Diversified Manufacturing, Inc.

1. Introduction

Diversified Manufacturing, Inc. (DMI), founded in 1978, was a multibillion dollar company headquartered in Denver, Colorado. DMI manufactured and distributed a wide variety of electronic, photographic, and reprographic equipment used in many engineering and medical system applications. Most of the company’s profits came from selling “consumables” (films and supplies) used in DMI machines. Customers bought machines on the basis of price, features, quality, and service.

The study showcases the different issues encountered by DMI: some explicit and others are merely implied. Field Service Divisions (FSD) are important parts of organizations operating in manufacturing industries. As technology becomes more and more involved in the production process and the after sales services, it is crucial for companies to develop their Field Service business processes. In the DMI Field Service Case, the company has troubles meeting the customer demands in a timely manner. The quality of the service remains as an important task to improve for the DMI Company and reengineering process of the FSD brought up many issues.

Mission Statement

DMI promises quality assurance to customers.

Not a word. Not a catchy phrase.

It is the way we conduct our business.

It is the way we treat each other.

It is what our customers expect.

It drives our commitment to continually improve our organization.

It’s that simple.

No explanation. No excuses.

A way of life.

Strategic Priorities

We have identified strategic priorities of Diversified as listed below:

1. Shortened queues on stage

2. Business process reengineering

3. Well- trained call- takers and technicians

4. Consolidation or removal of regional dispatch centers

5. Customer- oriented approach

6. Service call process map

Corporate Risks

There are six (6) identified corporate risks in the company:

1. No Part Calls (Technicians in the field service did not have the right parts for a repair or no inventory in the van.)

2. Return Logistics (Technicians returning of repairable boards and valuable materials that has high book value to handle hazardous components properly.)

3. Long Response Times (Customers have to standby because of later reaction time of service calls due to technicians who are also in other service calls, in training, or ill and cannot make the transaction)

4. Travel Times (Due to diminishing quantity of technicians, its jurisdiction becomes wider in scope and results to longer travel times.)

5. Engineer Operations Manager (Most of the managers are engineers- they are suitable in functional area and also have significant knowledge, but they have troubles in cross functional activity.

6. Competition (Historically has no competition and high margins, but Japanese competitors had entered the market with superior product technologies.)

Core Competencies

1. Engineering

2. Welding

3. Machining

4. Integration and Assembly

5. Inspection Service

2. Key Performance Areas

We have recommended the framework of the key performance areas; and have been customized to the particular context of the readings as an equipment and service provider manufacturing company in North America.

The Key Performance Indicators (KPI) are:

1. Service guarantee

2. Repair parts availability

3. Utilization rate

4. Number of available technicians

5. Travel and response time

6. Top managers and employee communication

7. Service Level Agreement

Current Status Assessment

With the application of a color coded self- assessment tool, we have used the traffic light system and defined the performance areas that is shown below in Table 1. This was based on the Case Study: The Field Service Division of DMI which was provided by our Operations Management (Management 187) Professor.

Table 1. Traffic Light Definitions

Green Good: this is on track, low risk.

Amber- Green Satisfactory: this is broadly on track with some concerns which needed to be addressed.

Amber Mixed: some significant concerns which could be damaging if not addressed, medium risk.

Red Problematic: serious concerns threaten this area, high risk to the institution’s overall performance

3. Performance Management Report

Assessment of the Indicators

Key Performance Areas

1. Service guarantee

2. Repair Parts Availability

3. Utilization Rate

4. Number of Available Technicians

5. Travel and Response Time

6. Top Managers and Employee Communication

7. Service Level Agreement

4. Plan of Action

Four (4) of the seven (7) key performance indicator used in the Performance Management Report has constructed plan of actions to propose plan of actions to Diversified. The compartments are arranged