Automotive part and accessory manufacturers (APAMs) at the lower tiers of the automotive vertical have been following leading vehicle assemblers in adopting RFID (Radio Frequency Identification) and ubiquitous computing technologies, aiming to alleviate their advanced manufacturing systems. RFID-enabled real-time traceability and visibility facilitate the implementation of advanced strategies such as Just-In-Time (JIT) lean / responsive manufacturing and mass customization (MC). Being typically small and medium sized, however, APAMs are faced up with business and technical challenges which are summarized by the so-called "three high problems". They are high cost, high risk and high level of requirement for technical skills. Based on a series of industrial field studies, this paper establishes an innovative service-oriented business model for overcoming the "three high Problems" based on the concept of Product Service Systems (PSS) and RFID gateway technology.
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