Circular Transition Methodology to Support Machinery Life Cycle Extension in Manufacturing Companies

Within a market in constant evolution, manufacturing companies are facing several challenges that are putting their businesses at risk. The convergence of technological advancements and a growing emphasis on sustainable manufacturing processes are significantly turning manufacturers' production standards upside down. In the context of the management of the machinery life cycle, transitioning to a circular approach becomes imperative to maximize the use of resources while reducing environmental impacts. A good compromise to encompass both a digital and a circular transition in the machinery sector can lie in the adoption of product life extension strategies. Due to the complexity of the machinery ecosystem value chain and the need for knowledge and tools enabling circular economy at each level of the supply chain, a tailor-made methodology is proposed, aimed at supporting companies looking to extend the machinery life cycle, emphasizing the importance of integrating digital technologies for sustainable and profitable change. The research methodology followed considered first an analysis of the traditional management model of machinery manufacturing ecosystem. This allowed to identify associated challenges linked to the modification of the machinery value chain when digitalization is integrated to reach sustainable and circular goals. An transition methodology (named in the article as Circular Transition Management - CTM - methodology) is introduced, that integrates digital technologies to support manufacturing companies in this circular transition. The methodology enables the matchmaking of digitalization requirements to the different stakeholders of the value chain, thus allowing a company to adopt a circular strategy for its business. Three business strategies are explored in order to extend the machinery life cycle, from integrating digital solutions within new equipment or providing add-on services, towards servitizing new machines. The proposed CTM methodology has been applied in an industrial case discussed in the article.