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Service Productivity


Situation:

A great supplier of hardware and software in Brazil counted in its Customer Services area with 240 professionals whose efficiency (productive hours/paid hours) was less than 70%.

Business Impact:

Due to high cost of this operation, maintenance contracts prices weren’t competitive and Customers renewals were being reduced year after year. Increasingly Customer dissatisfaction with services made each time more difficult to reach established goals for sales.

Root cause:

Rework level to attend near 7,000 service calls monthly in Brazil was very high (30%) with no apparent reason.

Adopted solution:

A new model of Services report was implemented, allowing laboratory and field technician and engineers to define and report with exactness cause of rework in each call. A system was developed to register these Service reports data and an analytical tool created allowing rework to be analyzed by Customer, Site, Geography, Technician, Product, Date and Cause. A metric for Lab and field rework was implemented being monthly benchmarked against international standards. Through rework data analysis it was possible to identify its root cause: low quality of diagnosis made by field and laboratories technicians and engineers. Based on information provided by this new system several initiatives to improve quality of diagnosis were adopted such as buying of more efficient diagnostic software, implementation of regional test centers, acquisition of new testers and diagnostic tools, modification of training programs to prioritize teaching of preventive actions, modification of performance evaluation system to reward technicians and engineers with low rework, etc.

Results and benefits:

Through rework reduction an increase of 10% in Services efficiency was gotten. This allowed supporting an increase of 20% in the following year sales without any contracting in Services department with customer satisfaction increasing.  Due to the reduction in costs, services contracts prices could be reduced becoming more competitive in the market. The investment of US$1M made in the project reached its return before one year. Sales growth goals were successively reached. High quality in Customer Services allowed the company to conquer a participation of 60% in Brazilian servers market.

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