System Support Engineering: An Integrated Approach to Performance Based Contracting John Mo Manufacturing and Materials Engineering School of Aerospace, Mechanical and Manufacturing Engineering RMIT University Ph: 03 9925 6279 Em: [email protected]
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Syste
m S
up
port
Engin
ee
ring:
An
Inte
gra
ted A
ppro
ach t
o
Perf
orm
ance
Based C
ontr
acting
Jo
hn
Mo
Ma
nufa
ctu
ring
an
d M
ate
ria
ls E
ng
ine
eri
ng
Sch
oo
l o
f A
ero
spa
ce
, M
ech
an
ica
l an
d M
an
ufa
ctu
ring
En
gin
eeri
ng
RM
IT U
niv
ers
ity
Ph
: 0
3 9
92
5 6
27
9
Em
: jo
hn
.mo@
rmit.e
du
.au
RM
IT U
niv
ers
ity
Slid
e 2
Perf
orm
ance
Based C
ontr
acting
•A
ccord
ing to the D
epart
ment of th
e
Environm
ent, W
ate
r, H
erita
ge a
nd the A
rts
–U
tilis
ed
in
th
e e
ne
rgy in
du
str
y w
ith
gre
at
po
ten
tia
l fo
r w
ate
r, t
ran
sp
ort
, w
aste
, ch
em
ica
ls,
etc
.
–U
nd
er
PB
C,
a t
hir
d p
art
y c
ontr
acto
r ta
ke
s
resp
on
sib
ility
an
d r
isks fo
r th
e m
an
ag
em
en
t o
f a
sp
ecific
pa
rt o
f th
e b
usin
ess.
–E
ffic
ien
cy g
ain
s a
re s
ha
red
be
twe
en
th
e
co
ntr
acto
r a
nd
th
e o
wn
er
of
the
bu
sin
ess.
RM
IT U
niv
ers
ity
Slid
e 3
An E
xam
ple
of P
BC
•In
th
e e
ne
rgy in
du
str
y, a
PB
co
ntr
acto
r ca
n
ma
na
ge
su
pp
lies a
nd
op
era
tio
ns o
f a
n a
sse
t
with
an
aim
to
im
pro
ve
en
erg
y e
ffic
ien
cy.
•E
ne
rgy e
ffic
ien
cy im
pro
ve
me
nts
are
use
d t
o p
ay
the
co
ntr
acto
r a
nd
als
o a
re r
etu
rne
d t
o t
he
fir
m.
•P
BC
is p
art
icu
larl
y s
uita
ble
fo
r firm
s th
at
do
no
t
ha
ve
re
ad
y a
cce
ss t
o c
ap
ita
l, o
r th
e n
ece
ssa
ry
exp
ert
ise
to
im
ple
me
nt
cle
an
er
pro
du
ctio
n.
•C
ap
ita
l m
an
ag
em
en
t ca
n b
e p
art
of
PB
C.
