The DEMU-LS EUROPE project, which is based on the results of a project under the Community Initiative ADAPT (Lean Organisation - 1997/1999), is designed to create European training modules focusing on the service dimension (satisfaction of client needs) for the benefit of the staff of industrial SMEs. To this end a diagnostic game will be designed to help industrial SMEs integrate and organise 'services' in the production process and to create a computer learning aid intended for instructors and beneficiaries in the company.The main product will be a European Service Kit on industrial competitiveness in five languages (DE, EN, FR, IT, PT) containing training modules on the services dimension; a diagnostic game highlighting the process and including questions on services; a computer learning aid describing the process, the tools and the effects. Industrial SMEs will benefit from the responses to the strategic challenges posed by the development of services; instructors and training organisations will benefit from new methods and pedagogic tools; students and aspiring young business people will benefit from a new approach to this problem.The project results will be disseminated via the networks of the partners involved.