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Resource Optimization Introduction ppt (1).ppt
- 1. Resource Optimization Focusing resources and maximizing efficiency to best execute CSA commitments
- 2. 2 RESOURCE OPTIMIZATION Introduction Contracts offer opportunities to be more efficient in the planning and use of resources. The main reason for this is that the majority of contract work is planned, rather than call-in work, which is often unplanned. Planned work provides visibility of future workloads, parts consumption, and capacity needs. Planned work is also more repeatable, which allows for specific training and tools to best complete the job.
- 3. 3 RESOURCE OPTIMIZATION Business Logic Perhaps the most important consideration for contract resources is capacity planning. With a contract, not completing work or turning customers away because there are not enough resources is NOT an option. Providing technicians with the right tools and training is important to maximizing their productivity. Maintenance work generally is shorter in duration than repair work. Therefore, travel time is a higher percentage of the overall cost. Proper planning can help to reduce travel time. – Getting parts to technicians in an efficient manner reduces travel time. – Understanding the workload and the locations of machines and technicians enables efficient dispatching of technicians and reduced travel time.
- 4. 4 RESOURCE OPTIMIZATION Inputs and Outputs Daily Operational Resource Optimization Process • Scheduled events • CSA machine location • CSA technician location • Parts required Start: Start of contract End: Work Complete INPUTS / OUPUTS INPUTS / OUTPUTS • Grouping of services in a single trip • Parts available where needed • CSA labor variance • CSA capacity (capability) Planning and Budgeting Resource Optimization Process • Capacity plan • PM Tech recruitment and training plan • PM truck and tooling budget • CSA business forecast • PM Tech skill requirements • PM truck and tooling requirements
- 5. 5 RESOURCE OPTIMIZATION Key Metrics to Measure Performance PM Labor Utilization – % of Billable hours / Total hours for dedicated PM techs
- 6. 6 RESOURCE OPTIMIZATION Capabilities The following are the critical processes required for effective Resource Optimization: – Develop CSA Personnel Skills – Establish PM Truck Requirements – Complete Capacity Planning – Parts Logistics Planning – Dispatch Recommendations
- 7. 7 RESOURCE OPTIMIZATION Tools/System Usage Dispatching – Cell/GSM/GPS Navigation – EquipmentManager / Product Link – DBS Service Advisor Click Scheduler – Manager Capacity Planning – PM CSA Capacity Planning Worksheet and Cash Flow Analysis
- 8. 8 RESOURCE OPTIMIZATION Value Proposition Statement Improving technician productivity results in more hours available to sell or to offset overtime. Similarly, reducing travel hours results in more hours available to sell or to offset overtime. Consider parts sales generated from billable labor hours as well.
- 9. 9 RESOURCE OPTIMIZATION Value Proposition Template 20 20 1,800 1,800 75% 25% 27,000 9,000 85% 20% 30,600 7,200 3,600 1,800 100 50% 360,000 100 40 90,000 144,000 40 504,000 36,000 50% 40 36,000 162,000 Estimate of Additional Parts Margin with Improvement Additional Margin Generated from Improvement Additional Margin Generated from Improvement Estimate of Additional Revenue (Margin) with Improvement Percent of Incremental Hours Converted to Maintenance Time Average Parts Margin per Billable Labor Hour Average Parts Margin per Billable Labor Hour Average Labor Sell Rate Estimate of Additional Revenue (Margin) with Improvement Average Parts Margin per Billable Labor Hour Estimate of Additional Parts Margin with Improvement Estimate of Additional Parts Margin with Improvement Incremental Billable Hours Incremental Hours Available Average Labor Sell Rate Percent of Incremental Hours Sold Target PM Technician Productivity Target Travel Hours Target Billable Hours Target Travel Hours PM Technician Productivity Travel Hours % Total Billable Hours Total Travel Hours PM Technicians PM Technicians Average Hours Worked per Technician Average Hours Worked per Technician Proposition 1 - Technician Productivity Proposition 2 - Travel The following logic applies for increasing the amount of time a technician spends on billable/contract hours rather than expense hours. The following logic applies for increasing the amount of time a technician spends on repair/maintenance time rather than travel time.
- 10. Back-Up Slides
- 11. 11 RESOURCE OPTIMIZATION Capabilities: Develop CSA Personnel Skills Are specific roles and responsibilities defined within the CSA business? Is there a dedicated manager for the CSA business? Are there dedicated administrative people for the CSA business? Are there dedicated technicians for the CSA business? Are the specific skills for each role in the CSA organization defined? Is there training classes/material available for each role in the CSA organization? Are people regularly evaluated based on the required skills for the role? Are development/training plans established and executed?
