View the full 2008 Technical Services Practices Survey - PMMI

2008 TECHNICAL SERVICES PRACTICES SURVEYPackaging Machinery Manufacturers Institute4350 N. Fairfax DriveSuite 600Arlington, VA 22203(703) 243-8555Publication Date: August 2008Director of Research and Surveys: Paula Feldman, PMMI© Copyright 2008 Packaging Machinery Manufacturers Institute, Inc. All rights reserved. The information contained herein shall not be distributed or shared by the recipient. No partof this document may be reproduced without the express written permission of PMMI.

EXECUTIVE SUMMARYRespondent ProfileThe 160 companies (32%) that responded to this survey were grouped into six categories based on theaverage selling price of their machinery. Distribution is weighted more heavily toward the higher-endcategories, with fifty-eight percent of all respondents falling into the last two (“$75,000 - $150,000” and“Over $150,000”).Average Selling Price of Machinery(# of respondents per category)16581912$0 - $15,000$15,000 - $35,000$35,000 - $50,000$50,000 - $75,000$75,000 - $150,000Over $150,0001935The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.1

EXECUTIVE SUMMARYJob DescriptionField Service Technician: Visits customer sites to perform initial start-up, maintenance and repairs ofmachinery, may include training, in-house assembly, machining, and phonesupport on technical issues.Service Delivery & UtilizationDown three percent from the 2005 study, thirty-seven percent of respondents use both dedicated servicetechnicians and assembly technicians, with a breakdown of 63% and 48%, respectively. Larger firms aremore likely to have both dedicated service technicians and assembly technicians than smallercompanies. Forty-four percent of the technicians are regional based. In a 40 hour week, approximately35 hours are “billable” to a customer. When service technicians are not “billable”, they are usually onloan to other departments (38%).24/7 support is provided by fifty-two percent of firms, down five percent over 2005. The various levels ofsupport are; phone support (67%), minimum time to get technicians on site (43%), remote diagnostics(32%), next day dispatch (26%), dispatch within 12 hours (19%), and same-day dispatch (18%).The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.2

EXECUTIVE SUMMARYCompensationSeventy-seven percent of responding firms pay time and one-half for overtime work completed Mondaythrough Friday. Sixty-seven percent pay time and one-half on Saturday. Double time is paid by fifty-sixpercent of responding firms for Sunday and sixty percent for Holidays.CompensationHoliday - DoubleTime49%60%Sunday - DoubleTime46%56%2006Saturday - Timeand 1/270%67%2008Overtime - Timeand 1/272%77%0% 10% 20% 30% 40% 50% 60% 70% 80% 90%Only seventeen percent of responding firms provide technicians a varying degree of salary dependenton the number/type of machines they can service.The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.3

EXECUTIVE SUMMARYTwenty-four percent of responding firms do not have bonus programs in place for service technicians.These bonuses are determined on an individual basis (63%).Bonus programs in place for service technicians30%28%25%24%20%19%15%13%12%14%10%5%3%0%Selling partsUpgradesAgreementsSkill set# of hours workedNo bonus programProfit SharingThe information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.4

EXECUTIVE SUMMARYSixty-eight percent of responding members use non-exempt, in-house assembly technicians to alsotravel for service work. An hourly premium for travel and service work is paid to in-house assemblytechnicians (37%) The average hourly premium paid is $21.00 per hour.Additional compensation paid for travel/service work:• Frequent flyer miles (53%)• Comp time off (30%)• Bonus/premium (20%)• Increased travel pay (13%)• No special incentives provided (28%)Service technicians are covered for PERSONAL travel accident insurance by workers compensationpolicy (60%), additional company paid insurance policies (48%) and credit card insurance (22%). Theaverage percentage of on-site vs. travel time is 66% and 34% respectively. Auto expense is reimbursedon a straight cents per mile basis by 79% of responding firms. This is an increase of three percent over2005.Eighty-seven percent of responding members pay actual travel hours to non-exempt, in-house assemblytechnicians that are used for travel for service work, while thirty-four percent pay a minimum of eighthours of travel per day. Service technicians are compensated for a weekend stayover without work bysixty-seven percent of those members who responded. They are also compensated for early morningservice (32%) and late PM service (39%).The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.5

