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Maruti Suzuki Service Offering

By Sahil Singhal Kanishka Rao Mrigank Shankar Abhishek Chatterjee Divakar Narayan Singh Group 6 Section D

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CONTENTS
ACKNOWLEDGEMENT ............................................................................................................................. 3 OBJECTIVE ............................................................................................................................................... 3 INTRODUCTION ....................................................................................................................................... 3 NETWORK................................................................................................................................................ 4 LIFE TIME VALUE OF A CUSTOMER ......................................................................................................... 5 TYPES OF MARUTI SERVICE STATIONS .................................................................................................... 5 CATEGORIES OF MASS ........................................................................................................................ 6 IDENTIFYING SERVICE STATION SET UP .................................................................................................. 6 TYPE OF BAYS .......................................................................................................................................... 7 MANPOWER REQUIREMENT................................................................................................................... 8 REQUIREMENT OF GM, WM and AWM .............................................................................................. 8 REQUIREMENT OF FINAL INSPECTOR ................................................................................................. 9 JOB FLOW ................................................................................................................................................ 9 JOB FLOW in DETAIL.......................................................................................................................... 10 SERVICE QUALITY STANDARDS ............................................................................................................. 13 SAMPLE SQS REPORT ........................................................................................................................ 14 SAMPLE FORMATS ................................................................................................................................ 15 DEMANDED REPAIR CAPTURE SHEET ............................................................................................... 15 SERVICE ADVISOR VEHICLE RECEIVING PROCESS ............................................................................. 16 FRONT OFFICE VEHICLE TRACK BOARD............................................................................................. 17 DISSATISFIED CUSTOMER COMPLAINTS STATUS .............................................................................. 17 FREE LOANER CAR ............................................................................................................................. 19 FREE LOANER CAR PROVIDER REGISTER ........................................................................................... 19 FEEDBACK CARD................................................................................................................................ 20 CONCLUSION......................................................................................................................................... 22 REFERENCES .......................................................................................................................................... 22

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ACKNOWLEDGEMENT
We take this opportunity to thank Dr. V.K Gupta to guide us along the entire process of completion of the project. It would not have been possible if Dr. V.K. Gupta had not introduced us to Maruti Suzuki Service Head in NCR India. We would also like to thank Mr. Gopesh Gupta, Territory Service Manager (NCR) at Maruti Suzuki India Limited. His guidance had enabled us to study the intricacies of the Service offerings of Maruti Suzuki effectively.

OBJECTIVE
The project covers the various aspects of the service offering of Maruti Suzuki India limited. It includes a detailed study of the Service Quality Standards maintained in the workshop of Maruti Suzuki Service Station. The Project has been carried out by visiting a Maruti Suzuki Dealer Workshop at Noida to get key insights which has helped in the undertaking and completion of the project.

INTRODUCTION
Maruti Suzuki India Limited is a subsidiary company of Japanese automobile and motorcycle manufacturer Suzuki. The company offers a wide range of cars from the entry segment to hatchback, sedans and SUV. The company has its headquarters in New Delhi. An automobile has a component of product quality and service quality attached with it leading to customer satisfaction. Due to its periodic maintenance requirements Service forms an integral part of any automobile purchase. A car is owned by a customer at an

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average of 4-5 years. It requires on an average 2 visits to the service station for repairs and maintenance. Thus, a best in class service offering results in customer satisfaction and draws in more customers for its sales. Maruti Suzuki India Limited provides the Best in Class Service offering to all its vehicles to help gain loyal customers.

NETWORK

The company has a sales network of 802 centres in 555 towns and cities, and provides service support to customers at 2,740 workshops in over 1,335 towns and cities (as on March 31, 2010). The company is focused on rapidly expanding the sales and service further across the country.

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LIFE TIME VALUE OF A CUSTOMER


Serial No Activity Amount Spent (Rs)
3,50,000 10,500

% Net Margin
1% 10%

Margin Earned (Rs)


3,500 1,050

No of Visits in Lifetime
1 1

Lifetime Value (Rs)


3,500 1,050

Earned During
Sales Sales

1 2

Purchase of car First year Insurance (~ 3% of insured value) Car Accessories

10,000

15%

1,500

1,500 6,050 6,750 5,000 2,800

Sales ~ 24% Service Service Service

Total Margin earned through Sales 4 5 6 Service Body Repair Annual Insurance Renewal Resale of 2nd hand car purchased from customer 3000 10,000 7,000 15% 25% 10% 450 2,500 700 15 2 4

2,00,000

2.5%

5,000

5,000

Service

Total Margin through Service

19,550

~ 76%

It is seen nearly 76% of the margin earned from customer is through Service. Hence it is critical to focus on the Service Experience of the customers which accounts for of the earnings of an automobile dealership.

