Maintenance contract profitability analytics system
The manual compares the revenues of the maintenance contract with the costs of work, travel, parts and sub-contracting. See which service jobs reduce profitability.
The contract's reaction and completion rules are compared with the varying time stamps of the works and incomplete data from travel, parts and re-visits. Compliance with the service and economic result are assessed by misdirection or inexplicable reason for the deviation.
How the solution works
- The contract is subject to assessed terms, scope of service and cost cap.
- Work events are checked against the rule in force for the period and approved exceptions.
- Travel, work, parts and other expenses are classified without duplication.
- Deviation is examined according to the type of work, the reason for repetition and waiting.
- A reliable result is presented for service or commercial review, noting the remaining data gaps.
Key challenges
- Contracts and SLA results counted manually
Solution capabilities
Calculation of contractual terms
The reaction and completion have clear events, a rule in effect, and a verified exception; the overall wait code does not arbitrarily stop time.
Work and travel costs
Time is associated with a specific visit, job and agreed assignment limit, separating the incomplete registration.
Relationship between parts and other costs
The used part, sub-contract and additional cost are classified as work and a reasonable period of time.
Reason for re-run
Planned multi-stage work is separated from avoidable return due to lack of information, preparation or correction.
Review of Services Economy
Revenue and costs at the chosen level are assessed in conjunction with the volume and quality performed; a direct margin does not refer to the company's total profits.
Business context
- Contracts and SLA results counted manually
- The contract's reaction and completion rules are compared with the varying time stamps of the works and incomplete data from travel, parts and re-visits. Compliance with the service and economic result are assessed by misdirection or inexplicable reason for the deviation.
- The service offer is based on the actual cost of service
- The customer's contract may include different response times, equipment and amount of work. The associated costs of work, travel and parts allow the cost of these obligations to be assessed. The supplier may justify an extension offer or service change for a specific service history.
Core features
- Calculation of contractual terms
- Work and travel costs
- Relationship between parts and other costs
- Reason for re-run
- Review of Services Economy
Key integrations
- History of maintenance work
- Recorded events, visits by technicians, confirmed reasons for waiting and work done.
- Work and Stock Accounting
- Real technician's time, travel and used parts.
- Terms of Agreement
- Valid terms, scope, exceptions and pricing basis.
- Financial data
- Approved income, sub-contracting and other selected costs.
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.
Active review preparation is measured for contracts of a similar number of works and conditions.
Time to determine the cause of the contract term or cost deviation
6–25%Decreasing
This illustrative scenario assumes that 20-50% of waiting caused by missing information or unclear responsibility can be addressed. That share is assumed to fall by 30-50%. Company data is needed to verify both the addressable share and the resulting change.
Measured time from recording a deviation to determining its cause or a validated data gap. Time and cost cases are compared separately according to similar complexity.
Conditional calculation scenarios. The assumptions have not been validated against client measurements.
When this solution is relevant
- The contract appears to be executed on time in the report only because any wait for parts is automatically taken out of the calculation.
- The contract margin is calculated without travel and unscheduled returns, to which technicians devote a significant part of their time.
Implementation requirements
For service analysis, existing term rules, visit history and actual labor costs are checked. The reasons for the repetitions are separated from the planned multi-step work so that the level of service and profitability have an explainable basis of calculation.
Further development options
- Contract pricing options according to the verified scope of the future service
- Comparison of similar contract performance reasons while maintaining equal cost limits