Aftermarket Health of Indian Medical Device Industry

India is one of the top destinations for medical tourism, as medical treatment costs only 10% compared to US or Europe.  Moreover, India has a large pool of skilled doctors and specialists. Indian medical industry has adopted IT and newer technologies extensively and has created unique business models for large scale cardiac and other treatments.

Medical Equipment

Indian medical industry device requirement is met by both imports and domestic manufacturing. Today the Indian medical industry stands at $ 2.5 billion, but the industry faces several challenges due to vagaries of lead time of imports, limited availability of service related manpower and high turnaround time. On an average a device has a life of 7 years, during which its Service Life Cycle has to be managed effectively.

Service Life cycle of Medical Equipment

Device manufacturers can deliver solution to challenges of medical device industry by focusing on following 3 major areas,

  1. Service Network
  • Manufacturers should consider opening up new domestic centres to provide customers with Aftermarket services, thereby adding to a safety factor in the minds of the customers for its devices
  • Maintenance and Repair: Ensuring compliance with quality and safety standards, Preventive maintenance at planned intervals and rapid high-quality turnaround during device breakdown (normally device shouldn’t be down beyond 3% of working hours in a year).
  • Regulatory Compliance: Comprehensive safety and performance testing of the device, including updation of equipment software.
  • Calibration and certification at planned intervals
  • Warranty and after warranty maintenance contracts handling
  • Inventory updation as per planned intervals
  • Swift action during recalls and exchange programs
  1. Refurbish

Refurbishing will spread the reach of manufacturer as devices become affordable. Refurbished equipments are 50% to 60% cheaper than the original equipment cost and they come with same post sales service contracts like the new equipments, which adds to the consumer’s confidence in these devices.

  1. Comprehensive IT Systems

Deploy IT Systems which connects manufacturer, distribution network, service network and customers and which manages:

  • Service, parts and sales
  • Warranty, Inventory and Refurbishment
  • Field Service and Service helpdesk
  • Faster dispatch of spare parts
  • Recalls, returns and exchange management
  • Manuals Creation and distribution: Owner manuals, Service manuals, etc
  • Manage the complexity: According to Global Medical Device Nomenclature (GMDN) medical equipment industry is quite wide with > 14,000 different products types. The products range from wound closure pads to stents and IVD machines of medical devices
  • Manage Diversity: A system which can accommodate multiple languages and tax systems
  • Multimedia training to technicians and hospital engineers to reduce downtime. On an average, 67% of complaints are minor (first hand level), which can be resolved by hospital engineers. But due to lack of effective training, they are only able to resolve 32% complaints.

Achieving success in Aftermarket is crucial as it not only delivers monetary benefits in short term (45% of manufacturers report that in next 3 years more than 30% of their revenue will come from service) but also enhances customer satisfaction and loyalty in the long run, which eventually yields repeat orders and customer recommendations.

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How Power Tool Manufacturer can raise $$$….

Tools for many people are obscure and low investment that needs to be made to run their business. While it may not be eye-popping like e-commerce, power tool industry is around 200 Million Euro and expected to reach 250 Million Euros by 2020. Power tool industry includes electric power tools, Portable Power tools, Industrial Power tools, Hydraulic Power tools, Cordless Power tools, just to name few.  While Asia is a major producer, European and Japanese Manufacturers hold significant share of high end tools. About 60% of tools are imported and “made to order” tools require higher lead time. Hence, in most cases, end users stock enough safety stocks to manage inventory risks.

Power tool manufacturers in recent years have been hit from commoditization at one end and sagging demand of end user industries at another. While tools sale is what has been the primary focus of revenue generations all these years, of late many of the tool manufacturers are realizing the need to address after sales.

The companies are realizing a need for a 360 degree view on tools utilization, tools movement, availability, maintenance, component life cycle, service history, segment realization, performance across different markets and performance across different applications. Even the end users of tools are realizing the need to manage their tools operations from cost and utilization perspective.

Some of Major Challenges faced are:

A tool manufacturer or an end user like an OEM need real time data of Distribution channel visibility, Tools uptime, Challenges of end users, Warranty Management, Support, Training and Replacement economics.

An OEM may require additional information on,

  1. Warranty & life time service offerings
  2. Job site solution
  3. Online repair submit
  4. Do it yourself (DIY) projects
  5. Online service status tracking
  6. Online parts ordering and stock availability

How System / Process can help to overcome these challenges?

How Power Tool Manufacturer can raise $$$....