TYPES OF MARUTI SERVICE STATIONS


Dealership workshops
It deals with Sales, Services and Spare Parts MSM (Maruti Service Masters) It is partly owned by company and deals with Service and Spare Parts MSZ (Maruti Service Zone) There is no share of the owner and deals with Services and Spare Parts

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MASS (Maruti Authorised Service Station)


It deals with Service and Spare Parts

CATEGORIES OF MASS
A
It has 5-6 Service Bays and around 5 Accidental Bays. It requires an investment of 40-50 Lacs.

B
It has 5-6 Service Bays catering to Engine & Transmission problems, minor services and free services. It requires an investment of 20-30 Lacs.

C
It has 3-4 Service Bays catering to minor and free services. It requires an investment of 10-15 Lacs.

D
It has single Service Bay catering minor repairs. It is located mainly on Express Way.

IDENTIFYING SERVICE STATION SET UP


The parameters considered for setting up of a Maruti Suzuki Service Station in a proposed site named Anoopshahar. The below mentioned details would help in identifying the criteria in the set up of a service station in an area.
S.No A B C D E F PARAMETER No. of Vehicles sold in the city since last 09 years Expected Avg. per year new vehicle sales in the city for next 3 Yrs ( Avg. Monthly Nos.x12) Expected service load from old vehicles Expected Service load from New Vehicles Total expected service load in next 03 years Current Market Share Dealers/MSM MASSs 0% 0% Ax2.75 Bx3.0 C+D 1400 410 3850 1230 5080

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G H I J K L M N

Target Market share Expected service load per month with 80% Target of market share 0.80*E/12) (

80% 339 H/25/3 5 0 0 J+K I-L 0 5 6

No. of bays required for this market share and with productivity of 03 vehicles per day (With 25 working days) No. of Bays available with Existing / under activation Dealer & MSM Workshops No. of Bays available with Existing / under activation MASS Total Current bays available No. of bays required to have this market share No. of bays proposed by Dealer/MSM/MASS

From the above table Number of Bays to be set up for servicing 80% of the market is 5. Similar calculations are involved in identifying the number of Bays needed in the set up of a new Maruti Suzuki Service Stations.

TYPE OF BAYS
Express Bay
Vehicle is serviced within 90 minutes. It is primarily used for Free Service. The service is provided only by prior appointment.

2 Tech Bay
Vehicle is serviced within 5.5 hours. It is primarily used for Major Repairs.

Normal Bay
Vehicles service time is more than 7 hours. It is used when the service time is long due to critical repair work or unavailability of certain Spare Parts.

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MANPOWER REQUIREMENT

REQUIREMENT OF GM, WM and AWM

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REQUIREMENT OF FINAL INSPECTOR

JOB FLOW
Appoin tment

Follow up

Recepti on

Deliver y

Diagno sis

Invoice

Estimat e/Appr oval

Final Inspect ion Work Control Parts

Job Allocati on

The above diagram represents the Job Flow in a typical Maruti Suzuki Service Workshop
Note: The Job flow shown above starts from the field Appointment

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JOB FLOW in DETAIL Appointment


Objective: Providing Customer Convenience Benefit to Customer: Prompt attention-minimise waiting time Service Advisors(SA) spend more time with each customer Benefit to Service Station: Efficient use of workshop facilities through effective load distribution Result: Improved Customer Relationship and improved profitability

Reception
Objective: Building Customer Relationship Benefit to Customer: Customer get good feeling because of attentive listening, prompt handling & warm , friendly attention Benefit to Service Station: Understanding Customer Requests Sell Additional Service Result: Build Customer Relationship

Diagnosis
Objective: Finding out correct repair work to be done as per customers requirements Benefit to Customer: Correct repair work is carried out Understanding the cause of the problem Benefit to Service Station: Avoiding Re-work by doing it correct the first time Giving clear instructions for service work Result: No Repair Works

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Estimate
Objective: To promise delivery time, cost and repair quality Benefit to Customer: Customer knows how much the repair will cost Customer knows the time to pick up the vehicle Benefit to Service Station: Building of Customer Confidence Knowing how the customer will pay after the repair work is done Result: Delivering Promise

Job Allocation
Objective: Effective utilisation of workshop capacity Benefit to Service Station: Right man for right job Even distribution of work load Assigning of responsibility Work scheduling Control and management of workforce Result: Effective capacity utilisation

Parts
Objective: Control and correct billing of parts utilised in the workshop Benefit to Service Station: All parts issued are consumed/returned No time wastage in getting parts Control on parts issuance and billing Result: Speedy and controlled utilisation of parts

Work Control
Objective: Deliver promise to customer. Increase workshop productivity Benefit to Service Station: Increase in overall workshop productivity and profits Control/discipline of workforce Knowing the problem before it occurs Inform the customer in case of cost or time estimate discrepancy

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Result: Effective capacity utilisation

Final Inspection
Objective: Correct work done or not before delivery Benefit to Service Station: Checking the vehicle before handing over to customer Customer dissatisfaction avoidance for not meeting the required task Ensuring end to end completion of work Result: Effective completion of servicing of vehicle

Invoice
Objective: To create the Invoice for billing purpose Benefit to Service Station: Proper documented billing procedure All relevant works and repairs are explicitly mentioned Result: Effective billing procedure

Delivery
The vehicle is delivered to the customer after all the relevant bills are paid. The customers are thereby allowed to drive out the vehicle from the workshop.

