Service Productivity Management_SPM_iCognitive

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Service Productivity Management
An integrated solution towards excellence in service
productivity, quality and profitability
John PAUL
Director of iCognitive
Professor of Bordeaux School of Management (France)
Certified Qualified SCOR Instructor by Supply Chain Council

What is Service Productivity Management (SPM)?
SPM is a process to systematically explore complex service issues and
suggest the most appropriate methods to improve
 Service productivity
 Service quality, and
 Service profitability
Introduction to Service Productivity Management
The SPM Program and its Significance
Consulting Benchmark Training & Workshop Technology Research

• The services sector has become the largest economy of the industrialized
world.
Developing Countries

world.
Emerging Markets

world.
Singapore

Productivity Assessment & Improvement End to End
Challenges and Global trend
Services Business providing
services to customer /clients for a
fee as their primary business
activity
Non profit organizations Government sectors
Hospitality
Healthcare
Banking
Insurance
Software
Consultancy
Restaurant
Arts Organizations
Educational Institutions
Hospital, health clinics
Research facilities
Public Health.,
Public education
• Value-added services in a wide range of service sectors

The global trend
• Higher product performance
expectations
And
• Increased focus on the strategic
value of customer service
ACCELERATING the adoption of
service centric competitive
strategies in many industries.
Wharton, University of Pennsylvania
The challenge
To deliver maximum values to
end users with the least
possible total cost

• Productivity issues in service organizations
How do you manage profitability of a network of hundreds or
thousands of branch offices disbursed over several states and
countries?
How can managed-care organizations manage the quality and cost
of hundreds of physicians providing health services to millions of
plan members?
What methods would enable a government to ensure that the
multiple offices serving citizens across a country are operating at
low cost while meeting the required service quality?

The significance and benefits of SPM
 SPM is a multi-dimensional that adds great value to the comprehensive
assessment of Service Productivity.
• Standard Cost System
• Ratio Analysis
• Zero-based Budgeting
• Balance Scorecard
• Etc.
SPM is not exclusive
to other Productivity
Measurement and
Improvement
Methodologies
currently well-known,
such as

Service Supply Chain
 Transforming a company’s operations into an optimally
efficient, customer-satisfying process
 Involving different departments
 Enhancing efficiency/productivity of the entire supply
chain creates more values compared to efficiency
improvement for each individual department

Benefits of enhanced SPM – Time, Quality, Cost
Higher Service Levels
Faster product and service delivery
Greater added values
Higher quality of support
More cost-effective executions
Lesser Total Cost of Ownership (TCO) *
Lesser opportunity costs
*Total Cost of Ownership (TCO) - An effective measure of how much a particular solution or
approach will actually cost, accounting for all cost components such as integration cost/effort

Common problems in achieving Productivity Excellence
 Lack of enterprise wide integration
 Non-standard processes
 Poor data accuracy
 Sub-optimal planning and order promising
 Lack of visibility of global demand and supply

Production View
Relationship between
production effort and
output quantity
Performance View
production effort and
performance achieved
Profitability View
costs incurred and
profits generated
Input – Output Models Optimization
Output
No. of Sales
Closed
Man Time
Service
Process
Input Output Input
Total Profits
Input Output
Performance Assessment & Improvement
Performance Management for Internal Operations
Machine
Time
Total Time
Dedicated
Total Cost
Incurred
Service
Process
Service/Sales
Cycle
Revenue
Generated
Service
Process
Fixed Assets
Variable
Expenses

Better positioning in the
market place
Better objectives setting for
all business partners
Improved financial performance
with operational cost savings

iCognitive: An integrated service offering to
Support your SPM
15
CONSULTING BENCHMARKING
TRAINING TECHNOLOGY
RESEARCH IN
SUPPLY CHAIN

To KNOW more…
• You want to improve SPM in your organisation?
• You want to improve the capabilities of your Team?
• You have a project in Supply Chain and SPM?
• You want to know the level of your SPM in your organisation?
• Contact us at info@iCognitive.com for more information or inquiries about
SPM and Supply Chain Management!
iCognitive
HQ and APAC
13 Ann Siang Road #02-01
Singapore 069693
Phone +65 63252810
Fax +65 62200690
www.icognitive.com
info@icognitive.com
16Consulting Benchmark Training & Workshop Technology Research

www.icognitive.comwww.icognitive.comwww.icognitive.com
iCognitive China
Room 101- 201, A unit, 3rd
building
No.4028 Nan Huan Road
Hangzhou 310053
China (PRC)
Phone: 86 - 571 2689 2730
iCognitive Europe
7C, place du Dôme
Immeuble Elysées La Défense Paris
La Défense 92056
France
Telephone:+33 (0)1 72 75 72 30
Fax:+33 (0)1 72 75 72 99
iCognitive
HQ and APAC
13 Ann Siang Road #02-01
Singapore 069693
Phone +65 63252810
Fax +65 62200690
www.icognitive.com
info@icognitive.com

Service Productivity Management_SPM_iCognitive

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