P&SWRP102 Supplier Warranty Systems Training

1. P&SWRP102Supplier Warranty Systems Training

2. Agenda Best Practices Roles & Responsibilities Login Procedures Labor Operation Code (LOP) Warranty Reduction Webpage Warranty Assignment Process Flow Systems: Warranty Information System (WIS) Early Warranty Tracking (EWT) Quality Tracking System (QTS) Global Claims System (GCS) Supplier Warranty Issue Resolution Supplier Warranty Reporting Examples New Supplier Responsible Warranty Measure Resource Tools Contacts

3. Best Practices • Internal Culture & Communication • Communicate regularly to employees on warranty status as a standard corporate measure • Roll-out “Awareness Training” at plants • Incorporate Warranty Targets (EPUS, C/1000, Cost/Cond,) into incentive plans and goals • Create a Warranty Management department • Dealer Interaction • Develop a relationship with local Dealers to: gather more information, assist with problem • identification, and help ensure repairs are written accurately • Design for more efficient/effective serviceability, and review Service Manuals Data Analysis • Use the Early Warranty Tracking (EWT) and Quality Narrative Analyzer (QNA) systems to • pinpoint dealers experiencing the failure • Shift priority to high occurrence/cost warranty issues • Construct a problem solving database that allows for easy input by the Champion who will • head-up the cross-functional problem solving team • Include Warranty lessons-learned into Advanced Product Quality Planning • Look at system warranty data on interfacing components • Parts Analysis • Ensure that a sufficient quantity of failed components is available for root cause analysis • Create a warranty parts review area so past mistakes are seen, not hidden • Have a clear understanding of the product development process - review lessons learned • Keep dealer-returned parts – save an example of a problem Use visual aids in your manufacturing process to identify high warranty areas

4. Supplier Roles & Responsibilities Analyze Chrysler warranty data using available sources, to include: Warranty Information System (WIS) Quality Narrative Analyzer (QNA) Early Warranty Tracking (EWT) Customer Advocate Group (CAG) Quality Tracking System (QTS) Direct dealer interface Direct vehicle assembly plant interface Global Claims System (GCS – Vehicle Claim History) Have a documented process for warranty parts analysis and warranty reduction – part of your company’s Quality System. One point of contact for Warranty (Champion) Facilitate warranty concern review and problem solving (using the 7-Step process) with cross functional groups within your company Visit QEC (Quality Engineering Center) on a regular basis, obtain returned parts for further analysis, and respond to requests from QEC Warranty Specialists. Facilitate Lessons Learned sharing with Chrysler and supplier teams for new design continuous improvement Pursue resolution of “No-Trouble-Found” issues Review Warranty performance at your company’s Senior Management meetings – e.g., Quality System Management Review Meeting

5. Supplier Roles & Responsibilities – Access • Requests are processed via the Covisint screens. Covisint first approves the request then passes it on to the supplier’s Primary Security Administrator (at the supplier’s location) to submit to Chrysler. • Application access is requested by Service Package. • Covisint portal: • https://portal.covisint.com/wps/private/lang/en/_pagr/111/_pa.111/130 • Warranty Homepage: http://sqw.extra.daimlerchrysler.com • Warranty Tracking Systems section: • CQS-Chrysler Quality Suite: WIS, QNA, QTS, EWT • Browser: Internet Explorer™

6. Labor Operation Code Breakdown A LOP code is a number the dealer places on the claim when submitting to Chrysler for payment of repair. The dealer identifies the repair made with the help of the Labor Operation Code Time Schedule manual. First two positions: Functional Group (FG) defines the major repair area of the vehicle. Repairs are segmented into their respective areas (i.e., 08 = Electrical, 09 = Engine, 05 = Brakes). Third and fourth position: Component Group (CG) breaks down the repair into a sub-group of the Functional Group. (i.e., FG = 05 or brakes, then 20 = CG or drum). Fifth and sixth position: Component Code (CC) indicates the location of the repair (i.e., rear brakes). Seventh and eighth position: Operating Code (OC) (formerly OP) defines the actual repair and determines the allowance paid to the dealer. 01 thru 39 = Prime Test & Replace codes 00 = Adjustment Ninth and tenth position: Failure Code (FC) identifies specific cause (i.e., OX = wrong part) or: UC = Uncodeable which requires a narrative from tech

7. Warranty Reduction Website

8. 2008 Warranty Recovery Program

9. Bulletin Board

10. Training Material

11. System Links

12. Warranty Reduction Program

13. Warranty Parts Review

14. Document Section

15. Service Bulletins

16. Frequently Asked Questions

17. Contact Us

18. Warranty Assignment Process Flow

19. Warranty Information System (WIS)

20. 2008 Measurement Parameters - EBSC Months in service(can view Miles in Service) “Days to Sale Selection – 120 Days” vehicle population (can view “All”) Consists of vehicles sold within 120/90/300 days of build (US, Mexico and International, respectively) Sales Divisor:  Standard or CT/SMLC So Equipped 12 month/12,000 miles (Responsible for 3/36 or greater coverage based on the conditions of their purchase order or other contract with DC) Retail (can view “Fleet” market) US Market (Can view ‘All’ - Canada, International, Mexico) Combined: Truck, Car & Minivan, and Jeep

21. WIS - Status Summary Page

22. Status Summary – Parameter Definitions PL: Grand Cherokee (WK), Durango (HB), Liberty (KK), etc... FM: The first two positions of the Corporate Body Model Code - further defines the Product Line LN: Line or Carline is the third position of the Corporate Body Model Code. PC: Price Class (High Line, Low Line, etc.) is the third position the Corporate Body Model Code. BS: Body Style (2-door, 4-door, Convertible, etc.) is the last two positions of the Corporate Body Model Code. AP: Assembly Plant (SHAP, Toluca, JNAP, etc.)

23. Status Summary – Parameter Definitions FG: Functional Group is the 1st and 2nd digits of the LOP. CG: Component Group is the 3rd and 4th digits of the LOP CC: Component Code is the 5th and 6th digits of the LOP OC: Operation Code represents the 7th and 8th of the LOP FC: Failure Code is not a part of the LOP. It simply describes the reason the warranty repair was done. CTC: Component Type Class identifies a class of vehicle components (engines, transmission, wheels, etc.). CT: Component Type identifies the vehicles equipped with specific components (2.0L engine).

24. Status Summary – Parameter Definitions SMLC: Supplier Manufacturing Location Code as assigned in the Purchase Order system. PN: Part Number selected as the failed part on the warranty claim. LCC: Local Commodity Code IMKT: International Market may represent a single country such as the USA or a group of countries such as Europe. RGN: Region/Business Center represents a subset of the International Markets based on sold location. BC: Business Centers represents a subset of the IMKT/RGN combination.

25. Status Summary – Reporting Report By: Determines the list of items for the Status Summary description column. The user may select one item from the pop-up window or input the equal sign (=) into the Query Rule field which will generate the same results.

26. WIS Reporting Metrics Data will be displayed based on that metric chosen: -C/1000 (Conditions/Repairs per 1000 vehicles) - EPUS (Expense to DC per Unit/Vehicle Sold) - Cost/Condition ( Cost/Expense to DC per Condition/Repair)

27. Status Summary - Results Parameters can be found at the bottom of each query.

28. Status Summary - Results “Drill Down” by selecting the radio button and then press the “Next Go” button on top of screen Go to “Previous Level” by selecting the “Prev Go” button at the top of screen

29. Status Summary - Results To view the claims that make up the corresponding metric, choose the radio button and click the red ‘CLM’ buttons.

30. WIS – Top Problems Page Top Problem by part number or LOP

31. Top Problem - Results To drill down: Click on a radio button, go to Status Summary to ‘drill down’ to another metric.

32. Top Problem - Results To view the claims that make up the corresponding metric, choose the radio button and click the red ‘CLM’ buttons.

33. WIS – MOP/MIS Parameter Page

34. MOP/MIS - Results

35. MOP/MIS - Results

36. MOP/MIS - Charting

37. Lag Factored Sales - Definition Because the WIS system only calculates metrics based on ‘paid’ warranty claims, Lag Factors are applied to the vehicle sample to statistically compensate for unreported warranty conditions. Each month the WIS system calculates the factors used to lag the sales data. Claim payment experience is analyzed over an 18-month period. The claims are segregated according to the month incurred and month paid and percentages are calculated based on this information. These percentage figures (lag-factors) can be used to adjust expense upward to the level that it will be when all of a given month’s claims are paid, or sales can beadjusted downward to achieve the same affect. In order to preserve the integrity of the claim data, the lag-factors are applied to the ‘sales’ data.

38. WIS – Supplier Targets Page

39. Supplier Target – Parameters Page

40. Supplier Target - Results

41. WIS – Advanced Reports Page Clicking on ‘Advanced Reports takes user to the ‘Jobs’ tab.

42. Advanced Reports - Summary In most cases WIS ‘Standard’ reports (Status Summary, Top Problems and MOP/MIS) will achieve the reporting needs of a user. Like a “Status Summary” query with extended capability like combining multiple rules (e.g., Model Years, SMLC, Part Number), excluding data, etc. Schedule when the query is run (automatically or monthly when WIS is updated)

43. Advanced Reports – Jobs Tab

44. Advanced Reports – Queries tab

45. Advanced Reports – Parameters tab

46. Advanced Reports – Rules Tab

47. Advanced Reports – Schedulers Tab

48. Advanced Reports – Jobs Tab Revisited

49. Printing • Click the “Print” button to reformat the data without the Chrysler header

50. Exporting • Click the “Export” button to send the data to Excel or another application • Data is saved in Comma Delimited format (.csv) • Export Controls to design the report (2 choices) • Report view - looks like a screen print • Data Extract - Pulls MOP/MIS conditions,sales, & expenses