Repair Services Industry Terminology
Asset Management
The systematic tracking, maintenance, and lifecycle planning of equipment, tools, and customer units to maximize availability, safety, and ROI.
We tagged every compressor to improve asset management.; The CMMS houses our asset register and history.; Better asset management cut rental costs.
Authorized Service Provider (ASP)
A repair company recognized by an OEM to perform warranty and out-of-warranty service using approved procedures and parts; often required for warranty reimbursement.
We became an ASP for Brand X.; ASP status gives us access to proprietary diagnostics.; Only ASPs can claim OEM warranty labor rates.
Backorder
An order for parts/items not currently in stock, to be fulfilled when inventory arrives.
The pump seal is on backorder until Friday.; Backorders pushed TAT out by two days.; We notified the customer about the backordered PCB.
Bill of Materials (BOM)
A structured list of parts, subassemblies, and consumables required to repair or build a unit, often with quantities and alternates.
Check the BOM before kitting.; The revised BOM adds an ESD-safe screw.; BOM errors caused rework.
Calibration
Adjusting and verifying a tool or instrument against a traceable standard to ensure accuracy within specified tolerances.
Torque wrenches are due for calibration.; Post-repair calibration required per SOP.; We attach calibration stickers with due dates.
CMMS (Computerized Maintenance Management System)
Software system for managing assets, work orders, schedules, PMs, parts, and maintenance history.
Create a work order in the CMMS.; Our CMMS triggers monthly PMs.; CMMS data improved MTTR.
COGS (Cost of Goods Sold)
Direct costs to deliver a repair: parts, direct labor, freight for parts, and shop supplies; excludes overhead.
Parts markup covers COGS.; We track COGS per work order.; Lower COGS raised gross margin.
Core Charge
A refundable deposit added when selling a remanufacturable component; refunded when the old core is returned and passes inspection.
There's a $50 core charge on alternators.; Dirty cores reduce the refund.; Core returns feed our reman shop.
Diagnostic Flowchart
A decision-tree procedure guiding technicians through tests to isolate faults efficiently and consistently.
Follow the diagnostic flowchart before swapping boards.; We updated the flowchart to include a firmware check.; Flowcharts improved first-time fix rate.
Downtime
The period when equipment is unavailable for intended use; a key driver of customer cost and urgency.
The conveyor had eight hours of downtime.; Our SLA prioritizes high-cost downtime.; PdM aims to reduce unplanned downtime.
ESD (Electrostatic Discharge) Protection
Practices and equipment that prevent electrostatic discharge damage to sensitive electronics (e.g., wrist straps, mats, ionizers).
ESD breaches void warranty.; Use an ESD mat when handling PCBs.; We audit ESD compliance quarterly.
ETA (Estimated Time of Arrival)
The forecasted arrival time of a technician or part.
Dispatch gave a 2:00 PM ETA.; Update the customer if the ETA slips.; Parts ETA dictates the appointment window.
Field Service Management (FSM)
Tools and processes to plan, dispatch, route, and support mobile technicians with scheduling, parts, and mobile workflows.
Our FSM app captures on-site photos.; FSM optimization cut windshield time.; We integrated FSM with inventory.
FIFO (First-In, First-Out)
An inventory rotation method issuing the oldest stock first to reduce obsolescence and spoilage.
Use FIFO bins for filters.; FIFO reduced expired adhesives.; The CMMS enforces FIFO picks.
First-Time Fix Rate (FTFR)
The percentage of service calls resolved on the first visit without a return trip; a core efficiency and satisfaction metric.
Stocking top movers boosted FTFR.; FTFR fell due to misdiagnosis.; We track FTFR by technician.
Inventory Turnover
How many times inventory is used or sold in a period; calculated as COGS divided by average inventory.
Our parts turnover improved to 7x.; Low turnover flags excess stock.; Increase turnover by rationalizing SKUs.
ISO 9001
International standard for quality management systems emphasizing process control and continuous improvement.
Our shop is ISO 9001 certified.; ISO requires controlled SOPs.; Nonconformances trigger corrective action.
Job Costing
Capturing labor, parts, subcontract, and overhead allocation at the job/work-order level to assess profitability.
Job costing shows which contracts lose money.; Clock in to the correct job.; We compare quoted vs actual job cost.
Kitting
Pre-packing all parts, tools, and documents needed for a job to reduce delays and trips.
The PM kit includes gaskets and O-rings.; Kitting improved FTFR.; Stage kits by route in the morning.
KPI (Key Performance Indicator)
A measurable indicator used to gauge performance toward objectives (e.g., TAT, FTFR, NPS).
Our KPI dashboard refreshes daily.; Set a KPI target for callbacks.; Tie bonuses to safety KPIs.
Labor Rate
The hourly price billed for technician time; may vary by skill, shift, or contract.
After-hours labor rate is 1.5x.; The OEM warranty labor rate is capped.; Review labor rates annually.
Lead Time
Elapsed time from request to completion, often split into response time, repair time, and parts lead time.
The motor lead time is three weeks.; Buffer long-lead parts.; Lead time drives SLA commitments.
Mean Time Between Failures (MTBF)
Average operating time between inherent failures; a reliability measure of an asset population.
MTBF dropped after software update.; Use MTBF to plan spares.; Vendors publish MTBF in datasheets.
Mean Time To Repair (MTTR)
Average time to restore an asset from failure to functional state; includes diagnosis, parts, and repair.
Lean layout cut MTTR.; MTTR rose due to parts shortages.; Track MTTR by failure mode.
