Service chain optimization: Difference between revisions

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'''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.

Service Chainchain Optimizationoptimization is closely related to the fields of [[Workforceworkforce Managementmanagement]] and [[Fieldfield Serviceservice Managementmanagement]]; the activity performed by field service resources is managed through the laterlatter while being planned and optimized through the former. This relationship is analogous to the relation between [[supply chain optimization]] and [[Supply chain anagementmanagement software|Supplysupply Chainchain Managementmanagement]] 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==

== The Modules of Service Chain Optimization ==

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>

{{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==

Prevalently, a Service Chain Optimization system is made up of the following units:

PrevalentlyMost commonly, a Serviceservice Chainchain Optimizationoptimization system is made up of the following units:

# a forecasting module used for:

## uploading the 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 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 carrying out optimization procedure of said plan allocations;

# a scheduling module used for:

## receiving entries of actual service tasks;

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

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

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

# 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 ==

* [[Customer service]]

* [[Service (economics)]]

* [[Service economy]]

* [[Field Service Management]]

* [[Workforce management]]

* [[Strategic Service Management]]

== See also ==

== Further reading ==

* [[Service (economics)]]

* Christos Voudouris at al. ''Service Chain Management: Technology Innovation for the Service Business”, 2008,'' ISBN 978-3540755036.

* [[Service economy]]

* ClickSoftware. ''Service Chain Optimization For Dummies'', John Wiley & Sons Ltd, 2010, ISBN 978-0-470-68855-7.

* [[WorkforceStrategic service management]]

== External LinksReferences ==

{{reflist}}

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

== Further reading ==

* Christos Voudouris at al. ''Service Chain Management: Technology Innovation for the Service Business”, 2008,'' {{ISBN |978-35407550363-540-75503-6}}.

==External 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 ==}}

[[Category:Business software|Workforce Management]]

[[de:Service-Chain-Optimization]]