Section C After Sales

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3 Section C A Infrastructure & Equipment C1 B Manpower Development C2 C Customer Satisfaction C4 D Dealer Profitability C5 E F Materials Management C7 Sales Promotion C8 G Consumption & Counter Sales C9 H Motorcycles C12

4 Page C1 A Infrastructure & Equipment 1. Over all C. I. and work flow a. Bay size = 4.0m x 7.0m b. Easy flow of vehicle c. 5S, Cleanliness and safety elements. d. Overall C. I. and image e. Shop signages Maximum: Front Office (Reception) a. Direction sign for easy customer approach. b. Display of updated fast moving parts prices & labor rates. c. Separate from Showroom with counter for advisors. d. 5S and Cleanliness. Maximum: Customer Lounge a. Separate from showroom b. Availability of TV, Dispenser and reading material. c. 5S and Cleanliness. 4. Basic Tools & Equipment a. Basic Tools with trolley for each technician. b. Availability of parts table for each bay. Maximum: 5 Note: Calibration record (required equipment) Nonfunctional Equipment (Negative marking -10) Lifts, Paint Booth, Wheel Alignment, Wheel Balancing, Diagnostic Special Tools Maximum: 10

5 Page C2 B Manpower Development 1. Skilled Manpower (Ability) Trained staff having ability to provide quality service to customers (Schedule Maintenance, Running Repair, heavy repair, accident repair and diagnosis skills) according to work load No. of Technician o Running, schedule and heavy repair o Level 3 Certified o Level 2 Certified Technical Advisor o Diagnosis Skill / Trainer No. of Advisors o Customer Handling o Level 3 Certified o Level 2 Certified Service Manager o Workshop Operations / Management o Customer Satisfaction and Retention 2. Employee Motivation & Retention Recommended Salary Structure (Minimum) Description Principal Cites Medium Cities Remote Cities Level 3 Certified Technician > 18,000 > 15,000 > 15,000 Level 2 Certified Technician > 20,000 > 18,000 > 16,000 Level 3 Certified Advisors > 20,000 > 18,000 > 17,000 Level 2 Certified Advisors > 22,000 > 20,000 > 18,000 Body Shop Technician > 18,000 > 16,000 > 16,000 Service Manager > 40,000 > 35,000 > 30,000 Note: Excluding overtime & other incentives.

6 Page C3 B Manpower Development Recommended career growth for SSQS certified technicians Description Principal Cites Medium Cities Remote Cities 1 st Year Salary > 20,000 > 18,000 > 16,000 2 nd Year Salary > 23,000 > 20,000 > 18,000 3 rd Year Salary > 25,000 > 22,000 > 20, In House Training Training Need Analysis In House Training Plan / Execution Training Evaluation Equipped Training Room Maximum: 60 Maximum: 15

7 Page C4 C Customer Satisfaction 1. Customer Satisfaction Level Timely Delivery Repeat job Quality Repair Customer handling process Reasonable charges Maximum: CSI Survey results Customer satisfaction level of dealer 3. Warranty Management Customer resolution time Quality feedback Claim settlement 4. RE-call Campaign Active Participation in Re-call Campaign. Maximum: 15 Maximum: 10 Maximum: Customer Retention Increase in last 4 years customer retention (as per given target) Maximum: 20

8 Page C5 D Dealer Profitability 1. Customer (Retention) Retail sale x 4 schedule Job cards in a year (from Jan 2015 onward) Customer came for FFI, SFI, 10,000km, 15,000km, 20,000km..., 30,000km in a year and onward considering the actual Km coverage by the customer (from Jan 2015 onward). No. of Schedule Job cards (Total) Maintaining and increasing No. of loyal customers Maximum: Workshop Business Growth (compare to last year) Recommendation: Maintaining Job cards >1500 5% growth Maintaining Job cards >1000 to % growth Maintaining Job cards < % growth Maximum: FFI /SFI Ratio of retail The improvement ratio FFI: >20% = 10 Points, >10% = 5 Points SFI: >20% = 10 Points, >10% = 5 Points FFI/SFI: both >5% = 10 Points Maximum: 20 Note : The weightage of above services as compare to total sales will also be considered.

