CDS&S - A……... ……..Company Cummins Diesel Sales and Service (India) Limited 1 CDSS/Nov 03 Profile Mandate Wholly owned subsidiary Responsible for After-Market Support for Cummins Products of Cummins India Limited Incorporated in 1952 Cummins Diesel Sales and Service (India) Limited in India, Nepal and Bhutan 2 CDSS/Nov 03 Vision & Mission Vision Making people’s lives better by unleashing the Power of Cummins Mission Motivating people to act like owners working together; Exceeding customer expectations by always being first to market with the best products; Partnering with our customers to make sure they succeed; Demanding that everything we do leads to a cleaner, healthier, safer environment; Creating wealth for our stakeholders. Cummins Diesel Sales and Service (India) Limited 3 CDSS/Nov 03 Landmarks 1952 1967 - Incorporation at Calcutta Acquisition by then Kirloskar Cummins Limited and shifted to pune 1970 - Establishment of Countrywide Service Netwrok 1976 - Inception of a Service Training School at Pune. - Network expansion - regional and District Office set up throughout India 1977 - Network expansion- Additional Dealerships. 1978 - Full scale operations of the Service Center at Pune. Depots opened at seven (7) strategic locations throughout India. Introduced service quality responsiveness measure Mean Time to Restore - MTTR Cummins Diesel Sales and Service (India) Limited 4 CDSS/Nov 03 Landmarks 1979 - Implementation of Recon Exchange Program reconditioned engine/ component against old acceptable core. 1981 - Network expansion - Dealer Network reaches 93 locations / Centres. 1982 - Successful completion of 30 years of association with Cummins Engine Company , USA 1983 - Network Expansion - establishment of Area Service Offices. 1989 - Sales Turnover crosses Rs 1000 Million. 1993 - Network Expansion - Creation of 5 Zonal Offices. 1994 - Participation in IDC - 94 and recognition for 42 Years of association with Cummins Engine Company ,USA Cummins Diesel Sales and Service (India) Limited 5 CDSS/Nov 03 Landmarks 1994 - Development of Functional Excellence programs for Dealerships, Depots and Dealerships Service Centers. - Extending HRD training facilities to dealerships. 1995 1997 - Promoting environmental excellence by declaring office premises all over India as tobacco-free. - Introduced Parts Delivery Performance measure - First Pass Fill. - Valvoline Cummins Joint Venture. Regional Training Centres at 5 (Five) locations. Single Point Service Contracts for Gensets. Cummins Diesel Sales and Service (India) Limited 6 CDSS/Nov 03 Landmarks 1998 - Offering Power Solutions - Genset Hiring. - Establishment of Regional Service Centre in East Zone 1999 - Another Regional Service Centre in North Zone. - Rajiv Gandhi National Quality Award in Service Sector - CDS&S Training School recognized as Regional ABO Training Centre - New Growth Projects to provide power solutions to customers. 2000 - Introduction of E-Biz - Relocation of major Stores activities and operation through 3PL. - Telco distributorship at Dhanbad for spare parts Cummins Diesel Sales and Service (India) Limited 7 CDSS/Nov 03 Landmarks 2000 - Integration of Dealer-Excel and FED completed and new document called "Dealer Excel – India" released for evaluating Dealerships. - MOU with Pennar Chemicals for TotalFinaElf Additives - Newage Aftermarket support - Training of network on Alternators / Gensets and short time Agreement with CGNL. - MOU with Thermax for Heat Recovery system marketing. - First Six Sigma project for CDS&S on Stores Operation (Green Belt) completed. - Transition of CDS&S “Power Solutions” business to CPSL. - Established Cummins Auto Services Ltd. (100% subsidiary of CDS&S for Automotive After market (Retails, Service Centres, Truck Stops) Cummins Diesel Sales and Service (India) Limited 8 CDSS/Nov 03 Landmarks 2001 - Implementation of SCM Initiative - Network expansion - Creation of 10 Zonal Offices. - MOU with GERB for AV Mounts - MOU with Alfa Tech for Anti Rust. 2002 - 50 years (Golden Jubilee) of association with Cummins USA - Network expansion - Creation of ZO Baroda. - MOU with Amara Raja Batteries. - MOU with Coil Company for Coil Coolers - MOU with Lister Pitter - MOU with Upfit Centre for R&R - MOU with Simpson for X series (50, 20 and 25 kVA) Cummins Diesel Sales and Service (India) Limited 9 CDSS/Nov 03 This is CDS&S • People 404 • Business USD 72.60 Million (Rs. 363 Crores) • Dealers 86 • Engineers 1600 To support 100,000+ engines in the field with 40,000 Customers (Conversion Factor 1 USD = Rs 50 - 20.01.03) Cummins Diesel Sales and Service (India) Limited 10 CDSS/Nov 03 Employees / Responsibilities - CIL / CDSS After Market Production CIL 2143 People CDS&S 217 People • R&R • Marketing • OEM Support • Parts Support 215 People CIL CIL CIL CIL CIL Turnover • Service Support • Logistic Support 187 People + 86 Dealers Turnover CIL - Rs 741 Crores Cummins Diesel Sales and Service (India) Limited CDSS - 363 Crores 11 CDSS/Nov 03 Business Performance 116 100 159 141 150 203 188 253 251 200 225 250 289 331 300 299 350 363 Parts + Service + R&R 400 50 0 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 2002 Parts + Service + R&R Cummins Diesel Sales and Service (India) Limited 12 CDSS/Nov 03 Organisation Structure ADMINISTRATIVE ASST. PRASHANT POTDAR MANAGING DIRECTOR ANANT J. TALAULICAR VP Operations SUNDAR PARTHASARTHY Head Human Resources UMESH JOSHI Head Distribution Strategy & Dealer Development SHYAM SESHADRI Head Finance G.M.CHINCHWADKAR Head Information Technology SURESH V KULKARNI Head Legal & Secretarial SANJAY JAGTAP Business Development Manager DEBASHISH DAS Head Special Projects PRABHA SHANKAR Cummins Diesel Sales and Service (India) Limited 13 CDSS/Nov 03 Organisation Structure VP Operations Sundar Parthasrthy GM Sales & Marketing, Recon, Repair &Replacement SANJAY TANDON Head Parts & SCM SAMPAT HARPALE Head Customer Support & Service V NAGESHWARAN Head ReCon Operations GIRISH DEO Zonal Manager - Jaipur MADHUKAR G PAWAR Zonal Manager - Bangalore S K SEHIGAL Zonal Manager - Baroda S D KARNIK Zonal Manager - Chennai R P DAS Zonal Manager - Hyderabad Vivek N Deshmukh Zonal Manager - Raipur REWATI KAUL Zonal Manager - Kolkata KAMAL K BHOWMICK Zonal Manager - Lucknow ASHOK KUMAR SHARMA Zonal Manager - Mumbai SUNIL G BATHE Zonal Manager - New Delhi TIKENDRA S RITHAL REGIONAL MANAGER, Zonal Manager - Ranchi RANCHI JAIRAJ R VORA JAIRAJ VORA Cummins Diesel Sales and Service (India) Limited 14 CDSS/Nov 03 Markets we support 100,000 PLUS ENGINES…... LOCO 2% G DRIVE 56% CONST 33% MARINE 2% INDUS 2% COMP 5% …… and growing @ 10,000 every year Cummins Diesel Sales and Service (India) Limited 15 CDSS/Nov 03 CDS&S Activities Customer Support through ….. Parts and Power Solutions - Cummins engines - Indigenous & Imported - Tata Cummins, Holset spares - CG Newage (Stamford) alternator spares - GERB AV mounts - Batteries - Coil Coolers - Additives - Acoustic Enclosure - Head Recovery System - LDO Kits - Upgrade kits - Anti Rust / MMT - Centrifuge - Valvoline Cummins Lubricants Cummins Diesel Sales and Service (India) Limited 16 CDSS/Nov 03 CDS&S Activities Customer Support through ….. Product Service - Installation and Commissioning - Warranty Service - Mobile QuickServe - Engine Health Check with Data Logger - Doorstep Service - Scheduled Maintenance services - Engine & Alternators - Testing of electrical and electronic components - Lub oil and coolant testing - Calibration of Gauges and tools - Toll Free from 60 locations - Fixed engine ownership Cummins Diesel Sales and Service (India) Limited 17 CDSS/Nov 03 CDS&S Activities Customer Support through ….. Service Contracts - Engine Annual Maintenance Contracts - Single Point Contracts for DG sets - Customised O & M Contracts for DG - Comprehensive Service Contract - O & M contracts for Construction and Industrial Equipment along with OEs ReCon and Job work - ReCon engines and components on exchange and sale - Estimate based repairs of components & overhauling - Fuel Pump & Injector calibration - Repairs of Alternators - Repairs of electrical accessories - starters & alternators - Swing engines Cummins Diesel Sales and Service (India) Limited 18 CDSS/Nov 03 CDS&S Activities Customer Support through ….. Training - Customers (on site and at Pune) - Dealers (technical & Soft skills) Information Support Equipment Support Alliances - CG Newage - Alternator - Telcon - BEML (World Bank Contracts) - H. M. Repower and Replacement Cummins Diesel Sales and Service (India) Limited 19 CDSS/Nov 03 Network • Zonal Offices 11 • Area Service Offices 16 CDSS Office Dealer Office Dealer Branch office CDSS Depot Amritsar • Dealers • Dealer outlets + branches 86 213 • Dealers with S/C • Regional S/C Ti nsu kia Tin suk Bhi wa dii wad Jor orhatt 45 2 Bhilai Ch purr Chan andra rap Koth thagu gudem em Hubli li Cummins Diesel Sales and Service (India) Limited 20 CDSS/Nov 03 Network Reach Service Dealers also at locations like • • • • Andaman , Nicobar & Lakshadweep Islands North East Sector Nepal Bhutan