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SERVICE ACTIVITIES OF DISTRIBUTORS

99528-00010-01E

Service Activities.book

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Table of Contents
FOREWORD ................................................................................................................ 2 [I] Company Motto, Activity Charter, Principle Policy of SUZUKI and Quality Assurance Group Policy ..................................................................................... 3
(1) (2) (3) (4) Company Motto ............................................................................................................................................... Action Charter.................................................................................................................................................. Quality Assurance Divisional Policy ................................................................................................................ Objectives of Quality Assurance Division ........................................................................................................ 3 3 3 3

[II] Establishing Service System of Distributors .................................................... 4


(1) Basic Concept ................................................................................................................................................. 4 (2) Establishing Service System in Market ........................................................................................................... 6 1 Establishing policies for dealers and having them fully aware ............................................................... 6 2 Grasping actual situation of dealers and coaching them........................................................................ 7 3 Securing appropriate number of dealers ................................................................................................ 8 4 Coaching dealers for operation .............................................................................................................. 9 5 Providing quality information to dealers ............................................................................................... 10 6 Education program of service skills to dealers ..................................................................................... 10 7 Preparation of service literature and materials for Customers and dealers.......................................... 11 8 Others................................................................................................................................................... 11 (3) Establishing System for Handling and Managing Warranty Claims .............................................................. 12 1 Judging warranty claim......................................................................................................................... 12 2 Handling and settling warranty claims .................................................................................................. 12 3 Check points when using warranty computer processing system ........................................................ 13 4 Warranty audit ...................................................................................................................................... 13 5 Warranty application to manufacturer .................................................................................................. 13 (4) Collecting Market Information and Reporting to SUZUKI (KD factories) ....................................................... 14 1 Market quality information .................................................................................................................... 14 2 Collecting information on laws, regulations, etc. .................................................................................. 15 (5) Organization structure of distributor .............................................................................................................. 16 Appendix 1: Flow of Market Quality Information Processing ............................................................................... 19 Quality Assurance Responsibility Structure......................................................................................................... 19 System of Quality Assurance............................................................................................................................... 20

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FOREWORD

We, at SUZUKI, have prepared Service Activities of Distributors (manual) which describes service activities of overseas distributors carrying SUZUKI motorcycles, automobiles and marine & power products. We request each overseas distributor to have full understanding of contents of this manual and establish the structure and system (including both organization and personnel) to provide the same service for all products with SUZUKI badge.

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[I] Company Motto, Activity Charter, Principle Policy of SUZUKI and Quality Assurance Group Policy
Every SUZUKI service staff member should have a clear idea about how to think and act as a member of SUZUKI group. For that, it is important for him/her to understand SUZUKI management concept, basic policies, activity charter and quality assurance group policy and act in accordance with them.

(1) Company Motto


1. To produce valuable products judging from consumers standpoint. 2. To cooperate in constant innovation of the company. 3. To continue efforts to improve yourself and move forward with positive will.

(2) Action Charter


1. Listen to Customers and social public, both domestic and overseas, at all times, adopt such information in development of products and provide truly useful products and service. 2. Always use care for preservation of environment when developing products and providing goods and service. 3. Perform business activities, complying with all laws, regulations and rules and stand firmly against any antisocial power or party which threatens public order and safety of the society. 4. Disclose accurate and fair information to the society and always maintain appropriate relationship with the society. 5. Achieve long-lasting and stable growth through fair, clear and free competitions. 6. Participate in social contribution activities positively as entrepreneurial citizens.

(3) Quality Assurance Divisional Policy


To establish a comprehensive quality assurance system from product development to sales, aiming at the one and same quality in all parts of the world.

(4) Objectives of Quality Assurance Division


Thorough development of quality to the stage of mass-production Effective use of quality information Strengthening global service system

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[II] Establishing Service System of Distributors


(1) Basic Concept
It is the mission for all in SUZUKI group to provide good service so that Customers can use vehicles without anxiety. Necessary factors for that are; Reliable technology, Speedy work, Clear and fair charge and Comforting reception. Also, careful communication with Customers including explanation of repair details and information of periodical maintenances are important. Such good service will fulfill satisfaction of Customers and eventually lead to their re-purchase.