RM
IT U
niv
ers
ity
Slid
e 4
Key F
eatu
res o
f P
BC
•Id
entify
ing a
nd s
ettin
g u
p o
f th
e r
ight K
ey
Perf
orm
ance Indic
ato
rs
•S
yste
m for
measure
ment and m
onitoring
of perf
orm
ance
•E
ffic
ient m
anagem
ent and a
dm
inis
tration
of th
e c
ontr
act, w
hils
t ensuring c
ontinuin
g
impro
vem
ent
•D
em
onstr
ating v
alu
e for
money
•M
ulti-dis
cip
linary
colla
bora
tion
RM
IT U
niv
ers
ity
Slid
e 5
PB
Cfo
r
Assets
RM
IT U
niv
ers
ity
Slid
e 6
Cap
ab
ility
Degra
dation
Thro
ugh L
ife
Tim
e
Cap
ab
ilit
y
Op
era
tio
nal
cap
ab
ilit
y
of
majo
r syste
ms
typ
icall
y d
ecre
ase
s
ove
r ti
me
RM
IT U
niv
ers
ity
Slid
e 7
Syste
m S
up
port
Engin
ee
ring:
Imp
rovin
g C
apabili
ty T
hro
ugh L
ife
Cap
ab
ilit
y
Tim
e
Cap
ab
ilit
y m
ain
tain
ed
or
incre
asin
g o
ver
tim
e
Mid
-lif
e
up
gra
de
Wh
ole
of
syste
m
serv
ices a
nd
su
pp
ort
RM
IT U
niv
ers
ity
Slid
e 8
Syste
m S
upport
Engin
eering
•In
itia
ted
by B
AE
Syste
ms in
pa
rtn
ers
hip
with
U
niv
ers
ity o
f C
am
bri
dg
e in
20
02
•T
he
fo
cu
s is o
n d
esig
nin
g c
om
ple
te s
up
po
rt
so
lutio
ns fo
r co
mp
lex s
yste
ms t
ha
t co
uld
in
vo
lve
co
ntr
acto
rs o
wn
ing
, o
pe
ratin
g a
nd
su
pp
ort
ing
th
ose
asse
ts
•A
n in
form
al d
efin
itio
n:
–T
he inte
gra
tion o
f in
du
str
y d
om
ain
know
led
ge a
nd
logis
tic e
ng
ineeri
ng,
supp
ly c
ha
in m
anagem
ent
and
main
ten
an
ce e
ng
inee
ring c
om
pe
tencie
s,
to c
reate
and d
eliv
er
support
solu
tions f
or
in-s
erv
ice a
ssets
RM
IT U
niv
ers
ity
Slid
e 9
Share
of
tota
l gro
ss v
alu
e
add
ed b
y s
ecto
r
OE
CD
Scie
nce
, T
ech
no
log
y a
nd
In
du
str
y S
co
reb
oa
rd 2
00
5,
To
wa
rds a
Kn
ow
led
ge
ba
sed
Eco
no
my,
pp
.16
8-1
69
RM
IT U
niv
ers
ity
Slid
e 1
0
Co
mp
lem
en
tary
Co
nce
pt in
IT
Se
cto
r
•In
itia
ted
by I
BM
in
20
02
•R
esp
on
de
d t
o t
he
evo
lvin
g b
usin
ess m
od
el fo
r th
e I
T in
du
str
y, m
ovin
g f
rom
en
tire
ly p
rod
uct
to
pro
du
ct
+ s
erv
ice
s
•D
efin
itio
n:
–A
serv
ice s
yste
m is a
dynam
ic,
co-c
reatin
g
config
ura
tion o
f re
sourc
es,
inclu
din
g,
peop
le,
techno
logy o
rganis
ations a
nd s
hare
d info
rmation
(lan
gu
ag
e, la
ws,
measure
s a
nd m
eth
ods),
all
conn
ecte
d b
y v
alu
e p
ropositio
ns, w
ith t
he a
im to
consis
tently a
nd p
rofita
bly
meet th
e c
usto
mer’s n
ee
ds
bett
er
than c
om
petin
g a
ltern
ative
s.
