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Corporate Support CenterDepartment Structure and Responsibilities
Loss Prevention / Risk Management
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Day 2Question from Day 1Operational Audit
SectionsPolicies/ProceduresFront End ControlsInventory ControlsHousekeeping
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Policy/Procedures
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ALI Vehicle Lifting Points GuideLocated either on the first two post rack or in a
work order pouch attached to the pre-set torque wrench set
Improper Racking
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$25,744.71
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All No visible tattoos No facial hair other than a neatly trimmed mustache No ear rings (Male) and one in each ear (Female) Side burns no lower than bottom of earlobe Hair neatly trimmed and off collar
Technician & General Service G&K uniform service Black pants/shorts, belt, socks and shoes Black diamond polo shirt
Management & Sales G&K uniform service Black pants, belt, socks and shoes Red short sleeve button down shirt Red long sleeve button down shirt required if there are visible tattoos
on arm(s)
Dress Code
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A mat and seat cover is to be placed in every vehicle Even if management and sales pulls vehicle
in/outTech or General Service associate may have to:
Start vehicle or operate controlsVehicle may be taken on a test driveVehicle may be relocated to alignment rackEtc.
Note: Make sure hands are washed prior to driving a customer’s vehicle
Mats & Seat Covers
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Check the oil, Check the oil, Check the oil Prior to removing the oil, note oil leaks and any damage to drain plug or
filter. Make management aware of findings. (e.g. oil leaks or engine noise). Red Shirt associate must verify the oil filter to the application Any associate can verify the level on the dipstick (mandatory) Clean the drain plug and filter
After the oil change is completed; Lower the vehicle and start the engine. When proper oil pressure is obtained shut off the engine and check the oil level. Raise the vehicle and check the drain plug and oil filter are clean and tight.
Lower the vehicle and complete the Quality Assurance (QA) checklist. Note: If a customer returns, or has their vehicle towed in, claiming an oil out situation, check the oil level, filter and drain plug upon arrival with the customer present.
Oil Change Procedures
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Engine Failure Investigation
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Customer called and stated that they were driving when the engine failed. Vehicle taken to their mechanic for inspection. There is not any oil in the engine.
Customer Statement
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Vehicle arrived with no oil registering on the dipstick
Engine had a noticeable knockingEmployee did not inform his manager of
vehicle conditionOil filter had a double gasketOil blow back on underside of vehicle$1,405 for new engineAssociate received final counseling and was
retrained on performing oil changes
Findings
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What are signs of an oil out?
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Every “Wheel Off” is a potential fatality Torque chart“Stick It & Click It”Hand Torque with tires just touching floorEnsure all rust is removed with a wire brush.Wheel must fit flat against face of hub.No wheel modifications or spacers are to be
used—proper fitment is required.
Wheel Torque
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DO not like them and prefer to decline service
Knock Off Wheels
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Torque Chart
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Torque Wrench Testing
Test accuracy of every torque
wrench daily, it only takes a
second.
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Wheel off Investigation
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You just finished mounting tires back on the customer’s vehicle. The customer leaves your location. The next day the customer calls back and stated they were driving home when the front right tire came off their car. Their car went off the road and struck a guard rail. Another car struck the wheel and tire.
Write the appropriate comments you would say to this person:
Customer Scenario # 1
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Customer stated that the driver’s rear wheel came off his 1997 Ford Ranger. There is damage to both sides of his truck. A couple days prior to the wheel coming off, he felt a vibration in the vehicle. He was planning on bringing the truck back to Kauffman Tire for an inspection, but had not made it back yet. The customer stated he was making a right hand turn when the wheel fell off of the vehicle.
Customer scenario # 2
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Struck concrete wall when wheel came off
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Installed 4 tires, rear brakes and one studVehicle only drove 394 milesOblong lug holes on wheelThread patters in lug holesMarks on one lug hole as wheel finally came
loose
Findings
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Location did not torque the left rear wheel.
Result
$4,546How could we have prevented this?