MRO (Maintenance, Repair, and Operations)
Maintenance supplies and services that keep facilities and equipment running.
MRO spend includes lubricants and PPE.; We use VMI for MRO items.; MRO stock-outs cause delays.
NFF (No Fault Found)
A returned or failed unit where no defect is found upon test; often indicates test gaps or intermittent issues.
NFF rate is 12%.; Improve screening to reduce NFFs.; NFFs inflate warranty costs.
NPS (Net Promoter Score)
A measure of customer loyalty based on likelihood to recommend; promoters minus detractors.
Field NPS emails go out after closure.; Parts delays hurt NPS.; Tie CSRs’ bonuses to NPS trends.
Obsolescence Management
Proactively handling end-of-life parts and technologies via last-time buys, alternates, and redesigns.
Plan LTB for obsolete ICs.; Update the BOM for obsolescence.; Communicate EOL notices to customers.
OEM (Original Equipment Manufacturer)
The original manufacturer of a product; OEM parts and bulletins guide authorized repairs.
Use OEM torque specs.; OEM approves warranty claims.; We source OEM vs aftermarket parts.
Overhaul
A major, scheduled restoration that disassembles, inspects, replaces, and reassembles to like-new performance.
The gearbox is due for overhaul at 20k hours.; Quote a full overhaul vs partial repair.; Overhaul resets warranty.
OSHA Compliance
Adhering to workplace safety regulations governing training, PPE, lockout/tagout, and hazards.
LOTO is required by OSHA.; We passed our OSHA inspection.; Document OSHA training in the LMS.
Parts Markup
The percentage added to parts cost to cover overhead and profit; may be tiered by list price.
Apply a 35% parts markup.; Contracts cap markup at 20%.; Transparent markup builds trust.
PdM (Predictive Maintenance)
Data-driven maintenance that predicts failures using sensors, analytics, and condition monitoring.
Vibration PdM flagged bearing wear.; PdM alerts feed the CMMS.; PdM reduced unplanned calls.
PM (Preventive Maintenance)
Scheduled maintenance performed to prevent failures and extend asset life, based on time or usage.
Quarterly PM on air dryers.; Convert reactive calls to PM visits.; PM checklists live in SOPs.
PPE (Personal Protective Equipment)
Equipment to reduce exposure to hazards (e.g., gloves, safety glasses, respirators).
ESD-safe PPE in the bench area.; PPE is mandatory for battery rooms.; Inspect PPE before use.
QA/QC (Quality Assurance/Quality Control)
Quality Assurance defines processes; Quality Control verifies outputs meet specifications through inspection and test.
QA owns SOPs.; QC performs final bench tests.; QA/QC findings drive corrective actions.
RCA (Root Cause Analysis)
A structured investigation to identify the underlying causes of a failure and prevent recurrence.
Do an RCA on repeat pump failures.; 5 Whys is our RCA method.; RCA outputs become preventive actions.
Reverse Logistics
Managing the flow of returns, RMAs, cores, and warranty units from customers back to the depot or supplier.
Reverse logistics consolidates weekly pickups.; Track RMA numbers on returns.; Core grading happens in reverse logistics.
RMA (Return Merchandise Authorization)
Authorization and tracking number for returning goods for repair, replacement, or credit.
Issue an RMA before shipping the module.; The vendor rejected the RMA for missing accessories.; RMA status shows received, in repair, shipped.
SKU (Stock Keeping Unit)
A unique identifier for a stock item used for inventory tracking, pricing, and replenishment.
Create a SKU for the new seal kit.; Avoid duplicate SKUs.; SKU velocity informs stocking levels.
SLA (Service Level Agreement)
A contractually defined service performance target such as response time, TAT, uptime, or FTFR.
Our gold SLA is four-hour onsite.; Missing SLA credits the customer.; SLAs vary by asset criticality.
SOP (Standard Operating Procedure)
A documented, version-controlled procedure describing how to perform a task safely and consistently.
Follow the soldering SOP.; SOP training is annual.; SOP deviations require approvals.
T&M (Time and Materials)
A pricing model billing actual technician time and parts used, typically with defined rates and markups.
Emergency calls are T&M.; T&M vs flat rate analysis.; T&M invoices list labor hours and parts.
TAT (Turnaround Time)
The elapsed time from receipt of a unit to completion/shipment.
Depot TAT target is five days.; Parts waits inflate TAT.; Publish TAT by product line.
Triaging
Rapidly assessing and prioritizing incoming calls or units to route resources and set expectations.
Triage urgent refrigeration calls first.; Triaging screens NFF units.; Triage scripts improve consistency.
Upsell/Cross-sell
Offering higher-value options (upsell) or complementary products/services (cross-sell) that benefit the customer.
Upsell an extended warranty.; Cross-sell PM plans after a breakdown.; Offer OEM parts as an upsell.
Uptime
The percentage of time an asset is available and functional; 1 − downtime rate.
We guarantee 99.5% uptime.; Monitor uptime via IoT sensors.; Uptime is the customer’s north star.
VMI (Vendor-Managed Inventory)
An arrangement where the supplier monitors and replenishes parts at the customer or service depot.
VMI bins for MRO items.; VMI improved fill rate.; Agree on VMI min/max levels.
WIP (Work In Process)
The value or count of jobs not yet completed; managed to reduce congestion and delays.
Limit WIP to improve flow.; WIP aging report flags stuck jobs.; Visualize WIP on a board.
Work Order
The formal record authorizing and tracking a repair, including problem, labor, parts, tests, and approvals.
Open a work order in the CMMS.; Attach photos to the work order.; Work orders must include root cause.
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