Group 11, BM-B, OtisLine (A) Case Study

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Group 11 BM – B [2010 – 12] Ajit Panigrahi (B10065) Manmeet Kaur Chhabra (B10087) Pratyush Chinmoy (B10099) Rahul Agarwal (B10101) Srikanth Vemuri (B10118) OTISLINE (A) “When elevators are running really well, people do not notice them. . . Our objective is to go unnoticed.” Bob Smith Executive VP, COO Otis Elevators

Transcript of Group 11, BM-B, OtisLine (A) Case Study

Page 1: Group 11, BM-B, OtisLine (A) Case Study

Group 11 BM – B [2010 – 12]

Ajit Panigrahi (B10065)Manmeet Kaur Chhabra (B10087)

Pratyush Chinmoy (B10099)Rahul Agarwal (B10101)

Srikanth Vemuri (B10118)

OTISLINE (A)

“When elevators are running really well, people do not notice them. . . Our objective is to go unnoticed.”

Bob SmithExecutive VP, COO

Otis Elevators

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OTIS ELEVATOR

Founded by Elisha Graves Otis

Subsidiary of United Technologies Corp.

$ 2bn revenue by 1984

COMPANYOVERVIEW

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BRAND PERCEPTION OF OTIS

Synonymous with Elevators

Technical Leadership

Reliability

Quality

COMPANYOVERVIEW

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GEOGRAPHIC DIVISIONS

Organized into Four Distinct Divisions

North America

Latin America

Pacific Area

European Transcontinental

COMPANYOVERVIEW

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BUSINESS IN ELEVATORS AND RELATED PRODUCTS

Design Manufacture Installation Service

COMPANYOVERVIEW

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PRODUCT LINE

Otis Hydraulics

Elevators for low-rise buildings ( not more than 6 stories)

Otis Geared

Elevators for mid-rise buildings ( up to 24 stories)

Otis Gearless

Elevators for High-rise buildings

COMPANYOVERVIEW

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ADVENT OF MICROPROCESSOR TECHNOLOGY

Group Controller

• In machine room

• Dispatching decisions and call assignments

Car Controller

• One per car in the machine room

• Governs the operation and motion of the car

Cab Controller

• Mounted on the car

• Interfaces with the control hardware

COMPANYOVERVIEW

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SERVICE MARKETS CHARACTERISTICS

Steady Demand, High Profitability

Responsiveness, Quality and Price, the key attributes looked for by customers

Interoperability, pre-microprocessor era

Thousands of companies devoted exclusively to service industry

60%-80% of contracts awarded at the time of sale, more so with the advent of the microprocessors

INDUSTRYOVERVIEW

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ELEVATOR INDUSTRY

Sales accounted for a $1 billion market in North America

Service made up for $2 billion by 1985

Competitors: Westinghouse, Dover, Montgomery, Schindler, U.S. Elevator, Fujitec

Cyclical Industry, in sync with the building cycle

INDUSTRYOVERVIEW

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NORTH AMERICAN OPERATIONS OVERVIEW

Size: Second largest division of Otis Elevator

Scope: Large, geographically dispersed field organization

NAO Information Services

Installed first computer, IBM 1401, in 1965 to automate maintenance billing

[1965 – 78]

Production Control

& Accountin

g

[1978 – 81]

Data Entry & Enquiry

for Inventory Control

[1985]

OTISLINE

IBM 3083

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NAO ORGANIZATION CHART

Branch/Field Offices

District Offices

Zone Directors

Regional Offices

NAO President

NAOOVERVIEW

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OTISLINE: KEY BENEFITS

Quality Customer Service

Better responsiveness to customer callback

Generation of “excess” callback reports

Proper resource allocation to problem areas

Enhance productivity of elevator sales reps and service mechanics

Introduction of new methodologies of system development

OTISLINEOVERVIEW

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OTISLINE: IMPACTKey Business Areas

Marketing

New Equipment Sales

Service

Customer Services

Dispatching and control of Service Mechanics

Information Services

OTISLINEOVERVIEW

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SERVICE MANAGEMENT SYSTEM

OTISLINEOVERVIEW

Sales Call Management

Route Management

Otisline

Service Performance Management

Price Estimator

Building Information

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INFORMATION SERVICES

SMS sans OTISLINE

• Customer Master File

• Route Information

• Service Price Information Data

Improvements in SMS post Otisline

• Addition of customer billing

• Service Price Information improvement

• Usage of OTISLINE dispatcher for data updating

OTISLINEOVERVIEW

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CUSTOMER SERVICE INITIATIVE

Staffed High Skilled dispatchers

Trained for 6-8 weeks

Trained to be courteous, efficient, sensitive and speak clearly

Periodic seminars and trainings

Supervisor during periodic checks

OTISLINEOVERVIEW

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PROCESS FLOW

Customer Calls on toll free number

Move to top of the Queue

Dispatcher picks the call

Call on designated lines

Move to bottom of the Que

Identify the building and customer and log the call

Dispatcher 2 pages to mechanic

Mechanic completes report

OTISLINEOVERVIEW

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CUSTOMER SERVICE: DELIVERY PROCESS