Cummins Diesel Sales and Service (India) Limited 21 CDSS/Nov 03 Parts Support Variety of Products • To cater 17 Engine Series, Over 30 basic engine models 400 different applications • Current transactions • 42,267 Shipments • 2,74,614 Line items • 47,16,243 Qty • Lube oil / Coolants • Acoustic Enclosures / DM Plants / Heat Recovery Systems • Special repair / diagnostic Tools • Electrical / Electronic / Software items • Accessories / Peripherals • Training Aids - Literature, Cut models Cummins Diesel Sales and Service (India) Limited 22 CDSS/Nov 03 Parts Support Criticality of Shipments • Engine Down Order - Warranty 08 Hrs • Quick Serve Shipments 24 Hrs • A&C Parts (Replenishment) 48 Hrs • B&D Parts 7 Days Cummins Diesel Sales and Service (India) Limited 23 CDSS/Nov 03 Parts Support Improvement Projects : • Common Dealer Business System Software • Depot Connectivity • First Pass Fill 85% (within 7 days) • Six Sigma Green Belt Project on Stores operational process • Supply Chain Management •Transportation Strategy • Six Sigma for Inventory Reduction and Stores Accuracy. • Packaging • Unitized Packaging • Bar coding • Automated Storage and Retrieval System • Parts Branding • Integration of Channel Inventory Cummins Diesel Sales and Service (India) Limited 25 CDSS/Nov 03 Information Systems • GIEA (Global Integrated Enterprise-wide Application) implemented • CIL / CDSS Web Site : http//www.cumminsindia.com • E-Commerce • Order registration from Dealerships directly into our main frame system - 100% active Dealerships on line. • Daily Parts Dispatch information on Web to all dealers • Electronic transfer of dispatch data from suppliers • Communication through Lotus Notes • Working towards common data base of channel inventory - Dealers Cummins Diesel Sales and Service (India) Limited 26 CDSS/Nov 03 Service Support Effective Systems MTTR : Max Time To Restore the engine Scope : All failures on Engines Under Warranty Categories - A : B: CCRI Restoring of Inoperative Engines Target - Within 15 Hours by year end Restoring of Engines running with problems Target - Within 22 Hours : Customer Complaint Resolution Index All complaints from customers are tracked till resolution CCRI Target - Complaints resolved Complaints Received Maximum Resolution Days Cummins Diesel Sales and Service (India) Limited 27 = > 0.96 = 3 Days CDSS/Nov 03 Service Support Customer Assistance Cell e-mail : powermaster@kcl.cummins.com Dial 020 5436680 TOLL FREE NUMBER 1-600-332000 FAX 020 5445916 Mission To help our Customers be successful by providing effortless access to Cummins, ensuring every inquiry and concern is resolved immediately, and championing change within Cummins on behalf of the customer. Scope Parts Assistance Technical Information & Service Assistance Training & Literature Service Network More than 80 % Calls are answered on Line Cummins Diesel Sales and Service (India) Limited 28 CDSS/Nov 03 Customer Support 24 Hours Contact Facility Objective To improve response time to Customer’s complaints, as well as provide services closer to the customers. Implementation • Total 40 Dealers are providing 12 Hours service support • Tasks for Response / Resolution time established • Performance being monitored monthly • 24 Hrs Tele - Contact Directory has been published with locations, Telephone / Fax / Cell phone / Pager numbers Cummins Diesel Sales and Service (India) Limited 29 CDSS/Nov 03 Service Support Mobile QuickServe Customer Requirements • Increased Uptime • An ability to plan • Reliable service • Technical Expertise Core Concept • Technical Expertise • 1 Hour Diagnosis - guaranteed • Immediate communication of diagnosis / options • Fast turn around for type A repairs : 4 hour repairs completed in • less than 6 hours • Promised delivery (24 hours) for longer repairs • Technicians listen to customers and make commitments Implemented with 86 Dealers Cummins Diesel Sales and Service (India) Limited 30 CDSS/Nov 03 ReCon Operations Activities • ReCon Exchange of all Cummins Engines & Component • Overhauling of all Cummins Engines • Repair of all Cummins engine components • Support to Water Drilling Rigs ( Engines ) • Support to New Products • Availability of swing engines Decentralization of Recon Activities • Closer to Customers, Shorter lead time • Quality repairs & Warranty back up nearer to customers • Regional Service Centres functional at North & East Zones • Plan to establish one regional service centre in South Zone Cummins Diesel Sales and Service (India) Limited 32 CDSS/Nov 