Finnish metal and engineering industry is on the verge of a paradigm shift towards a service business approach, which means selling products bundled with related services. A more extreme approach of this is a manufacturer selling services and taking responsi-bility of the customer’s entire process, including such things as condition monitoring, maintenance and spare parts. These new ways of thinking require new tools and new ways of using existing tools.Simulation has been a powerful and versatile tool in the realm of mechanical engi-neering for a long time. The advances in computer technology are making it ever more effective and useful. There are many existing simulation applications and new ones are being developed all the time.This thesis examines the uses for simulation as a tool for the industrial services. That means mating these two subjects, giving the industrial services more intellect through the use of simulation and thereby making them ‘smart’ services.The thesis is divided into two parts. First, in the theory part current uses of simula-tion are examined and examples of present day simulation applications presented. Then a simulation model of a lifting device based on a case company’s product is built and used to demonstrate possible uses for simulation as a tool for smart services.The research shows that it is possible to use simulation as a tool in several service potential areas with the simulation applications supporting each other. A single model built to be a general representation of the object of modeling, for example by using the method of physical modeling, can be used in many different ways and as a tool for sev-eral services. The use of simulation models would be enhanced by seeing them as a part of a product’s life cycle and by planning their building and use accordingly.
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