Embedding Product-Service System of Cutting Tools into the Machining Process: An Eco-Efficiency Approach toward Sustainable Development

Abstract

Product-Service System (PSS) is a sustainable strategy that shifts the focus of the business from selling physical products to providing service by using the product. The innovation proposed in the PSS, focused on sustainable production and consumption, is consistent with the sustainable development goals of the United Nations 2030 Agenda. The scientific literature on PSS in machining showed studies that address the economic factor of PSS contract, machine maintenance and logistics and operational process improvement. Then, there is a lack of studies on the assessment of the PSS in machining under a sustainability factors perspective. Thus, the objective of this paper was to evaluate the economic, environmental, and social advantages of PSS cutting tools in machining. Consistent with this aim, the research focused on a case study in a diesel engine parts machining company. From an economic point of view, the results indicated a reduction in operating costs of US$ 1,206,080 per year, which allowed a nine-month return on investment. From an ecological perspective, the recovery of 602 kg of carbide per year mitigated the environmental impact of tungsten and cobalt exploration. These results are even more expressive because it deals with scarce metals. Furthermore, technological advances reduced the risk of injury to operators. This research increased knowledge on PSS in machining by presenting an original study that led the analysis under a sustainability perspective. Moreover, this study contributes to managers by showing the business model’s advantages that reduce operating costs and socio-environmental impacts, enhancing sustainable development.