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Powerstar - POLICIES AND PROCEDURES - 3 350000 (2)

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Powerstar - POLICIES AND PROCEDURES - 3 350000 (2)

  1. 1. POWERSTAR WARRANTY CLAIMS POLICIES AND PROCEDURES MANUAL for the warranty period 3 years or 350 000km. Project Name: WARRANTY POLICIES AND PROCEDURES Document Number: Powerstar WPP.1/2009. Document Issue: 13 January 2009 Document revision: 22 nd September 2011
  2. 2. 1 REVISION HISTORY Rev Description of Change Author Effective Date 0.04 Creation of Document NJ Steyn October 2011 Index Section Sub- section Description Page 1 Purpose 4 2 Scope 4 3 Dealer obligations 5 4 Warranty Policy 9 4.1. Mechanical breakdown 9 4.2. Safety standard certification 10 4.3. Claim authorisation requirements 11 4.4. Goodwill contributions 12 4.5. Invalidation of vehicle warranty 15 4.6. Not covered under warranty 16 4.7. General warranty exclusions 17 4.8. Aftermarket warranty 18 4.9. Incidental / consequential damages & costs 19 4.10. Warranty cancellation 20 4.11. Warranty extension 21 4.12. Warranty transfer 22 4.13. Missing or incorrect parts 23 4.14. Improper repair / comebacks 24 4.1.5 Parts & accessories warranty 25 5 Powerstar Warranty obligation 27 5.1. Warranty claim reimbursement 27 5.2. Goodwill contributions 28 5.3. Dealer support 29 5.3.1. Staff training 29 5.3.2. Daily claims processing 29 5.4. Dealer audits 29
  3. 3. 2 Section Sub- section Description Page 6 Warranty cover 30 6.1. Powerstar 31 7 Warranty registration 43 8 New vehicle en route repairs 43 9 Emergency warranty repairs / open areas 44 10 Parts replacement 44 11 Owner obligation 45 11.1. Scheduled servicing 45 11.2. Parts fitment 45 11.3. Defect reporting / repairs 45 11.4. General care and usage 45 11.5. Cab inspections for rust 46 12 Claim processing 47 12.1. Method 47 12.2. Rules 47 12.3. Submission limits 47 12.4. Documentation 48 12.5. Labour 48 12.6. Consumables 48 12.7. Parts 48 12.8. Outwork (sub-let) repairs 48 12.9. Shipping charges for parts 49 12.10. Repair order (RO) / job card preparation 49 12.11. Repair order (RO) / job card respon sibilitie s 52 52 12.11.1. Service advisor / receptionist 54 12.11.2. Technicians 55 12.11.3. Warranty claims administrator
  4. 4. 3 Section Sub- section Description Page Daily checks 55 Monthly checks 56 12.11.4. Service manager 57 12.11.5. Parts department 57 12.12. Record retention 58 12.13. Warranty parts storage 59 12.13.1. Parts labelling 59 12.13.2. Parts Storage 59 12.13.3. Warranty parts register 60 12.13.4. Housekeeping 60 12.13.5. Parts disposal scrapping 61 12.14. Parts return procedure 62 13 Definitions & terms 63 14 Appendices 64 Warranty claim form 64 Instruction notes – warranty claim form 65 Warranty claim check sheet 66 Warranty claims register – Excel spreadsheet 14.1. Defect reports POWERSTAR/01 Powerstar 67
  5. 5. 4 1 PURPOSE The purpose of this manual is to provide the policies and procedures governing Po- werstar warranty claims, to promote a clear understanding by the dealer and Powerstar staff of the warranty policies and procedures, to provide assistance to those who admi- nister warranty claims at the dealerships to facilitate proper and efficient warranty claim processing. 2 SCOPE This document serves to revise all previous warranty policies and procedures issued by Powerstar and to incorporate the warranty systems and terms covering the current range of products supplied by Powerstar as at the date of publication. This manual provides the information required to form an agreement between Powerstar and the approved Powerstar dealers and Powerstar equipment operators. This document includes the Warranty Policies and Procedures applicable to all vehicles sold by Powerstar and the associated Powerstar franchised / approved dealer network. This document applies to the warranty cover per individual vehicle as stipulated in the vehicle warranty / service book and subject to change as required by Powerstar. This document is the only reference to be used when conducting warranty repairs, unless an official Powerstar bulletin is issued to amend any section of this manual, which would apply from the effective date stipulated on said bulletin. Powerstar reserves the right to amend part or all of the requirements and/or supplement these require- ments and the warranty procedure manual at any time. Such amendments and/or supplements shall be deemed to form part of this manual‟s content. This manual supersedes all former editions. Note: This document is confidential to Powerstar and its approved dealerships only and may not be discussed with customers, suppliers or general public.
  6. 6. 5 3 DEALER OBLIGATIONS Claims represent a significant amount of money, which requires the dealer‟s regular at- tention. Because claims transactions are conducted on a day-to-day basis, it is impera- tive that the dealer‟s claims administration team must be completely familiar with the manual content to maintain a smooth-running, profitable warranty department. The dealer must comply with all the policies and procedures in the war- ranty manual. DECEPTIVE TRADE PRACTICES No Powerstar dealer will engage in any deceptive, misleading or unethical prac- tices. No Powerstar dealer will provide for fitment, or for sale to a customer any part or accessory that is not a genuine part or accessory supplied by Powerstar as an Powerstar part, or accessory for use on any Powerstar vehicle. Vehicles The dealer will be deemed to have engaged in such practices in connec- tion with the sale of any modified Powerstar vehicle if the customer has not been notified in writing by the Powerstar dealer containing the following clause: “The vehicle supplied and modified is not as originally supplied by Powerstar and is therefore not covered by the Powerstar new vehicle warranty.” Parts The dealer will be deemed to have engaged in such practices in connec- tion with the sale of any parts if the customer has not been notified in writ- ing by the Powerstar dealer containing the following clause: “The part supplied is not as originally supplied by Powerstar and is therefore not covered by the Powerstar new part war- ranty.” CLAIM SUBMISSION When a dealer submits a warranty claim to Powerstar, it begins with a completed Repair Order (RO) / job card. Before the warranty claim is submitted to Powerstar, the dealer must ensure that each claim meets the standards of completeness and accuracy described in this manual. Whether a claim is submitted electronically, or manually to Powerstar, they are all processed at the Powerstar Warranty Claims Department. Each claim must contain a vehicle identification number, the customer name, the customer complaint, what caused the defect, and a technical description of what was done to correct the problem. Claims must be submitted for processing within 5 (five) days of the RO finalisation date. i.e. the date the work is completed.
  7. 7. 6 FACILITIES AND EQUIPMENT In terms of the relationship between the dealer and Powerstar, the dealer shall provide and maintain such standards, facilities, equipment, personnel, meth- ods and/or business structures as are required to provide an efficient Cus- tomer oriented service. Dealers are required to provide adequate service facilities in the form of a covered workshop, hoists, lubrication dispensers, compressed air lines and all related workshop equipment. Special tools The dealer is also required to purchase any special tools and equipment spe- cific to the maintenance and repair of Powerstar products. PRE-DELIVERY INSPECTIONS ALL new vehicles must be checked thoroughly for compliance to the order / Powerstar vehicle specifications when the vehicle arrives at the dealership. All corrective action required to meet the vehicle specifications must be car- ried out by the dealer, before the vehicle is delivered to the customer. SCHEDULED SERVICING / MAINTEMANCE The dealer shall provide efficient routine services and repairs for the Powerstar vehicles, irrespective of whether the dealer has sold the vehicle or not. The dealer shall always ensure that the warranty repairs are treated as a priority, as the speedy turnaround of a customer‟s vehicle is imperative in the commercial vehicle environment. It is also an important aspect of healthy cus- tomer relations, which lead to future increased sales of vehicles and work- shop services. The Dealer shall ensure that all warranty work is performed as economically as possible. NOTE: In terms of the warranty requirements, no dealer, whether the selling dealer, or not may refuse to carry out warranty repair work on any Pow- erstar vehicle sold by an authorised Powerstar dealer, providing the warranty conditions applicable to the specific vehicle prevail. PARTS & ACCESSORIES The dealer shall at all times hold such parts and accessory stock as determined by Powerstar to be sufficient to provide for the proper support and servicing of the vehi- cles for which the dealership is responsible.
