The Field Service Division of DMI

Diversified Manufacturing, Inc. (DMI) was a multibillion dollar company headquartered in Denver, Colorado, that manufactured and distributed a wide variety of electronic, photographic, and reprographic equipment used in many engineering and medical system applications. Customers, bought machines on the basis of price, features, quality, and service. However, field service was becoming more important in new machine purchase decisions. According to many DMI Field Service Division managers, field service was not viewed as a critical part of DMIs corporate strategy.

DMIs National Service Center, received about 3500 calls per day. About 2000 of these were related to emergency maintenance, either initial calls or complaints about late service. Many of the calls were from customers wanting to know when their technician would arrive.

Most of DMIs management were engineers and were, therefore, very open to technological solutions to management problems. Serious consideration was being given to three technologies: an expert system for problem diagnosis to be used by techs in the field, an expert system for assigning and scheduling techs, and a geographic positioning system that could be used to track tech locations at all times.

No part calls sometimes techs did not have the tight parts for a repair. When this happened, the part was express mailed to the customer and the repair was done the next morning. Return Logistics techs were instructed to return repairable boards and valuable materials to Denver and to handle hazardous materials properly. But DMIs management was concerned that techs were undisciplined about return logistics and threw away too much, including some hazardous materials.

- Long response times About 20% of all service calls did not make the target response time mentioned above. Occasionally, all the techs in an area were busy on a service call, in training, or out sick and could not possibly make it to the service call for several days. Some customers complained that no one ever bothered to call to let us know that you were going to be late. - Travel times The number of techs at DMI had declined during the last few years due to divestiture, retirements, and cost-cutting. As a result, the company was experiencing longer travel times.

- Competiton historically, DMI had no competition and high margins. Recently, however, Japanese competitors entered the market with superior product technologies.

A.

Time Context: Present Time

B. Point of View: As an Operations Manager C. Statement of the Problem: How can the Field Service Division of DMI improve its service in terms of their operations?

D. Areas of Consideration STRENGTH: One of the leading manufacturing companies in the United States. WEAKNESS: Low Operation Process Flow OPPORTUNITY: Adopting new technology that can improve the field service operations.

THREAT:

Having Japanese competitors with superior technologies in their production operation.

E. Alternative Courses of Action (ACA) - The management should have reengineering team that consist of a division VP, a regional manager, a technician, a call-taker, a dispatcher, an IS person, an accounting person and an outside consultant. - The management must conduct a proposal for cellular phones to be used by the techs, so that there will be on time and no delays at all. - The management should require more training to their technicians.

F. Final Decision and Recommendation As a result of these and other challenges, the management of DMI must reengineer the entire field service business process. It means having new technologies, better information systems, a single dispatching center, a strong service call, and well trained technicians.

G. Plan and Action

Activities
Brainstorming session about reengineering Time Frame Persons responsible Top level managers Budget

1 month

Finalize the activities in the reengineering program

Implementation

2 days

Area Managers

Area Managers