Pragmatic approach for after sales services
Project done in Crompton Greaves Ltd. Nasik
By Verma Shashin s.
Objective
Analyzing customer complaints of four products. Complaints over a span of 16 years Nature of complaints at micro level How do they effect marketing & production How this approach can be beneficial in customer retention
Methodology
Primary data: collected from the customers customer grievances customer suggestions Secondary data Collected from books of records SOMA software Intranet of the company
Organizational structure in After sales marketing in B2B
After Sales Complaints Types of complaints 1) Transit. 2) Packaging. 3) Loosening of components 4) Electrical testing. 5) Visible damages. Investigation Feedback to respective depts.
Within warranty
Out of warranty
Manufacturers End
Customers End
From the date of dispatch
From the date of commissioning
Cost estimation
FEATURES OF SERVICE MARKETING
Service is a performance. Service does not involve any ownership transfer. Intangibility. Inseparability; Variability / heterogeneity / individuality. Perish ability services cannot be stored. In a service consumer is a part of production process & there is close interaction between the service provider & the consumer. In channel matters too, services differ significantly from products
For B2B bussiness
In B2B, after-sales can generate three to four times the turnover of the original purchase during the solutions lifecycle. For consumer products, it can be estimated that after-sales services can generatebetween 20-30% of total sales if correctly managed. The bulk of the margin does notcome from the direct repairs but from spare parts, whose margin can be more than50%, and support and warranty contracts whose margin may be above 75%.
CUSTOMER COMPLAINTS DATA COLLECTION & ANALYSIS FOR CVT
YEAR WISE PERCENTAGE COMPLAINT ANALYSIS OF CVT( 72.5 KV - 145 KV CLASS) 1400 1200 1141 1194
DISPATCH QUANTITY & % COMPLAINT
1000 847 800 600 390 400 200
2.71 1.03 1.18 2.46 1.34 0.35 0.17
747 569
258
0 2000-01 2001-02 2002-03 2003-04 YEARS 2004-05 2005-06 2006-07
YEAR WISE PERCENTAGE COMPLAINT ANALYSIS OF CVT( 420 KV CLASS)
180
166 138 116
DISPATCH QUANTITY % COMPLAINT
160 140 120 100 80 60 40 20 0 2000-01 2001-02 2002-03 12.77 7.25 47 69 51 13.73
71
2.17 2003-04
12.07
1.41 2005-06
0.60 2006-07
2004-05
YEARS
YEAR WISE PERCENTAGE COMPLAINT ANALYSIS OF CVT( 245 KV CLASS)
600 517
DISPATC H QUANTITY % COMPLAINT
500 400 307 300 224 200 100 5.19 0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2.68 0.71 6.22 4.56 1.74 0.97 135 140 209 288
YEARS
CGL INITIATIVES to reduce complaints
SIX SIGMA Quality Management System (QMS) FAME MOST TOC ISO OHASHS
EFFECT OF AFTER SALES FOR CAPACITIVE VOLTAGE TRANSFORMER
YEARLY ACTUAL DIFFERENCE OF CVT BETWEEN DISPATCH AND COMPLAINTS
DISPATCHED QUANTITY IN 10'S & TOTAL COMPLAINTS
250
201.8
200
182.3
150
104.6 142.5 125.4 39.9 69.5 15 18 30 39 10 8
100 50
20
0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 YEAR OF MANUFACTURING
CUSTOMERS ENEL, ITALY NTPC, MUMBAI APTRANSCO KPTCL RDSO, LUCKNOW
AREAS OF IMPROVEMENT FOR CGL Uniformity of Galvanizing, ferrul match, porcelain fixing with flange should be properly finished. Marshalling Box needs improvement in layout & mounting arrangements. Timer on HV breakdown tester panel will help the operators. Terminal markings should be there. Calibration Certificates should be on Original Letterhead. STD. VT OF 0.05 ACC. Can be taken as reference for VT & should be as per IS. Time mgmt during tests should be improved & calibration documents should be available in time. Materials should not be packed without customers consent. Compact design. CC testing & EMU testing should be at one place. Field Service should improve e.g. Nellore, Chittoor (AP). Oil leakage in some CVTs. Adjustments of earthing pad & holes are required. Provision of Broadband Internet facility for issuing CIP/MICCs fast without wasting time.
ACTION TAKEN BY CGL Proper training has been given to eradicate the complaints. Suggestion forwarded to design dept. Suggestion forwarded to engineering & automation depts. Already started giving. Designs done as per IS & mentioned as per PO. Documents will be provided with the dispatch. Packing is done only after the final inspection with customers consent only. Suggestion forwarded to design dept. Already started. Special cell has been made to handle complaints. Complaints under Scrutiny, data inadequate. Suggestion forwarded to design dept. Suggestion forwarded to automation depts.& is under prioritization.
VEDANTA ALUMINA LTD.
