Warranty Parts Return Presentation 09 2003

Warranty Parts Return

Information and Guidelines to MBUSA Warranty Parts Return

San Francisco Region2003/2004

Introduction

Return of warranty parts has been a “hot topic” with dealers since the inception of MBUSA’s new warranty part return policy.

The information in this presentation will assist you in training the dealers to better understand the system and prevent chargebacks.

There are various locations for information and resources:Warranty Policy and Procedure ManualMercedes-Benz Operations Guidelines Manual NetStarNewsChannel

Resource Material Location

Warranty Policy and Procedure Manual – Section 10 covers Warranty Parts Handling Procedures.

Mercedes-Benz Operations Guidelines for Service andParts – Section 3 covers areas affecting the storage of warranty parts such as Returns and Layout & Stocking.

NetStar – Parts Disposition can be found under the Service icon, Warranty section.

NewsChannel – Bulletins on additions, changes and updates to MBUSA policies and procedures are available under Parts.

Warranty Policy & Procedures Manual

The number one cause for dealer confusion is the set up of storage of warranty parts. Dealers have various methods of storing warranty parts.

Section 10-3 (pg 10-10) shows a Warranty 10-Bin system method of storage allowing for both effective & efficient use of time and space, and preventing any further damage &/or possible part loss.

This method is considered the minimum requirement for storing warranty parts.



Best Practices

All warranty parts should always be tagged and returned in their original packaging (box or bag).

The tag should be tied to the part and not the packaging to ensure the correct part is returned.

Plastic bags should be available at the Technician Counter where original packaging is non-reusable.


Samples of the Parts Return Identification Tag/Envelope (W-420)

Existing ID Tag New Bar Code ID Tag

MB Operations Guidelines for Service and Parts

The guideline manual refers to Warranty Parts Return section (10), in WPPM, for warranty related questions and information.

In the Layout & Stocking section (3.4), it states: “plan the layout for overall efficiency of aisles and bin locations with relationship to the part counters.”

This especially applies to the warranty parts return 10-bin location.

MB Operations Guidelines for Service and Parts

The 10-bin system should be located so bins and racks (for bulk items):

• Have ample space for both bulk and small items;• Be in a secure location;• Be in close proximity to the shipping and receiving area for

easy access & processing;

Quality Evaluation Centers

There are 2 Quality Evaluation Centers, however they operate with different criteria when handling warranty parts.

Jacksonville

This is considered the main return depot where all warranty parts are returned. Jacksonville is the “first line” of inspection for all returned parts.

The parts are inspected for (1) damage and (2) repetitive returns. Should repetition be ascertained, independent testing would be performed.


Glenview

This is considered the main testing depot where specific returned parts are tested. This includes in-vehicle testing, bench testing, and disassembly & inspection of units such as engines, transmissions, phone coil cords, and sun visors.

These parts are normally requested for by an internal department, such as warranty or engineering, with set criteria. The specified parts are then automatically diverted from Jacksonville to Glenview until testing has been concluded.


Common points for Jacksonville and Glenview:Test a variety of parts;Verification of reason for part being returned;

Differing points for Jacksonville and Glenview:Independent testing versus specific part testing;General testing versus TAC/EDAC testing;Small-moderate part testing versus assembly unit testing;High volume versus low volume of returned parts;


Samples of rejected returned parts due to damage from:

< Insufficient shrink

wrap.

Broken glass damaging

fabric type parts. >

< A bumper box split in

2 during shipping.

Customer responsibility,

covered by insurance. >


Samples of rejected parts because they were mislabeled.

< Labeled: transmission,

Actual part: radio.

Labeled: transmission,

CD changer, & AC control

unit; Actual parts: 2

gateways and a valve body. >

< Labeled: electric motor,

instrument cluster, &

parasitic stopper;

Actual parts: COMAND unit,

rear view mirror, &

Gateway.


Samples of rejected returned parts due to damage from:

Automatic Transmission fluid leaking from

a valve body into parts causing liquid

damage. >

Smaller, more fragile parts are damaged

from heavy parts placed in the same box. >

An audio unit received disassembled,

notice the ID tag is tied to the frame of

the CD changer. >

NetStar – Parts Disposition

The Parts Disposition is found in NetStar under the Warranty tab of the Service icon. Log-in and click on the “Warranty” bar.


Click the green eye to switch dealers. “Switch Dealer” must be performed to check a specific dealer’s parts disposition.


Enter the specific dealer code under “New Retailer”, then click OK.


Click the green eye icon (upper left), then click on the Warranty tab. This will bring you back to the Parts Disposition screen.


Click on the Disposition icon and the table will populate with dealer data. For a quick view on disposition, click on the Information icon (below the green eye).


Status information on parts disposition appears. This shows current parts that are confirmed, ready, and held.


There are 4 sections (tabs) in Parts Disposition:Ready/Held Parts – Lists parts being requested for return or scrap. All

actions prior to shipping or scrapping are performed from this section.

Shipped Parts – Lists all Load List numbers for parts shipped to the QEC. Search criteria is by either RO#, Load List #, or date range.

Scrapped Parts – Lists all parts ready for scrapping. After parts have been scrapped, confirmation can be completed from this location

or the Ready/Held Parts screen.Deleted Parts – Lists all parts in delete status from the Ready/Held Parts

screen. A part may be deleted if in debit status or part is unavailable for return.


The Ready/Held screen has 2 main areas: Parts Ready to Ship/Scrap and Parts on the Hold Queue.


Parts Ready to Ship/Scrap – Daily actions are performed in this area (such as selecting requested parts, creating load lists, and printing bar code labels).