Good service

Reliable technology Speedy work Clear and fair charge Comforting reception Careful communication with Customers

Good vehicles

Satisfaction and confidence of Customers

Vehicle in proper condition at all times

Better assessment at trade-in

Reinforcement in the Base of Existing Customer repurchasing database

Obtaining new Customers through favorable reputation Obtaining New Entry Customer by Favorable Word of Mouth

Securing profits

Stable management of distributors and dealers.

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Example
Repair Speediness Accuracy Reasonable charge Customers sense of security Increased Walk-in customers Word of Mouth-advertising

Increased sales

In order to ensure successful repair, High-level service skills, Full line up of tools and equipment, Easy availability of parts and Reasonable parts prices are important.

Supplying service manuals Issuing service bulletins and service news Conducting service training program High-level service skills Basic education Education on new products Routine Service coaching by dealer visit Repair Speediness Accuracy Reasonable charge Full line-up of tools and equipment

Supply of general tools, equipment and special tools

Easy availability of parts

Appropriate stock of parts and smooth parts supply

Reasonable parts prices

Sales of parts at reasonable prices

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(2) Establishing Service System in Market


To have Customers fully satisfied with SUZUKI products, the service system including dealers must be established and requirements for that purpose are as follows.

1 Establishing policies for dealers and having them fully aware


The distributor should establish service policies based on SUZUKI policies and have them fully aware by dealers while reviewing them periodically. In this way, the service system of the SUZUKI network can function properly.

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2 Grasping actual situation of dealers and coaching them


Grasping actual situation of its affiliated dealers and comparing with other companies of the same trade (competitors), the distributor should correct the points that are found missing or inferior.

Items to check in grasping actual situation (Use the check sheet.)


Reception of visitors Appearance of the shop, space of the workshop, layout (effective use of CI) Service coverage rate (Ratio of number of sold vehicles to number of attended vehicles) (Principle: Each dealer should service vehicles sold by them at their workshop.) Number of incoming vehicles and number of service personnel General tools and special tools Service facility and equipment Management and utilization of Customer information Implementation of 5S principles (SEIRI (coordinating), SEITON (tidying), SEISO (cleaning), SEIKETSU (neatness), SHITSUKE (discipline)) Judging and handling warranty applications and storage of warranty replacement parts Warranty data compared with other dealers Storage and utilization conditions of manuals, charts and other materials Spare supply parts in stock Close information exchange with the distributor

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3 Securing appropriate number of dealers


It is necessary for distributors to secure dealers and service personnel suitable for the number of vehicles sold (kept) in its area. Calculation example (In case of Japan) Number of technicians: 1 technician per 300 vehicles under control (UIO) Number of bays at service workshop: Same as the number of technicians Number of lifts: 80% of the number of technicians Calculation example (In case of India) For the dealer which sells 100 vehicles each month Number of bays at service workshop: 10 bays Number of service personnel: 16 persons (1 manager, 1 receptionist, 2 supervisors, 10 technicians, 2 washing persons) For the dealer which sells 250 vehicles each month Number of bays at service workshop: 20 bays Number of service personnel: 31 persons (1 manager, 2 receptionists, 4 supervisors, 20 technicians, 4 washing persons)

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4 Coaching dealers for operation


