Service chain optimization: Difference between revisions

Revision as of 18:32, 10 January 2010

Latest revision as of 01:38, 30 June 2017

(29 intermediate revisions by 21 users not shown)

Line 1:

{{refimprove|date=May 2016}}

'''Service Chain Optimization''' is the application of processes and tools that embrace all functions for improving the efficiency, productivity and, eventually, the profitability of service organizations.

In this regard, profitability of a service organization is measured by the revenue generated from service demand (in the form of service work orders being carried out), and by the costs due to activity of the enterprise's human resources (who provide the service). Service chains consider the full life-cycle of service demand from early stages of forecasting, through planning, scheduling, dispatch, execution and post-analysis.

'''Service Chainchain Optimizationoptimization''' is the application of processes and tools that embrace all functions for improving the efficiency, productivity and, eventually, the profitability of service organizations.

In this regard, profitability of a service organization is measured by the revenue generated from service demand (in the form of service work orders being carried out), and by the costs due to activity of the enterprise's human resources (who provide the service). Service chains consider the full life-cycle of service demand from early stages of forecasting, through planning, scheduling, dispatch, execution and post-analysis.

== The Modules of Service Chain Optimization Systems ==

Service chain optimization is closely related to the fields of [[workforce management]] and [[field service management]]; the activity performed by field service resources is managed through the latter while being planned and optimized through the former. This relationship is analogous to the relation between [[supply chain optimization]] and [[Supply chain management software|supply chain management]] in the ___domain of manufacturing. In this regard, the service chain benefits from [[demand forecasting]], resource planning and scheduling, and long term analysis activities similarly to the manner these contribute in the [[supply chain]] (being typically managed by [[Enterprise resource planning|ERP]] systems and optimized by supply chain optimization systems).

==Origin==

A Service Chain Optimization system is comprised of the following modules:

# a long-term forecasting module used for:

## receiving entries of historic demand for service tasks;

## calculating estimated future demand for service tasks to be fulfilled in each specific region within future periods, based on said manual entries and analysis of past demand for service;

## periodically performing an optimization procedure in order to update said calculated demand for tasks;

# a mid-term planning module used for:

## receiving entries of actual future service tasks already allocated;

## receiving estimated demand for future service tasks in each region based on analysis of past demand for service;

## allocating one or more service-men to fulfill each of actual service task, and further allocating personnel in each specific region for supporting said estimated demand for tasks;

## periodically carrying out optimization procedure of said plan allocations of service-men for service tasks;

# a short-term scheduling module used for:

## receiving entries of actual service tasks;

## assigning one or more service-men to fulfill each actual service task in an optimized manner based on the capability of each available service man;

## periodically carrying out optimization of previous assignments that have not yet been performed;

# an analysis module for collecting and periodically analyzing past demand for service tasks, performance of said service tasks, and the actual capability of each service-man or the aggregate capability of available service-men; the module is also used for updating said mid-term and long-term modules with analysis of past demand for service for the purpose of optimizing the assignments, and for calculating discrepancies in assignments;

# a coordination module iteratively calculates and propagates information relating to the effects of updates in task assignments from said long-term module to said mid-term module, and from said mid-term module to said short-term module and vice versa.

== See also ==

* [[Customer service]]

* [[Service (economics)]]

* [[Service economy]]

* [[Field Service Management]]

* [[Workforce management]]

* [[Strategic Service Management]]

== External Links ==

* [http://www.patentstorm.us/patents/6985872/fulltext.html Patent relating to Service Chain Optimization by ClickSoftware]

* [http://www.clicksoftware.com/sco4dummies Service Chain Optimization for Dummies Book]

*[http://www.aberdeen.com/summary/report/benchmark/RA_SRO_MVRG_2860.asp Aberdeen''Group'' The Field Service Scheduling & Routing Optimization Solution Selection Report ]

The term "service chain optimization" was coined by [[ClickSoftware]] in 1996. ClickSoftware received a patent, US 6.985.872 B2, for continuous planning and scheduling (service chain optimization). The term refers to field service management optimization, workforce productivity, improving [[customer service]], and reducing operating costs.<ref>

[[Category:Business software|Workforce Management]]

{{US patent reference

| number = 6985872

| y = 2006

| m = 01

| d = 10

| inventor = Moshe Benbassat, Amit Bendov, Simon Arazi, Michael Karlskind, Israel Beniaminy

| title = Method and system for assigning human resources to provide services

}}</ref>

==Modules==

[[de:Service-Chain-Optimization]]

Most commonly, a service chain optimization system is made up of the following units:

# a long-term forecasting module used for:

## receivinguploading entries ofthe historic demand for service tasks;

## calculating the estimated future demand for service tasks based on the given historic demand levels (per different business units, geographies and for different time domains);

# a mid-term planning module used for:

## uploading the forecasted future demand for service tasks from the former forecasting step;

## allocating human resources for covering the estimated future demand for service tasks;

## periodically performingcarrying anout optimization procedure in order to updateof said calculatedplan demand for tasksallocations;

# a short-term scheduling module used for:

## receiving entries of actual future service tasks already allocated;

## receiving updates to the required manning levels of human resources based on the former planning step;

## assigning one or more service-menhuman resources to fulfillfulfil each actual service task in an optimized manner based on the capability of each available service manperson;

## periodically carrying out optimization procedure of saidprevious planassignments allocationsthat ofhave service-mennot foryet servicebeen tasksperformed;

# an analysis module used for:

## collecting and periodically analyzing past demand for service tasks;

## analyzing the performance of said service tasks and the actual performance levels of human resources;

The cycle is completed by feeding the result of analysis back into the forecasting module.

== See also ==

* [[Service (economics)]]

* [[Service economy]]

* [[WorkforceStrategic service management]]

== References ==

{{reflist}}

==Further reading==

* Christos Voudouris at al. ''Service Chain Management: Technology Innovation for the Service Business”, 2008,'' {{ISBN|978-3-540-75503-6}}.

== External Links links==

''(Links below no longer work as of Aug 2016. Highlighting so someone from Aberdeen perhaps can correct these.)''

*[http://www.aberdeen.com/summary/report/benchmark/RA_SRO_MVRG_2860.asp Aberdeen''Group'' The Field Service Scheduling & Routing Optimization Solution Selection Report ]

*[http://www.aberdeen.com/summary/report/benchmark/4315-RA-optimizing-service-chain.asp Aberdeen''Group'' Optimizing the Service Supply Chain]

== The Modules of {{DEFAULTSORT:Service Chain Optimization Systems ==}}

[[Category:Business software|Workforce Management]]