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Service Lifecycle Management (SLM)

Section perpendiculaire du moulin des Verdiers (Jean-Jacque Lequeu, 1778)

Who Needs Service Manuals?

By Service Lifecycle Management (SLM) 3 Comments

A Bit of Perspective

I want to start this blog post with two personal stories that exemplify the difficulty to provide service personnel highly relevant and effective service information.

Some years ago I was advising a leading industrial equipment manufacturer on various topics related to product service lifecycle management and service operations. We were nearing the launch date of a new machine, but as the project had experienced multiple setbacks and some of the milestone dates had slipped, the service documentation wasn’t going to be ready in time. The product release rules dictated that service information be available at launch time, but delaying the launch for that reason would have been prohibitive.

Management response to the problem was simply to omit certain sections of the service manuals. Traditionally, manuals included a hefty Theory of Operation section, rich with illustrations and photos. To make up for the lost time, the Theory of Operation section was eliminated, and the number of graphic illustrations in other sections was reduced. You can probably guess the end of this story: there was not a single complaint from service technicians about the missing information, nor was there a noticeable degradation in field service performance. Apparently, service technicians did not find this information very useful. Read More

Closing The Service Knowledge Gap

By Automotive, Field Service, Service Lifecycle Management (SLM) One Comment

The Growing Service Knowledge Gap

Maintaining, servicing and repairing complex vehicle systems is a growing challenge for OEMs of automotive and off-highway equipment. Multiple research studies I conducted in the automotive and off-highway industries demonstrate the magnitude of the problem:

  • Typically, repair shops are able to fix about 80% of the cars during the first customer visit. While about third of all auto dealerships manage a respectable first time fix (FTF) rate of 90%, nearly 20% of dealership manage a disappointing FTF of less than 70%.
  • When OEMs audit repair activities for warranty reimbursement and quality assessment, they are unable to detect a failure in 37% of replaced parts and mark them as “no fault found” (NFF).

Poor service performance levies significant financial and logistics burden on OEMs, tarnishes the brand image and damage customer loyalty.

An obvious observation is that the increase in vehicle technology complexity, and, in particular, electric powertrains, advanced infotainment systems and telematics, are the prime contributors to service difficulties. We can only expect dealership technicians to face similar, if not greater, obstacles handling the upcoming wave of connected car technologies.

While new vehicle technologies can certainly pose significant hurdles to delivering effective, efficient and safe service, engineers and service planners should bear in mind additional operational issues that further lessen the capacity of service organizations to deliver excellent service:

  • Accelerated time to market of new products and subsystems, and late release of software-based components reduce the organization’s ability to learn, author relevant service information, and conduct effective training.
  • The increase in the number of product variants and frequent software updates, coupled with increase in reliability, reduce the hands-on experience of service technicians and increase their reliance on high quality training and service information.
  • The industry, as a whole, is experiencing knowledge attrition and skill shortage caused by the gradual retirement of an aging workforce and difficulties attracting, training and retaining skilled technicians.

Closing the Chronic Service Knowledge Gap

To improve service, product companies should view service lifecycle management (SLM) not as a mere tool to manage service transactions, but rather as a strategy to manage service knowledge and close the chronic knowledge gap. Key action to consider:

Elaina Farnsworth, the CEO of Mobile Comply, offers the following perspective in a Q&A session the company shared with me:

Q: Since safety is our top priority, and V2V technology represents the next great advance in saving lives, how will we prepare our workforce?

A: Through training and collaboration with OEMs, Tier I and Tier II suppliers. Since NHTSA released that the car is a safer place if it’s connected, it’s inevitable that some of the access from the telematics systems will need to be opened up to communicate relative to safety. That said, the telematics community needs to be astutely aware of what this change looks like and vulnerabilities need to be opened up when the car becomes truly connected.

Q: What is your projection of the affect that mobility will have on various industries?

