Case Study Om

8/2/2019 Case Study Om

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The Field Service Division of DMI



Diversified Manufacturing, Inc. (DMI) was amultibillion dollar company headquartered inDenver, Colorado, that manufactured anddistributed a wide variety of electronic,

photographic, and reprographic equipment usedin many engineering and medical systemapplications. Customers, bought machines on thebasis of price, features, quality, and service.However, field service was becoming more

important in new machine purchase decisions.According to many DMI Field Service Divisionmanagers, field service was not viewed as a criticalpart of DMI’s corporate strategy.



DMI’s National Service Center, received about3500 calls per day. About 2000 of these wererelated to emergency maintenance, either initial

calls or complaints about late service. Many ofthe calls were from customers wanting to knowwhen their technician would arrive.



Most of DMI’s management were engineersand were, therefore, very open to technologicalsolutions to management problems. Serious

consideration was being given to threetechnologies: an expert system for problemdiagnosis to be used by techs in the field, anexpert system for assigning and scheduling

techs, and a geographic positioning system thatcould be used to track tech locations at alltimes.



- No part calls – sometimes techs did not have thetight parts for a repair. When this happened, thepart was express mailed to the customer and the

repair was done the next morning.- Return Logistics – techs were instructed to return

repairable boards and valuable materials toDenver and to handle hazardous materials

properly. But DMI’s management was concernedthat techs were undisciplined about return logisticsand threw away too much, including somehazardous materials.



- Long response times – About 20% of all servicecalls did not make the target response time

mentioned above. Occasionally, all the techs inan area were busy on a service call, in training,or out sick and could not possibly make it tothe service call for several days. Somecustomers complained that “no one everbothered to call to let us know that you weregoing to be late.”

- Travel times – The number of techs at DMI haddeclined during the last few years due todivestiture, retirements, and cost-cutting. As aresult, the company was experiencing longertravel times.



- Competiton – historically, DMI had no

competition and high margins. Recently,however, Japanese competitors entered themarket with superior product technologies.



A. Time Context: Present Time

B. Point of View: As an Operations Manager

C. Statement of the Problem:

How can the Field Service Division of DMI

improve it’s service in terms of theiroperations?



D. Areas of ConsiderationSTRENGTH:

One of the leading manufacturing companies in theUnited States.

WEAKNESS:Low Operation Process Flow

OPPORTUNITY: Adopting new technology that can improve the fieldservice operations.

THREAT:Having Japanese competitors with superiortechnologies in their production operation.



E. Alternative Courses of Action (ACA)

- The management should have reengineering teamthat consist of a division VP, a regional manager, atechnician, a call-taker, a dispatcher, an IS person,an accounting person and an outside consultant.

- The management must conduct a proposal forcellular phones to be used by the techs, so thatthere will be on time and no delays at all.

- The management should require more training totheir technicians.



F. Final Decision and Recommendation

As a result of these and other challenges, themanagement of DMI must reengineer the entire

field service business process. It means havingnew technologies, better information systems, asingle dispatching center, a strong service call,and well trained technicians.



G. Plan and Action

Activities Time Frame Personsresponsible

Budget

•Brainstormingsession about re-

engineering

• 1 month • Top levelmanagers

•Finalize theactivities in the re-

engineeringprogram

•2 days •Area Managers

•Implementation •Area Managers

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Case Study Om