WELCOMES YOU

BEES QUALITY CIRCLE

TEAM
Mr. T. VISWANATHAM - LEADER
MEMBERS -
Mr. P. S. SESHADRI
Mr. S. SRINIVASAN
Mr. S. MANIKANDAN
Mr. V. B. SRIDHARAN
Mr. A. RAMKUMAR - Facilitator
Mr. AUDIKESAVAN - Coordinator-TQC

INTRODUCTION
BEES QUALITY CIRCLE
STARTED ON : 23/04/1988
MEETING ON : WED
: 3 TO 4 PM
IDENTIFIED PROBLEMS : 18 Nos.
SOLVED PROBLEMS : 15 Nos.
PROJECT START : APR 2002
PROJECT END : DEC 2002
NO. OF MEETINGS : 25 ( 90% )
CIRCLE HISTORY
LIST OF PROBLEMS
Engine main bearing cap failure (T)
Battery defects (T)
Installation delays - (S)
Increasing trend in service defect
returns - (S)
Issues in warranty handling process -
(S)
Drop in service share of dealers(S)
Administrative problems in pull back
tractors (P)
1.1 PROBLEM
PROBLEM SELECTION MATRIX

PROBLEM SELECTED :
(A) Installation delays
(B) Issues in warranty handling process
(C) Increasing trend in service defect returns
PROBLEM RANK 1 RANK 2 RANK 3 WEIGHTED AVG.

A II III II 2.0

B IIII I II 1.7

C I III III 2.2
1.1 PROBLEM
PROBLEM
1.1 PROBLEM
Issues in
Warranty Handling
OEM Related
Customer
Related
Field
Service
Related
Policy Related
Service HQ
Related
Dealer Related
FACTORS RESPONSIBLE
1.2 IMPORTANCE OF THE PROBLEM
REASONS FOR DEALER
DISSATISFACTION
DELAYED WARRANTY SETTLEMENT
SETTLEMENT AFTER RECEIPT OF FAILED PARTS
NO LABOUR CHARGES PAID
UNCLEAR & DIRECTIONLESS WARRANTY POLICY
HIGH PERCENTAGE OF REJECTIONS > 10%
PROTRACTED CORRESPONDENCE
ABSENCE OF SYSTEM OF COMMUNICATION
RIGID POLICIES
LACK OF TRANSPERANCY
1.2 IMPORTANCE OF THE PROBLEM
REASONS FOR CUSTOMER
DISSATISFACTION
DELAYED WARRANTY SETTLEMENT
REFUSAL OF WARRANTY BY DEALER
PROXIMITY FOR SERVICE
1.2 IMPORTANCE OF THE PROBLEM
IMPORTANCE OF THE PROBLEM
WARRANTY FAILURE ATTENTION ON FOC BASIS IS
VITAL FOR CUSTOMER SATISFACTION
DEALER SUPPORT FOR WARRANTY SETTLEMENT
FROM HQ IS IMPORTANT IN BOTH COMMERCIAL
AND PRODUCT FAILURE RECOGNITION
PROMPT SETTLEMENT OF WARRANTY CLAIMS -
MONITORING FACTOR FOR THE DEALER &
REFLECTION OF DEALER CARE /
PROFESSIONALISM
EMPLOYEE CONTRIBUTION TO THIS CRITICAL
SUCCESS FACTOR IS ENHANCED WHEN THE
HASSELS & PROBLEMS ARE KEPT TO THE
MINIMUM
1.2 IMPORTANCE OF THE PROBLEM
IMPORTANCE OF THE
PROBLEM
DEALER DISSATISFACTION
RESULTS IN CUSTOMER
DISSATISFACTION
DELAY IN PRODUCT
PERFORMANCE FEEDBACK
INCREASING NUMBER OF
REJECTIONS,REVERSALS &
RESUBMISSION OF CLAIMS
1.2 IMPORTANCE OF THE PROBLEM
THEME & TARGET
REENGINEER THE WARRANTY
HANDLING PROCESS