It is ideal for the dealer to be able to pay all expenses of dealers operation covered by sales of service and parts. To achieve that level, the dealer needs to have good Customer management, make efforts to invite Customers and set the sales target of service activities. We recommend to set a target that each Customer brings in his/her vehicle 3 times a year and perform following activities. To make absolutely sure that the new vehicle after delivery is brought in for the initial maintenance (free service) To explain importance of inspection/maintenance to the Customer at the time of delivery and give him/her the contact information for effective communication To contact the Customers to urge him/her to bring in the vehicle for the initial inspection/maintenance To contact Customer after his/her initial visit to urge him/her to bring in the vehicle for the second time. For each inspection/maintenance, to calculate the rate of vehicles brought in and keep its record. To clarify the reason when the vehicle is not brought in. To keep complete information and record of each user (Vehicle ID number, date of purchase, address, telephone number, service history) To take measures to invite Customers for the periodical inspection/maintenance (direct mail, etc.) To sell MAINTENANCE PACKAGE To sell EXTENDED WARRANTY (insurance with extended warranty period from Factory warranty period) to keep relationship with Customers) When Customers bring in their vehicles, delivery as scheduled leads to improve his/her confidence in the dealer and at the same time, it reduces extra work from any delay. To achieve this, it is important for dealers to observe the following points. To complete the service work within the specified time (process control) To have facility so as to use bays in the effective rotation order (Target: 3 vehicles or more bay rotation rate) To level off (equalization) number of incoming vehicles (complete reservation control) To control parts in stock To conduct education/training program of service skills to dealers To make accurate explanation to Customers

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5 Providing quality information to dealers


Information on repair and specific measures that are not included in service manuals should be provided to dealers speedily.

6 Education program of service skills to dealers


Education program to dealers should be conducted periodically (and continuously) on the following subjects. New products New skills, new mechanism Service reception Professional technology, general repair skills

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7 Preparation of service literature and materials for Customers and dealers


Service literature for Customers: warranty certificate/booklet, list of service network, periodical inspection/maintenance booklet, PDI check sheet, etc. Service literature for dealers: service bulletin, service news, warranty form, claim tag, repair form, etc.

8 Others
Other activities to achieve Customers satisfaction include: To provide road-side assistance service To have the hot line (customer relation program) known to Customers To handle claims speedily and properly (to explain what can be done and what cannot be done clearly and ask for understanding)

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(3) Establishing System for Handling and Managing Warranty Claims


The system to receive warranty claims from dealers, make judgment, take necessary measures and settlement are needed.

1 Judging warranty claim


To establish the warranty policy and have it known To have all sales personnel and service personnel to understand the warranty policy To appoint the person who takes responsibility of warranty judgment To check the actual claimed item and to prevent duplicated application To check the situation where the claim occurred To clarify the reason why the claim is not accepted and to prevent recurrence of it

2 Handling and settling warranty claims


To appoint the person who takes responsibility of handling warranty claims To fill/enter the application form properly To handle the application without delay To check whether or not unnecessary part replacement is involved To check that the labor charge is reasonable To check abnormality on the claim To check whether or not alleged claim is came from any accident vehicle and/or modified vehicle To judge whether the warranty claim resolution was good or poor To collect warranty replacement parts and examine them for the purpose of the quality check

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3 Check points when using warranty computer processing system


For computer processing, arrange such system that can check the following points automatically. The vehicle is imported and sold by the dealer itself. The warranty period is valid (relationship between registration date and repair date, mileage) The subject part is not warranty inapplicable part such as a consumable part The same claim on the same vehicle has not been laid before (double claim, recurrence)

After executing computer processing, it is necessary to check that the data has been inputted correctly and that the claim is not unreasonable.

4 Warranty audit
If a dealer handles questionable warranty applications (more frequently compared with other dealers, sudden change in trend, before expiration of the warranty period in many cases, etc.), it is necessary to audit the dealer, investigate the cause and correct it.

5 Warranty application to manufacturer


To apply for warranty according to the agreement with SUZUKI (manufacturer/KD factories) To handle the case based on judgment by SUZUKI (KD factories) To meet the requirement from SUZUKI (KD factories) to collect parts