Parts on the Hold Queue – The dealer normally moves a disposition request into this area if printing a pick list of specific items for shipping or if shipping occurs other than the current day.


Parts on the Hold Queue – Also, it is a common practice for dealers to move parts not ready for shipping or scrapping into this area so they can view new requests the next day in the Parts Ready to Ship/Scrap screen.


Parts on the Hold Queue – When a part can not be found or needs deletion, the request is moved to Deleted Parts when a part is highlighted and the delete key is clicked.


The Shipped Parts screen is used to check “Received Status”, reprint Load List(s), and reprint bar code label(s).


The Scrapped Parts screen is used to confirm those parts actually scrapped. Search functions can be done by RO# or date criteria.


The Deleted Parts screen shows disposition requests in delete status. These parts can be un-deleted and are not permanently deleted until the refresh icon is clicked.

NewsChannel Announcements

01/2000 – Warranty Policy & Procedures Manual (WPPM) Section 10 informs dealers of parts return system through shipper reports generated from MB Cares. (This included delinquency notification, part returns, and part scrap reports. These reports were received in paper form and processing of part returns and scrapping were time consuming.)

09/07/2001 – NewsChannel message “MBUSA Introduction of NetStar Warranty Parts Disposition”. Parts Disposition (under the Service-Warranty icon) was introduced to dealer attendees during the 2001 NPSM Meeting in Orlando, Florida (08/01). This system specified parts for the dealer to return and scrap through a paperless system. The dealer could also generate a return list (Load List) and print the return labels from Parts Disposition. This system allowed for faster and more accurate parts return and scrapping. It was effective on 10/01/2001.

06/10/2002 – NewsChannel message from Warranty Operations to Parts Managers introduced the Bar-Code feature in the Parts Disposition to enhance processing of warranty part returns. (2 bar codes: top contains dealer #, RO #, Line #; bottom contains part #, bin #.)


12/05/2002 – NetStar message announcement the use of FEDEX Ground Collect Barcode Labels for part returns to specific PDC’s via ground delivery.

12/20/2002 – NetStar message announcement of HAZMAT (hazardous materials) part returns are sorted into a separate/special Delivery Note # (DN) with corresponding HAZMAT Shipping Paper. This allows a HAZMAT certified dealer to have all the necessary information to comply with US D.O.T. regulations and aid in proper shipment of all HAZMAT returns under the DN.

02/14/2003 – NewsChannel message from Warranty Dept. to Dealer Principal, Parts Mgr and personnel, and Service Manager on “Parts Return Policy (PRP) Revision” to 12/2000 (IB-601000 “Revised Parts Return Program HAZMAT Return Program”) & 08/2002 (IB-600302 “Parts Return Program – Return Restrictions”). The PRP process is revised to check all dealer PRP returns and cores submissions against the prior 36 mos. purchase history. The revised process will reject parts &/or cores without a prior purchase record or quantities in excess of purchases within the last 36 mos. Dealer must show proof of purchase.


02/21/2003 – NetStar message announcement by Wm. Kurtz, to all dealers, on the opening and operation of the Jacksonville Parts Return Facility/Center. This was introduced to dealer fixed operation managers during the NPSM in Cancun, Mexico. The facility is utilized to:

Provide opportunities to integrate activities with the Quality Engineering Center (Stuttgart); Provide proper disposition of warranty parts for environmental & safety issues; Pro-active approach towards recycling; “Feeder” program for future rebuilding/reconditioning initiatives (cost saving initiative and to

keep cores out of the hands of Non-OEM suppliers for reconditioning).

02/24/2003 – NewsChannel message from Warranty Operations to Service and Part Managers announcing dealer logistics regarding Jacksonville Parts Return Center by Dave Connelly to insure proper part returns.

Shipping locations – same address with 2 separate centers;UPS Account number as per WPPMReduction of Debit Time Period to 60 days (from 120) at dealers suggestionsReminder of bar coded tag attached to each part.


03/06/2003 – NetStar message announced the PRP Policy Revision, Reject Code 81, “Returns Exceed Purchases”. This is a dealer notice for a new rejection code when returns exceed purchases, and to inform dealers PRP cannot be processed when MBUSA has not invoiced the part.

05/19/2003 – NetStar message announcement on incorporating additional processes to help accurately and quickly process returns from Dennis Smith and Dale Vanderbeck:

One Load List for each box;

Securely affix bar code labels to ID tag (try Avery Shipping Labels 5963 or 5199);

Use UPS to ship and do not exceed seventy (70) pounds per box;

Use strong boxes because UPS repacks are not accepted should the box fall apart;

Place heavy parts boxes on a pallet (i.e. struts, steering racks, etc.);

Drain all fluids and ship it in a plastic bag inside their original box (i.e. valve body, oil pan);

Mark the defective area for interior trim parts, glass, wood, leather, and soft tops.


06/06/2003 – NetStar message announcement on writing “No Part to Return” onto the Parts Return ID Tag (W420) when a part is not being sent back but is on the Load List. This would apply to add-on parts, parts that fell off the car, and any request for fluids, batteries, fuel tanks, or other HAZMAT type shipments. The ID tag is also used for housing test sheets.

10/29/2003 – NewsChannel release of the Warranty Parts Return “Best Practices” and Quality Evaluation Centers- Montvale and Jacksonville tri-fold brochure. These brochures define best practices and guidelines for warranty parts handling and storage, and information about the Quality Evaluation Centers such as vision and processes.

** To access these announcements, along with addendums to the Parts Disposition, go to NewsChannel and click on the Search icon for Super Search (not Quick Search) and type in the keywords “warranty parts disposition” and/or “Jacksonville Parts Return Facility”.

Documents

Warranty Parts Return Presentation 09 2003