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What is repairable? Puncture must occur in the tread area of the tire at least 1
inch away from where the sidewall meets the tread. Puncture cannot exceed 1⁄4 inch in diameter, slits can not
exceed 1⁄4 inch in length. Tires that have a damaged inner liner and exposed
polyester carcass are not repairable. Tires with inner liner rubber debris are not repairable. Punctures must be more than 3” apart, no more than two
repairs.Only tires with serviceable tread depth of 4/32nds of an
inch or greater are repairable. Less than six (6) years old, up to max of eight (8) years
with thorough RMA inspection.
Flat Repairs
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Use cleaner fluid to clean and scrape area around puncture. Drill puncture with carbide bit installed on tire repair drill. Follow the angle
and path of the puncture. Install plug stem with cement until thick part of plug is fully in the drilled
hole. Trim plug just above inner liner surface. Buff area around puncture larger than the patch being used. Use a wire brush to remove rubber dust from area. Apply a thin and even layer of cement. Carefully remove the plastic coating from the patch being careful not to
touch and contaminate the rubber compound underneath. Install the patch directly over the injury.
Stitch the patch down starting in the middle and working your way out. Remove poly film cover.
Apply repair sealer all around the patch and any buffed area not covered by the patch. Trim the protruding plug flush with the tread surface.
Flat Repair Procedure
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Kauffman Tire primary focus is tires and related services. We do not want to get caught up services that can not be consistently performed throughout the companyList of approved servicesApproval process
Brian Pechin or Andrew BaileyDocument approval code in invoiceNever are valve cover or intake gaskets
allowed
Authorized Services
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Open Order Valid
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Open orders less than seven (7) days old (Tirepro 1-5-1)Change to “Quote” unless a valid appointmentAffects visible availability of product “F2”Do not use to hold product more than 7 days as
it will tie up product that can be soldInvoice ALL “No Charge” or “Warranty/Come
Back” orders and have them signed by customer
Open Work Orders
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PCI ComplianceApplications & Resumes
Must be secured in a locked file cabinet at all timesCredit Applications
Must be secured at all timesSend to corporate office weekly
At no time can a customer’s credit card information be written on an unsecured documentTake number over phone and process in credit card
machine at that timeNever write on Work Order or Invoice
Non compliance could result in losing the ability to accept credit card payments
Identity Theft
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“Let me speak to your manager. I was reviewing my credit card account and noticed that someone used my credit card to purchase $1,252 at your store. HOW COULD YOU HAVE ALLOWED THIS TO HAPPEN!!!!! I bet you it was one of your employees.”
What would you do?
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Listen first, don’t talk They are mad at the situation and not you personally, even if it does
not feel that way Do you have a moment for me to gather some information?
Name Location of service (i.e. 3 Suwanee, Ga. locations) Date Amount
Have you contacted your credit card company to dispute this claim? Have you contacted the local police department to file a police
report? We are not able to give account or customer information to anyone
other than the actual customer We will fully cooperate with the police and credit card companies to
resolve this very unfortunate situation
Possible Responses
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Who is eligible to receive the discount Employee Employee’s Parents Employee Dependents
Tire/Wheel Purchased at cost plus installation and fees
Parts/Services No carry outs 25% off menu prices
Anytime a vehicle is in the shop it must have a work orderEven if an employee works on their own car they must pay above
pricing structure Employee discount program and promotional offers cannot be
combined All work orders MUST be invoiced!
Employee Discounts
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Clock-in and out Lunch punches
Any employee working five hours or more must clock out for a minimum 30 minute lunch
“Lunch Out” iconManual punches
At end of week print time card, have associate sign it, and then file at store level
Vacation Requests
Time Cards
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Radio Shack 5.8 m suit
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Maintain Manifests for 36 monthScrap TireWaste OilUsed FilterWater Separator, if applicable
Hold pick-up copy until fully executed copy is receivedGeneratorTransporterProcessor
EPD Regulations
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Generator
Processor
Transporter
Scrap Tire Manifest
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Generator
ProcessorTransporter
Waste Oil/Filter Manifest
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Customer Supplied Parts“CSP”
NEW Tires (major U.S. domiciled brand), light bulbs, wiper blades and engine oil (Meet or exceed O.E.
standards and be in original factory sealed manufacturer container).