A: Technology platforms are shifting and communication channels are being reinvented. Connected Vehicle is now a market that is projected to reach $130 billion by 2019. By 2022, there will be 1.8 million automotive connections worldwide. Industry sectors not only include automotive, but also insurers, financial institutions, health, mobile and nomadic devices, application developers, telecommunications, analytics companies and much more.

Q: What are the biggest disconnects in this new wave of Connected Vehicle?

A: There are many innovations coming from both the IT and the automotive industries to get our vehicles more connected- to our Smartphones, to other cars, and to traffic and roads. The challenge is that IT and Engineering departments are focusing on two different things and speaking two different languages. There are specific design elements and government requirements that must be factored into each new idea.

Q: How can we prepare the current workforce and the upcoming workforce for this rapidly changing technology?

A: We can offer training and certifications. Our newly launched Connected Vehicle Professional Certification covers all elements of the Connected Vehicle- from passive safety to mobility to information and entertainment, and why it is necessary to factor all aspects before and during design of a vehicle.

 

HSC-8 Technician (U.S. Navy photo)

Service as a Knowledge Intensive Activity

By Service Lifecycle Management (SLM) 4 Comments

The Product Service Challenge

Maintaining, servicing and repairing complex products have been a longstanding challenge. While much has been written on service metrics and performance indicators, it’s worthwhile highlighting some facts and figures. The following anecdotes are from various research studies I conducted in various discrete manufacturing sectors and additional sources:

  • Auto dealership repair shops are able to fix about 80% of cars during the first customer visit. While about third of the dealerships are able to deliver 90% or better first time fix (FTF) rate, nearly 20% of all dealership can manage only FTF of less than 70%.
  • When auto repair activities are scrutinized by the automakers for warranty reimbursement and qualify improvement, 37% of the replaced parts do not exhibit any problem and are identified as “no fault found” (NFF).
  • In commercial aviation, approximately 40% of mechanical parts and 60% of avionics parts are classified as NFF.
  • Consumer electronics manufacturers, wireless carriers and electronics retailers spend an estimated $17 billion to receive, repair, restock and resell returned merchandise. Nearly 70% of these returns are characterized as NFF, amounting for about 15% of the total loss resulting from product returns.

The financial burden incurred by product service and the critical influence poor service has on brand image and customer loyalty lead product companies and service organizations to make significant investments in developing diagnostic tools, training and service manuals. However, many service organizations report seeing only modest return on those efforts. Read More

Car Repair

Can Serviceability Standards Improve The Bottom Line?

By Automotive, Service Lifecycle Management (SLM) No Comments

The Cost of Poor Service

Maintaining, servicing and repairing complex vehicle systems is a growing challenge. Much has been written on service metrics and operational performance, but it’s worthwhile to pause to highlight few figures to understand the impact that service (poor service, that is) has on the bottom line. The following data are from multiple research studies I conducted in automotive and aerospace repair operations:

  • Typically, auto repair shops are able to fix about 80% of the cars during the first customer visit. While about third of the dealerships are able to deliver better than 90% first time fix (FTF) rate, nearly 20% of all dealership manage only abysmal FTF of less than 70%.
  • When repairs activities are audited by the OEM for warranty reimbursement and quality assessment, 37% of replaced parts do not exhibit any problem and are identified as “no fault found” (NFF).
  • In commercial aviation, approximately 40% of mechanical parts and 60% of avionics parts are classified as NFF.

Read More

Broken Televison

Television, Heal Thyself! Smart Service and the Internet of Things

By Internet of Things (IoT), Manufacturing, Service Lifecycle Management (SLM) No Comments

Television, Heal Thyself!

I was asked by an investment banker to comment on business applications of the Internet of Things (IoT) technologies and specifically on IoT technologies and business models that pertain to this awful word “servitization”: equipment service, remote monitoring, predictive diagnostics and so forth.

Their interest in the topic piqued following a recently published article contrasting the author’s own poor television repair service experience with a hypothetical—but presented as realistic—repair scenario utilizing advanced IoT-based diagnostics. The scenario is given below. I changed the language but kept the essence of the original script intact. Read More