Follow Up
Objective: To check customer satisfaction Benefit to Customer: Customer can get quick redressal of his/her complaints Benefit to Service Station: Feedback on service activity is received Customer dissatisfaction can be limited as the customer is called up before he/she calls up Result: Satisfied Customer

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SERVICE QUALITY STANDARDS


Maruti Suzuki India Limited has developed Service Quality Standards (SQS) over the years in order to convert the understanding of customers expectation to implementable process. Depending on the feedback from the customers and the importance they attach with the different aspects of service, standards are developed by a department within the service division of the company. The standards and operating procedures are usually developed through brainstorming or by transferring best practices of the workshops who have already implemented the system. SQS
SQS No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Service Standard
Vehicle returned clean Completed all of the work requested Reasonable charges of servicing Vehicle delivered at promised delivery time Work done right first time Explanation of work prior to service Addressed appropriately Reasonable time for servicing Inform when the vehicle would be ready Waiting area clean Explanation of work after service is completed Service personnel neatly dressed Informed when service was completed Reasonable wait at the service centre Repair order provided before service Informed when to schedule next visit Service charges explained Post service follow-up by workshop personnel Workshop open on weekends Workshop opened during late hours Informed vehicle settings changed Notified for service by workshop personnel Transportation provided Free loaner car provided Estimate provided before service Dealing with IQS cards and owner manual feedback cards Home visit by service advisor Steering committee meetings at dealer workshops Focus customer met Analysis and closure of CSI cards

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31 32 33 34 35 36 37

Scrutinizing of CSI cards Spare parts availability at workshops Free pick up and drop for Lady Customers One page follow-up by workshop personnel Road test Final inspection Greeting customers on birthday and anniversary

SAMPLE SQS REPORT

The two important fields in the above sample report shown: Enablers The score is calculated based on what happens inside the workshop. The scores are internally calculated with no inputs from the customer. It primarily reflects the score of the functioning of the workshop. The Enablers account for 70% of the final score of a workshop.

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Results The score is calculated based on the customer feedback on the servicing done on the vehicle. This component is totally dependent on the customer perception. The Results account for 30% of the final score of the workshop.

SAMPLE FORMATS
DEMANDED REPAIR CAPTURE SHEET

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SERVICE ADVISOR VEHICLE RECEIVING PROCESS


Service Advisor vehicles receiving process. Observations: Parameters Name of Service Advisor Vehicle no. Appearance of SA Uniform (complete uniform as per recommendations with Shoes) Name Tag Visiting cards available SA at the receipt of vehicle Did SA used demanded repair capturing sheet? Did SA refer Ready reckoner for providing estimate for service? Did SA used probe sheet when required? Did SA requested customer to wait in customer lounge till the time vehicle gets ready? Did SA requested customer to use shuttle service? Did SA explained customer about jobs and charges? SA at the Delivery of vehicle Did SA used Delivery card for explanation of jobs done Did SA explained pre-invoice for service charges? Did SA explained the next service due date? Did SA requested customer to send the feedback card after driving vehicle for 3-4 days? Did SA requested customer to fill the instant feedback card? Details Remarks

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FRONT OFFICE VEHICLE TRACK BOARD

DISSATISFIED CUSTOMER COMPLAINTS STATUS

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FREE LOANER CAR

FREE LOANER CAR PROVIDER REGISTER

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FEEDBACK CARD

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CONCLUSION
Maruti Suzuki India Limited has pioneered in the field of vehicle servicing which has resulted in customer satisfaction and loyalty. The meticulous approach in servicing a vehicle in the workshop along with setting up of state of the art infrastructure to service the cars efficiently have resulted a huge customer base for the company. The quality specifications imparted in the workshops have led to the effective and efficient servicing of the vehicles which have been beneficial to both the company and the customers. Such methodologies and approach have resulted in receiving The JD Power Customer Service Index Award-India for twelve consecutive years.

REFERENCES
http://www.marutisuzuki.com/customer-delight.aspx http://en.wikipedia.org/wiki/Maruti_Suzuki Primary data provided by the dealer visited for the completion of the project

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