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From time to time a customer may ask us to hold their wheels, tires, etc for pick-up at a later dateInform customer that you would be more than
happy to hold them for up to seven (7) daysMark them appropriatelyStore them as to avoid damage/theftIf not picked-up with in seven (7) days you need
to contact the customer for a status updateDocument each contact with customer
Discard if no customer contact or pickup after 14 days.
Customer Take Offs
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What do you do if a vehicle appears in your lot or a customer fails to pick up their vehicle?Make every attempt to contact the customer regarding the
removal of their vehicleMoney owedVehicle never entered a service bayAbandoned vehicle process
Contact Loss Prevention to start the abandoned vehicle process if no contact with customer for more than seven days
Negale will attempt to make contact with customerContact local law enforcement to see if vehicle has been reported
stolenIf not already, towing company sign will be installed at least 24 hours
prior to removal of vehicleTowing company will process abandoned vehicle, collecting any money
we are owed.
Abandoned Vehicles
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Front End Controls
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Drawer & safe should be locked at all timesDo not leave keys unattended at any time.Cash drawer is to be balanced prior to
opening and after closing dailyAny variance of +/- $1.00 need to be explainedLegibly document actual bill and coin totals
Ending cash on-hand recorded on EOD
Cash Drawer & Log
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Print End of Day Report (Tirepro 3-4-2)
BalanceCredit cardsCashChecksChargeROAPaid Outs
End of Day Process
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If there is a variance it needs to be documented under “Notes”Including Support Center ROA’s payments
End of Day Variance
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End of Day Report
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Send to Accounting at least twice a week.
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Required to be made on a daily basisSecured in safe until taken to bankLegible deposit slip
Note: If your location is making deposits through “Night Drop” you need to pickup deposit slips every few days to ensure the accuracy of the deposit
Deposits
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Kauffman Tire uses Certegy to guarantee customer checksFollowing information is required and must be legible
No counter checksPre-printed with customer informationPhone NumberStore number (i.e. “G46”)State of drivers’ license issuanceDrivers’ license numberDate of birthCertegy authorization numberSignature
Deposit stamp must be immediately placed on back of check, prior to placing in the cash drawer
Check Processing
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Correct Example
(404) 555-1212
Kauffman TireSeven Hundred Sixty Two and 94/100
John Doe
762.94
Tires and Oil
4/25/12AP342981GA
2-26-68DL1234567890 G46
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What checks are to be processed through Certegy for approval?All checks are to be processed through
Certegy, even if it is a business.Even business checks need the required
information for approval.If the check is declined then it can not be
accepted as a form of payment.
Certegy
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Receive call from Accounts Receivable Department that check has been returnedContact customer and inform that check was
declined and arrange payment within 7 daysContact Maleah Napier if payment is received
Check Returned NSF
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What do you do when the work has been performed and the customer’s payment method has been declined?Ask if they have another form of paymentSuggest applying for a Kauffman Tire credit
cardIf all else fails contact your District Manager
for direction
Payment Declined
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Process on day of purchaseProcess daily and change ending cash on hand
to reflect actual amount in tillParts and towing charges need to have the
work order number referenced on the receiptThe receipt must be signed by the individual
processing the paid out (giving cash out of drawer)
Mileage, fuel and meals need to be submitted on an expense report to your District Manager
Paid-outs
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Parts for customer vehicles
The work order number should be listed on parts invoices
Cost needs to be updated in invoice
Initials of associate giving cash out of drawer
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Store Purchases
Initials of associate
giving cash out of drawer
Must be processed on same date as
purchased
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Reference the original order number in the return
Manager or Assistant Manager must review and sign every refund verifying the accuracy
File with daily invoices
Refunds
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What Is One Of Our Most Important Legal
Documents?
