PARTS SCRAPPING

[David Eby]

I have a quick question. Who scraps parts in your dealerships? Parts or service. Thanks for your input.

David

[robc]

I am assuming that you mean who actually pulls the parts and throws them into the garbage. Not necessarily where the parts are kept.

From visits I've made to a number of dealerships it would appear that about 75% of stores have parts do it, while the rest have service control this.

My view is that this a parts department responsibility. The main reason is because the administration of warranty is a burden on everyone. The parts department participates heavily in the gross generated from warranty repairs so they should also participate in some of the burden ... and parts scrapping seems like the least of what needs to be done.



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

[joe r]

Here at our dealership parts maintains the warranty retention area and the shipping and scrapping.

But Rob, remember that the parts department handles each warranty part three additional times compared to a customer pay or internal part. Once when the tech returns it to be signed off, once when it is taked to the retention area and once when it is shipped or scrapped.

I keep this in mind when I consider the number of employees needed in parts.

It is an area that needs constant attention or it can get out of hand quickly. Drivers don't understand the importance of it. I find myself and one of my countermen getting caught up on scapping about every two weeks.

[This message has been edited by joe r (edited 07-03-2001).]

[robc]

(in relation to parts handling warranty parts several times, which is very true but ...)

... service can't just run a credit card through the machine, get paid and forget about it.

That is kind of my point that warranty administration (just doing what it takes to get paid and stay paid) is a tremendous undertaking. Everyone should have a role in it.

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

[jargonaut]

I think like Rob states good warranty adminstration is a team effort and pays off in the run with less hassles and debits for parts not found to be returned when requested by the WPC. As a warranty adminstrator I always used a claim memo copy that I would circle each paid RO number with a part and /or parts which required holding pending scrapping date. I used to see the names of the part(s) requiring pulling from the storage area pending scrapping and always wrote the names down by the op code for claim so parts people (who did the actual pulling of parts from the 10 bin storage area) could readily identify what the actual part(s) were to pull. Since I was always reconciling the schedule while doing the claim memo it was merely a few seconds per RO for me to see the names and quantities of parts. When multiple line RO's would have one line pay and perhaps one reject or require ASM authorization I would merely write down "pull Switch for Dr window and hold Ign Lock" for instance and the parts people would retag the Lock pending payment. By working closely with the parts department people to ensure the 10 bin system was purged regularly and properly we seldom built up such a pile of parts that any one shelf was over burdened making it difficult to find and pull for another scrap. I also prepared all parts return requests as to copying the Ros and requests and kept a log of returns while making my claim for allowance for return. All in all this isnt anywhere near as much additional work as it sounds for any warranty adminstrator and leads to a lean running parts scrapping system.


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Alan The Warranty Guy

[Farfinator]

I agree with the majority, that parts be responsible for warranty scrapping. In addition to being more amply qualified to properly identify the correct parts, they also have a vested interest in maintaining an accurate CORE inventory, which could be mishandled by service. Also, most dealerships don't credit parts with the sale(GP) until payment is made. Therefore, it behoves the parts department to monitor the warranty part collection and raise a red flag if a component or components appear to age beyong the 30 or 45 day submission time. You in effect serve as an additional catch for warranty oops.
May I also add that scraping maintenance is much easier if integrated into the DAILY routine. It becomes a hassle and an overwhelming burden if held off for weeks. Most manufactures provide a daily warranty disposition journal usually accessible through DCS. Whether you secure it directly from DCS or the warranty administrator, you can use that to "pre-pull" accepted (not yet paid, but approved) claims from your shelves. Generally, at least once a month, confirmation/payment is indicated in a summary report. At that time, you can simply box up what you've collected over the month, mark it 30 days out or whatever the manufacturer's requirement is and discard. It might take you 15 minutes a day, and your shelves stay more manageable.

[ChrisC]

Parts and Service split the cost of a full time guy who handles checking in warranty scrap parts, stocking and pulling for scrap after paid on the credit memo and after the retention period. He also handles the WPC return requests including shipping as needed. He works with the back parts manager with cores to insure he gets them ASAP for his returns. We are a very large single line dealership and this has worked for 10+ years for us..

[Doug]

I have the "warranty guy" scrap the parts. Over the years, quite honestly, I've always had a hard time finding a parts guy who really understood the importance of this procedure.....no offense to parts guys of the world. But, frankly, they don't have the same vested interest in parts scraping as service does.

For what it's worth.....we have usually one of the parts stockmen or drivers help with the drudgery such as hualing scrap off to the dump, etc.

Cheers to all,

Doug

[Wopigsooie@aol.com]

The GM Policies and procedures states that is Service Management Responsibility for Scrapping parts. It is not unreasonable to delegate this responsibility to another person, realizing that the Service Manager will have to be ultimately responsible. It is a good Idea that the Service Mgr, and the Parts Mgr. work together to accomplish this task.
Parts scrap is done for more reasons that just throwing away the parts.
1) To ensure that the part is defective and not damaged, and that is an original equipment part.
2) To ensure that the part came of the vehicle that it is claimed.
3) To destroy the part so it will not return to a vehicle on the road, or back in the parts scrap area.

If the Service Manager will do the parts scrap from time to time he can learn a lot about what goes on in the Shop. He can also spot other areas of concern.

[john]

The Ford W&P manual states that it is the parts departmrnt's responsibility to receive, document, store, return and scrap warranty return parts (there could be a vested interest in service to save old parts and create add-on repairs later on using the old part as justification for the add-on. Sort of like having a little efficiency insurance in time of need for a technician).

As an auditor for Ford, I saw this occur more than once in poorly managed fixed operation. I always look for very clean warranty parts return bins when I consult for a dealer.