Case Study: After-Sales Business as a Success Factor in Mechanical and Plant Engineering
Preface
In the commodity industry of the Latin American market, mechanical and plant engineering companies face particular challenges. As an interim project manager, I have supported various companies in digitalization and reorganization in recent years. One of these projects impressively demonstrates how strategic measures in the after-sales business can not only increase customer satisfaction, but also sustainably improve productivity and competitiveness.
cover image of the case study for social media publishing, São Paulo, Brazil, November 2024
From IoT to Generative AI: The First Innovation Step
A few years ago, I carried out a comprehensive digitalization of a client's production process using IoT (Internet of Things). This solution enabled real-time monitoring and proactive planning of maintenance work. Two years later, the company took a further step: the IoT-generated data was integrated into a generative AI system that was tailored to the client's value chain.
The implementation not only led to efficiency gains, but also created a strong basis for further optimization - especially in the after-sales business, which is of crucial strategic importance in the commodity industry.
After-sales in focus: challenges and solutions
Geographical challenges and service agility
The company's machines are used in remote regions of South America - from Brazil to Chile. This geographical distribution makes logistics and access to qualified service personnel difficult. Our solution: flexible processes and an extended cloud system that connects field service technicians with the central units in real time.
mining operation, Chile, 2024
Batch size one in spare parts production
The production of spare parts in batch size one, i.e. individually for each order, placed high demands on flexibility and efficiency. By setting up an internal 3D prototype lab, we were able to make this process more agile. In the first year alone, the lead time to delivery was reduced by 43%, while the rework rate fell by 80%.
Digital transformation in after-sales service
The integration of generative AI in Microsoft Dynamics made it possible to automatically evaluate damage reports and maintenance requests. Field service technicians can now upload photos and videos of faulty machines, the AI analyzes this data and creates precise action plans. This has reduced the average response time to customers by 80 %.
Success Factors of a Strong After-Sales Service
Professionalized processes
A clearly defined process from order acceptance to spare parts production is essential. This includes the seamless integration of internal departments, such as engineering and logistics, as well as the proactive use of digital tools.
Agile innovation through 3D printing
3D printing in the 3D prototype lab proved to be a real game changer. Within a year, we were able to develop 70 prototypes for the after-sales area and reduce costs by 52%. This successful model is to be expanded to 75% of all prototype developments by 2025.
Customer focus through modern technologies
The use of an integrative cloud solution, combined with generative AI, has revolutionized the entire customer communication and support process. Customer satisfaction and quotation conversion have increased significantly thanks to the optimized processes.
lithium exploration, technical field service, Chile, 2024
Exctract and Translation from Project Description
Business Case: Optimization of after-sales service through agile field service technicians
The after-sales service is a decisive factor for customer satisfaction and long-term customer loyalty for my customer and the new main shareholder. In order to make the service more efficient and agile, an enhanced system is to be implemented that includes the use of Microsoft Dynamics and generative AI. This system allows photos, videos and documents of defective machines and equipment to be uploaded and automatically analyzed to develop a precise action plan.
Problem definition
Field service technicians were too often confronted with inefficient processes that lead to long waiting times and inadequate problem resolution. The manual evaluation of damage reports and the lack of integration of modern technologies make it difficult to respond quickly and effectively to customer inquiries.
Objective
The objective of this project is to optimize the after-sales service by introducing a digital system that:
Increase the efficiency and agility of field service technicians.
Automates the evaluation of damage reports.
Provides a quick and precise action plan for problem resolution.
Solution approach
We implement a system that uses Microsoft Dynamics with integrated generative AI to analyze and evaluate photos, videos and documents of defective machines and equipment. The main functions of the system include:
Data recording and management:
technicians can upload photos, videos and documents directly on site
centralized cloud database to store and manage the uploaded files
Automated evaluation:
use of generative AI to analyze the uploaded files
identification of damage patterns and creation of a detailed damage report by the integrated generative AI
Action plan generation:
automatic creation of an action plan based on the analysis results
integration with Microsoft Dynamics for seamless processing and follow-up
Real-time communication:
provision of real-time updates and instructions to technicians
use of Microsoft Teams for collaboration and communication between technicians and support teams as well as the operator customer's technical team and purchasing department
Expected results
Increased efficiency: Reduced time for damage analysis and repair.
Improved accuracy: More precise diagnoses and customized action plans.
Increased customer satisfaction: Faster response times and improved problem resolution.
Cost savings: Reduction in downtime and optimization of resource utilization.
Implementation plan
1st pilot phase:
selection of two pilot projects to test the system in Brazil
training of technicians and support teams
2nd rollout:
gradual introduction of the system in all relevant areas
continuous monitoring and adjustment based on feedback and performance data
3rd evaluation and optimization:
regular assessment of system performance
implementation of improvements and enhancements based on the findings
Flexible Production Systems
Flexible production systems that can react quickly to different requirements are crucial for the successful implementation of batch size one. This can be achieved through modular machine concepts and adaptable production lines. But the human factor in combination with technological solutions proved to be really crucial.
My customer tended to outsource most of the work on batch size one production to third-party service providers. It was not uncommon for prototypes to have to be produced for retrofittings, which further increased internal coordination and significantly extended the actual timeline to delivery.
The project team quickly realized and demonstrated that we could make the internal process much more agile by using 3D printing in prototype production. Not only did the process become more agile, but we also learned a lot in our own organization.
What did we do?
After initial individual tests, we installed a 3D prototype lab. We wanted to use the lab to develop at least 25% of all after sales and retrofittings internally in the first year of 2024. The strategic goal is to handle at least 75% of these developments internally by the end of 2025.
Our 3D Prototype Lab action plan in 3 steps
Less hyphenated action plans - more action. Based on the culture of design thinking, we have set up a mini start-up to test ideas and processes. The lab began with little complexity and no bureaucracy apart from the initial phase. With each more complex assignment, we expanded the number of employees in the lab.
Finding the right mix. We didn't approach the challenges fearfully, but rather playfully and with trail and error in the spirit of design thinking. This very quickly led to us being able to recognize the advantages and disadvantages of outsourcing partners in development much more transparently.
Don't lose the DNA. The project was another massive cultural break in my client's company. We had to prevent the day-to-day employees in the lab from being seen as some kind of elite in order to keep the acceptance of the project alive. To prevent this, we held a kind of open house every Friday to report on progress, setbacks and challenges. At the same time, we made sure that other employees were constantly integrated into the project.
3D-printing for retrofitting parts, Brazil, 2024
Results and outlook
Customer satisfaction: The satisfaction value rose from 65% to consistently over 90%.
Efficiency: The response time to customer inquiries was reduced by 80%
Sales increase: The conversion rate of after-sales quotations into actual orders increased by 30%
The after-sales business is far more than just a support area. It is a strategic asset that ensures long-term success in a challenging industry. With flexible processes, digital transformation and a strong focus on customer needs, companies can sustainably strengthen their competitiveness - even in the most remote regions of the world.