03 Training • Recognised as ABO training Centre. •Training • Service Engineers • For • Head Office - 1 Year in-plant training • Zonal Training Centres in every zone (5 Nos.) • Engineer Certification through Exams • For Customers • Head Office - Round the year ( Languages English / Hindi ) • Zones - by - Area Training Manager at - Customers sites in - Vernacular languages Cummins Diesel Sales and Service (India) Limited 33 CDSS/Nov 03 Dealership Operations Documented requirements • Continuously upgraded • Annually audited • Improvements implemented • Recognized / Rewarded for Excellence ….. through ‘Dealer Excel - India’ • Implementation of ‘Dealer Score Card’ Cummins Diesel Sales and Service (India) Limited 34 CDSS/Nov 03 Customer Satisfaction Survey - Internal Survey • Regular Survey through Questionnaire or Interview • Improvement Projects for Corrective Action - External Survey • Regular Survey through Independent Professional Agency • Improvement projects undertaken on Survey findings. Revisit the customer through Repeat Survey. Cummins Diesel Sales and Service (India) Limited 35 CDSS/Nov 03 Power Solutions Lubricating Oil • Joint venture between CDSS & Valvoline, USA • Specially blended lube oils for Cummins Engines • Fully meeting Cummins specs • Available through CDSS Dealerships Cummins Diesel Sales and Service (India) Limited 36 CDSS/Nov 03 Power Solutions Acoustic Enclosures • Noise pollution - a health hazard • Sound attenuation - now a mandatory requirement • Cummins provides • Acoustic Enclosures for existing DG Sets • Covers entire range - 15 kVA to 2500 kVA • Stand alone Enclosures - can be installed without major modification • Noise suppression upto 30 dBA Cummins Diesel Sales and Service (India) Limited 37 CDSS/Nov 03 Power Solutions Heat Recovery Systems • Recover the Waste Exhaust heat energy for productive purpose • Heat Recovery systems for existing DG sets in the range of 750 KVA to 2000 KVA DG Sets for both IBRA and 180 KVA to 750 KVA for non IBRA systems • Steam and Hot water as per customer specifications and requirements • Exhaust gas utilization for Chiller / Air conditioning / process heating / process cooling Cummins Diesel Sales and Service (India) Limited 38 CDSS/Nov 03 Strategic Tie - Ups Product Tie Up with Nature • Lubricants • Automotive Spares Valvoline Inc. Tata Cummins Ltd. Telco Holset Fleetguard Motorpal Jackson Engineers Thermax/Unidyne Pennar Chemicals Ltd. Gerb Vibration Control AlfaTech Force Amara Raja Batteries Coil Company Lister Pitter Simpson JV Distributor Distributor Distributor Marketing Marketing Marketing Marketing Dist / Mktg Dist / Mktg Dist / Mktg Dist / Mktg Dist / Mktg Dist / Mktg Dist / Mktg • Turbochargers • Filters (Automotive) • Fuel Injection Pumps • Acoustic Enclosures • Heat Recovery Systems • Additives • AV Mounts • Surface treatment for Rust • Batteries • Coil Coolers • Engine parts • Engine parts Cummins Diesel Sales and Service (India) Limited 39 CDSS/Nov 03 Reward and Recognition • • Dealers • Dealer EXCEL • Functional Excellence of Service Centre • Functional Excellence of Depot operation Long association • Maximum Parts Sales • Optimum Growth rate on Parts Sales • Dealer Employee Performance Award - Customer Champion Award Cummins Diesel Sales and Service (India) Limited 42 CDSS/Nov 03 People Effective Employees - Health Awareness • Yoga Activities • Window to the World - Lectures by Doctors and prominent personalities • • • • • • • • • • • Living Healthy & Happy Life Diabetes Heart Diseases - Preventive life style Healthy Life Style - Can it be made easy Diet & Health Acidity and Stomach Problems High Blood Pressure and todays’s life style Stay Fit and be Happy Globalization and its impact How to manage personal finance Experience of successful personnel from various fields eg Public Service………...….. And many more. Cummins Diesel Sales and Service (India) Limited 43 CDSS/Nov 03 Challenges • Sharpest industrial slow down / adverse economic factors / WTO • Unprecedented increase in HSD rates making it uneconomical • Ban on DG / drilling operations • Cummins suppliers / exporters selling in after-market requirements • Maintaining sustained growth • Implementation of Service Guarantee to customer • Attaining PBIT target on R&R business • Continuous devaluation of Rupee vis-à-vis Dollar • Dealerships viability • O&M Contracts Cummins Diesel Sales and Service (India) Limited 44 CDSS/Nov 03 Thanks Cummins Diesel Sales and Service (India) Limited 45 Updated as on 03.05.2002 CDSS/Nov 03