EXECUTIVE SUMMARYBilling and ExpensesAverage Hourly Billing Ratesas of December 31, 2007$250$200$150$100$50$86$76$130$111$165$135$188$161$215$183$216$18820052007$0Travel timeStraight timeOvertimeSaturdaySundayHolidayTravel expenses for technicians are passed through to the customer on an actual basis by eighty-threepercent of responding members, down two percent from 2005. Several responding members indicatedthat travel expenses are passed through to the customer on an actual basis plus 10 to 15 percent.The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.6

EXECUTIVE SUMMARYTwenty-nine percent of responding members charge the customer for early morning service and thirtysixpercent charges for late PM service.Forty-three percent of responding firms use or sell annual maintenance contracts and thirty-sevenpercent use or sell periodic maintenance contracts. Forty-five percent of these contracts are notprepaid. This has been fairly consistent over the past 3 years. Seven percent of responding firms’service revenue is derived from maintenance contracts.Twelve percent of responding firms proactively pursue the servicing of competitive or non-competitivemachines. Sixty-seven percent service their machinery that has been modified by a third party or ifchange parts have been supplied by a third party.TrainingOver half of the firms that responded (59%) provide training for new service personnel before going onthe road.The following non-technical training is offered to new service personnel before going on the road:• Problem analysis (82%)• Customer relations (74%)• Interpersonal skills (45%)• Conflict resolutions (40%)• Teamwork (37%)The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.7

EXECUTIVE SUMMARYThe majority of training is obtained by internal training (59%)Where Training is Obtained.70%60%59%50%40%30%31%30%20%10%0%3%2%LocalcommunitycollegePMMI'scertifiedtrainerprogramOutsidesourceInternaltrainingOJTMiscellaneousOne-third of responding members have a formal after installation follow-up program. Twenty-threepercent make their formal follow-up program available to their customers. A CRM (CustomerRelationship Management) tool is used to manage the service function by twenty-three percent ofresponding members.A data or knowledge base of past service trips is maintained by eighty-five percent of responding firms.The majority of those firms keep track of past service trips by serial # (79%).The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.8

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000Demographics1. Average Selling Price of MachineryJob Description160 16 19 12 19 35 58Field Service Technician: Visits customer sites to perform initial start-up, maintenance and repairs of machinery, andmay include training.2. How does your service technician position description differ from the one listed above?• Includes training, operational and maintenance (9)• They do in-house assembly and machining (8)• Provide phone support on technical issues for customers (7)• Our service techs are non-exempt. (2)• Our service technicians are PMMI Certified Trainers.• In addition, creates machine manuals during downtime at home base.• Our people are assembly and testing technicians that occasionally travel for installation and service.• Gather data for engineering.• Installs printers on packaging machinery• System configuration• Includes sales and engineering• We look for some type of experience relevant to the industry; look for A-B controls experience• Also involved in start-up, FAT and training in-house. Provides assistance with assembly and/or electrical, ifnecessary.The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.9

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000• Performs machine audits for rebuilds.• Also provides technical assistance, part number identification, suggests spare parts needed to support equipment,offers contracted PM programs.• Field service does have mechanical and electrical classifications.• When not on a call, the service technicians work in the assembly department.• Sell all inside and outside service and parts required for service.• They also perform scheduled onsite calibrations.• Performs conversions• Audit machines and makes recommendations for repairs. Suggests retrofits to customer's machines, conductsmachine specific training consisting of both hands on and classroom training.• Performs equipment demonstrations• Performs final assembly, test and factory acceptance testing in facility prior to shipping equipment.• More focused on assisting start-ups, repairs and occasionally small programming changes to the control or HMIsoftware• Makes sure the machine is set-up properly for the start-up.• Also sell Service Contract Products and perform contract services.• We also provide PM audits on equipment in the field• Selling Contracts and SLA's• Completes reports of same, while not traveling will do assembly and final check-out of equipment.• Also include on-site factory validation testing (SAT).• Ours includes "strong electrical/mechanical background necessary as well as experience in troubleshooting PLC's,inverters, etc."• Our technicians focus on the startup and training with a small percentage being return visits for maintenance.• Field Service Technician: Visits customer sites to perform initial start-up, calibration and operator / maintenancetraining.The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.10