BY DECEMBER 2002

to achieve the following...
1.3 THEME AND TARGET
THEME & TARGET .
INCREASE THE DEALER SATISFACTION ON
WARRANTY HANDLING
INCREASE THE CUSTOMER SATISFACTION ON
WARRANTY SETTLEMENT
REDUCE THE LEVEL OF CLAIMS RETURNED TO
DEALERS FOR RESUBMISSION
REDUCTION REJECTION OF CLAIMS
REDUCE REVERSAL OF CLAIMS
CONTROL WARRANTY HANDLING POLICY / PROCESS
IN THE FIELD
REDUCE THE HASSELS IN WARRANTY HANDLING AT
HO
SPEED UP DATA CAPTURE THROUGH WARRANTY
CLAIMS - PRODUCT PERFORMANCE FEED BACK
1.3 THEME AND TARGET
1.4 SCHEDULE FOR IMPROVEMENT
STEP
Problem Selection
Conclusion
Standardisation
Check
Action
Observation
Analysis
Presentation
PLAN EXCEDED ACTUAL
APR MAY JUL SEP OCT DEC
DEALER REPAIRS THE
TRACTOR & PREPARES
WARRANTY CLAIM
DISPATCHES CLAIM WITH
WAY BILL TO SHQ
DISPATCHES FAILED
PARTS WITH COPY OF
CLAIM TAGGED & PACKED
TO WARRANTY STORES
VERIFY CLAIMS
PARTS RECEIVED IN
WARRANTY STORES
VERIFY CLAIMS
REJECT
A
ACCEPT
ENTERS IN SAP
AND ISSUE
CREDIT NOTE
ENTERS RECEIPT
IN SAP TO
CLOSE LOOP &
SCRAPS THE
PARTS
ACCEPT
REJECT
B
ACTIVITY FLOW CHART - BQC
2.0 OBSERVATION
MATERIAL SCRAPPED
AND DISPOSED
SENDS CLAIM BACK TO
DEALER WITH
COVERING LETTER
A
REJECT
DEBIT NOTE RAISED
FOR THE REJECTED
VALUE TO DEALER
B
TRANSACTION REVERSED
IN SAP
REJECT
ACTIVITY FLOW CHART - BQC
2.0 OBSERVATION
PROCESS BEFORE QC
CUSTOMER
DEALER
PROCESS
PEOPLE DIRECTIVE & AUTHORITY

BUSINESS PROCESS ADMINISTRATION (BPA)
2.0 OBSERVATION
ISSUES IN WARRANTY HANDLING
PROCESS
INSTALLATION DATA NOT COMING / WRONG DATA
NON IMPLEMENTATION OF WARRANTY POLICY IN
THE FIELD - NOT FORMING A PARTICULAR
PATTERN
NEW DEALERS TAKING LONGER TIME TO SETTLE
DOWN
DEALER MIXING UP PRODUCT & ADMINISTRATIVE
ISSUES WITH WARRANTY
SET PROCEDURES NOT FOLLOWED INSPITE OF
REFRESHER TRAININGS
DEALER PRESSURES TO BEND THE RULES
APPEALS AGAINST REJECTIONS & REVERSALS
HASSELS CAUSING PROTRACTED CORRESPONDENCE

2.0 OBSERVATION
TO MEASURE THE SATISFACTION
OF THE DEALER & CUSTOMER
AS AN OUTCOME
OF THE EXISTING PROCESS

WE DECIDED

TO CONDUCT A STUDY
BASED ON A QUESTIONNAIRE

2.0 OBSERVATION - COLLECT DATA
RESULT OF THE STUDY - BQC
1995
2001
0
100
HIGHLY DISSATISFIED
HIGHLY SATISFIED
PERFORMANCE
DEALER
DISSATISFAC
TION ZONE
MODERATELY
DISSATISFIE
D ZONE
DELIGHT
ZONE
CUSTOMER
2.0 OBSERVATION - COLLECT DATA
SURVEY SPEAKS
DEALER
SETTLEMENT TIME
REJECTIONS
REVERSALS
TRANSPARENCY
FLEXIBILITY
OPERATIONAL
HASSLES
COMMUNICATION
CUSTOMER
DOWNTIME
DEFECT RETURNS
PARTS NOT
AVAILABLE
SETTLEMENT (FEW
CASES)
HIGH EXPECTANCY
2.0 OBSERVATION - COLLECT DATA
Inadequate field
staff to train the
dealers
Establishing
systems &
controls in SAP
and Portal
Operations
Fine Tuning of both
Establishing
Dealer
Infra structure
OEM Warranty
Issues
Dealer
Indifference
Warranty
Settlement as per
Target and control
Rejections
Warranty
Settlement by
Dealer to
Customer
Warranty
Reversals
New Dealer
Preparation
Lack of new
dealer appointment
data

