Imagine
you want to run
a marathon
You need to improve your running ability, eat special diet, set up your body for the challenge. Maybe you take
a coach who will prepare you in the best possible way, mentally and physically. Imagine, we are your running coach, and we want to support you in the best way we can to reach your goal.
Why should we be your coach?
Because we have an additional, non-biased view on your opportunities. We are a fully dedicated, results-oriented coach, and we have over 20 years of experience.
There are 4 steps in our program to reach your company’s goal.
03
PRODUCT LIFE CYCLE MANAGEMENT
There is a common way to look at product lifecycles from a marketing perspective: introduction, growth, maturity, and decline.
04
OPERATING RHYTHM PURPOSE & VALUE
Operating rhythm is one of the Six Sigma tools for process improvement. It is a data- driven exchange of information between stakeholders.
01
REVENUE EXPANSION
There are other areas that need to be considered (e.g. pricing) to increase sales and earnings. Active engagement with existing customers will also have a positive impact on repeat businessfor new equipment.
02
STRENGTHS AND LIMITATIONS
We will identify strengths and development needs by analyzing data and information by answering these questions:
Is your organization aligned with your goal?
Is your organization structured to deliver results?
How do you measure progress and performance?
What is your service operating rhythm?
We use the fishbone root cause analysis to guide the process and visualize the results. This includes internal and external factors, resources, structures, and processes. Below example is the result of a recent analysis.
03
PRODUCT LIFE CYCLE MANAGEMENT
The other way to look at the product lifecycle is from a customer service and support perspective. The quality of product support is more important than the product quality itself.
In an environment where product quality is a given standard, responsiveness and support are the true differentiators. The definitions of the different lifecycle stages of the product and the importance of installed product database management for the commercialization of service offerings can be seen below.
From the moment the product is launched on the market and continuously produced and sold, it is considered to be in an active phase of the product life cycle. During this phase, the product is fully supported by properly trained service personnel and maintained with spare parts. Any fault is actively addressed and removed. Active and Normal are the two phases of the life cycle that are very service-intensive and rich.
Once production ceases, the product enters the Limited Support phase. In this phase, access to spare parts and qualified personnel is limited. All activities related to product repairs, spare parts, and product testing will be based on availability. We will experience a shortage of skilled labor and equipment. This is a good time to launch a product replacement campaign.
Finally, the product will move into the obsolete phase of its life cycle. This is a commercially important moment for the OEM. At this point, parts and qualified personnel are no longer available to support the product. The campaign to replace the product has been underway for some time.
Another important point in the products' life is the end of the warranty period. It is a perfect moment to introduce your organization and services to the customer, who may have changed meantime. It may be your opportunity to directly connect with the end-user and operator of your equipment.
We will address warranty management in a separate document.
04
OPERATING RHYTHM
PURPOSE & VALUE
Its goal is to avoid errors and disruptions while achieving the common goal.
Operating rhythm maintains focus and enables early risk mitigation. In terms of growth, the operating rhythm for service can combine various activities and data sharing for sales and fulfilment teams and processes. It can be set globally, regionally, by specific product groups, or a combination of those. It will evolve over time and is defined based on the complexity of the business and the size of the organization. Key performance indicators (KPIs) will be defined for each process step and their owners. KPIS will be reported and reviewed regularly. The frequency of reviews must match the length of the business cycle. The shorter the cycle, the more frequent the reviews.
In this example, a weekly operating cycle should cover the following:
Orders planning and forecasting for the financial period and for the manufacturing resource plan. This will impact supply chain lead times.
Effectiveness of activities that pique the interest of customers: collecting data, contacting customers, and keeping in touch with them.
Timelines and quality of request for quotations (RFQ) acceptance and proposal preparation.
Volume of orders received, hit rate, win rate.
Deadlines and quality of handing orders over to the fulfilment team.
A similar process and operating rhythm should be implemented for the fulfilment teams-service, procurement, supply chain.
Service holds great potential and shall be important part of your business development strategy.
01
Service contributes
to bottom line
Service solves urgent problems. It is valued accordingly.
02
Focus drives
growth
Service requires strategy.
Execution is a project.
03
Service is a long
term development
Drives cultural change. It is key to long term sustainable growth.
NEXT STEPS
QUANTIFY YOUR SERVICES
Find out details on your service financial performance, customers, organization.
DEFINE YOUR GOAL
Understand opportunities and limitations. Set achievable targets for your organization.
RUN
Stay focused and determined.
Have your team with you.
We are available to explore this topic further with you.