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000• Work includes mechanical repairs, trouble shooting, and programming PLC controls• We add "Other duties as assigned" and also provisions for making in-house repairs as required.• Our field service technicians perform the mentioned tasks and serve as liaisons between customers requiring aftermarketcustomization.• It also includes in house product testing and machine check out prior to shipping.• Builds the machine from the ground up, starts up, debugs, runs FAT for customer, ships machine, installs, starts upthe system, trains customers employees, services machine if needed.• We consider our service technician as part of our sales team. Therefore, their customer site visits also provide thecustomer with information as to upgrades and new equipment.Service Delivery & Utilization3. Do you use assembly technicians, dedicated service technicians or both?Assembly technicians 29 0 6 4 4 5 10Dedicated service technicians 58 8 8 3 6 15 18Both 61 4 4 5 7 13 27Other 11 4 1 0 2 2 2Note: Multiple answers can total over 100%Other Answers:• Assembly technicians and engineers. (2)• Service techs have a designated job position but work in assembly when not in the field.• Contract people from other companies.• Sales reps or customer assemblyThe information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.11

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000• We call our factory technicians Final Assurance Technicians for machine checkouts at the factory only• Most knowledgeable and available person from the shop is detailed• Sales/service engineers.• Some Service Technicians also do assembly work• We sell exclusively through distribution which installs and services the machinery• We don't have people dedicated to certain tasks.• Our Field Service Technicians will do all both assembly and start-up work in the field• We do not provide installation.3a. If you use both, please indicate the percentage of each.Assembly techniciansMean 44% 17% 64% 25% 44% 56% 41%Median 30% 15% 82% 20% 40% 75% 25%Dedicated service techniciansMean 56% 83% 36% 75% 56% 46% 59%Median 70% 85% 18% 80% 60% 25% 75%3b. What percentage of your service technicians are regional based vs. headquarters based?None 85 4 12 8 12 19 291% - 10% 14 3 1 1 1 4 411% - 20% 8 0 0 0 1 1 621% - 30% 11 1 2 0 1 4 3Over 30% 33 6 4 2 3 4 14The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.12

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,0003c. If dedicated service technicians, how many hours per 40 hour work week are the technicians“billable” to a customer?Mean 35 hrs. 27 hrs. 45 hrs. 38 hrs. 33 hrs. 34 hrs. 35 hrs.Median 30 hrs. 25 hrs. 36 hrs. 30 hrs. 27 hrs. 36 hrs. 33 hrs.3d. What do the service technicians do when they are not “billable”?Make sales calls 5 2 0 0 1 0 2Receive paid time off 9 0 0 1 2 1 5Receive unpaid time off 6 0 0 0 1 3 2Are on loan to other50 3 8 5 5 10 19departmentsOther 63 8 9 5 5 17 18Note: Multiple answers can total over 100%Other Answers:• Phone technical support (12)• Assembly & rebuild (12)• Training (5)• Perform the final checkout of machines (4)• Work in house (3)• On loan to other departments. (2)• Test machines (2)• Repair equipment (2)• Offer technical support to customers without charge by phone or in person (2)The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.13

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000• Perform non-billable service from the office via telephone (2)• When they are not in house erecting machines, they are on the road.• Engineering• Doing reports, research on projects, preparing parts quotes, follow up calls• Combination of Paid time Off, Loaned to Assembly and Courtesy calls• Start-up machinery in-house• Work for themselves or other manufacturers; they are independent• Manuals, time off (paid and unpaid), shop work• Rarely not allocated; generally backlogged.• Other customer service projects - build kits, answer calls• Paperwork and perform final QC of outgoing product• Receive paid time off, but are on call to go anywhere at any time.• Many tasks including making courtesy calls, working in the shop and answering technical calls on the phone. Alltime is paid.• Sales calls, warranty work, demos, production assistance• Prepare for trips, prepare reports, train, time off if have 40 hours in.• Field office paperwork and administrative duties• Courtesy calls, follow ups• Work in service department and production/assembly.• Spare parts sales, warranty• R& D, clean up, etc.• Complete paperwork, etc.• Perform start-up of other machines in the shop• Administrative reporting and sales support.The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.14