RM
IT U
niv
ers
ity
Slid
e 1
1
Serv
ice S
cie
nce
RM
IT U
niv
ers
ity
Slid
e 1
212
Th
e N
atu
re o
f S
erv
ices
•S
erv
ice
s a
re c
o-p
rod
uce
d w
ith
co
nsum
ers
•N
o o
ne
PB
co
ntr
act
is t
he
sam
e
•T
o a
ch
ieve
gro
wth
th
rou
gh
se
rvic
es, w
e n
ee
d
to:
–C
usto
miz
e a
s a
sourc
e o
f valu
e c
reation
–T
reat
consum
ers
as c
o-in
novato
rs–
Re
ly o
n p
rofe
ssio
na
l kno
wle
dge f
or
judgm
ent-
base
d w
ork
•H
ave
a lo
t o
f risks
•P
rofe
ssio
na
l a
nd
te
ch
nic
al skill
s a
re c
en
tra
l
•N
ee
d t
ho
rou
gh
an
aly
sis
of th
e f
utu
re p
rio
r to
co
mm
itm
en
t
RM
IT U
niv
ers
ity
Slid
e 1
3
Glo
balis
ation
RM
IT U
niv
ers
ity
Slid
e 1
4
Colla
bora
tive S
erv
ice F
ulfill
ment
Cu
sto
me
r
Su
pp
lier
Se
rvic
e c
om
pa
ny
Syste
mp
rod
uce
r
On
Sit
e S
up
po
rt
Re
pa
ir
Op
tim
iza
tio
n
Ge
ne
ral
Su
pp
ort
Sp
are
Pa
rt S
up
ply
Re
mo
te S
up
po
rt
Re
mo
te T
rain
ing
Re
mo
te S
up
po
rt
Re
mo
te C
on
su
ltin
g
Re
mo
te S
up
po
rt
Re
mo
te D
iag
no
stic
RM
IT U
niv
ers
ity
Slid
e 1
515
Pro
ducts
vs
Serv
ices
Pro
du
cts
•T
an
gib
le a
rtifa
cts
•S
tora
ble
•P
rod
uctio
n p
rece
de
s
co
nsu
mp
tio
n
•S
tan
da
rdiz
ed
pro
ce
sse
s
•H
igh
ca
pita
l in
ten
sity
thro
ug
h a
uto
ma
tio
n
Se
rvic
es
•In
tan
gib
le
•N
on
-sto
rab
le
•C
on
su
mp
tio
n
pro
xim
ate
to
po
int
of
pro
du
ctio
n
•C
usto
miz
atio
n
•L
ab
ou
r-in
ten
siv
e/
kn
ow
led
ge
wo
rk
RM
IT U
niv
ers
ity
Slid
e 1
616
‘Pro
ductisin
g’S
erv
ices
•S
erv
ice
s a
re in
he
ren
tly c
om
ple
x s
yste
ms w
ith
no
ise
(sig
nific
an
t va
ria
tio
ns b
etw
ee
n c
ase
s)
•T
o im
pro
ve
se
rvic
es e
ffic
ien
cy,
we
ne
ed
to
:
–S
tandard
ize a
nd inte
gra
te p
rocesses
–A
do
pt
labo
ur-
savin
g techn
olo
gy
–M
ix-a
nd-m
atc
h r
epeata
ble
serv
ices a
nd s
olu
tions
•M
ake
se
rvic
e d
eliv
ery
mo
re lik
e m
an
ufa
ctu
rin
g
pro
ce
ss, so
th
at
hu
ma
n s
kill
ne
ed
s a
re
min
imis
ed
RM
IT U
niv
ers
ity
Slid
e 1
7Specific
Specific
Specific
Specific
Particular
Particular
Particular
Particular
Syste
m S
upport
Arc
hitectu
re
Generic
Generic
Generic
Generic
Defe
nce
syste
ms
Specific
defe
nce
support
solu
tio
ns
Energ
y
industr
y
Generic
model
Specific
custo
mer
serv
ices
Auto
motive
industr
y
RM
IT U
niv
ers
ity
Slid
e 1
8
Industr
y –
Researc
h inte
gra
ted e
ffort
Fo
llow
th
rou
gh
un
til n
ew
pro
ducts
an
d s
erv
ices a
re d
eliv
ere
d,
cre
ate
fe
ed
back to
R&
D, R
esea
rch
, E
duca
tio
n
Res
earc
hR
&D
Indu
stry
app
lica
tion
SS
E T
heo
ryA
ppli
ed t
heo
ry
Educa
tion/t
rain
ing
Blu
epri
nts
, to
ols
appli
cati
on e
xper
ience
New
pro
ble
ms
Dep
loy
ed
•B
usi
nes
s M
odel
blu
epri
nts
(poli
cies
,
contr
acts
)
•S
ervic
e M
odule
s
•IC
T s
upport
•S
yst
em d
esig
n t
ools
•M
anag
emen
t
syst
ems
& o
rgan
isat
ion
•L
ogis
tics
•N
etw
ork
s &
ser
vic
e
ente
rpri
ses
RM
IT U
niv
ers
ity
Slid
e 1
9
Sa
les a
nd
Se
rvic
es o
f C
om
ple
x S
yste
ms
•D
ista
nt
train
ing
•O
pera
tio
n
su
pp
ort
•R
em
ote
co
ntr
ol
•D
ecis
ion
su
pp
ort
•S
imu
lati
on
•C
lien
t &
su
pp
lier
invo
lve
men
t
•M
ark
et
& c
ap
ab
ilit
y
info
rmati
on
Pro
du
ct/
pla
nt
idea,
Pro
du
ct/
pla
nt
idea,
perf
orm
an
ce,
co
st,
p
erf
orm
an
ce,
co
st,
tim
e e
tc.
