group 2 volkswagen

8/7/2019 GROUP 2 volkswagen

1/17

Cedarbrae

Submitted by Group 2

Dr. SK Tehedur Rahaman(156) Shalini Mishra (155)

A Vishnu Vardhan (101) Poonam Mittal (140)

Dr. Sukumar Chand(158) Gautam Anand (120)

Quality of Service


2/17

CEDARBRAE VOLKSWAGEN

Received less than satisfactory dealer from VWC

Index score had fallen into the bottom 20 dealers in Canada.

Herbert Boehm, owner and GM could not understand how the index

had fallen to such a great extent.

About VWC:

Volkswagen Canada Inc., a wholly-owned subsidiary of Volkswagen AG,operated approx 200 dealerships in Canada in 4 regions.

VOLKSWAGEN CANADA INC.

2

National Institute of Agricultural Marketing


3/17

The four regions areQuebec region- largest contributor

Central zone (Saskatchewan, Manitoba, Ontario)- second largest,

Western (Alberta, British Columbia)-third largest

Atlantic- smallest volumeDealerships:

Dealerships were categorized in one of three volume groups

Volume Group 1: new car sales in excess of 500 veh/year

Volume Group 2: annual sales in the range of 200-500 veh/year

Volume Group 3: annual sales less than 200veh/year

CONTD

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4/17

Dealers were placed in one of the volume groups based on their Annual

Planning Volume (AVP) for the upcoming year.

APV was estimated by the dealers and submitted to VWC

Anticipated volume was fairly speculative

Dealers could sell Volkswagens, Audis or Porsches solely, or any

combination of the three makes

Dealers received significant fleet sale business

Other services included used car sales and body shops

VWC DEALERS

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5/17


6/17

VWC believed that customer satisfaction had become an increasingly

significant competitive factor.

Conditions of the cyclical nature of the car industry and productionovercapacity had created a buyers market.

Over the years, VWC had turned its attention towards customer

satisfaction and evaluation of dealers on that basis.

CHANGING MARKET SCENARIO

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7/17

CEDARBRAE OPERATIONS

Employed 55 full time workers 9

in sales, 18 in service, 10 in paint n

body, 12 in administration, 6 in

parts.

6 part time employees in

administrative position

Involved in Audi and Volkswagen

new car sales, used car sales,

leasing, fleet sales, body shop

work, service work.

7


Initial

Service dept., Under-hood,Under-vehicle, Vehicleexterior and interior

2nd

Through sales person

Firstcheckof selected itemsand reporting anyadjustments.

Final

By sales person


8/17

Sales person thoroughly explained the operations to customer

I care philosophy and PDI services also explained to built trust

Telephone follow up within 7 days of sale to ensure customer was

satisfied.

Finally after repair test drive done but only of few cars selected on

basis of :

Type of problem

Mechanics having higher comeback rate

Simply by random

SERVICE DEPARTMENT

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9/17

SERVICE PROCESS

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ServiceAdvisor(Writes up workorder)

Dispatchoffice- shop foreman distributesand schedules workto mechanics

Mechanics- fixed theitems indicated onworkorder and thoroughcheckup forother fault.

Service advisor- after visual inspectionissues quality control certificate


10/17

Customer survey basis-

Working order of car while receiving it

Explanation of vehicle operation

Break-upof survey score-

60% of a dealers score

40% of field forces score

Lacuna-

Discrepancy of allocation of scores given by Field force

Change-

Elimination of Field force from Dealership index measurement

CUSTOMER SATISFACTION SURVEY (PRE1985)

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11/17

A 12-month revolving system

Categorization of Dealers-

I Care dealers( Top 90%)

Intensive Care(Bottom 10%)

Fateof Herbert

Shifting from I Care to Intensive Care group

No VP fund, Cooperative fund for advertising

No provision for company commendations

KUNDENDIENST INDEX(POST 1985)

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12/17

VWC KUNDENDIENST INDEX

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Method InputData Frequency Monthly KDIndexRanking

PDI-Ongoing

Survey(all

dealers)

5 Criteria

Max. 100 Points

Monthly

Customer Service

Survey (I Care-all

dealers 100

NVR+)

5 Criteria

Max. 100 Points Annually

Customer ServiceSurvey (Intensive

Care-10%

Bottom dealers)

5 CriteriaMax. 100 Points

Monthly

Max.200

Points


13/17

KUNDENDIENST INDEX(POST 1985)

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Condition OK(30%)

VehicleOperation

Explained(25%)

I Care Certificate(20%)

I Care Explained(15%)

Telephone Follow-up

(10%)

Repairs done(30%)

Willingness ofbuying

car gain(24%)

Postsales service

satisfaction(19%)

Quality control

certificate(15%)

Telephone follow-

up(12%)

Criteria

PDI

SERVICE


14/17

Many of the service survey results were not considered for the index.

Surveys were sent randomly to warranty repair work customers.

Response received was very less i.e. 20-25%

Only the dealers with greater than 100 annual vehicles were measured

Dealers were deprived of actual survey data, instead were sent a 3 page

summary report for the services.

Of the five service criteria in three of the questions were a simple yes

or no question and Calculations were done as per to PDI weightings.

The scale questions were biased and took neutral responses as

positive.

KD INDEX- A REAL INDICATOR OF SERVICE

QUALITY ..?

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15/17

QFD matrix for CEDARBRAE

How to Improvethe service quality and Customer

Satisfaction

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How to satisfy

Customer Wants

What does the

customer want

Interrelationship

Competitive

Assessment

Technical Evaluation

Relationship Matrix

1. Pre Delivery

Inspection

2. Good Post-sales

Service

1. Cyclical nature of Car

industry.

2. Production overcapacity

3. Emphasis on enhanced

customer relationship.


16/17

Test drive of all cars after repair

Reduce no. of processing of work orders and increase service quality

The KD index should be revisited and the services.

Conduct free Service and vehicle health camps.

Proper recruitment of manpower in the service department to cater to

need of the customers services

Recommendations

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17/17

group 2 volkswagen

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