Service level agreement (SLA)
An agreement that sets the service a provider commits to, such as response and resolution times.
How it works
An SLA is usually part of a service contract. It defines what the customer can expect and how it is measured. Typical terms include:
- Response time: how quickly the provider reacts, for example a call back within 2 hours or a technician on site within 24 hours.
- Resolution time: how quickly the problem must be fixed or a workaround provided.
- Coverage: which hours, days, and machines the agreement covers.
- Priority levels: stricter times for a machine that is down than for a minor fault.
- Consequences: service credits or penalties when targets are missed.
Internal maintenance teams sometimes use similar agreements with production, without the money attached.
Why it matters
For field service companies, SLAs turn service into a product that can be sold and priced. For customers, they set clear expectations. For dispatchers, they decide which job comes first.
In practice
Every SLA needs a clear clock. When does it start: when the customer calls, or when the ticket is logged? Does it pause outside business hours or while waiting for the customer? Disputes over SLAs are usually disputes over these definitions.
Meeting response times is easier than meeting resolution times, which depend on diagnosis, parts, and the first-time fix rate.