Asset utilisation as an investment theme #2

As a commercial asset owner (commercial asset being identified as e.g. a truck, bus, gen-set or construction equipment) you need to master your financials and business case. Less you own it for pure pleasure, few do.., it’s there to make money. Being on top of your planning helps but what about unplanned stops? How do you make sure to minimize the time out of service if unplanned stop occurs? Before answering how, let’s conclude the severity of the issue. As an example, in an average case, a break down of a truck takes the truck out of service for 4 days. What’s worrying is that less than 20% of the time is spent on actually fixing the truck.

This kind of reminds me of a project I did as a consultant. We were tasked with reducing lead time in the Order to Delivery process of a manufacturing facility. Assessing the assembly process we realized we could save only minutes, still the challenge was to cut out days out of the process. So we hit the administration process and wow were we surprised. It seemed years had been spent fine tuning the assembly but few had walked through the information flow leading to the assembly instruction. By straightening out and cutting waste out of the information flow from order to assembly instruction we could take a week out a process where actual assembly time of a truck was less then a working day.

Could the same thing be real for a service event? Could it be so that the effectiveness of the information flow is as important to the total service time than actual work on the vehicle? Studying the results generated by Volvo in cooperation with Decisiv lead us to not only believe, but be sure of this. Check out how Decisiv help adresses the issue at http://www.decisiv.com. Do you have more ideas on how to deliver a superior service experience, drop us a note.
Johan Carlsson

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

One Response to Asset utilisation as an investment theme #2

  1. Peter Johansson says:

    A meeting I had with a large diesel engine manufacturer in Indiana a year ago revealed a facinating depth of analysis of fuel consumption being conducted by large fleetowners. A considerable effort was put on combining specific routes (plain south-rocky northwest.. etc.) with specific truck types to minimize the fuel consumption.
    As for service experience you would have to look in US – holistic service design in Europe does it exist ?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s