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(4) Collecting Market Information and Reporting to SUZUKI (KD factories) 1 Market quality information
If a failure occurs and no correction method for it has been provided by such means of Service Bulletin, be sure to issue FTIR (Field Technical Information Report), which is indispensable technical information for SUZUKI (manufacturer/KD factories) to investigate the cause of the market quality failure, to take necessary measures and to prevent it from recurring. (See Appendix 1) Listed below are failures for which FTIR (Field Technical Information Report) must be issued. Failure involving safety Failure which occurred for the first time with the subject model Failure which is suspected to give a large influence to sales or affect the product value adversely to a large degree Failure which is judged possibly to hinder the function of the product Failure, which occurs frequently, even after expiration of the warranty period Failure subjects to Customers complaint, request and rumor Failure which is judged to cause an accident or fire, resulting in personal injury, property damage have such possibility Points to note when issuing FTIR (Field Technical Information Report) are as follows. To describe the conditions where the claimed failure occurred using 5W 1H (when, where, who, what, why and how) principle. To attach pictures or video tape as necessary. To include Customers comments on products such as not enough power, poor fuel consumption, abnormal noise, loud noise, etc. as well as information on products of other competing companies. To describe Customer's complaint, fact-finding and check result by the dealer and possible cause by separating them clearly. To issue FTIR (Field Technical Information Report soon after the information is obtained (within 3 days). To study possibility to have the subjected part sent back, if it is collectable (If the urgency degree (swiftness in category) is A, all parts must be collected.)

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2 Collecting information on laws, regulations, etc.


Besides the FTIR (Field Technical Information Report), it is necessary to collect information on regulations related to importing and selling products including Gas -Emission-norm and Ambient Noise control, etc. as well as those related to use and service of the products including lead-free gasoline and recall system requirement, etc. and to make report on them as soon as they are enacted. Exhaust gas regulation Noise regulation Lead-free gasoline requirement Safety against collision requirement Size of license plate Label attaching requirement (requirement to translate labels and manuals into local languages, etc.)

Other than legal information, following information should be obtained when marketing the products suited to the specific market. Landscape, population (area, geographical feature, population of major cities, population distribution, latitude, altitude) Holidays, major events, climate (rainy season, dry season, snow-fall, freezing, temperature, humidity), unique customs/habit Use of snow-melting agent, flood when rain continues Typical driving condition, driving habit typical of the area Working hours (total working hours, start time, recess, end time) Publicity of SUZUKI and other companies and its reasons Popularity of vehicles, population composition in units in operation Information on other companies (service activities, new models, new mechanisms, etc.) Road (road network inside and outside of city, high-way network, paved condition, road surface condition, speed limit, typical constant speed) Actual/general use conditions (purpose of use, place, load condition, number of people on-vehicle, whether towed or not, use of chains) Popularity of motor sports and participation use of SUZUKI products Fuel, oil and grease (lead in fuel, mixed alcohol, octane value, bio-fuel, oil and grease available, prices, general fuel, oil, grease) Frequency bandwidth of wireless machine, intensity of electric field on roads Availability of consumables such as tires, batteries and its marketability Limit of vehicle age (life span of vehicle) and mileage to accept an warranty application and to issue a recall notification, general service life before scrapping General service life before scrapping (years elapsed and mileage), monthly average mileage and average speed Harsh, special use conditions such as by courier service (commercial usage) Information is useful not only to improve the quality of currently marketed products or reduce number of claims but also for the future business of SUZUKI such as to develop future products and improve their quality.

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(5) Organization structure of distributor


Service activities range over various fields. In order to perform service activities efficiently and effectively, a person in charge of each field should be appointed and he who should take responsibility in performing activities. The number of persons to be engaged in each field varies depending on the number of subject vehicles and the area to be covered. The functions for proper operation of the service organization are as follows.

Dealer network (planning, service, development) and CS/CR District management (area, zone, region) Assistant service manager (as necessary)

Technical, Quality

Training

Service manager

Assistant service manager

Reference literature, materials

Warranty

Customer Relations Assistant service manager (as necessary)

