Presenter: Ron Babich, CEO

Presenter

Ron BabichCEO & Founder of

• Defined the market space and category creation for Total Cost Management and Project Cost Management. 

• Public speaker, author, and cited authority with Aberdeen, IDC, Forrester, ENR, Mining Engineering, CMP Media, and Gartner. 

• EVM leader in capital projects, maintenance, and enterprise driven Field Service management.

Agenda

Intro: Current State of Field Service

1. Improving FTF (First Time Fix)2. Average Lifetime Revenue for Customers3. Predicting over Guessing on Resources4. Applying EVM (Earned Value Mgmt.) to Field Service5. Proactive Maintenance6. Cross Industry Benchmarking7. Starting at the End

Current State of Field ServiceWhat We Know• Best in Class Service Operations achieve 35% profit margin*• 80% benchmark in FTF can realize a %6.5 increase in revenue*• 52% of service organizations reported competitive environment as their

major business challenge.*• 9 out of 10 Best in Class service operations have a centralized database for

service history and data.*• More than half of all service organizations have executive mandate to

improve service efficiency.*

Source: Aberdeen Group, April 2016

1. First Time Fix Rate

“The number one customer complaint regarding a service call is failure to resolve the issue.”Source: Aberdeen Group, First-Time Fix, a Metric that Drives Success

17% of field service firms don’t track or aren’t aware of their FTF

>80% FTF can generate 6.5% increase in revenue over <72% FTF

Source: Aberdeen Group, April 2016

Truck Rolls cost $150-$1000 per roll depending on industry

First Time Fix Rate

Source: Aberdeen Group, April 2016

Opportunity Cost-the loss of potential gain from other alternatives when one alternative is chosen.

What is the Actual Cost of Failed Service Calls?

100 Failed Service Calls Per Month X $200Cost Per Truck Roll = $20,000 in lost Revenue monthly

First Time Fix Rate

Source: Aberdeen Group, April 2016

How Do We Fix It?

Data, Data, Data

First Time Fix Rate

How Do We Fix It?

Data WarehouseCentralized database for service, resource management and inventory history

Predictive ResourcePredict resource needs on historical demand vs. projected growth.

Better Task InformationLeverage a customer portal or CSR to gain better data on required tasks

Mobile InventoryTrack warehouse and inventory in the field, arrive on site with all required materials. Unavailability of parts is the top reason for a failed service visit. Source: Aberdeen Group, First-Time Fix, a Metric that Drives Success

2. Average Customer Lifetime Revenue

“Men are rich only as they give. He who gives great service gets great rewards.”

--Elbert Hubbard, Artist and Writer

What is the Average Lifetime of a Customer?6 months, 1 year, 10 years?

At what rate and for how much do we upsell existing customers?

What is our churn? How often do customers opt out or recurring maintenance

Average Customer Lifetime Revenue

What is Being Leveraged to Retain Customers?

Automated Maintenance RemindersEmpower customers to schedule their own maintenance based on recurring prompts.

Centralized Customer DataBeing able to access a customer’s entire lifecycle from one resource increases FTF based on historical job info and improves customer experience by relieving duplication of effort for customer.

Stop SellingEmpower the mobile workforce to become trusted advisors for recommended services.

3. Predicting Over Guessing on Resources

“As data piles up, we have ourselves a genuine gold rush. But data isn’t the gold. I repeat, data in its raw form is boring crud. The gold is what’s discovered therein.” --Eric Siegel, Author of Predictive Analytics

Average Fix Time at Task Level

Average Volume over Date Range

Planned Time vs. Actual Time

Average Material Usage per Task

Predicting Over Guessing on Resources

Average Fix Time Example

Average Resolution TimeAverage aggregated from historical job data in data warehouse

Weighted DemandHistorical demand over time interval for given task x trending growth or diminishment rate

Man Hours for DemandAverage Resolution Time x Weighted Demand

Predicted Resources for DemandMaximize efficiency by obtaining optimal resources for total demand. Minimizing downtime and costs.

