Centre Operation EMR
Warranty
April 2012
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Perspective
What has Warranty and recoveries from Warranty to do with Back to Black?
Maersk Line loosing the equivalent of 7m usd per day (4th quarter 2011)
Total annual raised warranty amounts to 6m usd (2011 full year)
Hereof 4m USD realized recoveries
Shortfall of 2m USD full year contra 7m usd loss per day?
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Perspective
What has Warranty and recoveries from Warranty to do with Back to Black?
Is the answer then nothing?
Not entirely. The per day generated loss of 7m USD originates from something, not a
standalone single spend, but from various sources.
Add the various sources – small and large – triggers the current loss.
Increasing awareness around our Warranty procedure and thereby increase our
ability to recover adds to the many sources that will lead to ‘Back to Black’.
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Agenda
1. Process Walkthrough
2. Warranty SOP walkthrough
3. Warranty Status Tracker
4. AoB
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Agenda
1. Process Walkthrough
2. Warranty SOP walkthrough
3. Warranty Status Tracker
4. AoB
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Process Steps
1. Weekly / Monthly Warranty claims filed (based completed MERC+ Workorder)
2. Reefer Unit manufactures to review and comment back with status and / or
action if required (e.g. Parts to be returned / inspected, picture and/or data
downloads to be submitted, error description / alarm codes to be advised etc)
3. Warranty Status file updated and follow up with Local country EMR if required
4. Repair Shop / Local Country EMR to follow up on pending (suspended) Warranty
claims (if any) and provide feedback (email to GSC or update to Warranty Status
file)
5. In case of rejected Warranty claims due to repair shops lack of compliance, local
country EMR need to ensure recoveries (through reimbursement) from repair
shop.
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Process Flow
End
Manufactures
Warranty Accepted –
Settlement Part and Labour
4
Warranty Claim
(from MERC+ Workorder)
3
Warranty Status
(email / team site)
2
Reefer Unit
Manufactories
Warranty
Status Feedback
GSC
Warranty
Status
Follow Up
3
Local EMR
Damage Reporting (via MERC+)
1
3
3
Warranty Status Follow Up
3
Reimburse Shop – None Compliance (Manual Invoice/FACT PO)
Warranty from Reefer Unit / Genset repairs
Pictures /
Downloads
Repair Shop
Repair Settlement – Part and Labour (via FACT)
4
Stock Order /
Stock Delivery
Billing / Payment
DC
Return
Part
Centre Operation EMR – Warranty
Process Flow
Local EMR
Estimate
approval
Workorder
Completion
Repair Shops
MERC+
Estimate
Repair
execution
GSC
Manufactures
Warranty from Reefer Unit / Genset repairs
Review
Status
file
Inform
Repair
shop
Review
Status
file
Deliver Documentation
/ Parts
Reimburse
From
Shop
Payment
Weekly /
Monthly
Warranty
Update
Status
file
Update
Status
file
Invoice
And
Posting
Process
Warranty
Claims
Status
Update
Final
Status
Payment
Centre Operation EMR – Warranty
Process Timelines
Time
•
•
•
•
•
For selected repair shop, Monday each week unit
warranty claims will be raised
All other Warranty claims (Unit, Part, Genset) will
be raised by the 10th of each month for the previous
month repair
By latest end of each month, all reefer unit
manufactures will provide feedback to the raised
warranty claims.
By latest the end of each month the Warranty
Status file will be updated for previous month
repairs.
Typical lead-time from the point of updating the
Warranty Status file to delivery of outstanding
(picture, downloads, return parts etc) is one month.
Warranty from Reefer Unit / Genset repairs
Month 1
10th in
Month 2
Activity
Unit repair and
MERC+ WO completion
Unit, Genset, Part
Warranty claimed on
Repairs month 1
end
Month 2
Status obtained
By Daikin, Carrier,
Starcool, TK
end
Month 3
Delivery of required
Data / Parts etc as
requested
begining
Month 4
Closing Warranty
Claims from Month 1
Centre Operation EMR – Warranty
Agenda
1. Process Walkthrough
2. Warranty SOP walkthrough
3. Warranty Status Tracker
4. AoB
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Reefer Unit Manufactures SOP
With Maersk Line’s reefer unit manufactures (Daikin, Starcool, Carrier and
ThermoKing) Warranty agreements have been made.