  8. 8. 7 BULLETINS / Powerstar SERVICE COMMUNICATIONS As and when necessary Powerstar will issue technical and general warranty bulletins. The dealer must ensure that all the relevant staff are familiar with the content of these bulletins and that the contents are fully implemented and adhered to. Failure to do so can result in customers being jeopardised in terms of safety, or vehicle malfunction as well as Powerstar rejecting future warranty claims resulting from the failure to carry out the required actions. Dealers must ensure that all bulletin files are kept up to date, properly stored and are readily accessible to all workshop personnel. NOTE: All bulletins shall be treated as confidential and shall not be discussed with either customers or the general public. CUSTOMER WARRANTY COMMUNICATION Common law requires that the warranties applicable to each vehicle be made avail- able to the customer prior to the sale of the vehicle. The authorised Powerstar Dealer must present the customer with a copy of all applicable warranties for the vehicle at the time of vehicle delivery. The warranty term begins on the date the vehicle is deliv- ered to the first retail buyer or is first put into service as reported to Powerstar. CLAIMS ADMINISTRATION TRAINING To facilitate proper and efficient warranty claim processing, the dealer shall at all times ensure that all warranty administration and service staff are properly trained and fully conversant with the correct procedures as laid down in the warranty policy and proce- dures manual. Powerstar shall assist the dealer with the training and development of all warranty & service staff to the optimum level of competence. Dealers are required to enrol warranty and service staff on the advertised Powerstar warranty administration courses This requirement includes the dealer Service advisors to be certified through the ap- propriate advisor warranty training course.
  9. 9. 8 Vehicle Sales The dealer is responsible for the efficient handover of a new vehicle to the new owner. To ensure this process is effective it is required that the follows the procedure as laid out below: i. Make use of a “Deal file” to record the customer and product information and keep copies of the vehicle registration documents, the pages of the “Maintenance Record Booklet” containing the vehicle and customer information, as well as any back-up documentation related to the sale. ii. Complete the “Maintenance Record Booklet” with the vehicle and the owner‟s Information. iii. Explain the warranty terms and conditions to the customer and let them sign the Warranty Agreement to indicate that the terms and conditions were communicated and that they understand them. iv. Explain the service / maintenance requirements. v. Inform the Customer that the vehicle‟s Service Booklet is to be in the vehicle at all times. This will assist the Dealerships to provide good customer service during the warranty process. vi. Forward copies of the “Maintenance Record Booklet” pages containing the vehicle and customer data to the Powerstar warranty department for recording the customer details and the warranty start date.
  10. 10. 9 4 WARRANTY POLICY 4.1. MECHANICAL BREAKDOWN The New Vehicle Warranty covers repairs for mechanical breakdown by compo- nents listed in the policy. Mechanical breakdown means that the warranted component failed to perform the function it was designed for, due to defects in materials or inferior workman- ship performed by the manufacturer during the stated warranty period, time or distance. Mechanical breakdown does not include damage due to driver/customer negli- gence, accidental damage, or reduction in operating performance due to normal wear and tear of the component. Powerstar provides warranty cover to authorized Powerstar dealers / service cen- tre‟s and to their customers for new Powerstar vehicles purchased from Power- star. Dealers in turn are authorised to repair vehicles under the terms of this warranty cover. Warranty is a guarantee by Powerstar of the repair or replacement by an autho- rized Powerstar dealer of a defective component under the provisions of any applicable warranty provided by Powerstar for products manufactured or mar- keted by Powerstar. The Powerstar warranty is the only warranty applicable to new Powerstar ve- hicles. The warranty replacement/repair is subject to the warranty claim being submit- ted to Powerstar within the stipulated submission period. THE Powerstar VEHICLE WARRANTY DOES NOT COVER NEW VEHICLES SOLD BY AN UNAUTHORISED DEALER. Due to the diversity of products distributed by Powerstar it is critical that the warranty cover applicable to each individual product is understood and correctly communicated to all con- cerned.
  11. 11. 10 4.2. SAFETY STANDARDS CERTIFICATION The Powerstar suppliers have extensive compliance test programs and other procedures to ensure that the vehicles and components they supply, meet, or exceed the required safety standards. It is a contravention of the law to sell a vehicle that does not meet these safety standards. A dealer who sells a Powerstar vehicle, certified by the manufactur- er is protected by the manufacturer‟s certification provided the vehicle has not been subjected to any alterations / modifications. A dealer who sells a vehicle after alteration / modification that does not conform to these safety standards will be legally liable when defects occur as a result of the alterations / modifica- tion. Powerstar will issue bulletins covering the types of modifications or alterations which could lead to potential liabilities when made aware of such alterations / modifications. Examples of the types of modifications include, but are not li- mited to, the following:  Engine modifications / fitting of turbo chargers etc.  Any other alteration or modification, which would affect the manufac- turer‟s certification requirements  Modifications to the suspension system  Modifications to the exhaust system  The use of wheels and tyres not equivalent in quality and design to parts supplied by the original manufacturer  All aftermarket fitments of truck bodies, mechanical lifting equipment, etc.
  12. 12. 11 4.3. CLAIM AUTHORISATION REQUIRMENTS The requirements for claim authorization are laid out in section 8 under the indi- vidual product warranty parameters. Parts claims must always be approved by Powerstar before submission. Authorisation for warranty claims may only be approved and obtained from the Powerstar warranty manager. Any authorisation given is for the submission of a specific claim only and is sub- ject to audit by Powerstar. Powerstar reserves the right to revise the qualifying standards for claim authorisation and to change or adjust the authorisation require- ments at any time without prior notice. Dealerships may NOT self-approve any warranty claims unless expressly stipu- lated under the product warranty.
