W3_LUCKY_Benchmarking Service Excellence

W3_LUCKY_Benchmarking Service Excellence

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Problem Definition

·         Benchmarking service excellence – synchronizing resource capacity with service demand: the Nigerian maintenance service company experience

Problem/ Need Formulation and Evaluation

In today’s oil and gas equipment and services industry, equipment owners are making more demands for effective service due to aging equipment and dearth of competent operators.

Service providers are faced with shortage of skilled and competent service personnel as they strive to meet the needs of the customers.        

Feasible Alternatives

The following options are available for adoption:

·         Do nothing about the opportunity

·         Replacement of aging equipment with modern state-of-the-art types

·         Train personnel as skilled operators and service personnel

·         Synchronize resource capacity with service demand

Criteria Selection

The criteria for selecting the alternative are as follows:

·         Improving the bottom line

·         Realizing increased operational efficiencies

·         Enabling quick deployment of new value added services

·         Meeting increased competence needs

Selected Alternative

Since resources are limited, synchronizing the resource capacity of the organization with the service demands apparently offers the best ROI for the organization.

The Aberdeen benchmark report (Jain, 2007) showed that forward-thinking companies that undertook strategic actions to achieve service excellence by accurately forecasting service demand and effectively planning and provisioning service resources to meet that demand had impressive results (p. 2):

According to Jain, such strategic initiatives have yielded:

·         22% increase in first-time fix rate

·         18% higher SLA compliance rate

·         27% improvement in workforce utilization

·         14% lower overtime costs

 

Table 1: Potential Savings from Achieving Best-in-Class Dispatcher-to-Technician Ratio[1]

# Tech	# Disptchs @1:14 Ratio	# Disptchs @1:19 Ratio	Difference in # Disptchs	Cost Savings from reduced Headcount ($ millions)
100	7	5	2	$0.20
500	36	26	10	$0.80
1000	71	53	18	$1.40
5000	357	263	94	$7.10
		Source:Aberdeen Group, August 2007

Conclusion

I am working on my second draft which I intend to send to Dr. PDG in a short while. This draft comprises of chapters two and three.

References:

1.       Jain, A. (2007). Underpinnings of Service Excellence: Synchronizing Resource Capacity with Service Demand. Retrieved from http://www.astea.com/en/forms/webinar.aspx?t=whitepaper17

2.      Purdue OWL APA style, (2011). APA formatting and style guide. Retrieved from http://owl.english.purdue.edu/owl/resource/560/19/

3.      Giammalvo, P. (2012, October 22). Integrated portfolio (asset), program (operations) and project management methodology course (cost engineering) slides (An AACE methodology course). Lagos, Nigeria: Lonadek

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[1] Jain, A. (2007). Underpinnings of Service Excellence: Synchronizing Resource Capacity with Service Demand. Retrieved from http://www.astea.com/en/forms/webinar.aspx?t=whitepaper17