Inadequate field
staff
Non receipt of
material
Spurious
material
Delayed reports
through
Warranty
VARIOUS FACETS OF THE PROBLEM
2.0 OBSERVATION - COLLECT DATA
RESUBMISSIONS
979
2708
2272
1632
1895
1408
1710
2763
1620
1806
1954
2664
192
543
497
326
385
301
352
569
331
386 391
537
0
500
1000
1500
2000
2500
3000
A
p
r

`
0
1
M
a
y
J
u
n
J
u
l
A
u
g
S
e
p
O
c
t
N
o
D
e
c
J
a
n

`
0
2
F
e
b
M
a
r
Claims Returns
2.0 OBSERVATION - COLLECT DATA
CLAIMS NOT SETTLED IN 48 HRS
979
2708
2272
1632
1895
1408
1710
2763
1620
1806
1954
2664
453
1486
1250
803
862
697
819
1381
777
961
765
1062
0
500
1000
1500
2000
2500
3000
A
p
r

`
0
1
M
a
y
J
u
n
J
u
l
A
u
g
S
e
p
O
c
t
N
o
D
e
c
J
a
n

`
0
2
F
e
b
M
a
r
Claims Returns
2.0 OBSERVATION - COLLECT DATA
REJECTIONS
979
2708
2272
1632
1895
1408
1710
2763
1620
1806
1954
2664
45
147
119 76 83 67 86
131
78 91 74 108
0
500
1000
1500
2000
2500
3000
A
p
r

`
0
1
M
a
y
J
u
n
J
u
l
A
u
g
S
e
p
O
c
t
N
o
D
e
c
J
a
n

`
0
2
F
e
b
M
a
r
Claims Rejections
2.0 OBSERVATION - COLLECT DATA
REVERSALS
979
2708
2272
1632
1895
1408
1710
2763
1620
1806
1954
2664
5 14 12 6 8 7 9 12 9 8 12 10 0
500
1000
1500
2000
2500
3000
A
p
r

`
0
1
M
a
y
J
u
n
J
u
l
A
u
g
S
e
p
O
c
t
N
o
D
e
c
J
a
n

`
0
2
F
e
b
M
a
r
Claims Rejections
2.0 OBSERVATION - COLLECT DATA
PROBLEMS IN
WARRANTY
HANDLING
POLICY
METHOD
MEN
DEALER
PROCEDURE NOT
FOLLOWED
INADEQUATE INFORMATION
LESS RESOURCE
INEFFECTIVE WARRANTY
HANDLING
Cause and Effect Diagram
LEVEL -1
MORE MAN POWER
TURNOVER
INCOMPLETE CLAIMS
VIOLATION
NEW DEALERS
NOT CONSULTING WITH FSS
INCORRECT INFORMATION
NON JUSTIFIED
CLAIMS
POOR PACKING
INCOMPLETE
PACKING
MISSED
ITEMS
ARBITARY
DECISION
MAKING
SPURIOUS
CLAIMS
NO ROLE
FOR FSS
DELAYED
INSPECTION
OUR INS
IS LAST
ACTIVITY
3.1 CAUSAL ANALYSIS
PROBLEMS IN
WARRANTY
SETTLEMENT
POLICY
METHOD
MEN
DEALER
Cause and Effect Diagram
LEVEL -2
INCOMPLETE CLAIMS
VIOLATION
INCOMPLETE
PACKING
ARBITARY
DECISION
MAKING
SPURIOUS
CLAIMS
NO ROLE
FOR FSS
OUR INS
IS LAST
ACTIVITY
3.1 CAUSAL ANALYSIS
FROM THE CAUSE & EFFECT
DIAGRAM IT IS EVIDENT THAT
THE CORE OF THE ISSUE
RESTS WITH THE PROCESS OF
WARRANTY HANDLING AT THE
DEALERSHIP
3.2VALIDATION & ROOT CAUSE ANALYSIS
OPTIONS AVAILABLE
1
WARRANTY CLAIM SETTLEMENT
AFTER INSPECTION OF FAILED
PARTS AT HEAD QUARTERS
2
INSPECTION OF FAILED PARTS &
CLAIMS AT DEALER POINT
BEFORE DESPATCH TO SHQ -
BY FIELD SERVICE STAFF
3
SIMPLIFICATION OF WARRANTY
CLAIM FORMS & SCRAPPING OF
FAILED PARTS IN THE FIELD
AFTER INSPECTION BY FIELD
SERVICE STAFF
A
B
C
4.1 DEVELOPMENT OF SOLUTION
EVALUATION OF OPTIONS
GOING BACK TO OLDEN DAYS. WILL
RESULT IN INCREASING THE SETTLEMENT
TIME FROM 48 HOURS TO 2000 HOURS
CONTROLS & FILTERS ALL HASSELS
OCCURING LATER TO ENABLE SETTLEMENT
AND SATISFACTION
FAILED PARTS NOT SEEN BY PLANT & OEM
MAY RESULT IN MORE FAILURES & DELAY
IN CORRECTIVE ACTION
A
B
C
4.1 DEVELOPMENT OF SOLUTION
0
100
DELIGHT ATTRIBUTES
MUST BE ATTRIBUTES
PERFORMANCE
SEGMENTATION OF DEALER DISSATISFACTION INDEX
A) MUST BE ATTRIBUTES
B) DELIGHT ATTRIBUTES
4.1 DEVELOPMENT OF SOLUTION
SEGMENTATION OF DEALER
DISSATISFACTION INDEX
MUST BE ATTRIBUTES

