SERVICE

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SERVICE BENCHMARKS
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Benchmark Minimum Acceptable Performance
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Industry Benchmark Model - Copiers Profitability
Analysis
Category
Weighted Profit
Individual Profit
Admin Expense
Sales Expense
Mix of Sales
GP
Hardware 50 36 -25 -15 -4 -
2.0 Supplies 17 44 0 -15 29
4.9 Service 32 52 0 -15 37 11.8 Rental
1 40 0 -15 25 0.3 Total 100 43 -1
3 -15 15.0
Operating Income
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Industry Benchmark Model - Copiers Revenue
Allocation
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Service Benchmarks
Salaries 27.5 Parts 16 Auto
3.5 Training, etc. 1.0
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Service Benchmarks
Salaries 27.5 Service Department Staffing

• Service Managers/Directors/VPs
• Copier Supervisors/Technicians
• Facsimile Supervisors/Technicians
• Dispatchers (Charged to Admin Expense)
• Trainers (Charged to Training, etc.)
• Parts Coordinators
• Service Administration
• Service - Other

47 of total company staff should be service
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Service Benchmarks
Parts 16
All Parts used for servicing machines in the
field as well as parts retailed, manufacturers
rebates and warranty credits.
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Service Benchmarks
Auto Expense 3.5
Reimbursed business miles for Service Techs and
Supervisors, fixed dollar auto allowance, paid
expenses incurred for company cars used for
Service Department i.e. auto depreciation,
maintenance, fuel and insurance
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Service Benchmarks
Training, etc. 1.0
Training salaries, manufacturer training schools,
uniforms, computer related expenses for service
department (ADS), phones (cell phones pagers),
miscellaneous expenses for Service Department
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Global Imaging Benchmarks
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Service Staffing Ratios

• 1 Service Director for 8 Field Service
  Managers/Supervisors
• 1 Field Service Manager/Supervisor for 12-15
  Technicians
• 1 Dispatcher for 14-16 Technicians
• 1 Parts Coordinator for 50 Technicians

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Staffing and Productivity
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Service Benchmarks
Definitions
Gross Calls any calls that are generated by the
customer calling in for machine repair,
recalls/callbacks, incompletes and dealer
originated calls
Recalls/Callbacks service calls received on the
same machine from the customer within a specific
timeframe or when specific copies between calls
has not been achieved
Incompletes/Reschedules service calls that
could not be completed by technician (parts,
technical escalation, out of time, etc.)
Net Calls gross calls minus recalls/callbacks
and incompletes
Response Time is the time the call is
received/generated to the time the technician
arrives at the customers location
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Service Benchmarks
Customer Repair and Travel Time
Customer Time 72 minutes
Travel Time 30 minutes
Start at 800 a.m. finish at 500 p.m.
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Service Benchmarks
5 Gross Calls per Day
First Call 800 a.m.
First Call Cust Time 72 min 912 a.m.
Second Call Travel 30 min 942 a.m.
Second Call Cust Time 72 min 1054 a.m.
Third Call Travel 30 min 1124 a.m.
Third Call Cust Time 72 min 1236 p.m.
Lunch 60 min 136 p.m.
Fourth Call Travel 30 min 206 p.m.
Fourth Call Cust Time 72 min 318 p.m.
Fifth Call Travel 30 min 348 p.m.
Fifth Call Cust Time 72 min 500 p.m.
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Service Benchmarks
Net Calls Per Day Per Technician
Average Gross Calls 5.0
Average Recalls 10 (0.5)
Average Incompletes 5 (0.3)
Average Net Calls 4.2
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Service Benchmarks
Call Back Parameters
Segment Days/Copies
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Service Benchmarks
Response Time 4.0 Hours or Less
lt2 Hours High End Machines lt4 Hours Middle
Segment Machines lt8 Hours Low End Machines
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Other Service Benchmarks
Carryover Calls Less than 2.0 Calls on the
Board per Technician at the end of the day
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Other Service Benchmarks
Territory Staffing
Copiers per Copier Technician - 150
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Other Service Benchmarks
Territory Staffing
Copies per Technician per Month
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Other Service Benchmarks
Parts and Car Stocks