- 12. 12 RESOURCE OPTIMIZATION Develop CSA Personnel Skills Conduct Training Develop Training Plans Identify Training Needs Dev elopskills/ tasks matrix f or technicians Dev elopan ev aluation process to determinean indiv idual’s capabilities Dev elopindiv idual training plans Dev elopgroup training plans Conductindiv idual training Conduct group training Determinescope of CSA’s Conduct Gap Analysis Annually Conduct Needs Analysis Annually Perf ormserv ice ev ent Are training materials av ailable? Acquire or dev eloptraining materials No Yes Determinegap analy sis of needs v s.capabilities
- 13. 13 RESOURCE OPTIMIZATION Capabilities: Establish PM Truck Requirements Are there dedicate trucks for PM work? Do the PM trucks have adequate types and capacities of fluids? Do the PM trucks have adequate capacities for disposal of fluids? Do the PM trucks have appropriate lube equipment (filter crusher, hose reels, grease pump, etc.)? Do the PM trucks have sufficient capacity to stock filters and store tools? Do the PM trucks have kidney looping technology?
- 14. 14 RESOURCE OPTIMIZATION Establish PM Truck Requirements Other Considerations Miscellaneous Lube Equipment Coolants and Fuels Oil Disposal Oils Determine Industry to be Serviced Mining Aggregates General Construction Light Construction Engine 15-40 wt Transmission 30 wt Finaldriv es 50 wt Hy draulics 10 wt Coolant Wasteoil Hosereels In-linef ilters Dust caps f or line ends Compressor Generator Greasepump Solv ent tank f or cleaning Fuel New Filter Storage UsedFilters Drainto waste tank Kidney loop sy stem (see separate process maps) Tool storage Determine PMtruck return f requency Recy cle/ burn Additional serv ices Commercial Engines Filter crusher Coolant Disposal Waste Coolant Recy cle? Pump power No Enclosed or open (enclosed recom'd) Yes Determineif meteringunit is needed
- 15. 15 RESOURCE OPTIMIZATION Capabilities: Complete Capacity Planning Is there a process to assess current CSA capacity/capability? Is there a process to review CSA growth targets? Are the growth targets and current capacity compared to determine gap? Is there a process to recruit and train new CSA personnel? Is there a process to document investment (trucks, tools, facilities) requirements?
- 16. 16 RESOURCE OPTIMIZATION Complete Capacity Planning Benchmark Existing Capabilities Determine CSA Capacity Needs Identif y existing CSAcontracts Determinelabor requirements f or allCSA’s Identif y potential CSA’s f rom f uture sales Determineexisting shop labor capacities Determineexisting f ieldlabor capacities Determineshop f acility capacities Determinef ield inf rastructure capacities DetermineCSA managementstaf f capacities Determinestaf f requirements to support CSA’s Is there adequate labor capacity ? Is there adequate inf rastructure capacity ? Is there adequate CSA staf f capacity ? Add labor using HumanResource processes No Perf ormCSA ev ents Add inf rastructure in alignment with capital expenditure plan No Add CSA staf f using HumanResource processes No Determinescope of CSA’s Yes Yes Yes
- 17. 17 RESOURCE OPTIMIZATION Capabilities: Parts Logistics Planning Is there a process to review parts needed for a CSA and compare to current stock? Does the event scheduling process provide sufficient visibility of parts requirements to allow stocking options? Is there a process to deliver parts to technicians, job sites, or drop boxes?
- 18. 18 RESOURCE OPTIMIZATION Parts Logistics Planning Determinescope of CSA Determine customer / dealer roles and responsibilities Determine equipmentlocation Is locationsuch that serv ice f rom a branch is optimal? Usestandard parts logistics and dispatching process Is there a resident technicianliv ing closeby ? Is therev olumeto support another resident technician? Is therev olumeto support another branch? Add a branch Usestandard parts logistics and dispatching process Use site drop box Use site drop box Add a technician Drop Box Process Development Size of parts f or box Is therea conv enient locationtomatch shuttletrucks Determineif there is asecurity risk Determine which customersy ou trust f orthis serv ice Determinea shuttledeliv ery plan Determinedrop box communications plan Yes No Yes No Yes No Usestandard parts logistics and dispatching process No Yes
- 19. 19 RESOURCE OPTIMIZATION Capabilities: Dispatch Recommendations Is there a process to check for additional work on a machine prior to dispatching a technician for a PM job? Is equipment and technician location considered when assigning / dispatching a technician for a job? Is there a process to consider pending work on other machines in close proximity when dispatching a technician? Are remote technicians put in place where appropriate?
- 20. 20 RESOURCE OPTIMIZATION Dispatch Recommendations Additional Work Analysis Determinescope of CSA’s Receiv eev ent needs report f rom ev ent scheduling Usingmodeland serialnumber, check f or additional work needed Determineif there areany PIP/PSP’s outstanding Determineif there are any outstanding backlogs Determineif there are any condition monitoringcritical actions Determineif inspections identif y additional needs Modif y ev ent needs report Open work order planningsy stem and create segments - using standard jobs, if possible CreateServ iceEv ent Plan Determineif specialtools needed by technician are av ailable Determineif parts needed are av ailable Obtain required serv ice inf ormation Determine technician capability needed Assign technician(s) capable of perf ormingev ent Perf ormev ent Are tools and parts av ailable? Process backorders/ schedule tools Are tools and parts av ailable? No Yes Yes Wereadditional needs identif ied? Close work order andUpdate schedulingsy stem that ev ents are completed New event identified No Determinelocation of equipment No Yes