Different manufactures = different agreements
Common is a Unit / Genset Warranty
Common is a Part Warranty (subsequent to the Unit Warranty duration)
Variation exists however on both parts and durations
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Reefer Unit Manufactures SOP
The various SOP’s and guidelines can be found under the ‘Warranty
Management’ team site. Link:
http://maerskline.apmoller.net/operations/CENOPS%20Inland,%20Termi
nals%20and%20Equipment/Equipment/Centre%20Equipment%20MNR/G
LBEQUMER_Reefer/Warranty_Management/Pages/default.aspx
Example of Starcool’s Warranty SOP
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Agenda
1. Process Walkthrough
2. Warranty SOP walkthrough
3. Warranty Status Tracker
4. AoB
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Process GAP
Local EMR
Estimate
approval
Workorder
Completion
Repair Shops
MERC+
Estimate
Repair
execution
GSC
Manufactures
Warranty from Reefer Unit / Genset repairs
Review
Status
file
Inform
Repair
shop
Review
Status
file
Deliver Documentation
/ Parts
Reimburse
From
Shop
Payment
Weekly /
Monthly
Warranty
Update
Status
file
Update
Status
file
Invoice
And
Posting
Process
Warranty
Claims
Status
Update
Final
Status
Payment
Centre Operation EMR – Warranty
Process GAP
Repair Shops
Warranty from Reefer Unit / Genset repairs
Deliver Documentation
/ Parts
Centre Operation EMR – Warranty
Process GAP
Repair Shops
Deliver Documentation
/ Parts
and what is the magnitude?
•
•
Missing or improper Repair Shop responses to Reefer Unit Manufactures
request for documentation resulting in rejected warranty claims
Missing return parts from Repair Shop to Starcool’s Distribution Centre
network resulting in rejected warranty claims
From January to June 2011 total 600.000 usd of raised Warranties has been
rejected
For the month of November 2011 raised warranties, 80.000 usd has been
rejected
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Warranty Status Tracker
Process Step 3:
‘Warranty Status file updated and follow up with Local country EMR
if required’
The file is available on the ‘Warranty Management’ team site, link:
http://maerskline.apmoller.net/operations/CENOPS%20Inland,%20Termin
als%20and%20Equipment/Equipment/Centre%20Equipment%20MNR/GLB
EQUMER_Reefer/Warranty_Management/Pages/default.aspx
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Process Improvements
How to avoid a relative ’late’ follow up after repair completion and reduce risk
of having to reimburse repair shops in the event of none compliance?
•
Repair Shops are duly informed around Warranty requirements and during Unit
repair are providing the necessary documentation in the form of
• Correctly updated MERC+ Workorder (serial number if required, damage
code, etc)
• Pictures (when required reference SOP’s)
• Data Downloads (when required reference SOP’s)
• Error description (in MERC+ remarks field)
• Alarm Codes (in MERC+ remarks field)
• Tag relevant parts
• Store or return Parts (as required reference SOP’s)
Reducing or eliminating a subsequent follow up will not only lead to improved Warranty
recoveries from our Unit manufactures but will moreover serve (timewise) both us
and the repair shops.
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Agenda
1. Process Walkthrough
2. Warranty SOP walkthrough
3. Warranty Status Tracker
4. AoB
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Question Time
FAQ from session.
Q.:
Who will pay the vendor (repair shops) for the additional requirement
(admin/transportation of return parts/storage)?
A.:
The requirements of storing parts, tagging parts, picture documentation,
data download, return parts, etc. is not new and therefore not an
additional requirement.
The cost associated to the Warranty requirement is covered under the
provision of a part Mark-Up (Shop type 1 and 3)
Warranty from Reefer Unit / Genset repairs
Centre Operation EMR – Warranty
Question Time
FAQ from session.
Q.:
How to reimburse from repair shop and will GSC help creating invoices?
A.:
The requirement to reimburse from repair shop will then be applicable if a
rejected Warranty has been recorded as a result of repair shops not
delivering according to our SOP’s.
The details as to whom and what to invoice (reimburse) for will be
available in the Warranty Status Tracker file.
Invoicing requirements will follow local needs and will not be supported by
our GSC team handling Warranty claims as it is considered an exception
handling.
In FACT a reverse (negative) Purchase Order will have to be created, also
according to local procedure. GSC will be able to support that process
upon request.
The material code to use is RMXX-RC9995 (name: Warranty M&R).
A regular (monthly) follow up (using BW) will be performed by GSC to
monitor recoveries from rejected warranty claims.
Warranty from Reefer Unit / Genset repairs