Competitive markets and complex business-to-business environments compel manufacturers to provide innovative service offerings along with their products. This necessitates effective methodologires for developing and implementing sucessful new business strategies. This article presents an approach to model tactical and operational decisions to support the design and development of Product-Service Systems (PSSs). A combination of Quality Function Deployment and Design-to-Cost techniques is proposed as the first step of a PSS design framework that aids design engineers to determine the relations among value to customer, functional requirements, design variables and cost. The objective is to identify PSS design alternatives that deliver value to customer while respecting cost targets. An aerospace software case study is conducted to demonstrate the proposed approach.

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