Case Study of the Reactive Repair Program

Solus Industries evaluated our client’s current repair procedures and several areas of concern were identified.  Our client sought to decrease the amount of time and money spent on each repair, troubleshoot issues, and to identify what work should be covered by their warranties.

Problems included:

• High average repair cost: $1,094.00
• Poor workmanship: Multiple visits to the facility for the same repair
• Status of projects: Unknown to managers
• Time requirements: Overwhelming to regional managers

The challenge:

Develop efficiencies and reduce overall cost.

Summary:

During the period between 1/1/06 through 12/31/06, Solus Industries processed 1233 repairs for our client.  Their average repair cost prior to our involvement was $1,094.00.  With our management capabilities our client’s repair cost averaged $680.65.  This resulted in an average savings of $413.35 per repair.

Solus Industries employed management techniques to address issues with multiple return trips to the same facility for the same problem, eliminated unnecessary work performed by troubleshooting, and developed tracking and reporting systems for regional managers.  Client reduced cost for each repair, needless expenditures, and time for regional managers allowing them to focus on their core projects.

Client’s success:

• Total cost savings of $474,275.00:
• Saved an average of $413.35 per repair
• Saved $18,495.00 through a reduction of 617 operating hours
• Saved $25,400.00 by troubleshooting repair calls
• Saved $49,687.45 by identifying warranty work
• Quality workmanship: Repair jobs were done right the first time
• Status of projects: Regional managers received weekly/monthly updates on all projects
• Time requirements: Reduced regional managers’ time by 617 operating hours

Results: