pragmatic approach for after sales services

8/4/2019 Pragmatic Approach for After Sales Services

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Objective

• Analyzing customer complaints of fourproducts.

• Complaints over a span of 16 years

• Nature of complaints at micro level

• How do they effect marketing & production

•

How this approach can be beneficial incustomer retention



Methodology

Primary data:

• collected from thecustomers

• customer grievances

• customer suggestions

Secondary data

• Collected from booksof records

• SOMA software

• Intranet of thecompany



Organizational structure in Aftersales marketing in B2B

Feedback torespective depts.

After Sales

Out of warrantyWithin warranty

Types of complaints1) Transit.

2) Packaging.3) Loosening of components

4) Electrical testing.5) Visible damages.

Complaints

Cost estimation

From the date ofcommissioning

From the date ofdispatch

Investigation

Manufacturers End Customers End



For B2B bussiness

• In B2B, after-sales can generate three to fourtimes the turnover of the original purchaseduring the solution’s lifecycle.

•

For consumer products, it can be estimatedthat after-sales services cangeneratebetween 20-30% of total sales ifcorrectly managed. The bulk of the margindoes notcome from the direct repairs butfrom spare parts, whose margin can be morethan50%, and support and warrantycontracts whose margin may be above 75%.



CUSTOMER COMPLAINTS DATA COLLECTION & ANALYSISFOR CVT



YEAR WISE PERCENTAGE COMPLAINT ANALYSIS OF CVT( 72.5 KV - 145 KV CLASS)

258

390

847

569

747

1194

2.71 1.03 1.18 1.34 0.35 0.17

1141

2.46

0

200

400

600

800

1000

1200

1400

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

YEARS

D I S P A T C H Q U A N T I T

&

% C

O M P L A I N T

YEAR WISE PERCENTAGE COMPLAINT ANALYSIS OF CVT( 420 KV CLASS)

47

69

51

138

116

71

166

12.77

7.25

13.73

2.1712.07

1.41 0.60

0

20

40

60

80

100

120

140

160

180

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

YEARS

D I S P A T C H Q U A N T

I T

% C

O M P L A I N T



YEAR WISE PERCENTAGE COMPLAINT ANALYSIS OF CVT( 245 KV CLASS)

135

224

140

209

307288

517

2.68 0.71 6.22 4.56 1.74 0.975.19

0

100

200

300

400

500

600

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

YEARS

D I S P A T C H Q U A N T I T

%

C O M P

L A I N T



CGL INITIATIVES to reduce complaints

• SIX SIGMA

• Quality Management System (QMS)

•

FAME• MOST

• TOC

• ISO• OHASHS



EFFECT OF AFTER SALES FOR CAPACITIVEVOLTAGE TRANSFORMER

YEARLY ACTUAL DIFFERENCE OF CVT BETWEEN DISPATCH AND

COMPLAINTS

810

39

30

181520

39.969.5

201.8

182.3

142.5

125.4

104.6

0

50

100

150

200

250

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

YEAR OF MANUFACTURING

D I S P A T

C H E D

Q U A N T I T Y I N

1 0 '

&

T O

T A L C O M P L A I N T S



CUSTOMERS AREAS OF IMPROVEMENT

FOR CGLACTION TAKEN BY CGL

ENEL, ITALY Uniformity of Galvanizing, ferrul match, porcelain

fixing with flange should be properly finished. Proper training has been given to

eradicate the complaints.

NTPC, MUMBAI Marshalling Box needs improvement in layout &

mounting arrangements. Suggestion forwarded to design dept.

APTRANSCO Timer on HV breakdown tester panel will help the

operators. Suggestion forwarded to engineering

& automation depts.

KPTCL Terminal markings should be there. Calibration

Certificates should be on Original Letterhead. Already started giving.

RDSO, LUCKNOW STD. VT OF 0.05 ACC. Can be taken as reference for

VT & should be as per IS. Designs done as per IS & mentioned

as per PO.

VEDANTA ALUMINA LTD. Time mgmt during tests should be improved &

calibration documents should be available in

time.

Documents will be provided with the

dispatch.

SIEMENS LTD., MUMBAI Materials should not be packed without customers

consent.

Packing is done only after the final

inspection with customers

consent only.

GRIDCO Compact design. Suggestion forwarded to design dept.

RRVPNL CC testing & EMU testing should be at one place. Already started.

APTRANSCO Field Service should improve e.g. Nellore, Chittoor

(AP). Special cell has been made to handle

complaints.

TNEB Oil leakage in some CVTs. Complaints under Scrutiny, data

inadequate.

RELIANCE ENERGY LTD. Adjustments of earthing pad & holes are required. Suggestion forwarded to design dept.