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000• Help with machine testing and development ideas• Spare parts sales / shipments / sales quotation support (AutoCAD layout drawings) / service troubleshooting• Varies, sometimes loaned to other departments and if salaried and have worked weekends receive paid-time off.• Product testing• Arrange the next week’s schedule• R&D work• Following up on past service trips, preparing for their next assignment.• Resolve formal customer complaints3e. Comments:• After 40 Hour per year un-paid tech are paid• Technical support team adds value to our products.• Field service technicians provide 35 % of the assembly labor• Regional Technicians provide phone technical support• Our Assembly techs are billable to a job , paid by the customer until the job is complete... they even may be askedto stay on for up to a month or two to ensure a clean start-up Also paid by the customer• 1st priority is to insure they are wrapped up from their last trip, 2nd is prepare for the next trip then training• Field Service Representatives spend approximately 53% of their time performing billable services• The majority of our dept duties are for "included" start up's, not chargeable to the customer-distributor.• We are growing their service department by 200% within the next year.• Service technicians are guaranteed a paid 40 hour week.The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.15

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,0004. Do you provide 24/7 support?Yes 83 8 7 3 8 18 39No 76 8 12 9 10 17 194a. If yes, explain levels of support.Phone support only 59 6 4 1 6 13 29Service dispatch within 1217 2 2 0 1 1 11hoursSame day dispatch 16 0 1 1 1 5 8Next day dispatch 23 2 2 0 2 4 13Minimum time to gettechnicians on site 38 2 3 0 5 7 21Remote diagnostics 28 0 2 0 4 7 15Other 9 1 0 1 0 1 6Note: Multiple answers can total over 100%Other Answers:• Always provide phone support. (11)• Our base goal is to have a tech on site with in 24 hours of the call in the US (5)• Service dispatch within 24 hours. (4)• Business hours M-F 8-5 EST. All calls outside of this time go to call center who contacts the Service Manager.• We do whatever is needed to get the customer up and running• Only if requested by customer they receive 24/7 phone service.The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.16

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000Compensation5. How do you compensate a service technician for the following?Overtime (Excess of 8 hrs per day or 40 hrs per week Monday thru Friday)Time and one-half 120 11 9 8 13 26 52Other 36 2 10 4 6 8 6Other Answers:• Future comp time off. (7)• Salaried position (3)• No weekday overtime rates apply (3)• Some are salary, others time and a half• We don't allow over 8 hours per day.• Hourly rate past 44 hours Monday thru Friday• Svc Techs are salaried positions; Assembly techs receive time and one-half• 4 hour premium for each night away from the office• Incentive pay• Bonus kicks in for any hours over 51 in any given week.• Bonus payments• The field service engineer role is a salaried exempt role.• First two hours: time + 25%, any work after that is time and a half.• Straight time• Reciprocal time in vacationThe information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.17

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000• We use a daily rate• Time & 1/2 and a 30% field service differential• Time and one-half from after 40 hours, double time after 11 hours• Regular time compensation• Salaried employee, time off compensation• Comp. time; additional pay on billed service• Salary plus incentive bonuses.• Time and one-half plus 10% premiumSaturday (Whether or not 40 hrs have been worked in the week)Time and one-half 102 9 9 6 14 21 41Double time 19 2 1 1 0 3 12Other 32 2 8 4 5 9 4Other Answers:• Future comp time off (8)• Straight time plus bonus pay• Comp time - Salaried Exempt• Straight salary• Flat Rate for travel only and 2x for billable working• Svc Techs are salaried positions; Assembly techs receive 1 1/2• 12 hours• Comp Time / Bonus• Incentive pay• +$100• Comp time off or bonus paymentsThe information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.18

