Service Management Example

Automation Software Streamlines Service Administration

Automating the administration of service contracts has reduced the amount of administration time by 50 percent over the same period that service volume has increased by 75 percent.

Efficient service administration is critical in the fire protection business because many customers would be forced to close down their businesses if their protection equipment ever went out of service. In the past, service orders were generated and billed by hand. The new system automatically generates contract orders which saves a tremendous amount of time. Entering service calls and billing also takes much less time because the system eliminates the need to re-enter data already in the system, such as customer name and address, and automatically calculates prices. Another advantage of the new system is that it has eliminated the problem of forgetting to bill clients for contract service.

A-R sells fire extinguishers, fire alarms and fire suppression systems. The company provides service for its own equipment and that sold by other companies throughout Rhode Island, Massachusetts and Connecticut. Primary markets for the company's equipment and service include office buildings, department stores, gas stations, restaurants, manufacturing plants and many other types of commercial facilities. A point of major importance to the company's customers is the ability to provide very fast service when required. This is because many of these companies are required to maintain fire protection systems in working order or else close down their business.

A large share of the company's revenue comes from contract inspections. Often, local regulatory authorities will specify that a system must be inspected on an annual or quarterly basis. A-R will typically provide a quotation for a year's worth of required maintenance and bill on an annual or quarterly basis for the service provided. The company has 5000 sites where it performs inspections on a service contract. They also receive a great number of calls where customers require unscheduled service. The company has a 40-person service staff.

In the past, A-R managed these service calls with the help of a generic relational database running on an IBM personal computer. An accounting software package, which did not communicate with the relational database, handled financial reporting. The relational database was used to store each service contract customer. Work orders were distributed to the service personnel who fulfilled them and then returned them to the service manager for billing. The service manager would create the invoice by writing it line by line and pricing each item and totaling the invoice. It was especially time consuming to enter the description for each item again and again. This document was then handed off to a secretary who typed it, mailed it to the customer and turned it over to a bookkeeper who entered it into the financial reporting system. Inventory was another concern since, using these manual methods, it was impossible to keep track of items in stock without going out to the warehouse and actually counting them.

The company installed software developed by SouthWare Innovations, Inc., Auburn, Alabama, to automate the service function. The system stores all service contracts and automatically generates work orders at the appropriate times. On a regular basis, the service manager produces a report of outstanding service orders which prevents any orders from falling through the cracks. The administration of unscheduled calls is also simplified. The service manager enters them into the system, but there is no need to repeat the customer name, address, and other information that already exists.

Service administration is integrated with financial reporting so when the work order is completed and returned, the invoice is automatically generated. The description and price of each item is stored in the system so all that needs to be done to produce the invoice is entering each part number, or selecting it from a list, and entering the number of labor hours. The system automatically credits inventory for each item used on a service call which saves a considerable amount of time previously spent in the warehouse checking on quantities on hand.

Improvements have also been realized in route planning. Route planning is complicated both for geographic reasons and also because technicians have different abilities and licensing ratings which limit the jobs they can handle. Files are exported to spreadsheet applications on a monthly basis to allocate contract orders amount the different service personnel.

The software was first applied to the fire alarm division. In the past, two full-time people were needed to generate work orders and invoices. Once the system was fully implemented, it became possible to eliminate one of these positions and move the person to another job. Since the system was implemented, service volume has risen by 75 percent. In spite of that fact, one person has been able to handle the entire fire alarm service administration task without any assistance. The system will soon be implemented in the company's two other service divisions and is expected to generate similar time and cost savings.

Dana Garlock is general manager of A-R Protection Systems in Rhode Island.

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