POWERGRID, MUMBAI Provision of Broadband Internet facility for issuingCIP/MICCs fast without wasting time.

Suggestion forwarded to automationdepts.& is under prioritization.



COMMERCIALIZATION ASPECT IN AFTERSALES MARKETING

• In the first group are demanding customers who want a very high level of after-sales services in order to hedge the risk of a disastrous loss in theirbusiness; they want swift and consistent response time as well as reliableoperations and are ready to pay a premium price for that assurance.

• In the second category are the customers who are more price-sensitive andless concerned with instant availability; they want robust maintenance

service but not necessarily immediately.• The third group consists of the customers who aspire to a basic level of

after-sales services with simple operations; they are prepared to wait or toperform some maintenance operations themselves in order to cut costs; inany case, they cannot or do not want to pay huge sums for post sales-operations.



Some of the Terms & Conditions under contractfrom other customers:-

1. Goods accepted in the customers store will be deemed to be deliveredfor their approval.2. Bills submission will be done as prescribed in the purchase order.3. Rejected goods will be lying at the risk of manufacturer & should be

removed at the cost of manufacturer on receipt of customers rejectedmemo.

4. Deliveries should be made to the customer in lots or as prescribed in

purchase order.5. In case delivery is pending against another order of same material,

earlier order must completed first.6. Prices shown in the purchase order or delivery challan are delivery free

at the works unless otherwise stated.7. Payment terms 20% in advance.

60% on delivery.20% remaining is done after inspecting the

deliveries & if found some problem these 20%is made after getting desired product as perspeification & without damage.



Legal aspects for warranty:-

Within warranty

18 months from dispatch.Out of warranty 12 months from commissioning.

Legal aspects for Excise:- 1)Filing of D3 form in case of the product which

is an accessories to the other product.

2)Special clause of 57F4 which is for processing

of the goods & taking back the goods for processingwithin 180 days. In this case the duty

on the good is exempted.



COST ANALYSIS IN AFTERSALES.

CHARGES OF SERVICE ENGINEERFOR SITE INSPECTION

+TESTING CHARGES ON SITE

+CHARGES APPLIED BY

THE SURVEYOR+

TRANSPORTATION CHARGES(Inward & outward)

+TESTING CHARGES AT WORKS

+

INTEREST ON BLOCKED PAYMENTS+REPAIR / REPLACEMENT

CHARGES

COST OF POOR QUALITY



CUSTOMER RETENTION WHAT DOES CUSTOMER EXPECTS FROM SERVICE PROVIDER?



CUSTOMER RETENTION AS PER SVPC

Plan of Action

• Analyze the Lost Customer Basket

• Do Strategy –Volume –Profit – Cost ( S – V – P

– C )Analysis of Customer

• Identify the Area of Concern

• Competition Analysis

• Differential Advantage Analysis ( D – A – A )• Approach



Identify the Area of Concern

• Technical Specification

•

Quality• Cost

• Response

• Delivery



Suggestions:-

•During production these are the steps to be taken to avoid long term failure of the

product:-

•Minimum exposure of the elements & coil in the atmosphere.

•Use of proper BDV & Tan δ values of the oil

•To standardize the EMU tank for each class of the product.

•Strict testing of the products at 100% or 80% of the high voltage value. Any

negligence or under voltage testing as prescribed may not show the actual

performance & life cycle of the product.

•Proper sealing must be done in the sealing areas to avoid oil leakage during transit

or during commissioning. Loose bolting & tightening may cause mechanical

damage in near time.

•All the gaskets must be replaced with “ O“rings to avoid atmospheric exposure.

•Design & technology must be innovated specially for CVT to withstandcompetition with companies like Areva which is having a smaller size in 245 Kv &

400 Kv class & Siemens which is entering with a technology of SF6 CVT.

•Multipurpose features & facilities must be given &should be standardized to every

customer like thermostat, heater, electronic gadget to monitor the actual pin point

the cause of failure in the product.



CONCLUSIONS

Know your customer 1. delivery,2. reliability,

3. availability,4. price.

Developing profitable after-sales services

1. flat fees for unlimited services

2. fixed prices for specific services

3. time and materials billing



LIMITATION OF STUDY

• The project is based on data of the projected availability as generated by onthe past sales figure & registration of the customer complaints andsometimes smallest of the complaints which are solved at site are notregistered

• Data not been updated in SAP software from year 1988 till 1999 so wehave to refer the old files.

• It becomes difficult to analyze the complaint which could be on thecustomer or manufacturers end, which is a hurdle for the further analysis.

• The two month time period of project is also constraint for this project as inthis span of time we cannot accurately understand and analyze the in depthcomplaints but a attempt is made to present it as accurately as possible