Measuring Service Outcomes in Fleet Preventive Maintenance

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Abstract

Services account for an increasing share of economic activity in the western world. As part of this, preventive maintenance service volumes are constantly growing as a result of a growing (and aging) asset population and maintenance outsourcing. While the pursuit of improved service productivity is in the interest of both firms and nations, the challenges with measuring service performance, and more specifically service outcomes, persist. This paper presents an outcome based measure for fleet preventive maintenance, which has far reaching implications considering service productivity and performance measurement. We develop a Statistical Process Control (SPC) based measure, which utilizes data typically available in preventive maintenance. The measure is grounded in reliability theory, which enables generalization of the measure within preventive maintenance services, but also outlines the limitations of its application. Finally we apply the measure in a preventive maintenance field service process of a servitized equipment manufacturer. Based on actual maintenance records we show that the service provider could reduce their service output by at least 5-10% without significantly affecting the aggregate service outcome. Being able to measure, and by extension control service outcomes, highlights the scarcely studied phenomenon of service over-production. This phenomenon is shrouded by the intangible nature of services, and as we argue, under certain conditions enhanced through managing operations by established service performance measures. Based on our case we conclude that there might be significant productivity gains in making sure that you meet required standards, but do not exceed them.

Details

Original languageEnglish
Pages379-392
Publication statusPublished - 2014
MoE publication typeNot Eligible
EventInternational Working Seminar on Production Economics - Innsbruck, Austria
Duration: 24 Feb 201428 Feb 2014
Conference number: 18

Seminar

SeminarInternational Working Seminar on Production Economics
Abbreviated titleIWSPE
CountryAustria
CityInnsbruck
Period24/02/201428/02/2014

    Research areas

  • Service Performance, Outcome measurement, Preventive maintenance, Statistical process control

ID: 30360780