The Company

This case study focuses on an improvement project conducted by a leading maintenance solutions provider. With 40 years of experience, the company was founded through a partnership of three industry-leading brands, providing services from design to installation and customized maintenance to meet each client’s unique needs.

The synergy between internal teams and a vast network of over 25,000 skilled technicians makes this organization the preferred choice for operations in critical facilities. This setup ensures the delivery of top-quality service and an agile response to customer requests.

The company’s success is driven by a collaborative model that brings together internal teams and an extensive network of affiliates, enabling fast service that greatly reduces client equipment downtime. With a seamless solution in place, customers experience quick and efficient resolutions to any malfunctions, as technicians arrive on-site fully equipped with necessary parts and instant access to work order information, ensuring repairs are completed on the first visit.

The Challenge

The company faced several operational challenges that hindered its ability to provide top-tier service to clients. A major challenge was the extended lead time from the moment a customer request was submitted to the completion of the job, especially for complex work orders. These delays adversely affected customer satisfaction and hindered the company’s ability to maintain a high level of service.

Additionally, the complexity of operations created challenges due to the involvement of diverse internal teams and a vast network of affiliates nationwide. Multiple partnerships with various suppliers further contributed to process inefficiencies. Coordination among these groups frequently led to delays, communication breakdowns, and inefficiencies, intensifying the challenges with lead time.

Below, we present a more detailed overview of the challenges faced:

Long Lead Times for Complex Requests

More complex work orders required multiple steps, often involving return visits and part replacements. These orders had a baseline lead time of 50 days, which the company urgently needed to reduce to meet customer expectations.

Process Inefficiencies

Internal processes were fragmented, leading to delays in planning, parts availability, and job completion. Every workflow step, from budgeting to dispatch and completion, exhibited inefficiencies, contributing to extended timelines.

Performance and Integration of Affiliates

Managing and monitoring the performance of thousands of affiliates was a significant challenge. Often, affiliates provided incomplete information, and limited adoption of the company’s mobile app made tracking and communication difficult.

Supplier Lead Times

Suppliers contributed to delays, especially regarding the availability of parts, which directly impacted the time required to complete work orders.

Accumulation of Work Orders

An increasing backlog of pending work orders added pressure, making it difficult for teams to keep up with requests and effectively prioritize tasks.

Lack of Continuous Improvement in Processes

While some improvements had been implemented, the company struggled to maintain these changes consistently across all teams, especially in establishing daily routines that supported continuous progress and operational stability.

Addressing these challenges required a structured and comprehensive approach to streamline processes, enhance coordination between teams and affiliates, and improve the overall customer experience.

The Approach

A value stream mapping of one of the most complex chains was conducted to overcome the challenges that delay service delivery and affect customer satisfaction. This allowed the company to identify critical points and implement targeted improvement actions. Each action was specifically designed to address key operational issues, ranging from internal inefficiencies to performance problems involving affiliates and suppliers.

Updating the Backlog of Quote Requests and Defining Essential Information

To clear the backlog of quote requests and prevent delays in the quoting process, the team defined the essential information needed for each stage of the request. To manage quotes pending client approval, specific guidelines were established, including criteria for closing the process, following up for responses, or generating new requests, depending on how long the quote has remained unanswered. These steps are designed to accelerate the approval process and keep quotes from piling up.

Simplifying Team Collaboration

A lack of coordination between teams contributed to inefficiencies and delays. By aligning workflows and enhancing communication between teams, the company streamlined operations, reduced lead times and ensured a more cohesive approach to customer service.

Revising the Check-Out Process

The check-out process or final review was revamped to address incomplete or low-quality data collected by affiliates on-site, which led to additional trips and delays. The team developed checklists, clarified the process differences between mobile app users and non-users, and trained affiliates to improve data collection.

Revising the Customer Response Time Process

To tackle the low completion rates on first visits, the company revised its customer response time process, simplifying internal workflows. This improvement enabled more jobs to be finished in a single visit, minimizing the need for follow-up visits.

Editable Surveys for Affiliates on Parts Information

The poor quality of information provided by affiliates regarding needed parts was a significant factor contributing to delays. To address this, editable surveys were introduced, simplifying the process and improving the quantity and quality of information collected.

Revising the Planning Process for Return Trips

The planning process for return trips had become a major bottleneck. By defining specific stages and criteria for each phase of a return trip and addressing backlog cases that had exceeded a set number of days, the company could reduce delays and improve planning efficiency.

Voice of the Customer (VOC) Applied to Affiliates and Clients

The company implemented a comprehensive initiative based on the Voice of the Customer (VOC) to improve affiliate performance. This involved mapping the experiences of both affiliates and clients and conducting surveys and interviews to identify areas for improvement.