4. Apply EVM to Field Service

For years industries with tight margins such as Capitol Projects have employed Earned Value Management as a way to control costs and predict resources towards the completion of a stated goal.

Field Service has been late in adopting these efficient management techniques and offers a competitive advantage to organizations that employ relevant principles from Earned Value

“You cannot manage what you cannot measure…and what gets measured gets done.”

— Bill Hewlett, Hewlett Packard.

Apply EVM to Field Service

Source: Aberdeen Group, April 2016

How can EVM inform Field Service?

Time: Planned vs. ActualHow are we measuring how much time we plan to complete a task vs. how much time is taken to complete that task in the field? What does this tell us about our workforce efficiency?

Materials: Projected vs. ActualHow does our planned consumption of materials compare to our actual consumption in the field. How does this inform our inventory management and mobile inventory?

Cost: Budgeted vs. ActualDo we view field service tasks as projects with budgets and benchmarks attached to them, or are they disparate tasks that don’t roll up to a larger picture of our business process?

5. Predictive Maintenance

““An ounce of action is worth a ton of theory.”-- Raplh Waldo Emerson

Company Assets

Customer Routine Maintenance

Predictive Maintenance

Company Assets

Widely accepted common sense asserts keeping assets under warranty lowers costs and decreases downtime. The issue in large organizations becomes tracking maintenance timelines for hundreds and sometimes thousands of pieces of equipment.

A study conducted by the U.S. Department of Energy, found that predictive maintenance results in a 35% to 45% reduction in downtime and a 20% to 25% increase in production along with an 8-12% cost savings vs. preventative maintenance alone. Source: DOE O&M Best Practices Guide, Release 3.0

Predictive Maintenance

Customer EmpowermentEmpower customers that fall out of the sales cycle on recurring maintenance plans to request their own maintenance through digital reminders and provide the mechanism for them to enter a work order on their own.

“Customer empowerment is becoming a way to get the customer involved in their own service experience. Nearly half of the Best-in-Class provide access to self service portals to allow for self-scheduling and to trigger a service call.” Source: Aberdeen Group, Strengthen the Team and Bond with Your Customers

Source: Aberdeen Group, Strengthen the Team and Bond with Your Customers

6. Cross Industry Benchmarking

“Measure what is measurable and make measurable what is not so.” -- Galileo

Benchmarking against competitors has long been a standard in field service. But what KPIs do other industries offer that are relevant to field service?

Cross Industry Benchmarking

WIP or (Work in Process) provides another valuable benchmark for Field Service. WIP quantifies items currently in production but not yet finished, as well as the materials and labor used against them. As transparency continues to be a key factor for field service operations to improve efficiency, best in class organizations are moving towards monitoring tasks in real time based on percentage of work completed, and accounting for the materials and labor used against these tasks for more accurate inventory and workforce forecasting.

Applying Manufacturing Precision to Field Service

Manufacturing measures performance based on productivity. Yield and Throughput measures how much product is delivered over a period of time. However, the more telling Metric is often OEE (Overall Equipment Effectiveness). This multidimensional metric is a product of Availability x Performance x Quality.

Applying this perspective to field service emphasizes efficiency over simple completion of tasks. How often was an asset available? How long did it take to complete a task? Was it completed correctly?

7. Starting at the End

Food for Thought

1. What is our FTF? How do we track it? What our we doing to improve? How much does a failed service order cost us?

2. What is the average lifetime revenue of our customers? How do we retain and upsell?

3. Do we predict resources? Or make educated guesses?4. Are we applying EVM principles to our field service, how

are we controlling costs and inventory?5. Do we practice predictive maintenance for our assets

and customers?6. Do we benchmark against not only our competitors, but

best practices from other industries with high efficiency?7. Do we have a clear understanding of our KPIs and how

to track them?

Follow Up

• Attendees will be receiving an exit survey to help us continue to improve our delivery of best practices information

• Slides from the presentation will be emailed to attendees, along with a SlideShare link to the presentation, and a recording of the webinar.

• To learn more about how MobileLogix has implemented these strategies in field service visit our website: www.mobilelogix.com

• To Contact Ron Directly: Ron@mobilelogix.com