Service Calculator: New Tool Estimates Dollar and Man-Hour Savings
Service of complex equipment is a complicated matter. And making improvements to a system that deals with high degrees of detail can also be a challenge.
But what if you had a tool that could easily help you estimate how much you’d save in dollars and wrench-time by improving productivity? Interesting, right? Well, Enigma has come up with a handy ROI-like calculator that does just that. We call it our Service Savings Calculator, and it’s available as a free download from the resource center on our website.
Service technician time is expensive and wasted service time is a revenue buster for service organizations. That seemed to be the collective opinion when we talked to a number of our customers responsible for the profitability of their service operations. One common frustration was the amount of time that was wasted looking up information instead of fixing equipment and machines. It turns out, service technicians look up a lot of things on a regular basis – parts, part assemblies, service maintenance instructions, service bulletin updates and warranty details to mention a few. It’s a necessary activity given the intricacy of the machines and equipment they work on. That means that how and where information is stored and the ease of access to it can have a big impact on the bottom line of a service operation.
That’s where Enigma and our Service Savings Calculator come into the picture. We’ve researched the top factors to consider when calculating the value of the time spent on information retrieval in the service environment. We narrowed it down to eight essential bits of information. You probably already know the first seven of them off-the-top of your head and if you don’t, they’re pretty easy to find or estimate. The eighth factor estimates how much time it would take using the Enigma InService EPC system. InService EPC is an electronic parts catalog that acts as a knowledge library, making parts and service information easy to manage, update, distribute and access. It streamlines the information retrieval process, while ensuring accurate and current data for users.
Using your own data, the Service Savings Calculator computes the average cost of your existing service information retrieval system and compares it to Enigma’s InService EPC. And that is where we see some serious savings.
Here’s how it works in three steps.
1. First, figure out the answer to the following bits of information. It’s easier than you think.
Average technician work shift – We’re guessing that most folks have an 8 hour work day, but some companies work longer and harder when needed. However long your technicians work on average per shift, that’s the number you want to use.
Number of work shifts per week – Although the average is probably 5 shifts per week, we know plenty of service organizations that regularly work 6 days. Again, estimate the average number of shifts your team puts in each week.
Weeks in the year – We all know there are 52 weeks in the year, but you may want to account for vacation time, seasonal closings, or other factors to make this number more accurate.
Total number of service technicians – This includes all the service technicians company wide. Of course you could also save different versions of the calculator and compare regions, departments or divisions too.
Average hourly technician pay rate – Even though some technicians earn more or less based on experience and skill, we use an average hourly rate to get the best average.
Average minutes spent on EACH search – Here’s where it gets tricky. As we said earlier, service technicians retrieve a lot of information on parts, service info, warranty etc. The number we’re looking for here is the average number of minutes that EACH technician spends on EACH search. So let’s say (s)he looks up a part, which typically takes 7 minutes, a service maintenance issue that takes on average 13 minutes and a warranty issue averaging 25 minutes. The average number of minutes would be 15 or 7+13+25/3.
Number of searches per shift – How many times does EACH technician perform an information search (on average) per shift?
2. Second, download the Service Savings Calculator if you haven’t already and enter the seven numbers you estimated into the white boxes provided.
3. Third, estimate the average amount of time (in minutes) spent on EACH search using Enigma’s InService EPC software (similar to the average minutes spent on EACH search mentioned above). One of our sales consultants can best help you estimate that number based on your existing information system and work flow. Enter this number in the last, dark blue box and immediately see the savings.
The Result: See what you could be saving.
We’ve represented the results in two very measurable ways – first, the estimated dollar amount that is saved by reducing the search time for service-related information and second, what that equates to in terms of technician equivalents. In other words, you could be saving thousands of dollars and an equivalent of five, six or even tens or hundreds of full-time service technicians depending on the size of your service team. Reducing the amount of search time with InService EPC, a tool that is accurate, current, and easy to use, simplifies the complicated nature of complex equipment service by providing and allowing easy access to service information.
We encourage you to download the calculator, share it with others in your organization and contact us to see how InService EPC can benefit your service organization.