Product-Services Quiz for OEM's

As an OEM, are You Prepared to Transition to a Product-Services Focused Business Model?  Take the test by answering the following questions about your company and Product-Services.
 

#	Product-Services Questions	Yes	No	Don't Know
1	Can you identify the size (+ or - 10%) of your current global installed equipment base?
2	Do you or your strategic partners provide operating leases to end-users as an options for possessing your equipment?
3	Do you know what market share you and your strategic partners have captured relating to all Product-Services activities (product sales, exchange, repair, overhaul, etc.) for your proprietary Service-Parts (you own the design of the part)?
4	Do your post-sales technicians have formal inputs into the new equipment design approval process?
5	Do you know what percentage of potential warranty claims are never filed by your customers?
6	Do you know what percentage of equipment maintenance activities are performed in-house by equipment users?
7	Do you know what percentage of equipment maintenance activities are performed in-house by equipment users?
8	Do you offer exchange services as an alternative to having customers wait for their own product to be repaired?
9	Do you have a special incentive program for new equipment salespersons to sell Product-Services offerings?
10	Do you have a robust accrual accounting system to manage cost of sales that are out-of-period with revenue?
11	Does your organization depend upon aftermarket  material buyers to acquire out-of-production Service-Parts?
12	Do you provide an incentive to Field Service Technicians to configure customized Product-Services offerings?
13	Do you have a procedure that defines, in detail, the financial reporting transactions required when cannibalizing equipment for parts?
14	Have you established a relationship with a Third Party Logistics (3PL) supplier to manage your reverse supply chain?
15	Do you have adequate insurance coverage for materials you possess, but do not own, and are liable for their loss/damage?
16	Has your 6 Sigma/TQM corporate team been focusing on your Post-Production business processes that manage products and services?
17	Do you classify "insurance" service-parts (items with no predictable demand) as a long-term inventory asset?
18	Do you know your equipment user’s annual expenditures on corrective maintenance, measured as a percentage of new equipment replacement costs?
19	Do you know what percentage of the warranty claims that you have processed have been charged-back to your suppliers?
20	Do you know what percentage of your IT expenditures are spent on supporting Post-Production business processes?
21	Have you begun evolving your technical documentation to an electronic format that can be accessed via the Web?
22	Do you periodically review the age distribution of your installed equipment base in order to determine the impact upon service-parts planning?
23	Do you geographically reposition balance sheet product assets to minimize personal property taxes?
24	Do you systemically transfer some share of your balance sheet impairment risks to your suppliers?
25	Do you restrict your suppliers of proprietary products from selling direct to distributors or equipment maintainers?

 

Total of "YES" Answers
0-6	You have a lot of work ahead
7-18	You're getting your act together
19-25	You're focused on Product-Services

OEM Product-Services Institute
P.O. Box 48
Lewisburg, PA  17837
Voice: 570-523-0992   Fax: 775-213-0752  
E-mail: info@oemservices.org
Ron Giuntini, Executive Director

All rights reserved by OPI.  Website by Web Tek Computer Company, Ephrata PA.