Operations Insight: Konecranes – servistisation strategy in action

Konecranes is a global company headquartered in Finland. The company provides a wide range of lifting solutions and equipment for a number of sectors, with general manufacturing, ports, pulp and paper, steel and automotive being its main markets. Konecranes’  doesn’t stop at the supply and initial inspection of cranes and other lifting equipment, but also offers a range of services specifically designed to meet customers’ needs, as explained on their website. Globally it has 626 locations and 12,000 employees.  They make 1.75 million service calls a year, with 430,000 items of equipment under maintenance contracts. Remote sensing enables cranes to be monitored wherever they may be in the world. Konecranes website also has a series of case studies on how they put their servitisation strategy into action.

Konecranes also invests in R&D in order to support its strategy. For instance, the Smarton is a crane designed for small environments that can lift up to 500 tonnes. It is an environmentally-friendly machine, made of 98% recyclable materials and its braking energy is returned to the power grid.  It is also designed to raise productivity, cut product lifecycle costs, monitor its own condition, and suggest preventive maintenance tasks.

In an article in The Manufacturer (June 21010) James Bow, marketing manager at Konecranes UK, explained: “Keeping costs down is very important. We register the cost of downtime our customers can incur in and work to minimise it. We also make sure the machinery works efficiently to maximise their productivity”.  Service represented around 40% of the Konecranes’ business.  There were five different levels of service a customer could choose from – contact, condition, care, commitment and complete.

Source: http://www.konecranes.com

This entry was posted in Chap 14 Operations strategy, Sector: Manufacturing and tagged , , , , . Bookmark the permalink.

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