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Rolls Royce Power by Hour

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Rolls Royce – Power By the Hour

Project Report Prepared by PHANESH V. R. ATMURI

Rolls Royce – Power By the Hour

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Executive Summary
Today most Multi National Companies that are operating globally are realizing that they have to take complete control of After-Sales-Service, in order to compete effectively and synergize their operations with profitability. Earlier days, much of the service operations were handled by third parties. Companies have identified that after-salesservice is a significant source of revenue for the organization. With this paradigm shift and change in the culture, Rolls Royce pioneered and conceptualized ‘Power by the Hour’, an after-sales-service program that helps focus customer in their core business …show more content…

The optimal contract is really a combination of three things: fixed payment or fixed price, cost-sharing and performance-based compensation." The essence of PBL is buying performance outcomes, not the individual parts and repair actions. Instead of buying set levels of spares, repairs, tools, and data, the new focus is on buying a predetermined level of availability to meet the [buyer's] objectives . Rolls-Royce has responded to this market demand by developing a comprehensive, integrated suite of engine aftercare services named “Power by the Hour”(PBH). RollsRoyce works closely with customers, irrespective of their size and operating business model, developing a customized service package, optimized to individual customer requirements. PBH is a flexible approach to achieving an engine support service that has the correct fit and scope of services to meet the operator’s specific needs. It provides a
Date 29-07-2011

Rolls Royce – Power By the Hour

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single source solution ensuring "Peace of Mind" for the overall lifetime support of the engine, from the time the engine is delivered to the customer until the engine goes out of service. This is achieved through the sharing of knowledge, expertise and experience. Through a partnership approach, PBH:  aligns incentives and goals  minimizes financial and operational risk

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