DealersEdge Professional Forums

Hello:
I am a Warranty Administrator at Distributor level. At this moment I am developing an Audit Program for dealers. I'm looking for any guideline material that can help me to develope this project. Any help will be highly appreciated. Thank you.

Are you wondering about selection methods (i.e. who to audit) or are you wondering about audit techniques (i.e. how to audit). The AICPA has standard account practices which govern how audits are to be conducts, even if most factories ignore those recommendations.

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** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

Basically, I'm looking for the necessary criterias that should be considered to develope the audit program. For example, one of the criterias can be an analysis of the number of claims that one dealer submit vs. their service facilities and how it compares to other dealers with similar service capacity.

I have more criterias but if anybody can provide me any other relevant criterias that should be considered please let me know.

Thank you for your help.

In automotive the contributing factors for excess warranty expense really boil down to either doing too many repairs or spending too much on repairs.

Therefore any system which can measure these two influences is considered a viable tool.

I think Ford's way of judging out-of-line performance has some merit. Basically, if a shop continues for 9 months (using a six-month total rolling average of expense) to be one-half (.5) standard deviation above regional or peer expense they are brought into the audit process. Same is true if they are one standard deviation above for 4 months, or over 2.0 standard deviations for any two months. (They have other rules too, but those three are the most common).

Normal deviations between dealers will exist, and you want to separate typcial swings in business from those dealers who are truly struggling with their claims.

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** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com