  13. 13. 12 4.4. GOODWILL CONTRIBUTIONS Vehicle wholesalers are not required to provide assistance for failures beyond the standard warranty period. However, there could be unique situations that arise when the vehicle warranty period has expired, that merit a contribution towards the cost of a repair resulting from a defect. Goodwill contributions are intended to promote owner confidence in the product and influence future purchase decisions in favor of Powerstar products and ser- vices. Goodwill assistance should however not be suggested before a proper analysis has been made of the situation and considering alternative solutions. Powerstar will consider contributing towards such repairs as a gesture of goodwill in conjunction with the dealer and based on the motivation supplied by the dealer on a percentage basis, on condition service requirements have been met and depending on:  The age of the vehicle (maximum = 1 X standard warranty period)  The odo reading / hours worked  The nature of the failure  The number of Powerstar vehicles / products the customer has purchased  The possibility of future purchases of Powerstar vehicles / products The nature of the contribution can vary from:  A fixed amount towards the repair  Payment for parts  Payment for parts & labour  Payment for parts, labour and outwork These contributions will be made on the basis that there will be a sharing of the cost between:  Powerstar  The dealer  The customer
  14. 14. 13 Guidelines The following guidelines must be used to make the decision for cost sharing. NOTE: IT IS RECOMMENDED THAT THE PERCENTAGE NOT COVERED BY Powerstar IS SHARED ON A 50/50 SPLIT BETWEEN THE CUSTOMER AND THE DEALER. i.e. If Powerstar contribute 50% towards the repair, then the dealer would contribute 25% and the customer 25% Remember, the customer contribution is at full retail and the dealer at cost price, which means that in monitory terms the dealer percen- tage is less than the 25% stated above. POSSIBLE Powerstar CONTRIBUTION - KILOMETER BASED VEHICLES Kilometers up to 100,000 Months 13 – 24 10,000 10,001 to 20,000 20,001 to 30,000 30,001 to 40,000 40,001 to 50,000 50,001 to 60,000 60,001 to 70,000 70,001 to 80,000 80,001 to 90,000 90,001 to 100,000 13 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 14 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 15 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 16 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 17 70% 60% 50% 40% 30% 20% 10% 0% 0% 0% 18 70% 60% 50% 40% 30% 20% 10% 0% 0% 0% 19 60% 50% 40% 30% 20% 10% 0% 0% 0% 0% 20 60% 50% 40% 30% 20% 10% 0% 0% 0% 0% 21 50% 40% 30% 20% 10% 0% 0% 0% 0% 0% 22 50% 40% 30% 20% 10% 0% 0% 0% 0% 0% 23 40% 30% 20% 10% 0% 0% 0% 0% 0% 0% 24 40% 30% 20% 10% 0% 0% 0% 0% 0% 0%
  15. 15. 14 If it is felt that a goodwill contribution will not achieve the objective of improv- ing owner loyalty and increasing repeat sales, then no goodwill contribution should be offered. Customers do not expect hundred percent adjustments in most cases and will accept a share of the cost as the vehicle ages. The following questions can be useful in making this judgment:  Is the owner’s expectation of assistance realistic?  What is the nature of the repair? (Is it a premature mechanical fail- ure)  Is it a repeat failure of the same component?  What is the condition of the vehicle?  Does the vehicle have a complete service history?  What is the age of the vehicle?  What is the odo / hour reading?  Will a goodwill adjustment have the desired result? 4.5. I N VALIDATION OF VEHICLE WARRANTY The warranty on Powerstar vehicles will be cancelled on any vehicle subjected to any modification or conversion carried out by an Powerstar dealer, third party contractor or the vehicle owner while it is still within the Powerstar new vehicle warranty. The Powerstar new vehicle warranty will be cancelled in full, or in part as deemed fit by Powerstar and does not cover damage or failures resulting from the following incidents:  Failure by the dealer to extend due care when storing the vehicle  Failure to perform the PDI before delivering the vehicle to the first retail customer  Failure to perform proper maintenance as outlined by Powerstar  Use under conditions other than those for which it was designed  Failure to have any defect repaired at the earliest opportunity after it be- came apparent ALL GOODWILL CLAIMS MUST BE AUTHORISED PRIOR TO THE COMMENCEMENT OF THE REPAIR. NO REQUEST FOR GOODWILL ASSISTANCE WILL BE CONSIDERED AFTER THE REPAIR HAS BEEN CARRIED OUT.
  16. 16. 15  A repair performed by a non-approved Powerstar dealer, unless ap- proved by Powerstar  Driver abuse  Theft or arson  Negligence  Misuse  Accidents / collision damage  Installation of non- Powerstar approved parts accessories or compo- nents  Failure to notify Powerstar of change of ownership during the warranty period  Alteration of a vehicle‟s odometer / hour meter showing a difference be- tween the actual odo / hour meter reading and the service record.  When a vehicle cannot be identified because: o The vehicle Identification Number (model / chassis) has been al- tered or removed o The Engine Number has been altered or removed o Circumstances exist that make it difficult or impossible to estab- lish the true identity, history, origin or warranty cover of the ve- hicle When the vehicle’s odometer / hour meter has been replaced, the reading at the time of replacement must be recorded in the service book / maintenance card and added to future readings recorded at service or repair.
  17. 17. 16 4.6. NOT COVERED UNDER WARRANTY Failures resulting from the following conditions are not covered under the SGIP warranty. Each vehicle type has a list of specific items not covered under warranty and must be read in conjunction with this list.  War or Civil Unrest  Natural Calamities  Contact with other objects  Industrial fall-out  Blemishes caused by acid or alkali contamination  Chips or marks from gravel or contact with other items  Stone chipping, scratching, abrasions, chemical fall-out, tree sap, bird drop- pings, salt, metal particles, hail, windstorm, lightning or other environmental conditions  Scratching caused by mechanical or careless washing  Minor scratches, blemishes and other surface defects, which can be corrected by polishing or light sanding  Failure to follow the relevant guidelines given in the Owners manual / Operating instructions  Use of sub-standard, improper or dirty fuels, fluids or lubricants  The use or installation of non-Genuine parts or accessories such as telephone kits, two way radios, alarms, navigation systems, immobilisers or tracking de- vices  Failure as the result of improper local installation or mounting  Long term storage or long term non-use  Diagnostic time
  18. 18. 17 4.7. GENERAL WARRANTY EXCLUSIONS The following items are not covered under the Powerstar warranty. Each vehicle has a list of specific supplier exclusions, which must be read in conjunction with this list.  Windshield wiper blades and arms  All glass  Radios  Tyres  Belts  Filters & service parts  Cleaner spray nozzles o Defects after PDI  Light bulbs  Fuses  Brake pads  Brake discs  Clutch  Shock absorbers / struts o Wear from use o Oil seepage  Exhaust system o Perforation resulting from outside-to-inside corrosion o Damaged resulting from impact o Cosmetic imperfections
  19. 19. 18 4.8. AFTERMARKET WARRANTY Powerstar do NOT cover aftermarket fitted components, bodies, refrigerated bodies, cranes, lifting/loading equip- ment etc. Any failure caused by the fitment of an aftermarket prod- uct will be for the fitment agent‟s account, NOT Power- star. If it is found that a claim has been approved for a failure caused by aftermarket components / equipment, the claim will be reversed.
  20. 20. 19 4.9. INCIDENTAL / CONSEQUENTIAL DAMAGES & COSTS The Powerstar warranty covers:  The cost of the labour to carry out the repair resulting from the defect and governed by the standard Flat Rate Time  The cost of, or repair of the parts required to correct the failure  The cost of third party services such as engineering work There is no reimbursement for incidental or consequential damages and costs such as, but not restricted to, the following:  Telephone calls  Taxi fares  Car / truck hire  Meals & accommodation  Clothing  Loss of perishable goods  Loss of earnings or commissions resulting from loss of use  Loss of time  Compensation for inconvenience to the customer  Accident damage  Excess cost caused by delays due to o Delayed parts availability o Unsuccessful repair o Repairs performed outside the specifications laid out in the Powerstar Service Manual o Repairs performed exceeding the time laid down by the Powerstar Flat Rate Time
  21. 21. 20 4.10. WARRANTY CANCELLATION There are various conditions that will lead to the cancellation of the new vehicle warranty. The owner responsibilities and the warranty conditions are detailed in this Policies & Procedures manual as well as the vehicle warranty card. Repairs to the vehicle during the warranty period will not qualify for warranty reimbursement if these rules are not adhered to. The Powerstar dealer or a Powerstar representative may request the warranty cancellation through the Powerstar warranty department quoting:  Vehicle details  Customer details  Reason/s for the cancellation request  Full or partial cancellation (specific component or section of the vehicle) The cancellation is irrevocable once the Warranty manager approves the re- quest. ONLY Powerstar HAS THE RIGHT TO REVOKE A VEHICLE’S WARRANTY.
  22. 22. 21 4.11. WARRANTY EXTENSION In rare cases it may be necessary to request an extension of the warranty on a specific vehicle, or group of vehicles. This could be due to different reasons such as:  A repetitive failure while the vehicle is under the Powerstar warranty and it is necessary to restore owner confidence in the product.  A vehicle is unable to operate for an extended period due to the unavaila- bility of parts to carry out a repair. The dealer must lodge a request in writing quoting all the relevant vehicle/owner details, as well as the reason/s for such application through the Powerstar Field representative, who in turn will forward the request the Warranty manager. Approval or rejection will be advised via the by the Powerstar Field representative to the dealer by way of a letter that should then be kept by the owner as part of the vehicle maintenance record booklet for future warranty claims. NO DEALER MAY INDEPENDENTLY EXTEND THE WARRANTY ON ANY Powerstar VEHICLE.
