MHE-Demag recently introduced a new maintenance concept to best optimise the service provided to customers whilst maintaining the quality of their products. The concept, named Engineered Service, was introduced during MHE-Demag Australia’s annual Service Conference.
MHE-Demag’s Division Manager of Service Mark Beckwith launched the concept by explaining it to all in attendance.
“Engineered Service avoids the inertia inherent in traditional transactional models by placing the onus of what to do, when to do it and how to do it firmly in our hands while at the same time making us operationally and financially accountable for the result. Crucially, we are compensated based only on the performance of our customers’ equipment, which is the only metric that matters to our customers,” he said.
In commonly used maintenance agreements, a client subscribes to a certain service scope and interval that covers all equipment whilst compensating the service provider on a transactional basis. The customer bears the risk of it in full and there is no backing plan if the equipment fails.
With Engineered Service, MHE-Demag banked on their decades of market leading know-how in material handling maintenance to prepare a custom-fit, individual maintenance plan for each piece of equipment. This approach of service planning on an individual equipment basis ensures that the criticality of every machine is considered and eradicates over or under servicing.
As a result, each machine receives the service volume required to ensure that its uptime is at its maximum. In this way, the risk is shared equally as MHE-Demag will be rewarded on agreed key performance indicators and not on the number of service visits.
“MHE-Demag’s Engineered Service is a fully comprehensive plan which shares the risk equally between us and our customers, creating an actual partnership and we put some of our ‘skin in the game’. By establishing such a true partnership with shared interests, this Engineered Service assures customers that MHE-Demag will only be compensated if key performance indicators are met. This goes hand in hand with maximising the machine’s safety, productivity and durability – creating a win-win situation,” Beckwith emphasised.
Extended Service Network
With the Engineered Service model as a testament to MHE-Demag’s constant efforts to increase the reach of its service networks, the service conference and customer reception in Hobart also saw the launch of the new MHE-Demag service office. Based in Hobart, the new quarters will service Australia’s island state, Tasmania and will pick up on a number of long-lasting business relationships that previously focussed on installing new material handling equipment. With such a local presence, MHE-Demag seeks to provide top quality expert service whilst being closer to a larger number of businesses.