PARTS SCRAPPING

[lovemotors]

We have the parts department do it. After all they do get all of the mark-up on a warranty RO so in my opinion that is the least they can do for their eaisly earned money....

[ladihawke]

Instead of fighting or bickering over who's responsibility it is to handle parts scrapping, we just work together. We have the techs in charge of writting the ro# and date on the part while the parts counter person puts them in the warranty bin at the end of the day. At the end of the week, our lady in accounting brings the parts department a list of repair orders that have been paid and an employee from the parts department then scraps the parts. For parts to be sent to the warranty center, the warranty administrator brings the parts department a copy of the paperwork and the parts department finds the part and ships it out. By cooperating together we are able to keep a good hold on all of our warranty parts.

[mnicholes]

What ever you do in scrapping parts make sure that you fulfill all the requirements that Thor Power Tool vs. Commissioner outlines regarding disposal and recovery of loss. The IRS is hot on this one and watches it very closely. Properly scrapped you will have no difficulties at all. It is best when scrapping and writting off the loss that you consult your dealership CPA or Tax Attorney for proper handling under Thor.
Mike Nicholes

[tjsmith]

I am a Parts Mgr, and the Service Mgr and I always get together and take care of warranty scrap parts. We get together, set up a certain day and time, and tell everyone to leave us alone, and go to work. I was Mgr at another dealership, where the service did not help...and if something got scrap by mistake, and it got called for, well it was my butt, but now with him there with me, if something is scrap by mistake,I do not have an angry service mgr at me.

[airrick]

Our warranty clerk pulls the scrap list daily and delivers it to my shipper/receiver who pulls the parts and scraps them and also prepares and returns the parts that are called back. I don't feel that service should have any responsibility for scraping parts. The parts manager should accept complete responsibility for all parts transactions. We also handle all special order parts. WE contact the customer the day that the part arrives and make the appointment. You should not rely on the service department to manage the flow of your special orders. Ultimately, it is the parts manager that must deal with the forced stock and obsolesence. Take control of your department. That is the only way to assure your success.

[flyboy]

Just a thought, something I am looking at doing.

Why not have the warranty administrator handle this? With all of the comments from those who are, or have been administrators/clerks, they are most likely the best equipped to id and handle those parts. I realize this is a little out of the ordinary, and there are some things to consider, but if the warranty administrator is paid on claims and such, perhaps they are in the best position to oversee this.

Alright, blast away! Let me know what your thoughts are!

[Bubba]

I am confused at the assistance offered Mr. Mike Nichols. What does 'Thor' have to do with scrapping warranty parts for the factory?

I believe that it's the Parts Departments responsiblity as stated by my BOSS.

[RickW]

GM P&P dated 1/01, Article 1.7, section 1.7.3 (page 1):

" * Following a warranty repair, all parts are to be turned into the parts department by technicians for tagging, retention and/or return."

This places sole responsibility on the Parts Manager for implementing and controlling the procedure. Why not let the individual PM make the decision how it is to be done. If the Service Department provides assistance, as we do here, that's fine. But the PM now has the responsibility and associated problems that the Service Manager used to have.

[jargonaut]

Wow Reading all the comments and the vast majority of people saying its so and so's responsibility makes me laugh since in the end its the dealer we work for who loses the money when a claim is debited by GM which means maybe when I want a raise or even to keep my job maybe he wont have the money to pay me. While this may sound odd I really believe its everyones responsibility to make things work smoothly in service and parts. This constant us and them which seems to exist in every dealership really doesnt work.
Why if youre a service manager and can somehow make it easier for a parts manager to manage scrapping parts would you refuse? When a part is debited the dealer loses the money and usually forever but what really hurts is how the service department (i.e. everyone there from service writers to technicians to parts people to the warranty administrator) looks like a fool in the eyes of GM). We have to deal with it building relationships and trust to get things done with the factory so why risk losing this trust and rapport over srapped parts and WPC return requests? Just get it done!!!

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Alan The Warranty Guy

[gordyw]

In our dealership basically the service department is responsible for the part until the parts department signs off on the part, then it is the responsibility of the parts department. I have used this system since 1998 and it has been very effective because everyone knows these simple guidelines and I accept no excuses from either department. This is a joint effort and both departments can easily work this out. We have a parts person designated to mark and box all scrapped parts as the credit meos come in. If there are any missing parts he pulls the ro's and gives them to me and I go from there. I would also like to add that 1 time a month or so I will personally do the parts scrapping to assure compliance. It is also a good time to take a close look at the parts as an AVM or auditor may look at them to see it the parts are replaced for the reasons stated on the ro. I find this to be very valuable and it may open your eyes to things you normally can not see just by reading ro's as you rreviewing them.