NISSAN SALES & SERVICE WAY BPM case study user [Nissan] 22-Feb-12 Case Study: NISSAN SALES & SERVICE WAY Current Strategy: The PEST Analysis of Indian automobile industry clearly indicates the strategic importance of Indian automobile industry in the global arena. This is one market which can change fortunes for any automobile company including Nissan. Nissan realized this and decided to enter the market on a large scale. Nissan Motor India Private Ltd. (NMIPL) is a 100% subsidiary of Nissan Motor Limited Japan. The strategies of the company are currently in the preliminary stage and are being worked upon.
Nissan follows a 4G strategy for global coordination. Various components of 4G strategies are: 1. Global Training Centre: Its focus is global standardization of training tools and best practices to be implemented at all sites. Its global training centre is located in Japan. The hierarchy at the training centre is Global master trainer at the highest level followed by master trainer, local trainer, and operators in the same order as decreasing level. 2. Global Production Engineering Centre: Its focus is quality Evaluation with Data & Data Transcription to Mass-production. . Global Launching Expert: It evaluates preparation status & give practical support. 4. Global Package Design Centre: It works towards efficiency improvement in logistics through digitalization. Indian Scenario: Nissan started its operations in India in 2005 with the launch of Nissan X-Trail followed by Nissan Teana in 2007. It currently imports completely built units (CBUs). Nissan decided to fully venture into Indian market in 2009 and set up a manufacturing facility in Chennai with Renault which started production from mid 2010.
Nissan-Renault alliance has invested $990 million in the plant with a capacity to produce 400,000 cars. The first vehicle produced was the Nissan Micra, a global sub-compact car. It is destined for the Indian market as well as for export to over 100 countries in Europe, the Middle East and Africa. It has also partnered with Bajaj Auto to manufacture an entry level car priced at around $2500. It is constructing a new plant in Pune for the manufacturing of same. The third venture of Nissan is with Hinduja Group owned Ashok Leyland. PROCESS DESCRIPTIONS: 1. CUSTOMER RELATIONSHIP MANAGEMENT (CRM):
As with the existing system in Nissan, an effective appointment system makes it easy for the customers to obtain service when it is required for him. Having an appointment relieves the customer’s apprehensions about the way he will be treated when he brings in his vehicle to Nissan service center. After the customer explains all the problems to the authorized professional, it is all up to the service center people. Job allocation is made to different sections of care services as per the required expertise in hand. This helps in getting a particular diagnosis started for specific faults or breakdown of services.
As soon as the preliminary works are done in order to resolve the issues, the service staff seeks customer’s approval for fine-tuning through additional work if and only if they need it to be done. The service center makes it sure that the quality control is not compromised. And then, the vehicle is finally handed over to the customer. But this is not the end of service process, as CRM at the service center also takes care of a proper follow-up process in order to keep track of the customer for future and longing relationship. 2. SALES PROCESS:
A sale being an elaborate nine step process covers all the aspects from reception to follow-up. First comes the “Meet & Greet” stage when customer visits the showroom followed by the “Introduction stage” which makes the customer aware of the models available. Third stage is “Need Analysis” which comprises the analysis of needs & preferences of the customer. Fourth stage is the “Demo” stage which involves the actual demonstration of the model like front side, dicky, tyres, backside & engine. Then comes the “Test Drive” followed by “Negotiation” for pricing & “Closing” which includes settlement of loan documents.
The penultimate stage is the “Moment of Truth” where the actual delivery of the car happens as promised to the customer. At the end “Post Delivery Follow up” leads to maintenance of customer relationship. 3. SERVICES: The customer reaches the service centre at the desired date. He is greeted at the service centre. The customer’s car is taken into possession and the customer proceeds to the job advisor desk. The customer then talks to the job advisor and tells about any problem to the job advisor. The job advisor then asks the customer to fill up the “vehicle initial inspection sheet”.
The inspection sheet contains all the details that a customer is required to fill up. Till then the customer car is taken inside the service centre. The customer is taken care of and is asked to wait. The vehicle is then assigned a particular mechanic who fully takes in-charge of the car. He alone services the whole car and works upon its improvement. The mechanic reports to the “floor inspector”. A floor inspector is the one who is the head in-charge of the whole service centre. After the whole car is serviced by the mechanic, he hands over the car to the floor inspector.