• Parts Inventories

• minimum of 4 planned per year and 1 random per
  tech per quarter

• Target Car Stock (black white service)

• 2,500 - 3,500
• Remote territories require more inventory to
  cut down on incompletes

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Other Service Benchmarks
145,000 Service Revenue per Service employee
(excluding Dispatch)
75 - 95 Service Revenue per Unit in Field per
Month
2.5 Parts Turns
18 Parts per Call per Service Technician
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Industry Standards - Copiers

• Annual Sales Per Employee 360,000
• Annual Revenue Per Admin Employee
  1,100,000

• Annual Service Revenue Per Service Employee
• (not including Dispatchers) 145,000

• Annual Supply Revenue Per Direct Supply
• Sales Employee
  415,000

• Annual Equipment Revenue Per Sales Employee
• (not including Supplies or Drivers)
  330,000

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Performance/Reporting

• Productivity Report
• Excessive Call Report
• Quarterly CPC Report
• Obsolete Inventory Report
• Quarterly Inventory Report
• Pro-Active Reporting

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PostAcquisitionService Performance
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Acquired Company Performance(30 45 Days)
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Top 5 Contributors Causing Current Performance
Level

• Accountability
• Product Reliability Concerns
• Field Structure
• Quality of Call
• Lack of Service Reporting Utilization

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Accountability

• 800 500
• We consistently identify technicians arriving
  late and pulling out early
• Inaccurate daily reporting of time.
• Inconsistent work ethic

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Resolution

• We immediately implement Clearly Defined
  expectations at the field level
• Tech, Supervisors, etc.
• Stress 800 500
• We implement AM PM checks throughout the team
• Clearly define how daily reporting should happen
• Monitor reporting in detail for the next 30-45
  days
• Define our Benchmark of
• First Call Completion 930
• Last Call Completion 430
• Monitor first and last call of day (always the
  longest)

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Product Reliability Issues

• Heavy call activity
• No internal benchmarking
• Who services what the best
• Minimal Pro-Activeness
• Aggressively addressing excessive service
• No total call procedure in place
• No inspection process (audits)
• Not utilizing all available service reporting to
  identify reliability issues
• Excessive service
• Reliability CPC data

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Resolution

• Full implementation of Total Call procedure
• AuditsInspect what you Expect
• Eliminate PM lights
• Aggressively begin visits to all excessive
  service machines/stop excessive activity
• Primarily performed by supervisors or product
  specialist
• Immediately eliminate hit run activity
• Train managers to target audits
• Begin internal benchmarking at the CPC level
• Why are Bills machines running so much better?

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Field Structure

• Most companies are in a generalist structure
• Techs work on anything within an area
• Low Territory Integrity
• 50 60 same tech
• No ownership
• Uneven workload distribution
• Bob with 1 call, Jim with 10!!
• High incomplete rates due to ineffective car
  stocks
• Inadequate training/lack of effective car stocks,
  manuals, etc.

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Resolution

• Perform territory analysis
• Determine all machines in each zip code
  associate volume
• Determine product specialization split, i.e., 10
  cpm to 40 (LV) 41 and ? (HV)
• Plot workload by copy volume in each zip code
• Develop territories based on volume
• Start in most populated areas first
• Analyze parts usage by model (top 50 used parts)
• Develop car stocks based on exact product mix,
  utilizing parts usage reports by model
• Implement territories with product specialist

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Quality of Call

• Hit Run Activity
• Reliability Issues
• High Call Back Rate
• No or Minimal Field Audits Performed

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Resolution

• Full implementation of total call procedures
• Field audits to inspect what you expect
• Tie audits passed to bonus and reviews

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Lack of service reporting utilization

• DISCUSSION