A framework supporting retrofit adoption in the machine tools industry: a case study in an Italian company

Globalization determined significant variations in market mechanisms of manufacturing companies, including machinery and machine tools producers. Due to the environmental impact generated, these manufacturing companies aim to address sustainability, notwithstanding the hurdles and difficulties in adopting the related best practices. Considering that Product-Service Systems (PSS) are considered the most applied business models by manufacturing companies to address the sustainability scope, a case study has been conducted to explore the adoption of retrofit practices by an Ital-ian SME company operating in the machine tools industry. The objective is to develop a supporting framework that can demonstrate the sustainability of the PSS implemented by the company, even without the need for quantitative data about the environmental footprint of a machine tool. The model developed should support the decision-making process of manufacturing firms when deciding to adopt servitisation in their business strategy, with the final aim to improve the environmental sustainability of the products sold. Results show the economic and environmental impacts achieved, providing an understanding of the main drivers that push an Original Equipment Manufacturer (OEM) at offering a retrofit service. Moreover, it is shown that the developed PSS does not bring to the servitisation paradox in the firm. Finally, practical implications of Industry 4.0 technologies adoption as enablers of sustainability are provided.