Service Academy –Finance Module – Day 2

Objective for this session – Delegates will, by analysing Quick and Dirty P&L be able to
identify potential areas for improvement.

These following sessions follow on from basic finance course.

The delegates have just had an overview on basic finance, so they should have an
understanding of how the various Revenues, Costs of Sale and Operating Expenses get into the
profit and loss account.

At this point the emphasis needs to change from “this is how the P&L to work” to “what can
you as Managers do in your role to improve the profitability in your area of
responsibility”

Activity – The Service Manager will split into teams and using P&L from Quick and Dirty
analyse their company’s financial performance and identify opportunities for
improvement.
They will then come back into the group and present their findings.

Time allocated for this session 1. 45mins

Activity - The group will split into 3 teams and brainstorm the following:

What areas of profit and loss can the Service Manager and Supervisor affect?

Team 1 – Revenue, Team 2 - Cost of Sale, Team 3 - Operating Costs.

The results should be prioritised into a list based on the overall affect on profitability i.e.
improving area (a) will have the largest impact on profit.
This has to be realistic and by that I mean it has to be an area that the Manager can influence.
E.g. increased sales / copy volume will have a large affect on profitability but it is very difficult to
get the customer to press the print button more often.

Following this the group will return to the training room, present their findings, and will identify
what it is the Manager can DO to improve profits.

Time allocated for this session approx. 2 hr

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Service Academy –Finance Module – Day 2

Opportunities to improve

Revenue:
Downtime: All the time a M/C is inoperable it is not making copies and revenue

Travel time Response Call Planning

Work-time first time fix Fault analysis skills

RTF stock management Fault analysis skills

Product Training Minimise travel time flexibilty

Chargeable Services:
IT Support

Machine damage – trays etc. (for repeated problems)

Standby and Out of working hours service

Charging for Disconnection/Relocation

Accessory Contracts:
Promoting connectivity contracts

Billing:
Resolving complaints promptly
Accuracy Reducing successive estimations
Working with Admin and machines unbilled report
Call planners escalating non-contract errors, and following up
Prudent use of credit compensation FOC paper etc. as alternative to credit copies

MIF Management
Unprofitable machines Upgrade Work with sales
Convert to annual contract
Discontinuation Manage end of life cycle
Unreliable machines Repair, replace, or upgrade Work with sales
Annual contract for low volume group 1

Increase Copy Volume

Cnnected Machines Loan Network card Build volume
Networked m/c’s average 40% amcv increase
Sale of network card after loan

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Service Academy –Finance Module – Day 2

Cost of Sales
Spare Parts
Fault analysis skills Tech. Training Field assessment
Smart PM’s
Effective vehicle stock control
6 month full stock check cyclic checks via RIC
FSS authorisation for high cost parts
Manage drum usage Drum usage report (compare best/worst)
Accompaniment / training
Monitor cost/million by tech Share best practice with good and poor performance
Stock write off
Effective vehicle stock control Returns process
Fault analysis skills Training
Toner
Redistribution to customer with similar product
BPS Work with BPS to identify and resolve problems
Operating Expenses
Salaries
Grading PDP and Field assessment
Overtime Controls
Headcount
Absence Back to work interviews PIP (if appropriate)
Productivity Work Practices
Availability @ 80% Utilisation @ 70%
Communication
Mobile phones Monitor usage 7 cost to company
Encourage use of Short Messaging Service
Vehicles
Maintenance Condition Accident record Driver training if appropriate
Right vehicle for grade
Expenses

Hotel (Travel Inn etc) Monitoring/Control

Distribution

Esprit Costs Back orders with Replen. Work with RIC

Maintain accuracy of customer address

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