9 Page C6 D Dealer Profitability 4. Dealer Profit Correct Operating cost analysis & Reporting Cost reduction activity Discussion with DSM Profit from Workshop Maximum: Micro Management Planned Activities to improve workshop profit and customer satisfaction based on dealer requirement Monitoring of results monthly basis Maximum: 20

10 Page C7 E Material Management 1. Warehouse 5S, cleanliness and safety measures at parts warehouse 2. Inventory Control Inventory level of 1.5 months for outside Karachi dealers and up to 1.0 month for Karachi dealers, based on their last 6 months average sale. 3. Sell One Buy One SGP and SGA ordering on daily basis, whereas SGO order on monthly basis and PSRP (paint) order on weekly basis. Maximum: 10

11 Page C8 F Sales Promotion 1. At Dealer Entrance Branding of SGP, SGO and Coolant 2. In Customer Waiting Area Display of Asli - Naqli parts, running of SGP movie, branding / posters of SGP, SGO and Coolant 3. Inside Show Room Display of accessories, SGO and Coolant 4. At Parts Counter in Warehouse Running parts stand display 5. In Public Campaigns Display of SGP, SGA, SGO and Coolant at public campaigns conducted by the dealer. Maximum: 10

12 Page C9 G Consumption & Counter Sale 1. Growth in SGP consumption over avg. consumption of 2016 Consumption in million per month and above Target Growth in % 3.49 ~ 2.50 million per month 5 % 2.50 ~ 2.00 million per month 8 % 1.19 ~ 1.50 million per month 10 % 1.49 ~ 0.80 million per month 15 % Maximum: Growth in SGO consumption over avg. consumption of 2016 Consumption in million per month and above Target Growth in % 3.49 ~ 2.50 million per month 5 % 2.50 ~ 2.00 million per month 8 % 1.19 ~ 1.50 million per month 10 % 1.49 ~ 0.80 million per month 15 % Maximum: 30

13 Page C10 G Consumption & Counter Sale 3. Growth in sales of SGA at the Dealer Consumption in million per month and above Target Growth in % 3.49 ~ 2.50 million per month 5 % 2.50 ~ 2.00 million per month 8 % 1.19 ~ 1.50 million per month 10 % 1.49 ~ 0.80 million per month 15 % Maximum: Consumption of schedule parts; based on actual results of 2016 Parts Achieved in 2016 by Oil Filter % Air Filter Spark Plug Brake Pad Coolant % ~ % % ~ % % ~ % Less than % Target Growth in % 8 % 10 % 15 % 20 % Maximum: Ratio of parts sales to vehicle sales Target Ratio Points 1.50 % ~ 1.99 % % ~ 2.49 % % and Above 15 Maximum: 15

14 Page C11 G Consumption & Counter Sale 2W Parts Purchases Vs Motorcycle Sales 1. Ratio of parts sales to Motorcycle sales Target Ratio Points 2% and above 10 Maximum: 10 Total Points: 180 For Bonus points ; Consumption / Counter Sale of SGP, SGA, SGO and Chemicals over and above Consumption in 2017 Target Growth 3.50 million per month and above 5 % 3.49 ~ 2.50 million per month 8 % 2.50 ~ 2.00 million per month 12 % 1.19 ~ 1.50 million per month 15 % 1.49 ~ 0.80 million per month 20 % Additional Bonus Points: 20

15 Page C12 H 1. 2W Improvement of FFI / SFI Ratio >10% No. of Job cards per month = Average last 6 12 months sales x 3 Motorcycle Maximum: 20

16 Recommendation Page C13 Infrastructure& Equipment: Workshop Expansion & Current Mechanical Bays: Expansion planning and execution according to current load / business potential and future service load. Manpower Development: i. Dealer Organization Service Manager: Need 1 person / Outlet Service Advisor: Min. 1 person for 5 Technicians Technical Advisor: Min. 1 person for 4-7 Technicians Technician: Min. 1 person for average 3 units / day general service job ii. Retention of Skilled Manpower There should be retention of manpower as per under given criteria: Certified Service Manager > 5 years retention Certified CRO > 2 Years retention Certified Advisor > 3 Years retention Technical Advisor > 5 Years retention Qualified Technician > 3 Years retention Service Manager Performance iii. HR Activities Performance Management System Reward and Recognition Employee Welfare (Locker, Canteen Facility, Medical Facility, Group Insurance, Loans, incentive etc.) Team Meet It is recommended to attach junior staff to senior staff iv. Equipped bay for SSQS SSQS Standard tools Measuring tools Two Post Lift

17 Recommendation Page C14 Customer Satisfaction: Recommended Customer Retention Ratio (Region Wise & City wise) Ratio of 1st Year customer should be >60% based on last 12 months (PSMCL sales) average Ratio of 2nd Year customer should be >50% based on last 13~24 months (PSMCL sales) average Ratio of 3rd Year customer should be >40% based on last 25~36 months (PSMCL sales) average Ratio of 4th Year customer should be >30% based on last 37~48 months (PSMCL sales) average Customer complaint against dealership -10 Dealer Profitability: Activities related to skill improvement / manpower development Workshop cost down activities Operational improvement Employees retention / motivation Service promotion

18 Prepared by PAK SUZUKI MOTOR COMPANY LIMITED Printed in Pakistan Print: August, 2017

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