tim
e e
tc.
Feed
back
Inc
ep
tio
nE
ng
ine
eri
ng
En
gin
ee
rin
gP
rod
uc
tio
nP
rod
uc
tio
nO
pe
rati
on
I n
f o
r m
a t
I o
n
f o
r
l I
f e
c
y c
l e
s
u p
p o
r t
I n
f o
r m
a t
I o
n
f o
r
l I
f e
c
y c
l e
s
u p
p o
r t
RM
IT U
niv
ers
ity
Slid
e 2
0
Info
rmation O
wners
hip
and S
haring Issues
RM
IT U
niv
ers
ity
Slid
e 2
1
Se
rvic
e F
ulf
illm
en
tS
erv
ice
De
ve
lop
me
nt
an
d D
es
ign
Serv
ice
Cre
ation
Identification
and
assessm
ent
of new
serv
ices
Custo
mer
Require-
ments
Desig
n
Imple
men-
tation
Serv
ice E
ngin
eering
Custo
mer
Require-
ments
Desig
n
Serv
ice
Fulfill
ment
Supers
ede
Serv
ice
Opera
tions-
Managem
ent
Serv
ice
Fulfill
ment
Obje
ctive 2
-
Develo
pm
ent
of
ne
w c
olla
bora
tive
serv
ices a
nd e
nhancem
ent
of
exis
ting s
erv
ices.
Obje
ctive 1
-
Develo
pm
ent
of
an o
rganiz
ational
model fo
r colla
bora
tive
serv
ice f
ulfill
ment.
Syste
m S
upport
Solu
tion
You w
ould
n’t d
esig
n a
ne
w
pro
duct
witho
ut
a p
roduct
desig
ner.
So w
hy d
o o
rganiz
ations
desig
n n
ew
serv
ice
s w
ithout
involv
ing s
erv
ice d
esig
ne
rs?
