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Manufacturing small- and medium-sized enterprises (SMEs) play a crucial role in the economic development and resource consumption of most regions. Conceptually, a product-service system (PSS) can be an effective way to improve the sustainability of manufacturing SMEs. However, the construction of PSSs requires enterprises to integrate a large number of product and service resources. Moreover, current PSS design methods mostly construct a new set of highly service-oriented PSS solutions based on customer needs while seldom considering the combination of acceptability and sustainability for manufacturing SMEs at the initial stage of design, which may lead to the difficulties in applying PSS solutions beyond enterprise integration capacity or result in the waste of existing product resources. Instead of constructing a new PSS solution, this paper proposes the treatment of existing product modules as the original system. The PSS solution is iteratively constructed with the upgrade of the original system in a gradual way, which is driven by systematic performance (this process can be suspended and repeated). Phased iterative design solutions can be applied by manufacturing SMEs according to their development needs. The analytic hierarchy process (AHP), Lean Design-for-X (LDfX), design structure matrix (DSM), and Pearson correlation coefficient (PCC) are combined in an iterative design process from customer needs and system performances to PSS solutions. The feasibility of the proposed method is verified through the iterative design case from electric pallet trucks to warehousing systems. It is proved that this method is more sustainable and easier to be accepted by manufacturing SMEs than existing PSS design methods through in-depth interviews with entrepreneurs.

An Iterative Design Method from Products to Product Service Systems—Combining Acceptability and Sustainability for Manufacturing SMEs