Developing a Production Structure Model using Service-Dominant Logic – A hypergraph-based Modeling Approach

To make a fundamental shift towards value orientation, manufacturing companies strategically move to integrate services into their portfolio. While manufacturing firms rely on production information systems as the backbone of their operations, these systems are based on product structure models (e.g., bill of materials). This poses a problem because services do not adhere to the goods-dominant perspective of product structures. To solve this divide, this paper proposes an integrative mathematical model for both production systems and service systems. This model draws upon concepts of service-dominant logic and is based on hypergraph theory. To illustrate that the production structure model includes both product structures and process structures, we further demonstrate that the production structure model can be transformed into either. Therefore, our theoretical contribution lies in introducing a structural model for production systems that is compatible with structures of a service system model. For practice, this model enables the development of production information systems that can plan and control products, services and hybrids.