  23. 23. 22 4.12. WARRANTY TRANSFER It is possible to transfer Powerstar warranty provided that the vehicle is main- tained and serviced by an authorized Powerstar dealer. This means that the vehicle carries the warranty, not the customer. The warranty can be transferred to the second and all subsequent owners during the warranty period, provided that the vehicle has been serviced according to the Powerstar service schedules by an authorized Powerstar dealership and the in- formation is recorded in the customer maintenance record book / maintenance card. SELF-SERVICE OPERATORS THE BALANCE OF THE ORIGINAL WARRANTY ONLY SHALL BE APPLIED. It is the dealer‟s responsibility to notify Powerstar warranty department by email, of the warranty transfer with the following information:  Vehicle details – model / chassis number  New customer‟s name  Previous customer‟s name  Date of first registration  Date of purchase by new customer  Odo reading / operating hours  Proof of inspection and repairs for Self-service operator vehicles NOTE: FAILURE TO NOTIFY THE TRANSFER OF OWNERSHIP INFORMATION TO Powerstar WARRANTY DEPARTMENT WILL RESULT IN CLAIMS BEING REJECTED. Where the previous owner was an accredited SELF-SERVICE OPERATOR, an authorized Powerstar dealer shall carry out a full inspection and repair all defects at the customer‟s cost, before the warranty may be transferred. Proof of this inspection and related repairs must accompany the request for warranty transfer.
  24. 24. 23 4.13. MISSING OR INCORRECT PARTS When a new vehicle delivered to a dealership differs in specification to the order on Powerstar by having incorrect or missing parts, the dealer must contact the Powerstar Vehicle Distribution department to notify them of the situation. NOTE: THE COST OF THE FITMENT OF THESE PARTS IS NOT SUBJECT TO A WARRANTY CLAIM AND SHOULD BE CARRIED OUT AS PART OF THE PDI AND THE PARTS SHOULD BE SUPPLIED FREE OF CHARGE THROUGH THE VEHICLE DISTRIBUTION DEPARTMENT. Shortages due to theft If it can be established that the shortage has occurred as a result of theft during storage or delivery by Contracted delivery company, then a claim must be submitted to them within 24 hours.
  25. 25. 24 4.14. IMPROPER REPAIR - COMEBACKS NO additional expense resulting from correction of improper repair, inspection, diagnosis or poor workmanship forms part of a warranty claim. The cost of these repairs should be carried by the repairing dealer and there- fore free of charge to the customer. PRE-DELIVERY INSPECTION (PDI) WARRANTY CLAIMS All repairs resulting from part defects, or poor workmanship found during PDI are subject to a warranty claim. The cost of the PDI is not covered by the Powerstar warranty. MAINTENANCE SERVICES The items specified in the STANDARD Powerstar maintenance / service sched- ules are not covered under the Powerstar warranty and include:  Adjustments – body, suspension etc.  Adjustments / inspections such as engine tune-up, drive belt adjustment, clutch and brake system adjustment, etc.  Topping up and replacement of service supplies such as oil, lubricants, coolant, grease and refrigerant  Replacement of maintenance items such as bulbs, coolants, all filters, fluids, lubricants, spark plugs, brake shoes, linings, pads, discs and drums, clutch discs, tyres and other items listed for replacement as part of the standard vehicle maintenance DAMAGE CAUSED BY THE LACK OF, OR AN IMPROPER, PDI IS NOT COVERED BY MANUFACTURER'S WARRANTY.
  26. 26. 25 4.15. PARTS & ACCESSORIES WARRANTY Parts and accessories supplied by Powerstar for sale to customers through the Powerstar dealer network are subject to the following warranty cover as per the Powerstar warranty obligation: FITTED BY AN AUTHORISED POWERSTAR DEALER Mechanical parts  12 months 100000km LONGHAUL VEHICLES  12 months 60000km CONSTRUCTION VEHICLES Electrical parts  3 months OVER THE COUNTER SALES (OTC) Mechanical parts  12 months 100000km Electrical parts  None DOCUMENTATION REQUIRED FOR PARTS CLAIMS  FITTED BY AN AUTHORISED Powerstar DEALER Copies of repair orders and part requisitions for the original installation together with the current replacement documentation shall accompany such claims regardless of the servicing dealer/s.  OTC CLAIMS A copy of the original purchase invoice, as well as a copy of the current replacement invoice shall accompany claims for over the counter sales. Service Parts bought over the counter and installed by a non- authorised dealer exclude labour costs.
  27. 27. 26 AUTHORISATION REQUIRED OTCS CLAIMS Claims for parts sold over the counter which are returned as being defective by the purchaser shall at all times be validated by the dealer Service manager be- fore a replacement part is handed to the customer. FITTED BY AN AUTHORISED SGIP DEALER Parts paid for by the customer that were originally fitted in an Powerstar dealer workshop must be authorized by the dealer Service manager before a re- placement part is fitted under the Powerstar parts warranty. The Parts and Accessory Warranty does not cover:  ALL ELECTRICAL parts bought over the counter and not installed by an authorized Powerstar dealer.  Replacement of complete components such as Engines, Transmissions and Differentials. Powerstar reserves the right to repair and replace the failing individual component only.  Claims for which it is impossible to validate the date and / or kilometer reading when the part or accessory was replaced or installed in the ve- hicle.  Failure resulting from negligence, unauthorised alterations, accidents, abuse of a part.  Loss of time  Customer inconvenience  Loss of use of the vehicle  Any consequential damage. It is recommended that the second repair be done in the dealer’s work- shop to ensure correct fitment and for customer retention purposes. The customer will however remain responsible for the labour cost, which creates additional labour sales in the workshop. The advantage to the customer in this case is that the labour will be covered as well if the re- placement part fails again. This is the only expressed parts warranty applicable to Powerstar parts and ac- cessories. Powerstar neither assumes nor authorises anyone to assume on their behalf, any other obligation or liability in connection with such parts or accessories.
  28. 28. 27 5 Powerstar WARRANTY OBLIGATION Powerstar warrants all vehicles purchased through an authorized Powerstar dealer to be free of defects and poor workmanship for the periods stipulated in Section 8 under the individual model‟s “warranty cover”. Powerstar warrants all service replacement parts and accessories supplied through an authorized Powerstar dealer that are replaced or installed on an Powerstar vehicle by an authorized Powerstar dealer to be free of defects in ma- terials under normal use and service as stated in section 6 under “PARTS & ACCESSORIES WARRANTY”. 5.1. WARRANTY CLAIM REIMBURSEMENT Powerstar will reimburse the dealer for expenses incurred for repairs to rectify defects while a vehicle is under warranty as follows: PARTS Dealer cost price + 10% (maximum R2000) LABOUR R290.00/HOUR OUTWORK Invoice price excluding VAT + 10% (maximum R1000) These parameters are subjects to change as deemed necessary by Power- star and will be communicated via an official bulletin to the franchised deal- ers. Outwork includes engineering work and specialized repairs that are not possible in the dealer workshop. Outwork does NOT include consumables.
  29. 29. 28 5.2. GOODWILL CONTIBUTIONS Vehicle wholesalers are not required to provide assistance for failures beyond the standard warranty period. However, there could be unique situations that arise when the vehicle warranty period has expired, that merit a contribution towards the cost of a repair resulting from a defect. Goodwill contributions are intended to promote owner confidence in the product and influence future purchase decisions in favor of Powerstar products and ser- vices. Goodwill should however not be suggested before a proper analysis has been made of the situation and considering alternative solutions. Powerstar will consider contributing towards such repairs as a gesture of goodwill in conjunction with the dealer and based on the motivation supplied by the dealer on a percentage basis. ALL GOODWILL CLAIMS MUST BE AUTHORISED PRIOR TO COMMENCING WITH THE REPAIR. NO REQUEST FOR GOODWILL ASSISTANCE WILL BE CONSIDERED AFTER THE REPAIR HAS BEEN CARRIED OUT.
