Measuring Performance in Service Business

Abstract

Nowadays the after-sales activities have a significant status in source of profit, revenue and competitive advantage for many manufacturing companies. In order to manage after-sales business successfully, management needs to have a good understanding of company’s performance. Managing after-sales business with principles of manufacturing business does not work. More customer oriented approach needs to be assumed in service business. A good tool for managing after-sales business is to have a performance measurement system, which considers customers’ expectations. The aim of this research is to create customer oriented performance measurement cockpit for the supply chain of the case company. Thesis explains how the research is done in a case company. In the beginning of this research the supply chain is generally examined. Then customers’ expectations for a good after-sales business are defined. Finally customer focused performance measurement system is represented. Theoretical part of the thesis focuses on examining material management, performance measurement, spare part business and especially performance measurement in spare part business. As literature of this research have been mostly used scientific publications of performance measurement, material management and spare part business. The result of this research is customer focused performance measurement system for a part of the case company’s after-sales business.