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000Sunday (Whether or not 40 hrs have been worked in the week)Double time 85 7 6 3 10 18 40Time and one-half 33 4 4 4 4 6 11Other 35 2 8 5 5 10 5Other Answers:• Future comp time off (9)• Some are salary, others double time• Straight time plus bonus pay.• Salary• Flat Rate for travel only and 2x for billable working• Svc Techs are salaried positions, Assembly techs receive double time• 12 hours• Comp Time / Bonus• Incentive pay• +$100• Comp time off or bonus payments• $125/day for travel only, $250/day for work in plant regardless of hours.HolidaysDouble time 92 7 5 7 10 22 40Time and one-half 19 4 3 0 4 3 5Other 43 2 10 5 5 9 12The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.19

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000Other Answers:• Future comp time off (9)• Triple Time (3)• Time and one-half plus Holiday (3)• Holidays are scheduled off. Double time with comp hours if one is worked.• No holiday work scheduled• Bonus and time off• Salary• Flat Rate for travel only and 2x for billable working• Tech receives 8 hours pay for the holiday plus double time for hours worked• Svc Techs receive comp time, Assembly techs receive double time• 12 hours plus 1 day off• Bonus• Incentive pay• +$100• Comp time off or bonus payments• Double time and one-half6. If your company services several different types of machines, are the technicians provided a varying degreeof salary dependent on the number/type of machines they can service?Yes 27 1 3 1 3 5 14No 129 13 16 11 16 30 42The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.20

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,0007. What bonus programs are in place for service technicians?Selling parts 23 3 2 0 6 4 8Upgrades 16 1 0 1 5 2 7Agreements 14 3 1 0 6 2 2Skill set 17 0 4 1 2 4 6# of hours worked 32 1 6 3 4 5 13No bonus program 34 2 6 6 2 4 14Profit sharing 4 0 0 0 0 0 4Other 32 3 5 1 5 7 10Other Answers:• Overnight bonus and overseas bonus• Finders fee for new machines• Quarterly bonus based on achieving service intake and staying within service budget cost.• All service people get 30% premium when traveling.• Per day bonus for service trips• Based on merit• Periodic bonuses• Just overtime• Extra pay for overnights and international travel• Commission on service / parts sold.• Extra 30% of base pay when on the road, plus over time if incurred.• 10% premium over their shop wages• Currently restructuring bonus programsThe information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.21

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,0008. Do you use non-exempt in-house assembly technicians to also travel for service work?Yes 105 6 8 11 12 23 44No 50 8 10 1 6 12 138a. If yes, do you pay them an hourly premium for travel and service work.Yes 40 1 2 1 7 8 21No 63 5 7 9 5 14 228b. If yes, what is the average hourly premium paid?Mean $34 - $44 - $38 $33 $29Median $16 - $16 - $33 $6 $218c. Do you provide any additional compensation or perks for their travel/service work?Comp time off 40 3 7 4 2 7 17Frequent flyer miles 71 6 8 3 6 13 34Increased travel pay 18 1 2 1 1 2 11Bonus/premium 27 2 2 4 4 8 6No special incentives38 3 4 5 7 11 8providedOther 11 2 0 0 2 3 4The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.23

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000Other Answers:• Overnight bonus pay (2)• Per Diem (2)• Home weekends• Non-working day pay, meals per diem• Hourly premium carries additional $ for international service and formal training.• Techs who travel receive an increased hourly rate• Incentive pay• Pay for travel hours• Hotel bonus programs• 20$/day9. How are your service technicians covered for PERSONAL travel accident insurance?Worker’s compensation policy 91 10 8 8 15 22 28Additional company paidinsurance policies 73 5 4 6 9 14 34Credit card insurance 33 2 3 2 4 8 14Not covered 20 0 5 2 1 5 7Note: Multiple answers can total over 100%10. What is the average percentage of on-site vs. travel time?On-site time 66% 57% 54% 62% 74% 71% 68%Travel time 34% 43% 46% 38% 26% 29% 32%The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.24

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000Billing and Expense14. As of December 31, 2007, what was your average hourly billing rate (US$) for the following?Travel timeMean $80 $85 $66 $94 $71 $77 $86Median $75 $80 $50 $73 $65 $75 $80Straight timeMean $112 $115 $95 $145 $107 $106 $116Median $110 $118 $90 $90 $107 $105 $115Overtime (Excess of 8 hrs. per day or 40 hrs per week Monday thru Friday)Mean $153 $164 $130 $128 $147 $149 $165Median $150 $170 $135 $125 $137 $150 $159Saturday (Whether or not 40 hrs have been worked in the week)Mean $164 $165 $137 $121 $165 $154 $185Median $150 $160 $135 $123 $141 $150 $172Sunday (Whether or not 40 hrs have been worked in the week)Mean $192 $190 $153 $137 $186 $190 $218Median $185 $210 $160 $134 $175 $180 $200The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.27