BEFORE & AFTER OTISLINEBefore OTISLINE After OTISLINE

Customer AnsweringService

Mechanic

Field Office

District

Zone

Region

NAOHeadquarters

Mechanic dispatchedand fixes problem

Mechanic files report

Mechanicpaged

Problem/complaint reported

RoutineReporting

OTISLINE

Mechanic

Customer

Mechanic dispatchedand fixes problem

Mechanicfiles report

Mechanicpaged

Problem/complaintreportedRoutine

Reporting

OTISLINEOVERVIEW

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DISPATCHING AND CONTROL OF SERVICE MECHANICS

Prior to Otisline

Hand written reports

Varied report quality

With Otisline

Centralized service mechanic despatching

Notebooks used for logging

Identifying recurring problems

Increased information to NAO management

Boost in quality and Reliability

OTISLINEOVERVIEW

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MARKETING-NEW EQUIPMENT SALES

Automate Status Report and prospects

Three Stages

Negotiation

Estimation

Disposition

OTISLINEOVERVIEW

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MARKETING-SERVICE

Responsiveness

Reliability

Innovation

Communication

Teamwork

Customer Satisfaction

OTISLINEOVERVIEW

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SERVICE – SUCCESS METRICS

Service contracts won / lost

Profitability by customer, by office, and by region

Response time by office, and by region

Callbacks by customer and by office

Time to repair elevator

Time to repair and quality of repair for each individual mechanic

Time to repair and quality of repair for each individual mechanic

OTISLINEOVERVIEW

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FUTURE APPLICATION

Remote Elevator Monitoring

In-car problems

Problem communication

to central computer

Analysis of problems

Generation of trouble

reports

Dispatch of service

mechanics

Notification of trapped

passenger problem

Identification of

problem with top priority

Location identification by Dispatcher

Sending of service mechanic

OTISLINEOVERVIEW

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FUTURE APPLICATION

Replacement of service mechanic pagers with hand-held terminals

New equipment ordering: Lead time shortening and raw material inventory management improvement

Contract management: Tracking of changes in elevator installation schedule

Telemarketing of service: Generation of prospect list and more service contracts

OTISLINEOVERVIEW

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ANALYSIS

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CAPABILITIES

Redesign Of Business Processes:

Centralization of Service Mechanic Dispatching contrary to NAO’s decentralized approach

Automation of production of status reports on elevator sales prospects

Faster responses to customer problems and storage of logs in central computer bettering customer service

Monitoring: Efficient tracking of the callback activity and completion of new projects

Collaboration: Service calls made to Otisline and mechanics paged for callbacks via hand held terminals

Standardization: Enhanced quality & timeliness of information enabled standard practices and workflows

ANALYSIS

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COMPLEMENTS

Work Structures

Work flow

Step of submitting manual reports for callback and repair history log to field office’s service desk was eliminated

Quick diagnosis of problem installations, component malfunction and key resource allocation to problem areas

Interdependencies: Changed drastically with reporting being done on pocket notebooks as per otisline dispatcher’s questionnaire

ANALYSIS

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BUSINESS IT ALIGNMENT

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BUSINESS IT ALIGNMENT

Strategic Intent

Current Strategy

Customer Segment

Price/Quality

Channels

Competition

Buyers & Suppliers

State of the industry

Technology

Regulations

IT Strategy

IT Portfolio

Impacts

Impacts

Enablers

Drivers

STRATEGY

ENVIRONMENT

IT

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ENVIRONMENT

Competition: Major manufacturers being Otis, Westinghose, Dover,

Montgomery, Schindler, U.S. Elevator and Fujitech. Competition between

companies is based on price, reputation, and ability to satisfy elevator

performance specifications and architectural requirements

State Of The Industry: Highly competitive, with cyclical demand in elevator

sales (concentrated) and steady demand in service market (fragmented)

Technology: Electromechanical followed by microprocessor based

elevators. Proprietary maintenance devices for diagnosis of elevators with

microprocessor-based control systems requires state-of-art technolofy

BUSINESS IT ALIGNMENT

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STRATEGY

Strategic Intent: Otis pursues a differentiation strategy. The aim is to retain the leadership in sales and provide quality and fast service to maintain its position as leader of the service industry

Current Strategy: To provide quality service to customers more effectively by improving responsiveness and to be positioned as a large and highly regarded service organization service contracts to be the market leader in services

Customer Segment: Contractor, architect, building owners for use of elevators in low-rise, mid-rise and high-rise buildings

Quality: Usage of OTISLINE for improved centralized data processing increasing responsiveness & reliability resulting in better communication and higher customer satisfaction

BUSINESS IT ALIGNMENT

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IT

IT Strategy

In-house implementation with help of multi-functional team

Installation of extensive peripheral equipment

Expansion of SMS database with improved access and quick updating via otisline dispatcher

IT Portfolio

IT Infrastructure- Support for otisline customer service center through IBM 3083, several direct access storage devices and telecommunications equipment with large budget allocation to this IT support

BUSINESS IT ALIGNMENT

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