Focusing on Customer Time in Field Service: A Normative Approach

• Published in: Production and operations management 2007-03, Vol.16 (2), p.189-202
• Main Authors: Apte, Aruna, Apte, Uday M., Venugopal, Nandagopal
• Format: Article
• Language: English
• Subjects: Business metrics; Customer relations; customer service; Customer services; Decision making; Experiments; Field representatives; field service; Heuristic; Heuristic programming; Monopolies; Operations research; Preferences; Quality of service; service operations; service quality; Services industry; Studies
• ISSN: 1059-1478; 1937-5956
• DOI: 10.1111/j.1937-5956.2007.tb00175.x

Although customer convenience should be rightfully considered a central element in field services, the customer experience suggests that service enterprises rarely take the customer's preferred time into account in making operational and scheduling decisions. In this paper we present the results of our exploratory research into two interrelated topics: the explicit inclusion of customer time in nonemergency field service delivery decisions and the analysis of trade‐off between the customer's convenience and field service provider's cost. Based on prior research in service quality we identify and illustrate two time‐based performance metrics that are particularly appropriate for assessing service quality in nonemergency field services: performance and conformance quality. To determine vehicle routes, we develop a hybrid heuristic derived from the existing and proven heuristic methods. A numerical example closely patterned after real‐life data is generated and used within a computational experiment to investigate alternate policies for promise time windows. Our experiment shows that over a reasonable range of customer cost parameters the policy of shorter promise time windows reduces the combined total cost incurred by the provider and the customers and should be considered a preferred policy by the field service provider. Managerial implications of this result are discussed.