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000HolidayMean $205 $210 $177 $158 $198 $196 $226Median $200 $220 $187 $155 $184 $180 $210OtherMean $124 - $125 $88 $126 $150 $125Median $125 - $125 $88 $97 $150 $120Other Answers:• Straight hours after 7:00 pm (2nd shift coverage)• We bill per day• OT, POT, HOL, billing rates are lower than in plant rates.• Saturday/Sunday Travel Time $90/hr• Standby time $70/hr• Training is $115, Engineering is $125• We bill by the day. Labor: Weekday $995, Weekend $1,395, Holiday $1,565• $280.00/hr. weekend travel time• We don't charge overtime unless over 10 hours on site.• 30.00 dollars per day for every night on the road.• Overtime on Sunday and holidays• We charge flat, daily rates for service. M-F=750.00. Sat=1125.00. Sun and holidays are 1500.00 Per day.• Holiday or weekend work is a negotiated rate.• Travel depends on day traveling. Either $137, $199 or $236• Straight time includes 12 hr. day max.• Week end lay over-no work performed $300.00 per dayThe information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.28

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,00015. Do you pass through travel expenses on an actual basis or other?Actual basis 129 11 14 11 18 29 45Other 26 2 5 1 1 6 11Other Answers:• Actual + 10% (5)• Actual plus 15% (3)• Per Diem (3)• Add processing fee• 110%• Living exp. (actual); Public transp. (actual); Daily sustenance (flat rate); Rental car (flat rate); Company car (permile flat charge)• We estimate and receive a PO for the entire service call• Air fare and car rental billed at actual• + 8%• Charge $210.00 each day for travel expenses, except for air travel, which is billed actual.• Processing fee and fuel surcharge• $250 / Day per diem• Add 25% to actual expense or if international travel or travel to a large metropolitan area (NYC) we add 50% due tohigher costs.• We estimate and receive a PO for the entire service call• We add a handling fee• Air Fare, car rental, and per diem.• Pay per diem for meals as listed on Government Standards• This is to cover the administrative time it takes to handle reservations etcThe information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.29

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,00016. Is the customer charged overtime rates for early morning or late PM service?Early morning serviceYes 45 6 5 4 8 9 13No 109 8 14 8 11 24 43Late PM serviceYes 54 6 7 5 7 13 16No 96 8 12 7 10 22 3617. Do you use or sell annual or periodic maintenance contracts?AnnualYes 66 6 3 5 7 11 34No 87 7 16 7 11 23 22PeriodicYes 53 7 3 4 5 7 27No 90 6 16 7 10 25 2517a. Are they prepaid?Yes, partial 33 0 2 3 5 1 22Yes, complete 16 6 1 0 1 4 4No 40 3 2 5 5 11 14The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.30

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,00017b. What percent of your service revenue is derived from maintenance contracts?Mean 7% 8% 3% 3% 6% 5% 9%Median 5% 5% 0% 1% 1% 5% 5%18. Do you proactively pursue the servicing of competitive or non-competitive machines?Yes 19 1 1 2 5 4 6No 139 14 18 10 14 31 5119. Do you service your machinery that has been modified buy a third party or change parts that have beensupplied by a third party?Yes 106 10 12 9 9 20 45No 51 5 6 3 10 15 12Training20. Do you provide training for new service personnel before going on the road, in areas of customer relations,interpersonal skills, potential problem analysis, conflict resolutions, teamwork, etc.?Yes 92 9 11 8 11 22 30No 65 5 8 4 8 12 28The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.31

