Beginning with a historical analysis of the application of value chain models in production systems, this paper highlights the issue of efficiency in conventional design and providing products and services and proposes a multifunctional approach to minimise the wasted value within the supply chain. Service/Product Engineering (SPE), a new engineering discipline, is suggested as a potential approach to design and develop low-impact/lean systems of value. SPE proposes methods and tools that are capable of meeting the requirements of various primary receivers, as well as considering the environmental burdens of adopted solutions. A case study was carried out for the accommodation service provided by an Italian hotel company. One concrete redesign option is briefly presented which may simultaneously meet the requirements of guests and the environment. The preliminary results of the study suggest the applicability of the service modelling method for the actual service and its improvement. Copyright © 2008 Inderscience Enterprises Ltd.