Transforming a New-Build Factory into a Service Operations Workshop: A PDCA Approach to Change Management in Industrial Servitization

This study investigates the transformation of a large industrial plant into a service operations workshop through the Plan-Do-Check-Act (PDCA) cycle, emphasizing continuous improvement and strategic adaptability. This transformation was initiated due to financial challenges and the need to capitalize on existing service portfolios. It marks a strategic change from manufacturing to service-oriented operations, with limited guidance for managers overseeing this change. Employing an action-based research methodology guided by the PDCA framework, the study addresses the complexities of organizational learning, culture, and mindset shifts essential for transitioning to a service workshop. It describes the journey of strategic adaptation, from planning and executing service-centric initiatives to evaluating and refining processes based on feedback and market demands. The case highlights the importance of stakeholder engagement, developing a service-oriented workforce, and aligning operational strategies with long-term business goals. By validating the PDCA cycle as a flexible tool for change management, the study contributes to the literature on servitization strategies and managerial roadmaps, offering insights into achieving sustainable growth and innovation in service operations. The findings advocate for the PDCA cycle’s utility in fostering a culture of continuous adaptation, which is crucial for supporting the ongoing adaptations needed to support servitization.