Insert department name via ‘View/Header and Footer…’ Centre Operation EMR Warranty April 2012...

Centre Operation EMR Warranty

April 2012

Warranty from Reefer Unit / Genset repairs

Centre Operation EMR – WarrantyPerspective

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?


Centre Operation EMR – WarrantyPerspective

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’.


Centre Operation EMR – WarrantyAgenda

1. Process Walkthrough

2. Warranty SOP walkthrough

3. Warranty Status Tracker

4. AoB


Centre Operation EMR – WarrantyProcess 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.


Centre Operation EMR – WarrantyProcess Flow

Local EMR Repair Shop

GSC

End Manufactures

Reefer Unit Manufactories

Damage Reporting (via MERC+)

Repair Settlement – Part and Labour (via FACT)

Warranty Claim(from MERC+ Workorder)

Warranty Status Feedback

Warranty Accepted – Settlement Part and Labour

Warranty Status Follow Up

DC

Return Part

Stock Order /Stock DeliveryBilling / Payment

Reimburse Shop – None Compliance (Manual Invoice/FACT PO)

Warranty Status Follow Up

Warranty Status(email / team site)


Pictures /Downloads

1

2

3

3

3

3

3

4

4

Centre Operation EMR – WarrantyProcess Flow


Local EMR

Repair Shops

GSC

Manufactures

Estimateapproval

MERC+ Estimate

Repair execution

WorkorderCompletion

Weekly / MonthlyWarranty

ProcessWarranty

Claims

StatusUpdate

UpdateStatus

file

Review Status

file

InformRepair shop

Deliver Docu- mentation

/ Parts

Final Status

UpdateStatus

file

Review Status

file

ReimburseFromShop

InvoiceAnd

Posting

Payment

Payment

Centre Operation EMR – WarrantyProcess Timelines

• 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.

Time Activity

Month 1Unit repair andMERC+ WO completion

10th in Month 2

Unit, Genset, PartWarranty claimed on Repairs month 1

end Month 2

Status obtainedBy Daikin, Carrier, Starcool, TK

end Month 3

Delivery of required Data / Parts etc as requested

beginingMonth 4

Closing Warranty Claims from Month 1






4. AoB


Centre Operation EMR – WarrantyReefer 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 WarrantyCommon is a Part Warranty (subsequent to the Unit Warranty duration)

Variation exists however on both parts and durations


Centre Operation EMR – WarrantyReefer 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,%20Terminals%20and%20Equipment/Equipment/Centre%20Equipment%20MNR/GLBEQUMER_Reefer/Warranty_Management/Pages/default.aspx

Example of Starcool’s Warranty SOP









4. AoB


Centre Operation EMR – WarrantyProcess GAP


Local EMR

Repair Shops

GSC

Manufactures

Estimateapproval

MERC+ Estimate

Repair execution

WorkorderCompletion

Weekly / MonthlyWarranty

ProcessWarranty

Claims

StatusUpdate

UpdateStatus

file

Review Status

file

InformRepair shop

Deliver Docu- mentation

/ Parts

Final Status

UpdateStatus

file

Review Status

file

ReimburseFromShop

InvoiceAnd

Posting

Payment

Payment



Repair ShopsDeliver Documentation

/ Parts



Repair ShopsDeliver 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

Centre Operation EMR – WarrantyWarranty 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:






Centre Operation EMR – WarrantyProcess 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.






4. AoB


Centre Operation EMR – WarrantyQuestion 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)


Centre Operation EMR – WarrantyQuestion 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.


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