Dmi Case
Clamshell Beach Press
CBP TC 46-01
THE FIELD SERVICE DIVISION OF DMI
Diversified Manufacturing, Inc. (DMI) was a multi-billion dollar company headquartered in Denver, Colorado that manufactured and This case was prepared distributed a wide variety of electronic, photographic, and reprographic by Professor Arthur V. equipment used in many engineering and medical system applications. Hill (Curtis L. Carlson Most of the company’s profits came from selling “consumables” (films School of Management, and supplies) used in DMI machines. Customers bought machines on University of Minnesota) the basis of price, features, quality, and service. Some sales people as the basis for class believed that field service was becoming more important in new discussion rather than to machine purchase decisions. However, according to many DMI Field illustrate either effective Service Division managers, field service was not viewed as a critical or ineffective handling part of DMI’s corporate strategy. of a business situation. DMI’s Field Service Division employed about 550 field service The case is based on a technicians (“techs”) who covered the continental United States. real company. These techs provided important service for nearly 240,000 DMI However, all names machines in North America. Most of the techs were concentrated in have been disguised to large metropolitan areas. protect the identity of the company. The Field Service Division at DMI was affected by the same trends that affected the entire field service industry:
•
• • •
Although components were becoming more reliable, machines were becoming more sophisticated and more difficult to repair in the field. Technological change was rapid and it was a challenge to keep up. Product variety was increasing dramatically. It was becoming more and more difficult to find good techs.
As a result of these challenges, the management of DMI decided to create a project to improve the field service business process.
CBP TC 46-01
THE FIELD SERVICE DIVISION OF DMI
Diversified Manufacturing, Inc. (DMI) was a multi-billion dollar company headquartered in Denver, Colorado that manufactured and This case was prepared distributed a wide variety of electronic, photographic, and reprographic by Professor Arthur V. equipment used in many engineering and medical system applications. Hill (Curtis L. Carlson Most of the company’s profits came from selling “consumables” (films School of Management, and supplies) used in DMI machines. Customers bought machines on University of Minnesota) the basis of price, features, quality, and service. Some sales people as the basis for class believed that field service was becoming more important in new discussion rather than to machine purchase decisions. However, according to many DMI Field illustrate either effective Service Division managers, field service was not viewed as a critical or ineffective handling part of DMI’s corporate strategy. of a business situation. DMI’s Field Service Division employed about 550 field service The case is based on a technicians (“techs”) who covered the continental United States. real company. These techs provided important service for nearly 240,000 DMI However, all names machines in North America. Most of the techs were concentrated in have been disguised to large metropolitan areas. protect the identity of the company. The Field Service Division at DMI was affected by the same trends that affected the entire field service industry:
•
• • •
Although components were becoming more reliable, machines were becoming more sophisticated and more difficult to repair in the field. Technological change was rapid and it was a challenge to keep up. Product variety was increasing dramatically. It was becoming more and more difficult to find good techs.
As a result of these challenges, the management of DMI decided to create a project to improve the field service business process.