Japan's third largest car manufacturer is currently improving their operation practices as they aim for a better sales output. New car models are already being developed by the company to fill the demand of car buyers. Aside from taking steps to protect the environment, the company is also concerned about the quality of their vehicles and the acceptance of their vehicles by their customers.
That is why the company is introducing a new practice in their service initiative. Nissan's senior vice president for Total Customer Satisfaction, Doug Betts, was tasked with the new project. The new plan is anchored on providing improved consumer service.
While the company is pushing through with this initiative, Betts pointed out that their vehicles are already improving in terms of quality. "Our product quality has significantly improved; our dealers have told me their warranty work has gone down as much as 50% to 60% in the last year. So, now it's very important the dealer be very efficient, professional and reliable doing maintenance work," he declares.
The new program being implemented by Nissan will make their dealerships a strong competition to outside repair facilities. This is because once the warranty offered by car manufacturers expires, car owners more often than not approach independent repair facilities. By making their dealerships competitive and more reasonably priced than outside repair shops, more income can be generated for the former.
"Quality has improved and that's for both international and domestic nameplates. Now, there's the aspect of choice and there's more competition between the dealers and another service provider. Result? Dealers are losing business and profits. And, that's not very good," says Betts.
Betts said that the idea for the new program came from Japan. "The basic idea is that the service department could run more efficiently if there was input from the manufacturing side of the business," he explained.
With the new program Nissan exclusive dealerships can offer better service to consumers. From taking care of minute details like scratching a or tuning an engine, the new initiative will raise the standard of dealerships in dealing with customers.
Betts explains how their customers can benefit from this new scheme. "Faster service and limited delays. For example, if a customer called to make an appointment and instead of being told, 'I can get you in four days from now,' he was told 'we can get to you today or tomorrow.' That is an improvement."
Since the new initiative will involve changes on the way technicians do their jobs, a concern for this new consumer service initiative is the reaction of technicians. Fortunately, the advantages of the plan will benefit technician so there are less objections to the new scheme. "The technicians at a dealership usually get paid by how many cars they fix or repair in a day and what they do to them. So, the techs make more money because the efficiency comes from eliminating wasteful movement and steps which slow them down," explains Betts.
In conclusion, Betts has this to say: "Too many times the word efficiency gets a negative connotation; if industrial engineering is done correctly it is not about forcing people to work faster, it's about making them work smarter and better. Efficiency is eliminating movements and things that don't add value to the job, process or procedure. We are totally committed to this program."
