, shorter lead time demands, and high quality/value output are transforming the business model of the company to focus beyond the performance requirements. In order to meet these challenges, companies are highly concerned with the customer perceived value, which is to connect the product with the customer in a better way and become more proactive to fulfil the customer needs, via function-oriented business models and Product-Service Systems. In literature, the conceptual phase is distinguished as the most critical phase of the product development process. Many authors have recognized the improvement of design in the conceptual phase as the mean to deliver a successful product in the market. At the decision gate, where concepts are selected for further development, the design team needs knowledge/data about the long-term consequences of their early decision, to see how changes in design propagate to the entire lifecycle of the product. The main goal of the thesis is to describe how the design of Product-Service Systems in the conceptual phase can be improved through the use of a data-driven approach. The latter provides an opportunity to enhance decision making and to provide better support at the early development phase. The study highlights how data are managed and used in current industrial setting and indicates the room for improvement with current practices. The thesis further provides guidelines to efficiently use data into the modelling and simulation activities to increase design knowledge. As a result of this study, a data-driven approach emerged to support the early design decision.  The thesis presents initial descriptive study findings from the empirical investigations, showing a model-based approach that creates awareness about the value of a new design concept, thus acting as a key enabler to use data in design. This will create a link between the product engineering characteristic to the high-level attributes of customer satisfaction and provider’s long-term profitability. The preliminary results indicate that the application of simulation models to frontload the early design stage creates awareness about how performance can lead to value creation, helping multidisciplinary teams to perform quick trade-off and what-if analysis on design configurations. The proposed framework shows how data from various sources are used through a chain of simulations to understand the entire product lifecycle. The proposed approach holds a potential to improve the key performance indicators for Product-Service Systems development: lead time, design quality, cost and most importantly deliver a value-added product to the customer.

This master thesis has been performed in association with Blekinge Institute of Technology and in collaboration with the company Dynapac Compaction Equipment AB. The thesis aims to investigate how Discrete Event Simulation (DES) can be used for value and sustainability design concept assessments in early design stages. The research is made by investigating the example of simulating the lifecycle of a double drum asphalt compactor. The model is created in the computerbased DES software Simio LLC, where the captured data of the compactor´s lifecycle performances are linked to a Net Present Value (NPV) model and a sustainability assessment. The model is then further explored and evaluated in the Decision Arena, located at Blekinge Institute of Technology.  The simulated model is created to approach a ‘lifelike’ lifecycle of the machine, containing the compactor´s ordinary usage in road construction. This includes operations in sidewalk, parking lot and pothole repair scenarios. The model contain service, maintenance, transport, workers, resource sharing and more. The model is connected to MS Excel to transfer data. The life cycle performances are captured in the model and used to estimate the cost parameters of energy -, water -, maintenance -, service - and transportation energy cost within the NPV model. The CO2 – emission for fuel consumption and transport, together with the total water consumption in the sustainability assessment.  The outcome of the thesis showed that the method gave good results for developing new design configurations in the early phases in product development. The method could support designing towards sustainable and long-term solutions and collaborations over the sectors (i.e. between stakeholders, engineers, designers, non-experts and more). The outcome in the specific case resulted in successfulness of capturing all lifecycle performances of the machine and linking them to the mentioned parameters. The research question is, however, generic and the investigation for the specific case study uses assumptions and up- and down scaled data to protect the company secrecy. For future work, the method together with Internet of Things (IoT), Digital Twin or Industry 4.0 could be in high interest to investigate further. / Detta examensarbete har blivit utfört i association med Blekinge Tekniska högskolan och i samarbete med företaget Dynapac Compaction Equipment AB. Syftet med projektet är att undersöka hur diskret händelsesimulering (DES) kan användas för värde - och hållbarhets bedömning för olika designkonfigurationer, i tidiga skeden av produktutvecklingen. Arbetet är utfört genom att tillämpa exemplet av att simulera livscykeln för en asfaltsvält med dubbla trummor. Simuleringsmodellen är framställd genom det databaserade DES programmet Simio LLC, där utdata för maskinens livscykelprestanda tas fram och kopplas till en Net Present Value (NPV) modell och en hållbarhetsdömning för maskinen. Simuleringsmodellen utforskas och bedöms sedan vidare i ’Decision Arena’ på Blekinge Tekniska Högskola.  