PERFORMANCE IS LOWER & RESULTS IN
NEGATIVE REACTIONS

DELIGHT ATTRIBUTES

PERFORMANCE IS BETTER & RESULTS IN
MOTIVATIONAL POSITIVE BUILD UP OF
REACTIONS

4.1 DEVELOPMENT OF SOLUTION
S.N What When Who How
1
Pilot Warranty
Re-engineering
in AP & TN
Mar-02 SHQ
Train FSS on Warranty
Administration
CFG
Train FSS on Warranty
Inspection Procedures & OEM
accptance cirteria
Mar-02 FSS
Train dealer & dealer
personnel on warranty
procedures changes and
requirements
Apr - Jun
2002
SER
&
CFG
Roll out new procedure in AP &
TN. Track performance.
2
FOC to
customer Wty Attn FSS
Call on 7.5% of warranty
customers & ensure FOC
ACTION PLAN
4.2 ACTION PLAN
S.N What When Who How
3
Build dealer
confidence
Jul '02 SHQ
Settle warranty claims < 48
hours of receipt at SHQ
4
Warranty
Administration
in Field
Regular SM(Z)
Audit warranty at dealership in
prescribed format @ min 5/
quarter
5
Delayed
receipt of failed
parts
Jan `03 Dlr
By despatching failed material
after inspection by FSS on
'DOOR DELIVERY' freight paid
basis.
ACTION PLAN
4.2 ACTION PLAN
DEALER PREPARES
WARRATY CLAIM AS PER
WARRANTY POLICY
VISIT BY FIELD STAFF
BASED ON CLAIMS
PRIORITISE
KEEPS FAILED
MATERIAL TAGGED
FOR INSPECTION
INSTALLATION CERT
JOB CARD
STORES INDENT

DECISION AFTER CHECKING
CLAIM DETAILS, PERTINENT
RECORDS, FAILED
PARTS
A
B
ACCEPT
REJECT
ACTIVITY FLOW CHART - AQC
5.1 CHECK
ENTER DECISION &
DETAILS IN
MANUAL FORM
ARRANGE PACKING &
DESPATCH OF
ACCEPTED MATERIAL
DESPATCH CLAIMS
TO SHQ