  • Resource scheduling feature along with personalized calendar
  • Centralized customer center to all types of communication
  • Visibility of inventory across different locations and distribution channel
  • Population visibility across different locations, applications used and segmentation
  • Utilization visibility with regular updates which enables for consumables
  • Planning based on life of power tool, application where it was used along with life cycle of component
  • Import or exporting possible with different costing features along with configurable tax structure
  • Track warranty and renewals
  • Option to have AMC with different verticals
  • Alerts on preventive, calibration and other types of services based on type of power tools.
  • Complete history of service done, parts replaced, complained faced along with first hit rate, repeat complaints, component failure rate etc.
  • Judge warranty based on warranty terms
  • Track service history
  • Publish and control on recalls
  • Online access to parts catalogues and parts ordering
  • Inventory Management
  • Knowledgebase
  • Track response and resolution time
  • Service schedule planning
  • Parts availability to user

Implementing centralized system with features like, Complete Inventory visibility, Logistics features, Import/export, Warranty, AMC, Ticketing system, Resource visibility, Population visibility, History, Planning & forecasting-etc. and along with KM system will have major impact on process and revenue improvement.

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Leverage technology in Preventive Maintenance

You cannot afford the breakdown of critical machines, where stakes are high. Therefore it has to go with maintenance and repairing cycle regularly to keep it in working condition. Traditionally, we plan periodic maintenance services to avoid any costly breakdown to some extent.  But breakdown still happens, because running condition of each and every machine is different.Preventive Maintainance_Quest

Sudden breakdown leads to firefighting and re-planning of all activities. Identification of the defect in early stage will help in planning efficiently to order parts, schedule and complete job without suffering breakdown.

But, how to detect defects in early stage?

The only way to identify defect, is to get critical diagnostic data hourly or daily basis, analyze and suggest corrective action.

Practically, it is very costly affair to take diagnostic data manually every hour or every day and send it for analysis, but technology had made it easier and affordable.

Instead of taking diagnostic data manually, an interface device can be connected to the machine sensors to collect vital diagnostic information such as vibration, temperature, circuit analysis, running hours of critical components such as Engine, electrical system & hydraulic system and can be sent to central server via GPRS on a defined frequency.

The server can analyze data and send alerts to concerned service engineer or workshop, if any of parameter is going beyond the prescribed range.

In addition to it, various analysis reports can be generated to determine health of the machine and probable period of failure of critical parts that can be used for service planning and parts requirement by the workshop.

Demystifying Internet of Things (IoT)

Your wrist watch sending your heart pulse, temperature and BP to your doctor and medical record, on exceeding set limit, is an example of Internet of Things (IoT) and I’m sure you are hearing about Internet of Things from long. But still many of us need more clarity on what it is?

Is it networking of the things?
It is communication between heterogeneous devices?
Is it Machine to Machine Communication?
Is it one step ahead in automation?

In fact, it’s ALL of the above!

Internet of things-Quest informatics

We all know that today’s internet devices are connected to the network based on unique IP Address allocated to the device. Therefore devices are able to communicate with each other. But lets us expand the base from internet connected devices to other physical things and see how other things can become part of it.
Conceptually to communicate with each other, what we need iInternet of things 2s

  1. Unique identification
  2. Communication channel
  3. Information or data for communication
  4. Information processing & Events for communication

To achieve unique identification, we can attach any of the below with our physical thing to identify it uniquely

  • IP Address
  • GPS device ID
  • RFID
  • Bluetooth Address etc.

Further any of the supported communication channel can be used for data transmission such as,

  • TCP/IP or http protocols or FTP
  • GPRS or SMS through SIM module
  • Radio waves

The data / information can be collected by any of the following

  • Sensors
  • Receivers
  • Readers
  • & Output from programs or processingiot4-Quest Informatics

Finally firmware program or resident software programs are used to run on the connected device to process data/information & invoke communication either on a

  • Particular Event
  • Or a given Frequency

The solution created from permutation and combination of all above is nothing but Internet of Things, That’s it.

You can no longer keep your ‘Bay Management’ at bay!

15 bizmen set to return high-end cars after bad service to one of them ( ) & Man Furious with BMW M6’s Faults and Bad Customer Service Smashes it at Frankfurt Show (  are only 2 reports out of 20 million+ results that Google News fetches for you when you type ‘bad service of cars’. This in itself is an indicator of the automotive customer’s melancholy, which is the result of ‘bad service’.

Can automakers risk the anger of an Quest Informatics-Service Floor Management Softwareunhappy customer in this digital age? When we know “A happy customer tells a friend & an unhappy customer tells the world” & 78% of consumers have not made an intended purchase because of a poor service experience (Source: American Express Survey’11).

In most of the cases, Bad Service is the result of bad management of service bay. Only comprehensive bay management tool will be able to bring down the instances of bad service. A comprehensive Bay Management tool that you choose should perform following activities,

  1. Estimation of vehicles that can be taken by your service station for a day/week/month
  2. Efficiently planning of your work shop resources (human & Bay) and forecasting delivery time to customer & ensuring that delivery is done within promised delivery time. And should also proactively keep customer informed during instances of delay
  3. Interacts with your DMS for capturing customer, vehicle booking and Promised Completion Date (PCD) details
  4. Monitors vehicle movement inside service station in real-time, from one stage to another  like vehicle arrival, inspection, In service, In wash, interior cleaning & ready for delivery
  5. Gives instant access to customers’ service history. It also provides option to drill down to any ticket or open quote from past months or even years
  6. Uses different colors for displaying each stage for easy identification and monitoring on deviations
  7. Provides hierarchy based access control & dashboard furnishing workshop capacity
  8. Feeds your vehicle booking counter with resource availability, booked and carry over information along with current vehicle status of workshop
  9. You can update cause of a stalled/held work & alert the respective department to take necessary action
  10. Analyse activities like Planned vs Actual servicing etc for improving processes

