Closing RO's - Parts Ordered - Revisited...

[bam]

Some time ago, I started a thread on this forum about whether or not to close RO's when parts had to be ordered and the customer took the vehicle off the lot until the parts arrived.

The overwhelming response was - "Yes! Close the orders."

So...... we are trying to implement this major change and we are running into some glitches. Help me with this one, please.

Multi line warranty ticket: Line one is completed, we have to order parts for line two. The customer takes the vehicle with the intent of bringing it back in a couple days when the parts arrive.

We use an outside warranty service in which we scan the RO's to them a couple times a week. By the time they process and close the orders, a week may have passed.

So the problem is that in this situation, the part has arrived before the order is actually closed. This frustrates the parts department because they don't know whether to apply it to the open order or the new one that the advisor just opened.

Ideas?

[This message has been edited by bam (edited 09-16-2005).]

[Number 65]

We're not in the same predicament you are, as far as using an outside service, we process our own paperwork.

We close out repair orders as soon as the car leaves.

Let me give you an example of what can happen if you don't. This actually happened here and it wasn't pretty.

A customer came in on a Thursday for an oil change. They also made mention of an oil leak that we couldn't address at the time, so we rescheduled them for the following Monday. The advisor, trying to save a few steps, leaves the repair order open.

Monday comes along and the oil leak is repaired. During the road test after the repair, the vehicle is sideswiped by a tractor trailer carrying large roofing trusses, causing significant damage to the vehicle. The technician was sitting still at a red light and had nowhere to go. Accident was not his fault.

Here is where it gets tricky and the confusion sets in:

The car was dropped off Monday morning by the wife. The husband stormed in later that day and inspected the damage to his vehicle (2005 Cadillac Escalade). Upon looking at the mileage on the repair order and comparing the mileage on the vehicle, he demanded to know why there was over 100 miles put on his vehicle since it was dropped off that morning, not knowing that the repair order was left open and the mileage was recorded 5 days prior.

It's a very bad place to be in, when you have to try to convince a customer that the accident happened less than a mile from the dealership and that 99% of the mileage was put on by him and that we didn't use half of his gasoline.

Close them out. Start fresh with new dates and mileage.

It could also be the difference if there is a buyback in question, regarding "Days out of service".

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My friends call me Wikid.

[This message has been edited by Number 65 (edited 09-16-2005).]

[warranty_goddess]

I keep having the same problem with the parts dept at my DCX store. The solution is simple - its getting people to abide by it that is the hard part.

Parts should never be billed to an RO unless the hard card is present. This will alleviate your problem because the technician will have the new ro in hand when he goes to parts to pick up the part. The old one will be in your 'to be processed' folder; or where ever it is you keep the claims the outside company is working on.

If your parts department 'pre-bills' SOPs I would also recommend having them stop. In my view if a part is billed on the ro it should not be in the parts department. A billed part is something that parts no longer has. If you pre-bill parts it just causes all sorts of headaches.

[AKTOYPM]

I agree with her,
Parts should be billed out as they cross the counter.
Pre-billed parts causes everyone problems Service Manager/tech/parts counter/inventory clerk/parts manager.
It is usually a CYA for the parts manager who does not have process's in place to keep parts from being handed out that are not billed at all. Only good reason I can think of is a dealership that has other department access to special order bins (pick your own parts).
Parts billed have "left the building"

[scotstrong]

As always, there are two perspectives to any inter-departmental issue. Have seen many stores where other depts want parts out of the parts department and then want to bring the necessary "paperwork" to bill the part out later; which then quickly gets forgotten by the person who wants the part "now". Becomes a firedrill for the parts dept. to keep track of who all they have to chase down for the paperwork that was never followed up on as promised. Parts dept. tries to take a more "hardline" attitude of "no tickee / no laundree"; and then they are accused by other mgmt of being "uncooperative". The result is policies such as pre-billing to attempt to minimize some of these potential cracks for things to fall through. It has never failed to amaze me in this business how many times it happens that one dept has to create additional (unnecessary) policies and procedures to accomodate those in other departments who always want to "shortcut" things to make their job "easier" and to hell with the consequences to other depts.

The obvious solution is for EVERYONE in EACH department to be held accountable for their portion of correct procedures (including the parts depts). Nothing more frustrating for a manager than seeming to be the only one who is making his people do their jobs the right way (which isn't always the most "convenient" way); and having a DP or GM who won't hold other dept. heads to the same standard. This is often when and why "arbitrary" and sometimes cumbersome policies are created.

Scot Strong

[PAPAKOHO]

Without any hesitation at all, close the repair order! Here in Wisconsin there is another twist. Wisconsin's "LEMON LAW" uses the criteria that a vehicle has to be out of service for 30 days in the 1st calendar year of ownership for an owner to attempt buy back. Everyday that a R.O. stays open waiting for a part counts against that 30 days. May seem innocent enough but I know some Dealers who have been caught by that little loophole.

[DaveinFL]

Warranty Godess,

I have to disagree on not pre-billing SOP's.
If it is warranty Ro, no we cant, and dont pre-bill SOP's. Customer pay is no different than a walk up retail customer. All SOP's have to be prepaid.

Scott, couldn't have said it better myself!

Dave

[bam]

My Parts Manager thinks this might be the solution - do you agree or disagree?

He says we should leave the RO open but print a copy for the customer when he takes the vehicle. When the vehicle returns, we simply reprint the open RO with the new date and mileage.

So the RO is kept open but copies are printed the first and second visits with different dates and mileages. Will that work or is your thought that we need to close the RO when the vehicle leaves?

[jazdale]

BAM
You can change the open date of an already open RO?

[Vince Lyons]

IMHO...
Always close the RO.

The only time an RO should stay open, is if the vehicle is still on the property and headed back into the shop. ie: Car Down.

Parts for open ROs MUST be billed to that open RO when they arrive. Have the Parts Dept print duplicate pick tickets when the part is changed to an 'S' and give the copies to the Advisors. Never rely on 2028, if the item hasn't been receipted... you'll never know it's there.

NEVER trust QOH... It's not consistent between Counter Tickets, APs, RO dash ones and open ROs. QAVL can lie like a rug too.

Create a report in 6910 and queue it to print at the Service Desk multiple times during the day that shows what ROs have SB parts and compare it to the route sheet.

Parts on open ROs that have not been issued must be segregated from other SOPs in the Parts Dept.... use an open bin that's visable from the Parts shop counter. The Service Manager, Parts Manager, Dispatcher and Shop Foreman should review those items against the route sheet daily.

Have good customers that you don't want to prepay non-wty parts?
Ask yourself if they are good enough customers that you'll take the hit to your policy account for a return handling charge if they turn into a no-show. If the PM is any good he/she won't hit you for an item they can readily sell to another customer.

Neither the PM or the SM should ever worry about sun visor clips... Think hard about ECMs though.

Realize that certain parts ordered are "commisioned" for that car/customer... Keys, trim... Most every customer will understand that those items must ALWAYS be prepaid.

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When in doubt, charge it out !
I'll be right back with it = Bill it to the Shop Ticket
(Enter any name) will bring you the RO = Charge it to my Personal AR