Title: On the design of a service system: operational practices and performance measurement.
Other Titles: On the design of a service system: operational practices and performance measurement.
Authors: Colen, Pieter
Issue Date: 18-Dec-2012
Abstract: Many original equipment manufacturers (OEMs) are enhancing their product offering with (aftermarket) services to increase the value proposition to customers by delivering functionality rather than a physical product. Manufacturers that expand into services encounter many challenges and the promised profitability of services does not always materialize. Turning services into a profitable growth engine requires suitable service operations. However, many uncertainties remain about how to achieve excellence in aftermarket service operations. In this dissertation we shed some light on how aftermarket services can be delivered profitably.After providing an overview of operational challenges and best practices in the aftermaker industry, we focus on specific operational challenges at the case study company. We demonstrate how reliability analysis can be used to obtain insights about the failure behavior of machines. Next, the problem of cross training technicians is studied. The case study company also sells remanufacturing services. In this context we optimize the logistic network and contract design required to market and execute this service. In the last research project, we focus on multi-dimensional perfomance evalution of service centers. To this end we formulate an adapted data envelopement model which is capable of simultaneously evaluating the operational efficiency and strategy implementation of the service centers. Based on data envelopment analysis and panel regression, the proclaimed benefits of a service oriented strategy are evaluated. We find that there is evidence that a service oriented strategy enables higher operational efficiency and profitability. Hence, based on applied research this dissertation provides general insights about how to turn aftermarket services into a profitable growth engine.
Table of Contents: 1. Introduction: Service as the new cornerstone of manufacturing
2. Exploring operational practices
3. Installed base reliability modeling
4. Cross training in field services
5. Centralization-decentralization in a remanufacturing network with an exchange option
6. Contract and network optimization for service contracts with remanufacturing
7. Multidimensional performance evaluation for service centers
Publication status: published
KU Leuven publication type: TH
Appears in Collections:Research Center for Operations Management, Leuven

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