Technical service performance and profitability analytics system
The manual evaluates service terms and contract profitability based on the work done. Travel, parts and re-repairs help explain cost differences.
Travel, technician's time, parts, re-visits, warranty, sub-contract and bill are not tied to a specific case of technical service. Lossy contracts and types of services are seen after the fact, and pricing is not adjusted.
How the solution works
- Define the contract service and the rules for calculating the term
- Receive work events and actual costs
- To agree on the applicable scope of income and guarantee remuneration
- Explain the deviation between term and cost
- Adopt a process-specific or contract review action
Key challenges
- Profitability of work, contract and customer seen too late
Solution capabilities
Meaning of Terms
The agreed service level (SLA) is calculated from the actual reaction, recovery and pauses allowed in the contract. The analyst does not correct the event time to improve the result.
Labour cost
Includes technician and travel time, parts, sub-contracting, and re-working according to a consistent methodology. The sales rate is not an employee's cost price.
Economy of the Treaty
Fixed maintenance income is measured at the contract and period level. If they are allocated to work, the allocation assumption is shown, rather than the allegedly accurate profit of each visit.
The impact of the guarantee
An application has been made, the salary accepted and the actual payment is segregated. The unpaid parts or work have a real reason.
Deviation action
The comparison includes similar equipment, distance and scope of service. The manual may choose parts readiness, schedule change or revision of the terms of the contract.
Business context
- Profitability of work, contract and customer seen too late
- Travel, technician's time, parts, re-visits, warranty, sub-contract and bill are not tied to a specific case of technical service. Lossy contracts and types of services are seen after the fact, and pricing is not adjusted.
- Terms of service are reviewed based on specific service history
- Frequent re-repairs or long journeys can alter the economic outcome of the contract. Analysis helps to determine the cause and discuss solutions with the customer. The supplier may base the price or other model of maintenance on assessing and meeting agreed terms.
Core features
- Meaning of Terms
- Labour cost
- Economy of the Treaty
- The impact of the guarantee
- Deviation action
Key integrations
- Repair and Contract Process
- Real events, allowed pauses, the purpose and outcome of the work.
- Accounting and the source of the guarantee salary
- Actual costs, contract revenue and guarantee financing decision.
Potential impact (%)
The ranges indicate an illustrative relative change in the metric under the stated assumptions. Results depend on the starting position and actual use of the solution. Percentages for different metrics must not be added together.
Contract result reconciliation work
16–42%Decreasing
This illustrative scenario assumes that 40-70% of information searches and repeated cross-checks can be addressed. That share is assumed to fall by 40-60%. Company data is needed to verify both the addressable workload and the resulting change.
Measure working hours to match the result of a one-period service contract.
Incorrectly calculated contractual term
12–42%Decreasing
This illustrative scenario assumes that 30-60% of errors can be addressed through the data and rule checks described. That share is assumed to fall by 40-70%. Company data is needed to verify both the addressable share and the resulting change.
Count verified cases for which the report term conclusion was incorrect due to the interpretation of an event or rule.
Conditional calculation scenarios. The assumptions have not been validated against client measurements.
When this solution is relevant
- Service contracts provide for different reaction, performance and billing terms.
- Working hours, parts and travel costs are not tied to the contract, making it difficult to estimate its profitability.
Project scope and implementation
The terms of service are calculated according to the specific terms of the contract, and costs are associated with the work performed. If the contract does not specify the reaction time, it is not provided as a contractual obligation. Available service and accounting data are used for analysis.
Further development options
- Wider contract comparisons after matching costs, equipment and service conditions.