Work Order
A customer’s invoice is a legal reflection on the service(s) we performedAccurate information
Customer, vehicle, services, recommendations and notes
Recommendations and pricing updated from work order
What was found
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Invoice accuracy
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Entire DOT data must be accurate, as it is filed electronically for customer
Verify all customer and vehicle information is accurate
Update tag to vehicle being serviced
Any red shirt who verifies the actual filter application should initial
Any associate, other than one performing service, who verifies level should initial
Document accurate condition of car after services completed
Federal RequirementAt Kauffman Tire we electronically file every
tire DOT number for our customers at no chargeVerify customer’s current addressAccuracy & Legibility of “DOT” numbers are
imperativeUpdate accurately into orderIf more than one DOT number, list each
separately
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DOT numbers
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Full
Partial
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Must have a copy of “State of Georgia Department of Revenue Sales Tax Certificate of Exemption – Georgia Purchaser of Dealer”
Sales Tax Exempt
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Why do you use them?Why not use a discount code?POS Audit Report (Tirepro 1-5-5)
Price Over-Ride
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Inventory Control Stock Status (Tirepro 4-6-1) Adjustment Procedure Quick Stock Count (Tirepro
1-5-12)
Inventory Transfers (handling and cleanup)
Excess Inventorywww.ktintranet.comShop Management
Quick Count (Tirepro 1-5-12)
Compare actual number of new tires in location to system
Cycle Count (Tirepro 4-6-1)A count of specific manufacturers
Full Inventory (Tirepro 4-5)Every new tire in the location is verified and
compared to the System inventory
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Three Types of Inventory Control
Stock Status report
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Stock Status Report
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Intercompany Transfers - StatusOPEN STATUS – G43 TO G90
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Intercompany Transfers (cont)IN-TRANSIT STATUS – G43 TO G90
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Intercompany Transfers (cont)COMPLETED STATUS – G43 TO G90
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Intercompany Transfers (Audit item)Intercompany transfers must not be left in
“Open” status for any period longer then four days. This will help to ensure that inventory is available to be sold!
In-transit transfers must be completed immediately when the merchandise is received at the location.
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Transfer DiscrepancyMost often, a transfer discrepancy occurs
when a “buying” location receives tires from the “selling” location in incorrect quantities (over/short).
Tires that are short received ARE NOT put back into the selling location’s inventory without a manual adjustment.
Transfer Discrepancies print automatically to the selling location’s printer.
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Transfer Discrepancy
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Receiving an intercompany transferMatch physical quantity of tires received to
tires delivered from selling location.Circle quantities on transfer documents.Transfer document should be signed by
driver who delivered tires/red shirt who received tires.
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On-hand adjustmentsManual adjustments to inventory can only be
done by District Managers and Loss Prevention team.
All variances should be adequately researched prior to making adjustments.
If variance results from transfer discrepancy – it should be corrected in the same manner when possible.
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Tire Storage Area OrganizationEasiest way to prevent variances is to be ORGANIZED!
Tire Storage Areas should be organized by Brand, type, item number – this makes it easier and more productive to pull tires while reducing the opportunities for errors
All tires MUST be labeled and the label must be facing outward on the rack.
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Run on tire(s) not processed through manufacturer adjustment process and placed in racks
Pre-sold tiresTread Depot Outside Purchase Tires (OPT)UnorganizedCounted wrong on last inventoryTires actually installed on vehicle are not invoicedWrong tire installed on vehicleReceiving error/mis-labelTransfer discrepancies not researched and corrected
(Tirepro 10-2)
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Causes of Variances
Define Manufacturer AdjustmentsDefine Road Hazard AdjustmentDefine high treadHow do I create and adjustmentStaging adjustmentsAdjustment / high tread pick-upClaim Journal (Tirepro 1-5-7-12)
Research / Follow-up
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Adjustment Tires
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Manufacturer Claims Journal(TirePro 1.5.7.1)
Look in employee history to see what they paid for the tire.
Calculate the adjustment based on what they actually paid.