  30. 30. 29 5.3. DEALER SUPPORT 5.3.1. Staff training (warranty process) Powerstar recognizes the importance of staff to be competent and conversant with the Policies and Procedures relating to warranty claims. To this end, Powerstar will provide dealer staff training for all staff concerned with warranty claims processing from the sale of the vehicle to the repair of defects. 5.3.2. Daily claims processing The Policies and procedures manual is the initial form of support and should be consulted prior to contacting Powerstar for advice regarding warranty claims. The Powerstar warranty department will provide assistance when the information cannot be found, or there are extenuating circumstances surrounding a warranty claim. Additional assistance is available from the Regional technical managers allocated to the specific areas. 5.4. DEALER WARRANTY AUDITS Powerstar pay approved warranty claims subject to audit and all parts, documentation and reports related to the claim being available. Powerstar will conduct dealer audits as per the Dealer Warranty Audit Manual and will reverse any claims found to be in contravention of the Policies and Procedures laid out in this manual.
  31. 31. 30 6 Warranty cover The vehicles supplied by Powerstar are subject to individual warranty cover as detailed per model in this section. The new vehicle is covered by warranty:  Until the expiry of time in months, or reaching the kilometer / operating hour limit.  For the cost of labour, parts and third party repairs  And does not require any customer contribution to the cost of repairs Powerstar authorises claim payment based on information supplied by the deal- er. Powerstar reserves the right to disallow a claim on the basis of inaccurate or misrepresented vehicle information, improper repair procedures, or failure to comply with claim submission standards. The following parameters are supplied by Powerstar as part of the Warranty Policies and Procedures manual, to communicate the specific warranty cover for each product supplied by Powerstar. The main purpose of this section is to promote a better understanding by the dealer of the Powerstar warranty parameters, to provide assistance to those who administer warranty claims at the dealerships, and to facilitate proper and efficient warranty claim processing. ALL WARRANTY CLAIMS ARE PAID SUBJECT TO AUDIT BY Power- star AND ARE LAIBLE TO REVERSAL BASED ON THE AUDIT STANDARDS SET OUT IN THE Powerstar DEALER WARRANTY AUDIT MANUAL.
  32. 32. 31 6.1. POWERSTAR TRUCKS Warranty commencement The warranty on Powerstar trucks commences on the date the vehicle is delivered to the customer or on the day the vehicle is first put into use. The dealer is liable for the warranty registration by submitting a copy of the completed vehicle data and vehicle owner page to Powerstar warranty department for recording the warranty start date for each vehicle. Mechanical  36 months 350 000km Anti-corrosion  12 months unlimited km Warranty validation The dealer is liable for confirming the validity of the warranty claim by confirming all of the following information is correct: aa)) The owner details in the service book correspond with the current owner de- tails. b) The actual vehicle chassis number matches the chassis number on the dealer system. c) The warranty start date falls within the 12-month warranty period. d) The odo/hour meter reading taken from the truck is correct and falls within the warranty cover allowance. e) All of the required services have been carried out as per the Powerstar ser- vice schedules. f) The failure does not relate to any of the ITEMS listed on the „NOT COVERED UNDER STANDARD WARRANTY‟ list. g) The failure does not relate to any of the components listed on the „WARRANTY EXCLUSIONS‟ list.
  33. 33. 32 POWERSTAR cont’d Not covered under standard warranty The Powerstar warranty does NOT apply to any vehicle that has been effected by: a) Driver incompetence b) Driver abuse c) Involved in an accident d) External damage caused by road hazards – e.g. boulders, trees, road signs etc. e) TOWING CHARGES (unless authorized by Warranty department prior to submission) f) Modified in any way other than those authorized by Powerstar g) Serviced by an unauthorized Powerstar dealer / workshop h) Repairs carried out using non-genuine Powerstar parts i) Subjected to irregular or incomplete service history j) Subjected to any form of abuse, or neglect – e.g. overloading, insufficient cleaning of the cab etc. k) Extensive damage caused by a delay in presenting the vehicle for repair from the time of the original failure l) Rust that is not repaired within 30 days of detection m) Improper storage by the dealer prior to delivery to the customer n) Damages resulting from fitment of additional components and equipment o) Rattles and vibrations caused by normal wear and tear p) Incidental or consequential damage q) Compensation for loss of earnings, hotel accommodation, transport costs, communication, meals & beverages r) Environmental conditions, riots, natural disasters, or any other event beyond the control of Powerstar s) Wheel nuts and studs.
  34. 34. 33 POWERSTAR cont’d Warranty exclusions The following items are excluded from the standard Powerstar warranty cover on Po- werstar trucks. a) Tyres & tubes b) Normal deterioration of trim, paint and other appearance items c) Universal joints and drive train couplings, unless due to material failure d) All service replacement parts – filters, clamps, oils, lamps etc. e) All wear and tear items – brake discs, brake pads, clutch discs etc. f) Exhaust pipes and silencers showing external damage g) Radios and sound equipment h) Repairs where parts cannot be presented for inspection i) All glass damages j) After market fitted parts and accessories Authorisation process The following items are required for the authorization of POWERSTAR truck claims: i) Clear digital photographs of the defective components and all parts effected by the failure ii) A detailed report of the failure in the format - (POWERSTAR/01) done by a competent person a. Problem – describing the customer complaint & confirmed by a technician b. Cause – describing the reason for the failure and the actual defect c. Remedy – describing the repair process to rectify the failure
  35. 35. 34 6.2. 7 WARRANTY REGISTRATION The warranty registration differs for the individual Powerstar products. The manufac- turers ruling on when the period commences to when the warranty cover expires de- termine the warranty term. The individual warranty terms are stipulated in SECTION 8 above. The responsibility for warranty registration is also stipulated in SECTION 8 above and the dealer must pay particular attention to the products that require information to be sent to the Powerstar warranty department to record the delivery date of the vehicle. The dealer must however notify Powerstar of all vehicles sold and supply the Custom- er details for each vehicle sold, or delivered on behalf of Powerstar. Should a dealer fail to advise Powerstar of a sale, or delivery of a vehicle, Powerstar reserves the right to suspend all Warranty Claims relative to the vehicle until such time as the sale has been recorded. 8 NEW VEHICLE EN ROUTE WARRANTY REPAIRS Warranty repairs carried out on vehicles that break down “en route” from Powerstar to a dealership are subject to the normal warranty conditions and shall be claimed for in accordance with the requirements of the standard warranty conditions. The nearest dealer to the point of breakdown will be required to attend to the broken down vehicle irrespective of the destiny of the vehicle. Refer to section 11 below for repairs to be carried out in an area where there is no Powerstar approved workshop. The repairing dealer must notify Powerstar of the breakdown and the expected repair time. The repairing dealer must then notify Powerstar on completion of the repair in order to arrange final delivery of the vehicle to the purchasing dealer.
  36. 36. 35 9 EMERGENCY WARRANTY REPAIRS / OPEN AREAS When a Powerstar vehicle owner requires emergency mechanical warranty repairs in an open area where Powerstar is not represented by an authorised dealer, the selling dealer shall contact the nearest Powerstar dealer to the point of breakdown, who shall be required to execute the emergency repairs on its behalf. In situations where there is no Powerstar dealer within a reasonable distance of the breakdown, the selling dealer may contact the closest competitive manufacturer‟s fran- chised dealer to execute the repairs on its behalf. The selling dealer will refund the repairing dealer for these repairs and where possible supply the required parts to carry out the repair. Proof of payment in the form of a cheque number, credit note number, or EFT printout must be recorded in the warranty claims register against the relevant claim and made available for audit purposes. The selling dealer must then submit the warranty claim resulting from the repair as if the repairs were performed in their own workshop. 10 PARTS REPLACEMENT Dealers must only fit genuine Powerstar approved parts when carrying out routine ser- vicing and repairs. Failure to fit genuine Powerstar approved parts will result in the warranty on the vehicle being cancelled. NB: ALL REPLACED PARTS MUST BE RETURNED TO THE SELLING DEALER BY THE REPAIRING DEALER AFTER THE REPAIR IS COMPLETED. THE CUSTOMER SHOULD BE REQUESTED TO RETURN THE PARTS ON BEHALF OF THE REPAIRING DEALER. When emergency repairs require the fitment of non-genuine Powerstar parts to be fitted, the vehicle must be taken to a Powerstar dealer as soon as possible to replace the part with a genuine Powerstar part. A warranty claim may be submitted for the fitment of this part. The non- genuine part must be retained with the warranty parts as required for all warranty repairs.