Legal and other information

Workshop

Pre-delivery inspection

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<<Details of activities>>
Title Service manager Details of activities To establish service policy and have it thoroughly known To make long-term and short-time plans of service activities and achieve them To budget investment to service activities, service literature and materials and manage use of the budget To check implementation of service activities and plans To investigate and grasp laws and regulations regarding service activities To communicate with SUZUKI head office, KD factories and other distributors To plan education program To liaison with public organizations and medias To plan expansion of service bases and realize the plan To authorize dealers and discontinue authorization To coach dealers for proper operation (manual, system, education) To plan and conduct CSI promotion activity To collect information through questionnaire To provide motivation and education for customer control activities To manage service activity information of dealers To grasp (and analyze) current status of dealers To plan for more complete service network and realize it To visit dealers Advice to improve service system, coaching of service skills, checking of claim repair parts To implement warranty audit To deliver information using FTIR and control its issuing To conduct and manage service campaign To respond to technical hot line To analyze claims To plan and conduct service skills education program To prepare reference literature and materials for technical education To manage education program for service personnel To conduct the skill competition To respond to technical hot line To issue service bulletins and service news To procure service literature and materials (manuals, special tools, etc.) and introduce them to dealers To prepare documents for Customers (warranty document, etc.) To handle warranty application from dealers To reimburse for warranty from SUZUKI To check claim applications for appropriateness To plan the guide program for dealers to make application properly To implement warranty audit To respond to inquiry from Customers To keep information from Customers To plan CS promotion policy To monitor/follow up customer satisfaction level

Dealer network (planning, service, development) and CS/CR

District management (area, zone, region)

Technical, Quality

Training

Reference literature, materials

Warranty

Customer Relations

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Title Legal and other information

Workshop

Pre-delivery inspection

Details of activities To collect and manage information regarding to laws and regulations (when newly provided and modified) To collect information on vehicle use conditions, climate conditions, road conditions, etc. To service and prepare vehicles when taking pictures for catalog, etc. and when lending them to magazines, etc. To repair vehicles at dealers and support them with failure insolvable vehicles To support sales/promotional events held by distributors To keep facilities maintained To control quality of vehicles at PDI center and report failures To install accessories

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Appendix 1: Flow of Market Quality Information Processing Quality Assurance Responsibility Structure

Senior General Manager of Quality Assurance Division

Quality Assurance
Instruction

Quality assurance
Product assessment SIS GCA QIA Quality assurance system

Service
Quality information in market Collect / Develop

Design Division
Decision of design specifications Confirmation of part functions Confirmation of supply sources

Production Division
Production engineering Production preparation Manufacturing Upkeep of mass-production quality Inspection Quality assessment, improvement

Purchasing Division
Selection of supply sources Instructions on quality to supply sources

Technical support

Instruction

Information

Report

KD Factories Plant
Production preparation Upkeep of massproduction quality

Inspection
Quality assessment Quality improvement

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System of Quality Assurance


Top management/ Engineering & Design Quality Assurance COMITEE division division
Strategy Instructed Development Strategy Approval

Production division

Service division

Sales division

Market/ Field

Quality review before actual Development started

Product- Planning

Model Examination Prototype production


Project Protocol

Prototype production

Dicision to be be produced

Stage transition Approval

SST
Parts catalogue

Product catalogue

Pre-production/ Mass production prototype

Service Manual

Mass production transition Approval Vehicle Homologation Product Inspection Standard Mass production

Mass Production start Approval Parts inspection Buy-off Approval

Mass Production

Mass Production Status Report

(POP, Start Of Production)

Abnormal Quality handling Vendor Audit & Guidance

Defect Investigation Report Vendor training/coaching


(SOS)

Sales

Production Dispatching Appraval Safety and Pollution countermeasure committee


Emergency case

Vehicle Sales

Distributor

FTIR handling

FTIR collection
Information provided
(Customer complaint handling)

Claim handling

Dealer/ custome

Claim Countermeasure Meeting Dicision to go for Recall Engineering change Production Process Improvement Recall Management Recall campaign Implementation

Education

Stating appropriate accuracy in the Drawing

Education

Product Precisional control

Education

How to read the Drawing, How to measure

Service staff

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300 TAKATSUKA, MINAMI, HAMAMATSU, JAPAN SUZUKI MOTOR CORPORATION 2007, Edition: September, 2007 Printed in japan

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