DETAILED RESULTS20a. If yes, in what specific areas?Overall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000Customer relations 68 7 6 6 10 14 24Interpersonal skills 41 2 4 3 6 7 18Problem analysis 75 7 9 7 12 17 23Conflict resolutions 37 2 5 4 6 6 13Teamwork 34 4 4 3 4 8 11Other 8 0 1 3 0 1 3Note: Multiple answers can total over 100%Other Answers:• Training on specific equipment (5)• Technical report writing• Language, i.e., English and Spanish20b. If yes, where do you get your training from?Local community college 3 1 0 0 0 0 2Internal sources/OJT 56 7 9 4 8 10 17PMMI’s Certified Trainer28 1 2 3 3 8 11ProgramOutside sources 27 3 2 2 3 7 10Note: Multiple answers can total over 100%The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.32

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000Miscellaneous21. Do you have a formal after installation follow-up program?Yes 52 5 2 4 7 10 23No 106 10 17 8 12 24 3521a. If yes, please explain• Phone follow-up (10)• Survey to confirm satisfaction (9)• 30 days after install, customer is contacted to address concerns.• Service person files a report which is reviewed by engineering and project manager.• Formal new equipment hand over process which designates specific personnel to assist customer with aftermarketsupport.• Signed check list upon departure from customer site and follow-up phone call to customer to check on satisfaction• Complimentary visit and machine tune-up• We offer the customer follow up training and system survey trips.• We follow-up with the customer at set intervals.• We gather the FST and the Engineering department for analysis on improvements • Lessons learned, Closedorder analysis of margin• Our regional technicians schedule 3 visits to customer to insure the machines are performing• FAT testing• Post installation visit - part of machine sale.The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.33

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,000• Service techs are responsible for a follow-up call with plant employees one week after return from service trip.• After a service call, technician reviews customers’ requests for follow-up, spare parts and additional service etc.• Rep calls about 30 after install to see how machine is doing and offer additional training/service contracts• Weekly calls, and then local salesman, distributor follows up with customer• Customer service follows up with letter of thanks and small gifts for anyone at customer who assisted technicians• Sales follows-up with customer along with completion of customer satisfaction survey.• Follow-up by Service Technician after 24 hours and 48 hours. More often if required.• Customer calls periodically to validate satisfaction• We use a CRM ACT program to create a reminder to call the customer back after the service trip has taken place.• Three post installation contacts are made to confirm operations and inquire about any problems• We have established a 30, 90 and 360 day follow up call by our service people.• Customer contacted two weeks after each visit to gage customer satisfaction with work performed and satisfactionwith the service technician.• Customer trip report and follow-up by service manager• Follow up by email22. Do you make your formal follow-up program available to your customers?Yes 29 2 1 1 2 8 15No 96 10 14 10 10 18 3323. Does your company use a CRM (Customer Relationship Management) tool to manage the service function?Yes 36 4 5 2 4 8 13No 121 11 14 10 14 27 44The information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.34

DETAILED RESULTSOverall$0-$15,000Average Selling Price of Machinery$15,000- $35,000- $50,000-$35,000 $50,000 $75,000$75,000-$150,000Over$150,00024. Does your company maintain a data or knowledge base of past service trips?Yes 134 12 11 11 17 32 50No 24 2 8 1 2 3 824a. If yes, how?By serial # 106 12 7 9 14 27 36By machine type 37 7 3 3 6 7 10By customer name 15 1 3 1 2 1 7Other 20 2 2 1 3 5 6Note: Multiple answers can total over 100%Other Answers:• Field service report by customer, machine type, serial number, and project number (8)• By sales order number (3)• Full written service visit report--goes in machine file• By date• Receipts• Internal req. numbers• Account locationThe information contained herein shall not be distributed or shared by the recipient. No part of this document may be reproduced without the express written permission of PMMI.35

Headquarters:4350 North Fairfax Drive, Suite 600Arlington, Virginia 22203 USATelephone: (703) 243-8555Fax: (703) 243-8556e-mail: pmmi@pmmi.orgLatin American Office:Homero 538-701, Col. Chapultepec Morales11570 Mexico, D.F. MexicoTelephone: 011 (52-5) 55-545-4254Fax: 011 (52-5) 55-545-4302China Office:Shanghai Centre, Suite 631, 1376 Nanjing West RoadShanghai 200040 ChinaTelephone: 011 (86 21) 6279- 7640Fax: 011 (86 21) 6279-7649