  37. 37. 36 11 OWNER OBLIGATION In order to ensure that the vehicle is covered by the standard Powerstar war- ranty for the full duration of cover, the owner is required to adhere to the follow- ing requirements. 11.1. SCHEDULED SERVICING The owner must maintain the vehicle as per the Powerstar service specifications. When the scheduled services are carried out, the owner must ensure that the vehicle service book / maintenance card is updated by the dealer as follows: i. Latest odo reading / operating hours ii. Service date iii. Stamped with the dealers official stamp iv. Signed by the dealer service staff 11.2. PARTS FITMENT The owner must ensure that only genuine Powerstar components are fitted to the vehicle during servicing and repair. 11.3. DEFECT REPORTING / REPAIRS When a defect occurs, the owner must present the vehicle to a Pow- erstar dealer as soon as possible after detection for repairs to be car- ried out and not allow the failure to cause further damage to the vehicle by delaying the repair. 11.4. GENERAL CARE AND USAGE It is the owner‟s responsibility to ensure that the vehicle is not sub- jected to any form of abuse, or neglect. The vehicle must be cleaned regularly and in conditions where the vehicle operates under extreme conditions, subject to dust, contaminants, salt residue etc., it should be cleaned daily. Consequential damage resulting from delayed repairs will not be covered under a warranty claim.
  39. 39. 38 12 CLAIMS PROCESSING 12.1. METHOD The submission of warranty claims differs between privately owned and SGIP owned dealerships in the following manner: Powerstar owned dealers make use of the AUTOLINE system for warranty submissions directly to the warranty department. The independent dealers are to submit warranty claims on the prescribed form and send it to the Powerstar warranty department. 12.2. RULES The following rules apply to the submission of claims: Submission address The Warranty Claim must be submitted electronically to fax to mail 0867191089 12.3. SUBMISSION LIMITS The following time limits apply to warranty claim processing:  Request for approval - Two (2) days from the date the vehicle is brought in for the repair.  Evaluation by Powerstar- Communicated back to the dealer within FIVE (5) hours  Repair completion - Within five (5) days of approval. Subject to parts availability  Claim submission - Within five (5) working days of completion of the repair CLAIMS THAT REACH THE WARRANTY DEPARTMENT AFTER THESE DATES WITHOUT A VALID REASON WILL BE SUBJECTED TO REJECTION.
  40. 40. 39 12.4. DOCUMENTATION All scheduled and unscheduled maintenance information must be scanned and forwarded to the Powerstar Warranty department along with the claim. 12.5. LABOUR  As no “Flat rate” repair times are presently available, Workshop Times (WST) will be taken.  Labour Rate: The rate for warranty repairs is to be R290.00 per hour. 12.6. CONSUMABLES  NO consumables are to be claimed 12.7. PARTS  Powerstar Parts division will supply all Warranty parts to the Dealership. The dealer must add a 10% handling charge to the dealer cost price of the part to a maximum of R2000.00 12.8. OUTWORK (SUB-LET) REPAIRS - engineering work & specialized repairs  The dealer must claim outwork repairs at the NETT invoice price from the sub-let agent – EXCLUDING VAT.  Parts fitted by a sub-let agent must be supplied by the dealer and must be genuine Powerstar parts.  ALL parts replaced by a sub-let agent must be returned to the dealer for safe keeping, in the same manner as for all warranty parts with completed parts labels and entered into the Warranty parts register. NO HANDLING FEE IS APPLICABLE TO OUTWORK REPAIRS AND TOWING MUST BE AUTHORISED BY WARRANTY DEPARTMENT PRIOR TO BEEN CARRIED OUT.
  41. 41. 40 12.9. SHIPPING CHARGES FOR PARTS  Should there be a requirement to send parts to a destination, other than to the dealership, the shipping costs will be for the dealer‟s account. 12.10. REPAIR ORDER (RO) / JOB CARD PREPARATION All work performed in the dealer‟s workshop commences with the generation of an RO to capture the relevant details for performing the work required. This is applicable to all types of work being carried out including scheduled servicing, maintenance and warranty repairs. Once the RO has been opened, it should remain open until the work is com- pleted, at which time it should be closed. An RO must NOT remain open once the customer has collected the vehicle. Unavailability of parts for a repair An RO must NOT remain open when a repair cannot be completed due to the un- availability of parts while the vehicle is in the workshop and the customer can drive the vehicle. In such cases:  An order must be placed with the dealer Parts department  The customer must be informed when the parts arrive  A new RO must be opened when the customer returns Information required on the RO THE VEHICLE SHOULD NOT BE RELEASED IF THE PARTS REQUIRED MAKE THE VEHICLE IS UNSAFE TO DRIVE
  42. 42. 41 It is the dealer‟s responsibility to ensure the accuracy of the information recorded on the RO and the dealer system. Vehicle and customer information required:  Customer name  Customer address  Customer contact details – land line & cell number  Vehicle registration number  Chassis / VIN number  Date  ODO reading / Hours operated  Vehicle retail date  Customer signature Repair information required The information gathered relating to the defect and repair is vital for making the correct diagnosis and performing effective corrective action. Any discrepancies in gathering and recording this information can lead to comeback repairs, dissatis- fied customers and rejected claims. When a warranty audit is carried out, this information is closely scrutinised. So, it must be complete and each complaint must have a corresponding diagnosis and repair description. If a defect is found in the course of routine servicing and maintenance that consti- tutes a warranty claim, it must be recorded under the “customer complaints” and communicated to the customer. The customer and Service manager must sign off all additional defects found. Recorded by Service advisor / receptionist  Customer complaint (the description of the defect experienced by the customer) o Each individual complaint must be separated by an item number THE SERVICE MANAGER CAN SIGN ON BEHALF OF THE CUSTOMER IN EXTREME SITUATIONS, WHERE THE CUSTOMER CANNOT SIGN)
  43. 43. 42 Recorded by the technician  Cause of the failure (technician‟s diagnosis) o Each diagnosis must be separated by item number and correspond with the customer complaint  Remedy (technician‟s method of repair to correct the defect) o Each repair must be separated by item number and correspond with the customer complaint  Technicians clocking information (time started and time completed) o Each individual repair time must be separately recorded by item number and correspond with the customer complaint  Repair date (the date the technician completed the repair) o Each individual repair time must be separately dated by item num- ber and correspond with the customer complaint  Technicians Signature o Each individual repair time must be signed separately o The technician must also sign and date the RO when all the repairs are complete  ODO reading / Hours worked when final repair is completed after the test drive
  44. 44. 43 12.11. REPAIR ORDER (RO) / JOB CARD RESPONSIBILTIES During the cycle of processing an RO different individuals have specific responsi- bilities and are required to provide, or obtain information for the RO as detailed above. These responsibilities are covered below under the different position titles. It is imperative that all the information is recorded, whether the individuals provide it as required, or not. The overall responsibility lies with the Service Manager to ensure all of the information is supplied accurately. 12.11.1. Service Advisor / receptionist The Service Advisor / receptionist is the first person involved in gathering the customer, vehicle and repair information and must ensure the com- pleteness and accuracy of the information. While opening the RO, the Service Advisor / Receptionist must determine the different types of work to be carried out by distinguishing between:  Warranty  Customer to pay  Dealer internal account For warranty repairs, they must also determine:  If it is the correct owner of the vehicle  If it is the correct vehicle (chassis number)  If the vehicle falls within the warranty parameters  If the vehicle service history is up to date  If there are previous repairs in case it is a repeat failure (Come- back) resulting from a poor previous diagnosis or substandard re- pair All warranty RO‟s must be handed to the Warranty Claims Administrator prior to the repair being carried out to obtain the necessary authorisations. INCORRECT OR INACCURATE INFORMATION COULD RESULT IN CLAIM REJECTION
  45. 45. 44 The Service advisor must ensure that the customer understands the con- ditions of the repairs being carried out and obtain the customer‟s signa- ture. During the service / repair process, it may be found that additional work is required. It is the Service Advisor / Receptionist‟s responsibility to inform the customer of this additional work and obtain their authorisation to con- tinue, whether the repair is covered under warranty or not. The Service Advisor / Receptionist must record the date and time on the RO when the customer was contacted. ALL ADDITIONAL WORK ADDED TO THE RO AFTER THE CUSTOMER’S INITIAL SIGNATURE, MUST BE SIGNED BY THE CUSTOMER WHEN THEY COLLECT THE VEHICLE.
