"The expanding importance of warranty across the IT industry makes the need to optimize the underlying warranty processes inside a corporation a competitive necessity.
Industry surveys offering some focus on warranty come and go on a regular basis; the cursory design of which, when combined with the cursory nature of how to which they are responded, often create flawed and misleading information. The one exception has been the unique approach offered by MGH.
I believe strongly that their work in the field of warranty benchmarking represents the gold standard across the IT industry. Their dedication to ‘getting it right’ on the front end speaks volumes to their integrity and commitment to produce value for their clients. Their work is a meaningful, value-added engagement"
Bill Alesbury, WW Director of Warranty, Enterprise Storage & Server Business, HP
Services - Benchmarking
MGH specialise in setting up and running industry benchmarking studies. Over the last seven years we have run 15 major studies in the IT, medical diagnostic, copier and telecom sectors. As well as building up a unique database of quantitative and qualitative benchmarks, MGH has been able to refine an approach to benchmarking that gives a real "apples with apples" comparison.
Parts cost benchmarking
MGH were commissioned by a major European IT company, who had recently outsourced their complete spare parts logistics operation. The client was keen to ensure that they were being charged market rates for the spares they were using. They also wanted to ensure that their inventory costs for new bids were competitive. MGH facilitated joint party meetings and developed a costing methodology agreed upon by both parties. MGH continues to run regular pricing reviews.
Worldwide warranty benchmarking study
Based on the previous study MGH enhanced both the qualitative and quantitative sections and expanded the IT modalities covered. The participants of the 2000 study included (ADIC, Apple, Compaq, EMC, Exabyte, Fujitsu-Siemens, Hewlett Packard, IBM, Sun Microsystems). The study involved a close analysis of both operational and financial methodologies and processes and has enabled MGH to build up considerable experience of Best in Class processes. Building on the previous successes, MGH carried out a further worldwide study reviewing logistics cost and performance in the after sales service logistics arena. The study successfully compared a wide range of logistics key performance indicators and processes and has become an industry measurement standard. MGH were asked by the participants to repeat it a couple of years later.
Supportability, warranty and best practice analysis
Working with Accenture, MGH developed questionnaires and maturity profiles to conduct a pan-industry study into warranty, supportability and hardware service delivery best practice. The study developed a database of industry best practice processes. From an analysis of warranty expense as a percentage of product revenue the study investigated the key drivers of warranty expense. This included looking at delivery processes by modality, including; product design processes, product call centres, field and centralised repair.
Worldwide X-ray tube benchmarking study
In 1997, MGH designed the structure and scope of the first benchmarking study ever conducted in the X-ray tube manufacturing industry, ensuring compliance to anti trust law. The study developed industry wide measurement standards and developed key improvement plans for each participant. Based on the success of the 1997 study MGH were commissioned to run the second medical X-ray tube benchmarking study. This second study had an additional participant in Toshiba Medical Systems and joining; GE Medical Systems, Philips Medical Systems, Dunlee, Varian and Siemens Medical Systems the study covered almost all of the major rotating anode tube manufacturers.
Repair centre benchmarking
MGH worked with a global electronics manufacturer experiencing a decline in the number of repairs per month carried out at one of their repair centres. MGH were asked to benchmark their repair centre against industry best practice.
MGH ran an evaluation of the central returns process and highlighted sub optimal areas and potential improvement initiatives, including recommendations to optimise the existing ‘3R’s’ (Returns, Repair, Reclaim) process.