RM
IT U
niv
ers
ity
Slid
e 2
3
Kn
ow
led
ge
Exp
ecta
tio
n o
f a
Syste
m S
up
po
rt
So
lutio
n E
ng
ine
er
(Arc
hite
ct)
•C
usto
mer
is p
art
of
the s
olu
tion
–B
oth
su
pp
ort
ne
ed
s a
nd
actu
al p
art
icip
atio
n
•D
ata
mana
ge
ment
–D
esig
n a
uth
ori
ty,
up
gra
de
s,
ve
rsio
n c
on
tro
l, c
on
fig
ura
tio
n m
an
ag
em
en
t
•S
afe
ty a
nd e
nvironm
ent
–O
H&
S,
HA
CC
P,
lon
g t
erm
su
sta
ina
bili
ty,
en
vir
on
me
nta
l im
pa
ct
•H
um
an f
acto
rs–
Org
an
isa
tio
nal ch
an
ge
s,
se
rvic
e c
on
ce
pts
, a
ttitu
de
s a
nd
ap
pro
ach
es,
tra
inin
g
•W
ork
flo
w a
nd p
rocesses
–In
tra
an
d in
ter-
en
terp
rise
s
•R
isk m
ana
gem
ent,
relia
bili
ty a
ssessm
ent
–M
ust
be
rig
ht
firs
t tim
e a
nd
co
ntin
ue
to
be
rig
ht
thro
ug
ho
ut
the
life
of
PB
C
•W
hole
of
life c
osting
•G
overn
ance o
f outp
uts
–W
ho
do
es (
an
d b
e r
esp
on
sib
le f
or)
wh
at
in s
up
po
rt a
nd
se
rvic
es
•T
ools
and infr
astr
uctu
re–
Sp
ecia
lly d
eve
lop
ed
ha
rdw
are
, so
ftw
are
, “p
rod
ucts
”, “
syste
ms”
•S
yste
m a
nd s
erv
ice t
hin
kin
g–
Bo
th t
he
syste
m b
ein
g s
up
po
rte
d a
nd
th
e g
rea
ter
syste
m a
rou
nd
it
Maste
r of E
ngin
eering
(Syste
m S
upport
Engin
eering)
with
in
term
ed
iate
op
tio
ns
Gra
du
ate
Ce
rtific
ate
an
d G
rad
ua
te D
iplo
ma
Desig
ned a
nd d
evelo
ped in
colla
bora
tion w
ith B
AE
Syste
ms,
Saab S
yste
ms, A
SC
and
Univ
ers
ity o
f S
outh
Austr
alia
RM
IT U
niv
ers
ity
Slid
e 2
5
Pro
gra
m D
esig
n•
A c
olla
bo
rative
ap
pro
ach
invo
lvin
g a
ca
dem
ic e
du
ca
tors
, re
se
arc
hers
a
s w
ell
as in
du
str
y e
xp
ert
s fro
m A
ustr
alia
.•
An
in
du
str
y led
le
arn
ing
envir
on
men
t th
at d
raw
s h
ea
vily
on
ca
se
stu
die
s fro
m th
e lo
ca
l in
du
str
y p
art
ners
an
d the
ir o
vers
ea
s o
ffic
es.
•A
n a
ctio
n o
rien
ted
le
arn
ing e
nvir
onm
en
t w
here
pro
ject w
ork
will
d
raw
dire
ctly fro
m the
issue
s a
nd
pro
ble
ms y
ou
are
facin
g in
yo
ur
wo
rkp
lace
.•
A p
art
-wh
ole
-pa
rt a
pp
roach
wh
ere
you
will
be
in
tro
duce
d to
all
the
m
ajo
r e
lem
ents
in
the
syste
m s
up
port
busin
ess m
ode
l in
th
e first
co
urs
e.
•A
cro
ss-d
iscip
lina
ry o
rie
nta
tio
n to
syste
m s
up
port
busin
ess
so
lutio
ns.
•A
fle
xib
le d
eliv
ery
mod
e d
esig
ne
d to
acco
mm
od
ate
mo
bile
an
d b
usy
pro
fessio
na
ls. T
he
pro
gra
m w
ill b
e o
ffere
d a
s a
part
-tim
e p
rogra
m
with
a m
ixe
d m
od
e d
eliv
ery
.•
Th
e a
sse
ssm
en
t w
ill b
e a
bo
ut yo
ur
ab
ility
to
de
fin
e a
nd
so
lve
me
ssy
an
d ill-
de
fin
ed
pro
ble
ms.