  46. 46. 45 12.11.2. Technician When the technician receives the RO it is their responsibility to ensure that they understand the customer complaint before they commence with the diagnosis. When performing the diagnosis, the technician must also determine whether it is required to obtain any readouts or specific measurements re- lating to the repair that could be part of a warranty claim. e.g. battery re- ports, cylinder bore etc. as well as photographs. The technician must document the diagnosis under the heading “CAUSE” and indicate which part / component caused the failure. The technician is also responsible for completing the product defect report required for claim authorisation. The Service manager should assist to ensure the accuracy of the information. The technician must record the time & date worked on each individual re- pair by: o Clocking „time-on‟, „time-off‟ & date opposite the repair description o Manually recording „time-on‟, „time-off‟ & date opposite the repair de- scription Once a repair is completed, the technician must sign the individual repair and when all are complete they must sign off the RO and insert the date. The technician is also responsible for keeping all the parts together that are replaced in the course of routine servicing and customer to pay repairs until the customer has paid for the repair and indicated that they do not re- quire the replaced parts. All parts required for a warranty repair must be handed in to the Parts department in order to receive the replacement parts. The technician must complete the warranty parts label for each part re- turned. In the case of multiple part components, such as gearbox repairs, only one tag is required and the parts should be boxed together. A TECHNICIAN CANNOT ADD REPAIRS TO THE RO. ONLY THE SERVICE ADVISOR / RECETIONIST, OR SERVICE MANAGER MAY DO SO
  47. 47. 46 12.11.3. Warranty Claims Administrator The Warranty Claims Administrator must scrutinise all warranty claim RO‟s prior to the repair being carried out to confirm that they are eligible for warranty reimbursement. They have to arrange:  Prior approvals for the warranty repairs  Defect reports  Photographs  Service history reports Once the repair is complete the Warranty Claims Administrator must en- sure that all the required customer, vehicle and repair information is pre- sent on the RO to facilitate the submission of the claim. The Warranty Claims Administrator must make sure that all the parts re- placed in the repairs were handed in to the Parts department and tagged with the correct information. The Warranty Claims Administrator must ensure that the sub-let orders and invoices applicable to a repair are presented with the RO. The Warranty Claims Administrator must complete a copy of the “War- ranty claim check-sheet” for each claim and attach it to the RO. If the Warranty Claims Administrator is satisfied that all the information is correct and all the required documents are present, they must sign off the “Warranty claim check-sheet” and enter the claim details into the War- ranty claims register. Daily checks  WIP (work in Progress report) The Warranty administrator must scrutinise the WIP report on a daily basis to ensure that the warranty work is being carried out within the correct time limits as per Submission limits in section 14.3  Claim authorisations The warranty administrator must monitor the Powerstar claim authorisation during the day for approved claims and inform the Service advisors so they can arrange commencement of the warranty repairs and then update the Claims register with the authorisation information.  Claim errors
  48. 48. 47 The warranty administrator must monitor the Powerstar claim error notifi- cation to correct and resubmit erroneous claims within the required time limit as per Submission limits in section 14.3 Monthly checks  Warranty claim payments The warranty administrator must receive the warranty claim payments each month to update the warranty claims register with the payment information. The amount paid must be compared to the amount claimed for discrepancies. All discrepancies must be followed up to ascertain where the error lies and fol- lowed up to recover losses, or rectify errors in administration such as costing of RO‟s.  Warranty claim age analysis The warranty claims administrator must check the warranty claims age analysis each month after the claim payments have been allocated to ensure that there are no claim payments outstanding for longer than 30 days All outstanding claim payments must be followed up to determine whether the claims have been submitted to Powerstar, have not had errors corrected, or have not been paid for any reason.
  49. 49. 48 12.11.4. Service Manager The Service Manager is responsible for all of the phases an RO goes through, including the filing once invoicing is completed. They must ensure that a technician does not commence with a repair until they receive an RO with the necessary Powerstar Approval. The Service Manager must scrutinise all warranty claim RO‟s once the claim has been submitted and ensure all of the required procedures are complied with. The service manager must then sign the “Warranty claim check-sheet” when he is satisfied that everything is correct. The service manager must oversee the scrapping of the warranty parts when the 120 day retention period expires and endorse the warranty parts register. 12.11.5. Parts department The Parts Department is responsible for recording the part numbers is- sued to each RO and to maintain the correct prices for each part. In the case of a warranty job card the parts are to be issued at dealer at:  Dealer cost plus 10% handling fee (maximum of R2000.00 handling) The Parts Department must ensure that the parts ordered by the techni- cian relate to the repair description on the RO. e.g. a windscreen wiper motor requested for a suspension repair should be queried. The parts department must receive all replaced parts for warranty repairs and endorse the RO accordingly to confirm receipt. The Parts Department should not provide the replacement part to the technician until the defec- tive part has been tagged with the “warranty parts label” and handed in by the technician.
  50. 50. 49 12.12. RECORDS RETENTION Dealers are required by law to retain the original documentation for a period of three (3) years following payment of the invoice. The documents include:  All RO‟s related to a warranty claim (Parts claim to include copy of original invoice)  Clocking records, if separate to the RO  Diagnostic reports  Sub-let orders  Sub-let invoices  Parts invoices  Quotations for rust repairs  Claim forms
  51. 51. 50 12.13. WARRANTY PARTS STORAGE All warranty parts replaced during a repair must be labelled and kept in the dealer‟s warranty parts store under lock and key for a period of 120 calendar days from the date of repair. 12.13.1. Parts labelling The warranty parts label must contain: o Claim number o Branch/dealer o The RO (job card) number o Customer name o Date of repair o Vehicle chassis number o ODO / hour reading o Part description o Part number o Component serial number where applicable (en- gines/gearboxes etc.) o Technical inspector o Defect o Bin location (month / shelf number) 12.13.2. Parts storage A secure storage area, which must be kept locked at all times, must be provided for keeping the warranty parts. Sufficient racks must be installed to pack parts for the 90-day reten- tion period. Racks must be marked by: o Month o Shelf number The oldest shelf must be cleared and marked as the current month when the 120-day period expires and parts are discarded.