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Employee Adjustment Tires
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2013 Retail Cycle CountsJan/Feb Mar/Apr May/Jun Jul/Aug Sep/Oct Nov/DecCooperMastercraftStarfire
GoodyearDunlopKellyKumho
ToyoMichelinBFGPirelli
Cooper MastercraftStarfire
GoodyearKumhoPirelli
ToyoMichelinBFG
• Cycle counts are performed every 60 days during the operational audit
• Retail stores will continue to submit weekly quick count data to Negale Brown in Loss Prevention
• Full Inventory will be performed based on (Weekly quick count data, investigations or cycle counts)
Organize by Brand, Model and SKUSpeed RatingSidewallSize
All labels facing outIf a label is missing, label tire accurately
ManufacturerBrandSizeSpeed RatingItem number
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Tire Stockroom
Kumho KR21
225/40R18 95V
# 1234567
An unorganized stock room can lead to a sales screen that you can not trust…Tires pulled incorrectly
SizeSpeed RatingWhite wall versus black wallLoad index
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Tire Stockroom – Cont.
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Which would you trust?Unorganized
From time-to-time, Kauffman Tire locations will need to purchase tires from and outside vendor t satisfy a customer’s request.When the tire is delivered to the location inspect the
tires and compare them t the actual invoice.Make a copy of the invoice and send the approved
original to accounting via inter-company mail.Attach the copy to the outside purchase tire if it is not
installed/sold within 24 hours.Place the tire in a segregated location.All outside purchase tires will be returned to the
vendor if not picked up/paid for by the customer within 14 days.
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Outside Purchase Tires
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Tires older than 4 years
The 51st week of 2015
What is the last week you can sell this tire?
Try to sell what is in your house if at all possible“Open” status“In-Transit” status“Completed” statusDiscrepancy
How createdWhat PrintsResearchOn-hand adjustment
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Transfers
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Transfer Discrepancy Report What is a transfer discrepancy
report? How do I get one? How do I research it?
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Housekeeping
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Shows customers and employees that you take pride in your location
Customers notice a clean location and appreciate that the same attention will be given to their vehicle
Housekeeping and Safety go right along with each other
Housekeeping Section
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Do you want to meet with a customer in this office?
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Good housekeeping shall be maintained in the showroom, shop, and parking lot. At a minimum, the following requirements must be adhered to: Aisles and passageways shall be kept clear of tripping hazards Trash shall not be allowed to accumulate and must be removed Appliances, counters and manager’s office clean and organized
Would you be proud to discuss a customer situation in your office? Cleanliness and organization Smell (food, trash, etc.)
Tool boxes cleared of clutter above and below Rest rooms
Trash emptied daily Paper products and soap dispensers full Rinse sink when washing hands
Housekeeping
Never allowed
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Sidewalks/Bay Entrances Do not sweep or wash debris from shop to exterior of building Shop floors must be cleared of debris and spills. Place wheel weight bucket near balancer and tire changers so
removed weights can be thrown directly in to bucket, not on floorEquipment must be cleaned daily
Do not stick tire labels to equipment Pressure gauges and tire equipment must be clean and in good
working order at all times. Oil change pans must be cleaned and emptied as soon as
practicableLights (Interior, Exterior, Signs and Emergency Fixtures)
Housekeeping – Cont.
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Must be empty unless in use!Brown in color
Mop Bucket
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Hidden Hazards #1
Trash over flowing Oil and oil dry
not cleaned up
Tool and hose creating trip hazard
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Hidden Hazards #2Mop bucket blocking electrical panel
Access to eye wash and water fountain blocked
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Hidden Hazards #3Wheel weight bucket is right there
Missed bucket and will get swept up and thrown away
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Now that looks good!
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Make good housekeeping skills a part of your daily routine. Before beginning work, look around your
workstation for unsafe conditions. Your prompt action can prevent an accident.
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Opening/Closing ChecklistNo radios and cell phones in shop
Includes no use ear phonesPlease pull cars to the curb for our Elderly
customers
Misc.
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Lot to Remember?
Questions&
Answers108