Den simulerade modellen är framställd för att eftersträva en verklighetstrogen livscykel av maskinen, innehållande dess vanliga användningsområden inom vägarbete. I livscykeln inkluderas operationer av trottoarer, parkeringsplatser och reparationer av hål i vägbanor. Modellen innehåller även service och underhåll, transport, arbetare/anställda, resursdelning med mera. Modellen är kopplad till MS Excel för att föra över in- och utdata mellan programmen. Maskinens livscykelprestanda är hämtat från modellen och använt till att uppskatta kostnadsparametrarna för energi, vatten, underhåll, service och energi under transport i NPV – modellen. Maskinens CO2 – utsläpp för bränsleförbrukning och transport, tillsammans med vattenkonsumtionen i hållbarhetsbedömningen. Arbetet visar på goda resultat för att utveckla nya desginkonfigurationer i de tidiga skedena inom produktutveckling. Metoden kan stödja utformning mot hållbara och långsiktiga lösningar, samt förstärka samarbeten över sektorerna (dvs. mellan intressenter, ingenjörer, designers, icke-experter med mera). Utfallet för det specifika fallet resulterade i framgång med att fånga upp maskinens livscykelprestanda och koppla dessa till de ovan nämnda parameterana. Forskningsfrågan är dock generell och utredningen för den specifika fallstudien använder uppskattningar och upp- och nerskalade data för att skydda företagets sekretess. För framtida arbete, kan metoden tillsammans med Internet of Things (IoT), Digital Twin och Industry 4.0 vara av stort intresse för att undersöka.

Combining products and services into Product-Service Systems (PSS), which are often owned and even operated by the company offering them, is seen as an important element of conducting more sustainable business. The prospective environmental benefits of PSS lie mainly in the improved resource- and operational efficiency. This is achieved by way of a critical shift in incentive structure: If an industrial company assumes responsibility for an offering throughout the lifecycle, the terms on which that company operates are changed substantially in comparison to traditional product sales. Instead of benefiting from a short lifetime through additional sales opportunities or making profit through the sale of spare parts, in highly integrated PSS, each parts exchange, each technicians’ visit and each day the lifetime of the offering is reduced directly affects the bottom line of the provider. Due to that, solely as a result of economic rationality, a provider of these offerings has an incentive to design in such a way that the life of this offering is prolonged, need for spare parts is reduced, service activities are facilitated and simplified, and that the conditions are in place to allow for a second or third life of the offering through remanufacturing. Regardless of this compelling logic, at times, industrial companies fail to establish the preconditions to capturing these benefits as they continue to rely on product and sales-centric design processes even though they provide PSS. This thesis aims to examine this unexploited opportunity from two vantage points. On the one hand, methods conceived in academia to support industry in implementing and executing joint, lifecycle-focused design of products and services, and the use of these methods in practice, are examined. Here, the focus firstly lies on understanding how PSS are designed today, and secondly, on what should change about PSS design methods to improve their implementability and usability in industrial practice, so that they can fulfill their supposed role as facilitators of efficient PSS design and operation. On the other hand, the possible benefits of providing specifically designed and lifecycle-focused PSS as an industrial company are in focus. To this end, the value attained by providers throughout the use phase of PSS is investigated, to then identify possible approaches towards enhancing this value. Eventually, both focus-areas are joined in an effort to examine the interaction between method-supported, lifecycle-oriented PSS design and the value attained by providers of such offerings. As a result of the research, a lacking adaptation of design processes to PSS is identified in the case companies. Further, shortcomings of PSS design methods conceived in academia, e.g. excessive complexity, lacking clarity and rigidity, are found in both literature as well as in a study with an industrial company. To take a first step towards rectifying this issue, six characteristics intended to enhance implementability and usability of PSS design methods, are presented. The value attained by PSS providers has been found to be a complex but important subject. In a case study, value determinants of high relevance to the use phase of the lifecycle have been identified and assessed for their utility as indicators in the evaluation and enhancement of PSS offerings in the design phase. The practitioners involved were supportive of the applicability of the systematic approach presented to capture more value through offering PSS. In joining both the value- and method-oriented approach, the mutual dependency of both aspects is discussed. In order to provide PSS in an economically and environmentally efficient fashion, adapting the existing design processes is imperative. The value attained by the provider can, complementary to existing customer-centric approaches, serve as an important goal for the adaptation of design processes. Ultimately, through understanding the change in incentive structure at the core of PSS, and through implementing a value-driven design process supported by efficient and effective methods aimed at providing both customer value and capturing provider benefits throughout the lifecycle, there is a genuine potential of conducting more sustainable business.