The floor inspector checks the car for any faults and fills up the “final control check list”. After the checking is done, the floor inspector hands over the car to the customer. The customer then checks the car and approves it. BPM Flow Chart of Services and Sales WORKSHEET Business Reference Model ( Level 0) Form ID NISSAN_BPM Business Reference Model NISSAN PROCESS MANAGEMENT Industry Segment Automobile Sector Domain ScopeStep by step analysis & interpretation of three core processes- SERVICES, SALES & CRM Business Areas 1.
Service & Maintenance 2. Sales 3. Customer Relationship Management Business Justification The process starts with sales followed by service & maintenance as a part of post delivery follow-up. Both of them are supported by CRM from start to end. Business Area 1 (Level 1) Form IDNISSAN_SERVICES Business Area NameService & Maintenance DescriptionThis includes the post delivery servicing & quality control as a part of customer care. ScopeThis covers appointment fixing, vehicle inspection, Need analysis, servicing, final inspection & Delivery Boundary of the Business
Areacustomer service centre, job advisor, service station, floor inspector. ReferencesVehicle initial inspection list, vehicle final control check list Constraints1 absence of “Brake liner” component 2 limited servicing & maintenance centers. 3 limited to phone calling mainly. 4 Domestic orders only StakeholdersCustomer, Retailer, Service Manager, Job Advisor, Floor Inspector Process Areascustomer calling, appointment fixation, initial inspection, need analysis, servicing, final inspection, documentation, vehicle delivery Business Area 2( Level 1) Form IDNISSAN_SALES Business Area NameSales & Marketing
Descriptionthis includes the prospecting, booking & billing Processes involved in the sales. ScopeIt covers an elaborate nine step process starting From reception, introduction to delivery of the car Where each step is backed by need analysis of the Customers Boundary of the Business Areasales manager, sales person, receptionist, cashier, dealer, showroom manager Referencesmanual for car models, sales manual, customer billing Constraints1 More dependent on telephonic conversions 2 Decentralized data management system at three locations-reception, sales department & DMS Need analysis only restricted to face to face interaction Stakeholderscustomer, salesperson, sales manager, marketing manager, receptionist, customer care service person, showroom dealer. Process Areascustomer calling, appointment fixation, initial inspection, need analysis, servicing, final inspection, documentation, vehicle delivery Business Area 3 (Level 1) Form IDNISSAN_CRM Business Area NameCustomer Relationship Management Descriptionthis relates to maintaining a long term relationship With the customer Scopeit includes customer calling, appointment fixing, Servicing, maintaining customer records & post elivery enquiries. Boundary of the Business Areacustomer care executive, receptionist, dealer management system Referencescustomer enquiry form, customer details, customer billing, customer complaint form Constraints1. Limited database entries regarding customer status. 2. Mainly telephonic & not internet based. 3. More involvement of paper based documentation StakeholdersDMS manager, receptionist, salesperson, service manager, dealer Process Areascustomer calling, customer appointment fixation, customer database management, post delivery follow up DIFFERENCE BETWEEN ACTUAL & TARGET DATA: ACTUAL| TARGET|
Only 1 person deployed as a service manager at each service centre| Around 2-3 persons should be deployed at each centre| More time is consumed in documentation & negotiation| Online facility should be provided dor document submission. | Need analysis is only face to face interaction based| It should be more online surveys & questionnaires oriented| More time consuming sales process| Should be more compact & faster| Proposed changes & Conclusion The current service process followed at Nissan service centre is almost similar to the service process followed at other automobile service centers.
There is but one difference and that is as follows. At Nissan one mechanic works on one car i. e. he looks at the whole car by himself. Right from taking the car inside to servicing every part to checking for any damages and repairing them, all is done by him alone. This method followed at Nissan can be a bane as a single mechanic might be overburdened by too many different processes. Also the type of mechanics needed for such kind of process have to be highly trained and should be well-versed with all the details of the car in order to service it.
Such a process takes time. The change suggested is that the servicing of car should be done department wise. The serving of car includes various sections – oil check, brake check, body part polishing, engine check, tyre check etc. The sections are already made inside the service centre. So each section can be allotted a person in charge only for that section. So the car can be passed on from section to section and serviced. This way the mechanics won’t be burdened and servicing of cars could be done faster. This is the change recommended at the Nissan