RM
IT U
niv
ers
ity
Slid
e 2
6
Pro
gra
m S
tructu
re
Su
pp
ort
En
vir
on
men
t
Su
pp
ly C
hain
Man
ag
em
en
t
Lo
gis
tics
En
gin
eeri
ng
Syste
m
En
gin
eeri
ng
P
rin
cip
les
Main
ten
an
ce
an
d
Lo
gis
tics
Inte
gra
tio
n
Serv
ice a
nd
Syste
m
Op
era
tio
ns
Su
pp
ort
So
luti
on
A
rch
itectu
re
En
gin
eeri
ng
En
du
rin
g
Syste
ms
Syste
m S
up
po
rt P
roje
ct
Co
mm
on
case
s
Gra
du
ate
Cert
ific
ate
Gra
du
ate
Dip
lom
a
ME
ng
(SS
E)
Ind
ivid
ua
l c
as
es
Ind
ivid
ua
l c
as
es
Ind
ivid
ua
l c
as
es
Ind
ivid
ua
l c
as
es
RM
IT U
niv
ers
ity
Slid
e 2
7
Key C
hara
cte
ristics
•D
esig
ne
d to e
ducate
eng
ine
ers
in t
he n
ew
“perf
orm
ance
base
d c
ontr
acting”
bu
sin
ess e
nvir
onm
ent
with
incre
asin
gly
com
ple
x s
yste
ms
•A
malg
am
atin
g 4
im
port
ant th
inkin
g s
tyle
s:
�S
erv
ice
th
inkin
g –
custo
mer
ori
en
ted
�S
yste
m th
inkin
g –
ho
listic a
nd
fu
lly in
teg
rate
d o
utc
om
es
�B
usin
ess th
inkin
g –
mo
de
llin
g c
om
pe
tencie
s a
nd
va
lue
for
mo
ne
y
�S
tra
teg
ic th
inkin
g –
en
terp
rise
and
in
fra
str
uctu
re d
esig
ns
en
ab
ling
re
liab
le s
yste
m s
up
port
so
lutio
ns
•T
he g
radu
ate
s w
ill b
e a
ble
to d
esig
n s
yste
m s
upport
solu
tio
ns t
akin
g into
account
all
eng
ineeri
ng,
busin
ess,
logis
tics,
serv
ices r
eq
uirem
ents
RM
IT U
niv
ers
ity
Slid
e 2
8
Entr
y R
equirem
ents
•D
irect
entr
y to the M
aste
r of E
ngin
eeri
ng p
rog
ram
norm
ally
re
qu
ires a
ba
che
lor
degre
e o
r equ
ivale
nt
–N
o e
xp
eri
ence
re
qu
ire
ment fo
r e
ng
ine
eri
ng
deg
ree
ho
lde
rs–
3 y
ears
exp
erie
nce
fo
r o
ther
de
gre
e h
old
ers
•A
pp
lication
s w
ithout
a b
ach
elo
r degre
e b
ut w
ith s
uffic
ient
industr
y e
xperi
ence w
ill b
e c
onsid
ere
d e
ntr
y to G
raduate
C
ert
ific
ate
or
Gra
duate
Dip
lom
a–
En
try to
Gra
d C
ert
based
pu
rely
on
exp
eri
ence
–E
ntr
y to
Gra
d D
ip b
ase
d o
n G
rad
Cert
or
eq
uiv
ale
nt plu
s
exp
eri
ence
–A
dva
ncem
en
t to
hig
her
leve
ls (
GC
to
GD
, G
Dto
Maste
r) w
ill b
e
su
bje
ct to
sa
tisfa
cto
ry p
rog
ress a
t lo
we
r le
ve
ls
•R
ecog
nitio
n o
f prior
learn
ing
–P
rove
n le
arn
ing
and
pra
ctisin
g e
xp
eri
ence
in
cert
ain
su
bje
ct
ma
tter
ma
y a
pp
ly fo
r e
xe
mp
tio
n o
f th
at su
bje
ct (c
ours
e)
For
more
info
rmation c
onta
ct
Pro
f. J
ohn
Mo
Dis
cip
line
Hea
d, M
an
ufa
ctu
rin
g a
nd
Ma
teri
als
En
gin
ee
rin
gS
ch
oo
l o
f A
ero
spa
ce
, M
ech
an
ica
l an
d M
an
ufa
ctu
ring
E
ng
ine
eri
ng
RM
IT U
niv
ers
ity
Ph
: 0
3 9
92
5 6
27
9E
m: jo
hn
.mo@
rmit.e
du
.au
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