Without
waybill
With
waybill
NOTE DOWN
YOUR OBSERVATIONS
AND DECISION
A
REJECT
B
NOTE DOWN
YOUR OBSERVATIONS
AND DECISION
ENTER DECISION &
DETAILS IN
TAFE CHANNEL FOR
PORTAL DEALERS
ACCEPT
ACTIVITY FLOW CHART - AQC
5.1 CHECK
PROCESS AFTER QC
DEALER
INVOLVEMENT
PROCESS
MANAGEMENT
CUSTOMER
FOCUS
PEOPLE LEADERSHIP AND INVOLVEMENT
BUSINESS PROCESS OPTIMISATION (BPO)
5.1 CHECK
PERCENTAGE RESUBMISSION
COMPARISON BQC - AQC
11.3
9.1
2.4
2.58
0
2
4
6
8
10
12
AP TN
STATE
P
E
R
C
E
N
T
A
G
E
BQC AQC
5.1 CHECK
PERCENTAGE NOT SETTLED IN TIME
COMPARISON BQC - AQC
39.2
42.1
4.1
3.44
0
5
10
15
20
25
30
35
40
45
AP TN
STATE
P
E
R
C
E
N
T
A
G
E
BQC AQC
5.1 CHECK
REJECTIONS CLAIM
COMPARISON BQC - AQC
1230
731
960
395
0
200
400
600
800
1000
1200
1400
AP TN
STATE
N
U
M
B
E
R
BQC AQC
5.1 CHECK
REVERSALS CLAIMS
COMPARISON BQC - AQC
9
6
0 0
0
1
2
3
4
5
6
7
8
9
10
AP TN
STATE
N
U
M
B
E
R
BQC AQC
5.1 CHECK
WITH THE SUCCESS OF PILOT
LAUNCH IN TN & AP WE
ROLLED OUT THIS PROCESS
ALL INDIA FROM
JUL - OCT 2002
5.1 CHECK
WARRANTY SATISFACTION DEALER
1995
2001
0 100
HIGHLY DISSATISFIED
HIGHLY SATISFIED
PERFORMANCE
2003
5.1 CHECK
CHECK
ISSUE ACTION STATUS
DOI Errors / wrong
ent ries
Mult i warrant y claim
f orm int roduced
Policy Not Implement ed
Unif ormly
All FSS & Dealers
t rained t o perf orm
unif ormly
New dealer t akes long
t ime t o come t o syst em
New dealer t raining by
FSS wit hin one mont h
of appoint ment
Appeals against
reject ed claims
Reject ion happens at
Dealership & is well
accept ed as all are
t rained
Prot ract ed
correspondence
As inspect ion is min
t wice a quart er all
issues are sort ed out
during t he next visit of
FSS
5.1 CHECK
TANGIBLE BENEFITS
COST SAVING BY WAY OF - Rs. 9000/-
DOOR DELIVERY OF FAILED per month
TRACTOR PARTS TO WARRANTY
STORES & ENGINE PARTS TO
SIMPSONS

SAVINGS FOR THE YEAR - Rs.1,08,000/-

5.2 BENEFITS
INTANGIBLE BENEFITS
INSTALLATION DATA NOT COMING / WRONG DATA
NON IMPLEMENTATION OF WARRANTY POLICY IN
THE FIELD - NOT FORMING A PARTICULAR
PATTERN
NEW DEALERS TAKING LONGER TIME TO SETTLE
DOWN
DEALER MIXING UP PRODUCT & ADMINISTRATIVE
ISSUES WITH WARRANTY
SET PROCEDURES NOT FOLLOWED INSPITE OF
REFRESHER TRAININGS
DEALER PRESSURES TO BEND THE RULES
APPEALS AGAINST REJECTIONS & REVERSALS
HASSELS CAUSING PROTRACTED CORRESPONDENCE

5.2 BENEFITS
SNO WHAT WHEN WHO WHERE WHY HOW
1
Training on
process
Continuous SHQ
Chennai /
Field
To have
uniform
process
implementatio
n
Train new recruits
before field
assignment
Retrain FSS
periodically to
refresh
2
Guide
Dealers
Mar-03 SHQ HO
To maintain
the standards
of
reengineered
process
Correct
WARRANTY
MANUAL, reprint &
distribute
Continuous FSS Dealership
Conduct warranty
management
courses on a
regular basis
STANDARDISATION
6.0 STANDARDISATION
SNO WHAT WHEN WHO WHERE WHY HOW
3 Monitoring Continuous
SM
(Z)
Field
To ensure fair
implementaion
of warranty
policy &
process
Audit process on
standard format @
5 dealers / qtr
HO Field
To ensure
continuity of
implemented
process
Link auditing to
goal sheet of SM(Z)
and FSS
4
Dealer /
Customer
Satisfaction
Continuous SHQ HO
To improve on
process to
achieve total
satisfaction
Conduct CSI survey
and take corrective
action on a
quarterly basis
HO HO
To ensure
continuity of
impelemented
process
Link auditing to
goal sheet of SM(Z)
and FSS
STANDARDISATION
6.0 STANDARDISATION
BUT FOR THE INVALUABLE
SUPPORT AND CO-OPERATION
OF THE CFG TEAM THIS
EFFORT WOULD NOT BE SUCH
A SUCCESS

THANKS.
7.0 CONCLUSION
7.0 CONCLUSION
FUTURE PLAN :
WE HAVE SELECTED

CUSTOMER REACH AS OUR

NEXT PROBLEM