Beta 1

Title Optimization of the Proposal Phase in the Customer Service Division FLSmidth
Author Larsen, Martin Eger (Copenhagen University College of Engineering, IHK)
Brinch-Nielsen, Jacob (Copenhagen University College of Engineering, IHK)
Supervisor Raagaard, Søren
Fønss, Ulrik
Institution Ingeniørhøjskolen i København, IHK, DK-2750 Ballerup, Denmark
Thesis level Bachelor thesis
Education Diplomingeniør, Eksport
Education Bachelor of Engineering
Publication date 2012-05
Abstract This thesis focuses on the spare parts business, in the FLSmidth Customer Service division. The report is based on the following strategy, delivered by Ulrik Kolding, Vice President Global Customer Service Denmark, in November 2011: By the year 2015, ≥75% of all proposals should be issued within 24 hours of receiving a customer inquiry.
It was determined that the customers, as well as the Customer Service division, would benefit if the strategy was achieved. Customers would receive a better service through improved response time and FLSmidth would streamline their organization, under the condition that changes would be implemented efficiently. In order to understand the current proposal phase, it was required to create flowcharts mapping all the different proposal making processes used in the Customer Relations department, which is the department responsible for converting inquiries into proposals. The results based on interviews with the 12 Customer Relations managers indicated that there existed six different proposal making processes in Customer Relations. Of those six proposal processes, one proposal setup (E) was found to be the preferred setup.

After having mapped the setups, it was possible to analyze each stage in the proposal process. Ultimately three stages in the proposal process were identified as main constraints in the pursuit of reaching Ulrik Kolding’s strategy. It was concluded that if the strategy should be reached, more proposals should be made without the involvement of the engineering, the purchase and the shipping departments. The objective further on in the report was therefor not to optimize those three departments, but to develop solutions on how to avoid those three departments.

Jacob Brinch,Nielsen (070730) & Martin Eger Larsen (070642) 2

Optimization of the Proposal Phase in the Customer Service Division, FLSmidth Thesis
The following initiatives have been developed in order to avoid each of the three departments:
• The Engineering Department
o Educate customers to provide more informative inquiries.
o Educate the Customer Relations Managers’ technical understanding.
• The Purchase Department
o Instruct key vendors to construct price lists on selected items.
o Implement an estimation tool, making it possible to estimate prices on an
increased number of items. • The Shipping Department
o Develop an estimation tool, making it possible to estimate prices on items shipped from places other than Copenhagen.
By implementing these initiatives, it was concluded that 77.3% percent of the proposals could be issued within 24 hours. The success rate however, would depend on FLSmidth’s ability to manage the culture change needed for the implementation and execution of previously mentioned initiatives. The decision makers in FLSmidth should develop a shared vision among employees, ensuring the understanding of the future changes. It is important that each leader understands that they should act as a role model in the pursuit of achieving the strategy. The thesis equips the leaders with a set of tools helping them to manage the change. [Martin Eger Larsen & Jacob Brinch5Nielsen]
Pages 121
External partner Ledere og medarbejdere i private virksomheder
Admin Creation date: 2012-05-21    Update date: 2012-11-22    Source: ihk    ID: ihk-11262968    Original MXD