Review of Affiliate Listings and of the DNU List

To address gaps in affiliate coverage and improve relationships with those on the Do Not Use (DNU) list, the company developed a plan to seek new affiliate partnerships and reassess existing ones. This effort increased affiliate availability and ensured more agile operations across different regions.

Optimizing the Role and Actions of Affiliate Managers

The role of affiliate managers was refined to enhance overall performance. This included ensuring consistent communication with affiliates, distributing work more effectively among team members, and reviewing legal and compliance requirements to streamline operations.

Analysis of Mobile App Usage and Development of a Lite Version

Low adoption of the company’s mobile app was contributing to inefficiencies. To address this, a Lite version was developed to encourage usage by affiliates with limited or no prior experience. In contrast, the full version remained used by affiliates who were already familiar with the system. This expanded its use and improved real-time tracking of operations.

Updating Parts Data and Standardized Product Coding

Inconsistent data on parts was causing delays in their availability. The company ensured greater consistency by updating the data and implementing a standardized product coding system. It also trained teams to sustain the process, reducing errors and improving its management.

Development of a Decision Tree for Parts Supply

A decision tree was developed to streamline decision-making on whether affiliates or the company should supply parts. Based on data from the past 12 months, categorized by service type, lead time, margin, and geographical availability, this tool optimized decision-making and helped reduce lead times.

Creation of a Supplier Scorecard and Dashboard

Supplier performance was a key factor in parts availability delays. A scorecard was developed to improve supplier information’s availability and accuracy, and a prototype dashboard was created to provide immediate visibility into supplier performance.

Results

The improvements implemented through Kaizen Events drove substantial breakthroughs across multiple key performance indicators (KPIs), boosting operational efficiency and elevating customer service quality.

Reduction in Lead Time for Path 6

The main KPI showed a consistent reduction. Initially set at 50 days, the lead time decreased to 44 days in the first cycle, 36.5 days in the second, and 35.8 days in the third cycle. Despite seasonal challenges, particularly during the holiday period when customer approvals and supplier operations tend to slow down, lead times continued to improve. In April 2024, the lead time for Path 6 reached a historic low of 34.1 days.

Average Days to Complete Work Orders

The average time to complete a work order was substantially reduced, dropping from 24.1 days to 15.6 days. This improvement reflects better coordination and more efficient workflows across all processes.

Reduction in Backlog

The backlog of “quotes to be issued” was reduced by nearly half, from 2,271 to 1,228 (-48%), and is now consistently kept below 1,500. This improvement ensures a more competitive lead time for completing work orders. Additionally, the accumulation of pending quoting requests awaiting customer approval decreased from 454 to 229, reducing task completion delays.

Affiliate Lifecycle

The time required for affiliates to complete tasks, mainly when responsible for supplying parts, decreased from 13.4 days to 10.24 days. Considering all cases (whether the company or the affiliates supplied parts), the lead time was reduced from 17.32 days to 12.51 days, resulting in an overall enhancement in service delivery.

Mobile App Adoption by Affiliates

The adoption rate of the company’s mobile app among affiliates increased by two percentage points. While this may appear to be a modest gain, it is a critical step toward improving immediate communication and overall efficiency within the network.

Data Integrity for Parts

Over 80% of SKU data was updated and standardized, ensuring that future decisions are based on accurate and reliable information. This data update is expected to drive greater parts management and procurement efficiency.

Implementation of Daily Kaizen

Daily Kaizen practices were successfully implemented across all Level 1 and Level 2 teams. The feedback has been overwhelmingly positive, with teams reporting significant benefits in process improvements and operational stability. The success of this project was not just due to immediate performance enhancements but also to the collaborative approach and the long-term sustainability of these changes.

“We gathered team members from different roles and got to work; these team members included frontline team members, analysts, leaders, and many more.” – Vice President of Service Delivery

The improvements implemented through Kaizen Events yielded breakthrough results, such as reduced lead times and backlogs, as well as enhanced operational efficiency and team collaboration. Adopting a collaborative approach and integrating Daily Kaizen fostered a culture of continuous improvement, ensuring that the company is better prepared to face future challenges and maintain a competitive edge in the market.

“Our industry is constantly evolving, and KPIs are becoming more demanding, so we know we must continue to evolve and improve to stay ahead […] keeping Daily Kaizen as a central priority allows every level of our organization to have a voice. The methodology and discipline it has established within our organization will benefit us for years to come.” – Vice President of Service Delivery

We are committed to respecting our clients’ confidentiality. While we have altered or omitted their names, the results are genuine.