CRU Execution Improvement

PCG Services
Douglas Babcock, DFS Lead Engineer
 CRU Execution Improvement Agenda

 Problem Statement

 CRU Execution Improvement Overview

 CRU ID – Understanding the Issues

 Resources for Execution

 Next Steps

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 CRU Execution Improvement – Problem Statement
Problem statement:
• Large financial gap found due to low CRU execution WW: ~$ 800k
• External consultant research indicate opportunity for improvement

• Review CRU IDs to identify

execution opportunities
Review • Gaps found within CRU IDs:
overall CRU <40%
Project Intent

• Manually updated T & X CRU Increased

IDs for NA call center
Change • Train contact centers to divert CRU
depot/on-site claims to CRU
Execution
• Leverage diagnostics and
videos to increase CRU
Leverage execution
• CRU execution reporting

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 CRU Execution Improvement – Overview

Mission:

 Define FRUs to optimize service delivery FRU Definition:

1. Think - 90% by SIT
2. Lenovo/DT – 95% by SS-10
 Improve Duration of Repair Actions (DRA) & CRU design
Design CRU Increase:
 Enable CRU execution reporting 1. Think – 5%
2. Lenovo/DT – 10%
 Leverage/support diagnostics to improve CRU execution
Reduce DRA:
1. Think – 5%
2. Lenovo/DT – 10%

CRU Channel Mix:

1. Identify and remove inhibitors to CRU
execution
2. Increase CRU channel mix by 5%
Focus item for cost savings
Resources:
1. Training videos for CRU replacement
2. Teardown sessions

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 CRU Execution Improvement – Overview cont’

Mission:

 Utilize replacement videos

 YouTube
 Lenovo

 Focus on execution of mandatory

CRU’s
 Optional CRU’s

 Leverage Diagnostics
 Accuracy
 Reduce NDF

 Measure success
 CRU Execution Report
 Feedback to R&D

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 CRU – Understanding the Issues

• No reporting to measure CRU execution WW • CRU ID visibility is a challenge for our Geos
• Need sub series level CRU reporting that shows • Gaps in BT/IT solution to flow CRU ID downstream
CRU 1 and CRU 2 identification for that product • In many cases Claim Tier value is used as CRU ID
1 2 which was incorrect
• Sample report

Reporting Visibility

• Historical design trends led to reduced CRU 1

5 CRU Execution CRU usage which drove higher service costs
• Geos are not executing on CRU ID
ID

Claim Tier Claim Tier &

CRU ID
Issues Confusion
• Claim Tiers are outdated due to commodity • Claim Tier is displayed as “CRU Tier” in CRM
level exceptions that are machine unique • Claim Tier only applies to AWSPs not Call Centers
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 CRU Execution Improvement – Resources
 Lenovo YouTube Channel
 https://www.youtube.com/channel/UCiNzWKyztaaAe6m0yx9ONLw

 Mostly T&X series machines currently

 All new products released on this channel

 Lenovo Service Training

 https://www.lenovoservicetraining.com/landingpage?orgname=Lenovo%20Service%20Training

 All products contained on site

 Notebooks, DT, Servers & WS

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 CRU Execution Improvement – Next Steps
Customers
• Encourage customers to install their own CRU-able
components
• Faster install than depot
• Both Mandatory and Optional-service CRU’s

Resources
• Utilize videos as a resource for execution and training
• Leverage diagnostics tools to increase troubleshooting
accuracy and decrease NDF
• CRU Execution Report

Measure
• Measure CRU execution improvement versus baseline
• Feedback all issues to DFS team in PCG Services
• Additional training available within DFS team
• dbabcock@lenovo.com
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 Back Up

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 T & X CRU Analysis

Just matching the execution rate of prior generation yields significant savings

Commodities listed were all CRU ID 1 in the xx20 gen products

Projected CRU execution T440 CRU T420 CRU
improvement by treating execution by execution by
as CRU ID 1 commodity commodity Avg # of claims oppty per yr 8928
HDD 6% 42% 48%
SSD 7% 29% 36% Weighted C/CL savings $69.19
Kybd 13% 19% 32%
Memory 11% 15% 26% T440 projected savings $617,728.32

Projected CRU execution X240 CRU X220 CRU

improvement by treating execution by execution by Avg # of claims oppty per yr 2868
as CRU ID 1 commodity commodity
HDD 11% 34% 45% Weighted C/CL savings $69.19
SSD 24% 24% 49%
Memory 8% 13% 21% X440 projected savings $198,436.92

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E540 CRU execution data for WE
Since BP rates are favorable on CRU and normally do not involve CC the CRU
execution opportunity should be focused on Depot , Onsite & CCI
CRU Oppty = Total Claim Count – (CRU count + BP count)
601 or 73% = 2063 – (904 + 558)

44% current blended CRU execution, significant oppty on Tier 1

58% can be achieved diverting all Tier 1 depot to CRU
Tier 1 CRU = Mandatory
Tier 2 CRU = Optional 11
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 CRU ID Management Review & Usage
CRU ID is defined as the service part replacement complexity
More specifically, how difficult it is to physically replace a part – are tools needed, must you remove another part first, etc.

Possible Values:
1 – Mandatory CRU
2 – Optional CRU
N – Not a CRU (field replaceable unit - FRU)

Uses:
1. Enforcing the call center agent to utilize the CRU process for replacement of service parts per CRU ID after diagnosis
2. CRU ID enforcement linked to Lenovo Legal Warranty terms
3. Possible: Labor pricing could be based on the CRU ID (presently Claim tier ) along with brand, MT, Geography

Complexity:
Within the same machine type, parts with the same commodity can have different CRU ID values, for example:

CI – internal cards – graphics internal card could be FRU whereas wireless internal card may be CRU
BA – Battery – some new products have multiple batteries, one which is easily removable (CRU) and the other internal (FRU)

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 CRU ID vs. Claim Tier
 Claim Tier is maintained at the commodity code level in LSCRM as CRU tier field name

• It is used for claims process to set the claims labor price up to Claim tier level
Example: LBG, EMEA, DE, prod hierarchy level 1,2,3,4, Claim tier => labor price

• It is also used for enforcing the mandatory CRU process in depot and field services process

 CRU ID is implemented in Windchill as part of the SBOM Bold workshop and is being populated for newly released
products; this currently does not feed downstream systems but is only used to manually load IBM’s WWDC as a legacy
field

 At present IBM Contact center uses CRU ID from KOALA to determine CRU, All other contact centers uses Claim tier
setup in LSCRM/LICRM for determining the CRU
( IBM contact center uses values 1,2 and N to determine CRU; Lenovo contact centers uses CRU flag based on Claim
tier to determine CRU )

 Difference: CRU ID, Claim tier represents the complexity of replacing a part within a machine, however Claim tier
also considers the e2e diagnostic processes. As a result, Claim Tier and CRU ID may differ for some parts:
• Claim tier is dependent on MT and commodity code Example: Tier 1 = easy repair, Tier 2 = level 2 repair, Tier 3
= level 3 repair
• CRU ID enforcement linked to Lenovo Legal Warranty terms, Claim tier does not

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 THANK YOU

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