  52. 52. 51 12.13.3. Warranty parts register A warranty parts register must be kept in the warranty parts store to control the inventory and record the scrapping of parts after the 90- day period expires. The register must contain the following information: o Claim number o Customer name o Part number o Part description o Component number where applicable (engines/gearboxes etc.) o Repair date o Bin location (month / shelf number) o Date scrapped / shipped to Powerstar o Service manager‟s signature 12.13.4. Housekeeping The warranty parts store must be kept clean and tidy at all times. Parts must be cleaned prior to storing in the Parts store. Large parts that cannot be shelved must be kept in a demarcated area and arranged in an orderly manner with the same type of parts kept together. i.e. gearboxes with gearboxes, axles with axles etc. The Parts register must be kept up to date at all times. THE BIN LOCATION FOR LARGE PARTS WOULD READ “FLOOR”
  53. 53. 52 12.13.5. Parts disposal / scrapping The scrapping of parts must be carried out in such a way as to render the part unusable. In the case of gearboxes, engines etc. the casings must be damaged by knocking a hole in them with a hammer, welding the crankshaft / main shaft to the casing etc. The scrapping of parts must be recorded in the parts register for ref- erence purposes. BEFORE DESTROYING MAJOR COMPONENTS THE SERVICE MANAGER MUST ENSURE THAT THEY ARE NOT REQUIRED BY Powerstar FOR REWORK MATERIAL.
  54. 54. 53 12.14. WARRANTY PARTS RETURN PROCEDURE When a part is replaced under warranty it becomes the property of Powerstar and could be requested for return to the plant. Generally when parts are required to be returned Powerstar will arrange the col- lection. If requested that the dealer return the parts, they must be returned to the War- ranty Department within 5 days of the request. Claims where parts are not received within the 5 day limit will be reversed as “Part not received”. (PNR) ALL parts being returned, must be:  Tagged as per the parts storage requirement  Accompanied by a copy of the RO and the warranty claim documentation  Packed securely to avoid damage (IN THE ORIGINAL BOX WHERE POSSIBLE)  Packed separately if fragile parts  Cleaned  Drained of oils and fluids  Assembled if disassembled for diagnosis Parts inspected by Powerstar and found to be in working order will result in the claim being reversed for “No fault found”. (NFF) Parts that do not match the claim parts requested will result in the claim being re- versed for “Incorrect part received”. (IPR) IF ASSEMBLIES ARE RECEIVED IN AN UNASSEBMLED STATE THEY WILL BE RETURNED TO THE DEALER FOR ASSEMBLY AND IF NOT RECEIVED WITHIN THE INITIAL 5 DAY LIMIT, WILL BE REJECTED AS “PARTS NOT RECEIVED”. THE RE-SHIPMENT COST WILL BE FOR THE DEALER’S ACCOUNT.
  55. 55. 54 13 DEFINITIONS & TERMS Repair Order (RO) – A repair order, also known as a job card is the document used to track repairs through the workshop. The RO contains the customer, vehicle and repair information. Customer complaint / Problem – The customer complaint is the description of the defect / failure as experienced by the customer. Diagnosis / Cause – The technician‟s explanation of the cause of the defect as detected during the diagnosis of the customer complaint. This should in- clude the identification of the exact part / component that caused the de- fect. Repair / Remedy – The corrective action taken by the technician to rectify the defect. This description should include a step by step process followed to affect the repair. Defect report – The Defect report is to be used for reporting warranty information for the products that require the sheet as part of a warranty claim. The report records the defect as well as the operating conditions at the time of the failure and is intended to assist with quality improvement. Warranty start date / date of sale – The warranty start date is required to establish the warranty expiry date and is usually the retail date of the vehicle, but where there is a delay in the delivery of the vehicle after retailing, it would be the delivery date. It is the dealer‟s responsibility to provide the Powerstar warranty department with this information. Warranty card – The card is prepared to inform the customer of the warranty cover pertaining to the vehicle purchased as well as the proper care and maintenance of a new product. Approved Warranties – All warranty requests submitted by the Dealerships are investigated by Warranty Department and authorised/rejected. The warranty approval may include recommendations, which can assist the dealership in performing the warranty repair. Completed Warranty Claims Form – This form is completed by the dealer warranty claims administrator and includes all the information required for processing a warranty claim. Approved Warranty Payment – Once Wholesale department has received notification from the Warranty department that the warranty claim has been approved for payment, an approved warranty payment is prepared to authorise the Finance department to reimburse the dealer. Rejected Warranty Request – This includes all warranty requests rejected by the Warranty department with the reasons. Information is to be communicated to the relevant staff in the dealership. It is the dealership‟s responsibility to inform the customer with the reasons for rejecting the warranty claim.
  56. 56. 55 Warranty Claim Form Authorisation No ( Powerstar use only) Invoice Ref No RO / Job card No Service Advi- sor Reg. Number Date of 1st Reg.Dealer Model Selling DealerDate Chassis Number Last Ser- vicedEngine Number Customer Kilometers Cell number Full Service History? Ye s N o Ite m Opera- tion/Part Number Description Quantity/ Time Units Unit Price Units Claim Amount Approved Amount (Powerstar use only) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Nett Total Tax TOTAL Attachments and Supporting Documentation to this claim (please list): 1. 2. 3. 4. 5. Submit by e-mail to: Date Submitted: Service Manager Signature: Warranty Management Department ( Powerstar Office Use Only) Date Received: Processed By: (sign) (Date) Approved By: (sign) (Date) Reason for Rejection:
  57. 57. 56 Instruction Notes – Warranty Claims Form Dealership: a. The Dealership is to submit the Warranty Claim on the pre- scribed form. b. All fields to be completed except where indicated “Head Office Only”: i. Authorisation Request Number – to be completed by Head Office ii. Invoice Reference Number – Insert the warranty Invoice number. A copy of the invoice must accompany warranty claim form. iii. RO / Job card number – Insert the RO / job card number. A copy of the RO / job card must accompany warranty claim form. c. Labour: Where no “Flat rate” repair times are presently avail- able, Workshop Times (WST) will be taken. d. Labour Rate: The rate for Warranty Repairs is to be R250.00 per hour. e. Warranty Parts Handling charges: 10% of the material cost may be added by the dealership to a maximum of R2000.00 f. Warranty Parts Shipment: Should there be a requirement to send parts to a destination, other than the dealers Parts depart- ment, the shipping costs will be for the dealers account. g. Warranty outwork repairs: Charged at the NETT invoice price excluding VAT h. After completion, the Service manager must sign the form and it must be submitted to the following e-mail address war- with accompanying information. Warranty Department: a. Make use of applicable documentation and approve/decline specific warranty claim line items. b. Complete the field “Approval Amount (Head Office Only)” with the approved amount for each line item. c. Complete the “Reason for rejection” field in detail. d. After the dedicated persons sign the form, send a copy to the dealer.
  58. 58. 57 Warranty claim check sheet Claim number 1ORIGINAL RO YES NO 5PAINT / RUST CLAIMS Checks complete YES NO 2CUSTOMER History complete YES NO Customer name YES NO Quotation - detailed YES NO Customer address YES NO Authorisation YES NO Contact number YES NO 6COSTING Customer signature Parts invoices / picking slip On job card YES NO Parts quantities YES NO All additional work YES NO Parts prices YES NO Genuine parts used YES NO 3VEHICLE * mandatory information Model description * YES NO 7SUB-LETS VIN / chassis number * YES NO Valid sub-let repair YES NO Engine number YES NO Sub-let order YES NO Registration number * YES NO Amount correct YES NO Registration date * YES NO Sub-let parts available YES NO ODO reading / Hours * YES NO Parts supplied by dealer YES NO Genuine parts YES NO 4REPAIR 4.1Customer complaint 8 PARTS CLAIM Clear and understandable YES NO Previous job card YES NO Confirmed by a technician YES NO Previous invoice YES NO 4.2Technicians work description Comeback repair YES NO Problem YES NO 9OTHER DOCUMENTATION Cause YES NO Service history YES NO Remedy YES NO Authorisation YES NO 4.3Claim description Defect sheet YES NO Complete YES NO 10PARTS Matches work done YES NO Available and tagged YES NO Valid warranty claim YES NO 4.4Labour Sign: Time on YES NO Service manager Time off YES NO Signature YES NO Warranty administrator Date YES NO

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