Presented by: Aamir Sohail

Designation: BMCS

Department: Jhelum Service Centre

Dawlance, Reliable Hai !

Objective

KPI Score Achievement KPI month wise score achievement

Spare Parts Sale Month wise comparison with last Year

Family wise analysis

How we achieved benchmark

Warranty Cost Analysis to identify the grey factor

which is hitting warranty cost

Way forward to improve this KPI

ELEMENT DESCRIPTION WTYTD Achievement

Parts Sales 15 14.2

Reduction in Show room cases All products

10 3.1

25% increase in (CSI ) 10 9.4

Service Trade Satisfaction Index

10 11.1

Same day Completed 10 11.3

Warranty Cost Reduction 10 3.5

Service Customer Satisfaction Index

10 11.0

Profitability in Rs from Spare Parts Sales

5 4.5

Spare parts demand planning increase by 15 % from LY

5 3.3

SCR 5 2.2

Timely Closing of complaints 5 4.1

AOP Loss 5 4.5

TOTAL 100 82.2

As shown in KPI Score achievement : Cash Part sale in my

Satisfactory area & Warranty Cost is my weak area.

So my ongoing presentation will be focused on these 2 KPI elements

Jhelum 14-15 15-16 GOLY

YTD Achieved % 59% 76% 22%

Part Sales Achievements (Before Initiatives)

88%81% 81%

29%

17%

91%82% 81%

33%

95%

0%

20%

40%

60%

80%

100%

120%

July Aug Sep Oct Nov

14-15

15-16

Bench Mark

(July-15 to Nov-15)

Part Family Wise Analysis (Before Initiatives)

Part Name 15-16 14-15 GOLY

Compressor 1403 1255 11%

Copper Tube (KG) 2528 137 95%

Gas R-134 (Cylinders) 274 176 36%

Gas R-22 (Cylinders) 84 0 100%

Thermostat 378 420 -11%

(July-15 to Nov-15)

-20%

0%

20%

40%

60%

80%

100%

Compressor Copper Tube(KG)

Gas R-134(Cylinders)

Gas R-22(Cylinders)

Thermostate

11%

95%

36%

100%

-11%

GOLY

GOLY

How can we achieve our benchmark in part sales ?

Major Reasons Identified:

•Weak Trade Incentive scheme• Weak Part Sales Portfolio • Part Dealer Merchandising• Insufficient Part Range • Need to add more part dealers in network

Increase In Product Range

New Part Dealer Activation

Part Dealer Merchandizing

Improve Part Dealer Incentive

Initiatives

New Induction of Part Dealer in Network

Branch 14-15 15-16

Jhelum 5 10

CWS / FRN is motivated as part dealers

Customer Name C.Year YTDLast.Year

YTD

GOLY

(%age)

Mazhar Cooling Center (GJT

- JHE) - CWS5,140,355 1,275,605 302.97%

Raja Cooling Center CWS 769,853 86,078 794.37%

Increase in Product Range / Family wise sale

95%

96%

97%

98%

99%

100%

CompressorLVS

CompressorWanbao

Copper Tube(KG)

100% 100%

97%

GOLY

GOLY

• Part Dealer Merchandizing • Improving Part Dealer Incentive

Description Slab Qty 14-15 15-16 Inc. %

Compressor 450 75 90 10%

R-134a 600 165 218 16%

Copper (kg) 2000 0 35 100%

Results of Initiatives in month of Dec-15 onwards

Target Achievement % boost at 79% in YTD from 76%

GOLY also improves from 20% to 21%

MonthTarget Cash

Part Sales (Net)Total Ach. MTD

Ach. %age

MTD

LY Ach. (Same

month)GOLY (%age)

Dec-15 3,180,159 3,228,569 102% 3,055,566 5%

Jan-16 3,066,582 3,100,671 101% 1,727,679 44%

Feb-16 3,407,313 771,219 23% 3,063,945 -55%

Mar-16 4,088,776 4,242,780 104% 3,345,653 27%

91%82% 81%

33%

95% 102% 101%

23%

104%

79%

23%18%

32%

4%

79%

5%

44%

-54%

26%

21%

-50%

0%

50%

100%

150%

200%

GOLY (%age)

Ach. %age MTD

Rewards & Celebrations

2nd Best Branch Announced by Head Office in Best Branch Competition Dec-15

Warranty Cost Increasing Trend (comparison with LY)

19%

82%

4%

53%

77%

157%

28%

50%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

July Aug Sep Oct Nov Dec Jan TOTAL

Increasing Trend vs LY

As shown in comparison that my warranty cost increased up to avg. 50 % than last year.

So my further slides will highlight the root cause of increase in warranty cost

Jhelum 14-15 15-16Increasing Trend vs LY

Compressor issuance share in

warranty

July409,291 487,010

19% 57%

Aug 485344881,344

82% 55%

Sep508,376 526,177

4% 56%

Oct 440311674,207

53% 51%

Nov 218238386,672

77% 77%

Dec 183093470,841

157% 52%

Jan293,510 374,959

28% 53%

TOTAL 25381643801211 50% 56%

Drill Down Analysis (Warranty compressors)

Warranty Cost Major Factors 15-16 14-15 Increasing Trend

Warranty Compressor issuance

599 373 61%

Warranty Gas charging 737 532 39%

As shown in last slide : 50% Warranty cost increased than Last year. If we drill down it then it shows that 61 % Compressor failure & 39% Gas charging having share of this increase.

188

286

Secop compressor Failure ratio

14-15

15-16

If we further drill down then it

shows that SecopCompressor

failure covers 50% of total compressors

If we survive by Secop failure

Total Warranty

cost 15-16

SecopIssuance

Secop Share %

3801211 1064339 28%

Warranty Gas charging Analysis

Comparison of TOP 5 Faults in Warranty 15-16 Compressor suction line Ratio (15-16)

0

200

400

600

800

Total WarrantyGas Charging 15-

16

Compressorsuction line

Share % ofsuction line

broken

737

22330%

Further Drill down (TSO wise analysis)

Factor TSO 14-15 15-16

Compressor Issuance Warranty

Branch 59 78Franchise 73 103CWS 241 418TOTAL 373 599

Gas Charging Warranty

Branch 64 138Franchise 73 76CWS 411 523TOTAL 548 737

Training conducted for improvement

Hard Skills

Refresher of R-134 Gas charging Vacuum pump checking & maintenance Fault diagnosing & Compressor replacement

Feedback sent to Warranty section specifically regarding Compressor suction line broken cases

Implementation of compressor verification system through warranty department

Strict to all CWS that they must take approval from branch for compressor replacement

Ensured 100 % faulty drier receiving from CWS in case of gas charging in warranty

Ensured barcode tracking on faulty driers especially current manufacturing units.

Compressor verification system implemented via Warranty department

Results of Corrective actions in month of Jan-Feb-March 16

Danfoss compressor failure ratio decrease after corrective actions

Decrease in Suction line cases after corrective actions