SIEMENS LTD., MUMBAI GRIDCO RRVPNL APTRANSCO TNEB RELIANCE ENERGY LTD. POWERGRID, MUMBAI
COMMERCIALIZATION ASPECT IN AFTER SALES MARKETING
In the first group are demanding customers who want a very high level of after-sales services in order to hedge the risk of a disastrous loss in their business; they want swift and consistent response time as well as reliable operations and are ready to pay a premium price for that assurance. In the second category are the customers who are more price-sensitive and less concerned with instant availability; they want robust maintenance service but not necessarily immediately. The third group consists of the customers who aspire to a basic level of after-sales services with simple operations; they are prepared to wait or to perform some maintenance operations themselves in order to cut costs; in any case, they cannot or do not want to pay huge sums for post salesoperations.
Some of the Terms & Conditions under contract from other customers:1. Goods accepted in the customers store will be deemed to be delivered for their approval. 2. Bills submission will be done as prescribed in the purchase order. 3. Rejected goods will be lying at the risk of manufacturer & should be removed at the cost of manufacturer on receipt of customers rejected memo. 4. Deliveries should be made to the customer in lots or as prescribed in purchase order. 5. In case delivery is pending against another order of same material, earlier order must completed first. 6. Prices shown in the purchase order or delivery challan are delivery free at the works unless otherwise stated. 7. Payment terms 20% in advance. 60% on delivery. 20% remaining is done after inspecting the deliveries & if found some problem these 20% is made after getting desired product as per speification & without damage.
Legal aspects for warranty:Within warranty 18 months from dispatch. Out of warranty 12 months from commissioning.
Legal aspects for Excise:1)Filing of D3 form in case of the product which is an accessories to the other product. 2)Special clause of 57F4 which is for processing of the goods & taking back the goods for processing within 180 days. In this case the duty on the good is exempted.
COST ANALYSIS IN AFTER SALES.
CHARGES OF SERVICE ENGINEER FOR SITE INSPECTION + TESTING CHARGES ON SITE + CHARGES APPLIED BY THE SURVEYOR + TRANSPORTATION CHARGES (Inward & outward) + TESTING CHARGES AT WORKS + INTEREST ON BLOCKED PAYMENTS + REPAIR / REPLACEMENT CHARGES
COST OF POOR QUALITY
CUSTOMER RETENTION
WHAT DOES CUSTOMER EXPECTS FROM SERVICE PROVIDER?
CUSTOMER RETENTION AS PER SVPC
Plan of Action Analyze the Lost Customer Basket Do Strategy Volume Profit Cost ( S V P C )Analysis of Customer Identify the Area of Concern Competition Analysis Differential Advantage Analysis ( D A A ) Approach
Identify the Area of Concern Technical Specification Quality Cost Response Delivery
APPRECIATION BY THE CUSTOMERS ON THE BASIS AFTER SALES ASPECTS
CUSTOMERS RRVPNL BSES (Dahanu) Reliance Industries SIEMENS LTD. POWERGRID (New Delhi) MSEB NTPC ,Simla NTPC, MUMBAI APPRECIATION BY THE CUSTOMER Systematized working in neat & tidy formats. CGL Make CVTs are in service at DTPS since 1994 and the services are satisfactory. Well Planned Activities and test facilities. Product fit & finishes, cleanliness and smooth flow of test procedure. Adherence to plant standards and record keeping is very good. Product reliability very Good.
Quality of product, Automation in manufacturing processes Excellent.
Transparency of work.
SUGGESTION FOR CVT COMPLAINTS
Suggestions:During production these are the steps to be taken to avoid long term failure of the product:Minimum exposure of the elements & coil in the atmosphere. Use of proper BDV & Tan values of the oil To standardize the EMU tank for each class of the product. Strict testing of the products at 100% or 80% of the high voltage value. Any negligence or under voltage testing as prescribed may not show the actual performance & life cycle of the product. Proper sealing must be done in the sealing areas to avoid oil leakage during transit or during commissioning. Loose bolting & tightening may cause mechanical damage in near time. All the gaskets must be replaced with Orings to avoid atmospheric exposure. Design & technology must be innovated specially for CVT to withstand competition with companies like Areva which is having a smaller size in 245 Kv & 400 Kv class & Siemens which is entering with a technology of SF6 CVT. Multipurpose features & facilities must be given &should be standardized to every customer like thermostat, heater, electronic gadget to monitor the actual pin point the cause of failure in the product.
CONCLUSIONS
Know your customer 1. 2. 3. 4. delivery, reliability, availability, price.
Developing profitable after-sales services
1. flat fees for unlimited services 2. fixed prices for specific services 3. time and materials billing
LIMITATION OF STUDY
The project is based on data of the projected availability as generated by on the past sales figure & registration of the customer complaints and sometimes smallest of the complaints which are solved at site are not registered Data not been updated in SAP software from year 1988 till 1999 so we have to refer the old files. It becomes difficult to analyze the complaint which could be on the customer or manufacturers end, which is a hurdle for the further analysis. The two month time period of project is also constraint for this project as in this span of time we cannot accurately understand and analyze the in depth complaints but a attempt is made to present it as accurately as possible
