MHE-Demag presents innovative Engineered Service. concept

MHE-Demag, a joint venture between Jebsen & Jessen (SEA) Pte Ltd and Demag Cranes and Components GmbH, has introduced a new maintenance concept under the name Engineered Service.

At a reception, held during MHE-Demag Australia’s annual Service Conference, division manager of service Mark Beckwith introduced Engineered Service to all attendees by saying: “Engineered Service avoids the inertia inherent in traditional transactional models by placing the onus of what to do, when to do it, and how to do it firmly in our hands while at the same time making us operationally and financially accountable for the result. Crucially, we are compensated based only on the performance of our customers’ equipment – the only metric that matters to our customers.”

The key point of differentiation is the ownership of risk. In commonly used maintenance agreements, a client subscribes to a certain service scope and interval, while compensating the service provider on a transactional basis. The customer bears the risk of in full and there is no fall back plan, if the equipment fails. With Engineered Service, MHE-Demag draws on decades of market leading know-how in material handling maintenance and prepares a custom-fit, individual maintenance plan for every piece of equipment.

Approaching service planning on an individual equipment basis ensures that the criticality of every machine is taken into account and potential over or under-servicing is eradicated. The result is that every machine receives the service volume it requires to ensure uptime is at its maximum. To share the risk equally the reward for MHE-Demag is based on mutually agreed key performance indicators and not on number of service visits.

Beckwith said, “MHE-Demag’s Engineered Service, a fully comprehensive plan shares the risk equally between both ourselves and our customers and creates an actual partnership. We put some of our ‘skin in the game’. By establishing a true partnership with shared interests Engineered Service allows clients to rest assured that MHE-Demag as the service provider will only be compensated if key performance indicators are met. This goes hand in hand with maximising the machine’s safety, productivity and durability and thus creating a win-win situation.

Together with the Engineered Service. model, MHE-Demag is constantly striving to increase the reach of its service network. The service conference and customer reception in Hobart was therefore not only the launch of Engineered Service, but also officially opens the new MHE-Demag service office, to service Australia’s island state Tasmania. Based in Hobart, MHE-Demag will pick up on a number of long lasting business relationships that previously focussed on installing new material handling equipment. By being present locally, MHE-Demag will endeavour to provide expert service while being geographically close to a larger number of businesses.

MHE-Demag engineers, manufactures and maintains a comprehensive range of industrial cranes and hoists, warehousing equipment such as lift trucks and dock levellers, aerial work platforms, building maintenance units for safe working at heights, compact construction equipment, as well as automated car parking systems. Its customised solutions serve a wide range of industries from general manufacturing to aerospace, covering a broad customer base.

MHE-Demag is headquartered in Singapore and operates within its close-knit regional network in Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, Singapore, Myanmar, Papua New Guinea, the Philippines, Taiwan, Timor-Leste, Thailand and Vietnam, among others. With a dedicated workforce of more than 1700 staff, its operation is supported by 11 manufacturing facilities and more than 70 strategically located branches in the region.