Scrapping Warranty Parts

[HJ]

Looking for opinions as to the "ideal" way to know when to scrap warranty parts that must be held. I cant imagine there is a parts dept that is notified as to the status of each repair order I believe GM has 30 days to call for a part after payment is made, but at my store RO's stay open for several weeks after repair is completed requiring the parts dept to retain parts for an extended time reuiring excessive space devoted to storing scrap, Any Ideas???

[fburrows]

HJ:
You are right that if you try and do this correctly, you will drive yourself crazy. We kept parts turned in for 60 days and then pitched them. This system is very easy to manage and although it takes up a little more room there is a great savings in administrative costs. There is a possibility that a claim that is rejected several times can go beyond 60 days but I think the savings in administrative costs justifies the risk. I am sure you will get some other thoughts.

------------------
Frank Burrows
Automotive Business Solutions
frank@autobusiness.org

[robc]

For GM, warranty parts must be kept for possible review for 15 days. They would be requested by the Warranty Parts Center (WPC) during that time, and 99% of the time the WPC asks for the parts the day they are paid. If you worry about not getting the WPC notices then go onto the www.gmwpc.com website every Monday/Thursday and check to see what is out there for your BAC code.

So 15 days after a claim memo is recieved the parts can be pitched.

I personally like to get the claim memo the day it comes into the store and pull all the parts related to the paid claims. I'll throw them into a big crate or box and mark on the side of the box a scrap date 15 days later. At any given time you should have four of these boxes (because you get two claim memos a week) and your shelves should just have parts waiting to be paid.

The only big hassle are those multi-line R.O.'s and knowing which parts paid and which didn't. If you're provided with a scrapping copy of R.O. you should be able to match up paid labor operation by line number and figure out what to scrap.



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

[cwalden]

Is there another way to know what claim has
has been paid besides the claim memo?

[jargonaut]

As a warranty administrator this was alway one of the functions I felt obligated to assist the parts dept. on in my dealerships.
I always suggest a 10 bin system for storage of all warranty parts (that can fit on shelf in bin) using the last digit of the RO number for the bin 0-9. Always use GM scraptags since you can place the pertinent info on them readily and facilitate your parts return shipments later more easily.
The claim memo is reconciled by the warranty admin. person and I favor the simple system where as I purify the claim memo pulling rejects and making the needed adjustments to the warranty claims schedule at the same time as I review each paid claim and list the payment data on the face of the RO or the DCS auditslip. I note at that time all paid claim parts and CIRCLE those RO numbers where any parts were replaced which will need pulling for subsequent scrapping by parts dept. If multiple parts are used on that RO then I write down part names so that they all can be pulled by parts for scrapping. When one line pays and another rejects I write down pull switch and save blower motor (for example where switch paid and blower motor claim rejected). Where no parts were used on a repair order or it was GMPP I cross out the RO number on the claim memo copy. I also cross out all PDI claims and anything else parts hasnt a need to look at so in end they get a claim memo copy with all RO's needing parts pulled CIRCLED by me and parts noted for pulling. I then write on TOP of claim memo the DATE TO SCRAP all parts on this claim memo. At same time when ever a parts return request comes in (which usually but certainly not always will be same day as claim memo and indeed attached later on in DCS printoff usually) I make multiple copies of warranty claim and scrapping/technician comments copies and multiple copies of the parts return request. I personally give these to parts manager and ask for UPS shipment number back. This I place on my saved copy and then make the claim for the usual .3 hours allowed for return claim handling. If RO only request I make the copy and address the envelope and then claim .2 allowance.
I have found with the biweekly claim memo cycle and due diligence by myself and parts people the shelves never get all loaded up and a mess (which is impossible to deal with and leads to ancillary damage and hassles that can result in debits when a rep comes to look over things) and you simply have several boxes sitting some where in parts ready to toss in dumpster when the date I wrote (which in turn is written on outside of boxes) comes around.
I further visit the WPC web site weekly to assure all my returns are indeed received and when ( it happens) there is some problem I am usually aware before the debit day comes around so I can fax documentation to WPC such as UPS tracking number and the person who signed for the package and date and time received by WPC.
All told this isnt that hard to accomplish and also looks fabulous whenever some rep comes to scrap parts or look over things since we look like we have control over the warranty process totally and this improves perceptions and your credibility with reps.

Sorry for the lengthy reply but hope this simple means of control and execution asssits your dealer. Feel free to write me about any questions.


------------------
Alan The Warranty Guy


[This message has been edited by jargonaut (edited 12-16-2000).]

[This message has been edited by jargonaut (edited 12-16-2000).]

[jargonaut]

The claim memo is the sole means of determining when a GM claim pays at your store. I suggest you as parts manager either ask for a copy biweekly or visit warranty administrator and review them if they arent doing the prelim work for you as outlined above in my posting.

------------------
Alan The Warranty Guy

[RickW]

I concur with Alan completely. Parts scrapping must be controlled and coordinated by the Warranty Administrator. The 10-bin system, modified to fit available space, is ideal for this. All the WA's I know do it this way, because it is the most efficient and least painful.

Rick Williamson
WA, Isuzu Trucks of Augusta

[jargonaut]

There will be a new warranty parts return bulletin sent to all GM dealers shortly and with a new year starting next week now is the time to ensure your dealer has the warranty scrapping/returning system firmly in place to avoide debits and hassles.
bulletin 99-00-89-019A

------------------
Alan The Warranty Guy