Quest Informatics-Bay Management Software

Organizations which have implemented comprehensive Bay Management System are reaping rich dividends like,

  1. Delighted customer resulting in increased loyalty towards the brand & brings them back to you for repurchase
  2. Increases service revenue by optimizing service processes, resource utilization & by cutting down on delays
  3. Centralized system to monitor bay performance across geographies

It’s been proven umpteen number of times that, effective bay management leads to better service & better service delights customers by exceeding theirs expectations.


A customer is 4 times more likely to defect to a competitor if the problem is service related than price or product related – Bain & Company

”Although your customers won’t love you if you give bad service, your competitors will”- Kate Zabriskie

Relooking at Remanufacturing (REMAN)

$ 100 Billion strong Remanufacturing (REMAN) industry is not new to the World. It’s been active since Second World War, when only Army equipments were remanufactured. But, it’s potential has been realized in the past decade, as WCMs (World Class Manufacturers) started focusing on Remanufacturing as profits from their new product sales started shrinking.

Many WCMs are already yielding good profits from Remanufacturing. For example, in 2013, Cummins, a global leader in engines and related technologies, had 3,000 employees working from nine global facilities, contributing $1 billion to total sales of $17.3 billion. Automotive giant Renault has also expressed its growing faith in remanufacturing, as has Caterpillar & GE, to name a few.


WCMs (World Class Manufacturers) are adopting Remanufacturing, because of following business benefits:

  1. Increases the life of materials & profitability
  2. WCMs will be able to offer quality products at lesser price, which also boosts profitability
  3. Reduces dependency on raw materials, whose prices are always volatile
  4. Supports the WCMs in meeting Environmental norms by reducing the use raw materials & lessens pollution by not discarding end-of-life products
  5. Helps WCMs in meeting the “Extended Producer Responsibility (EPR)” regulations

When trying to realize the above benefits, the WCMs are faced with many operational challenges, which are,

  1. Material Management and Operations Synchronization:
    1. Complicated inventory management
    2. Unable to source supply to meet demand
    3. Uncertainties in core quality, sourcing market, product life and technology changes
  2. Production Estimation and Remanufacturing Operations:
    1. Complex Reman cost Estimation, Planning and taxation
    2. Complex documentation and low automation
    3. Managing additional activities like inspection, dismantling and cleaning
  3. Non-synchronized interaction between procurement and redistribution entities
  4. Difficulty in generating customized reports on ad hoc basis

Without addressing the above challenges, it is difficult to realize the benefits of Remanufacturing. Companies that successfully implement re-manufacturing strategy will be the ones who sustain growth and success in the future.

An Insight to Mobile Solutions for Business Application

The fast growing reach of the smart devices such as mobile phones and tablets to the individuals, has forced the solution experts to look for extending the accessibility of business application to these devices. Some of us start looking for the companies who are in mobile application development, without analyzing, if we really need a native mobile application or not.

Mobile app or Mobile Website

We normally mistake the mobile compatible website with the mobile application.

There are two ways you can extend your application to the smart devices

  1. Through native mobile applications and
  2. Through mobile compatible web sites.

 Native mobile app or mobile compatible site?

The native applications usually use internal resource of the device such as processing power, storage memory, GPS, Camera, SIM & NFC and operate system specific. Therefore you need to create different versions to support different operating systems like iOS, Android, Symbian , Windows mobile or Blackberry.  On the other hand the mobile compatible website is just a set of mobile compatible web pages that are directly accessed via web browser.

Practically 95% of the business applications do not need native mobile application, but need a mobile compatible website.  In fact some of the latest browsers allow accessing few mobile resources such as GPS and Camera. Thus you need not develop a native application just to access GPS or Camera. To differentiate the need, let’s take some scenarios.  

Scenario 1:

  • You  want your service engineer to access the call details and update the status
  • You want your  engineer to capture the photo from site and upload
  • You want your management to approve your requests; it could be leave approval, purchase requisition approval, budget approval, order approval, etc.
  • You want your management to access important dashboard
  • You want your client to check the status of their order

If you’re looking for any such application listed in Scenario 1, then you need mobile compatible website rather than native mobile application.  

Scenario 2:

  • You want to track the location of your engineer while on move
  • You want to capture site photograph, edit  or tag photograph and upload to the system
  • You want to upstream video
  • You want to read encrypted  document
  • You want offline and standalone application such a games , personal applications
  • You want offline information update and synchronize later
  • You want to chat and instant messaging  other than email and SMS alerts
  • You want to scan bar code, QR code, face or thumb impression
  • You want to communicate to another device via NFC or wireless

If you are looking for any such application listed in Scenario 2, then you need a native mobile application.