Socrates Says

The blog going forward

After our first four months into the blogosphere and input from several respected people we are going to begin a more predictable and we hope a more useful structure for the blog.

We will continue with some of the staples such as Friday Folosophy and Book of the Week but we will begin to feature a Parts Blog, a Service, a Product Support Selling & Marketing Blog and a Management Blog. Each of them will be done weekly and will be on the same day each week. We hope you will enjoy and benefit from this new structure and we would welcome and thoughts you might have on it. The time is now.

TESTIMONIALS

The Importance of Rest

Guest writers Jennifer and Joseph Albright are helping Learning Without Scars to wrap up the year with this blog post on the importance of rest.

As we head into the final weeks of the year, I have to ask – are you as worn out as I am? Wrapping up our third year since the start of the pandemic, the equipment industry has not slowed down. If anything, we’ve all gotten busier. More travel, more meetings, more conferences, more everything. Don’t get me wrong, we’ve had our share of struggles - supply chain challenges have continued to be a problem and equipment has been hard to come by. Staffing costs have risen. And if this month’s ISM Inside Supply Management magazine is any indication, it’s not just me. Pieces about frayed nerves and burnout, resiliency, agility in the face of non-stop disruption - what we are seeing in the equipment industry is not unique and it’s very real. Despite all of this business has been good. We’ve been seeing mixed predictions in terms of what 2023 will bring but no matter what the speed of business will not be slowing anytime soon.

Many of us look forward to this time of year. Family, traditions, holiday celebrations, and - at least for me - good food are all part of the magic. Add that to all of the normal year-end work madness and it’s also a recipe for a whole lot of stress. While you’ll hear from me in January with all sorts of thoughts on hitting the ground running, planning for the new year and all that jazz, right now I’m telling you to focus on getting some rest. In normal times (if we can remember what those were) there are peaks and valleys, but over the last few years it’s been constant and we are tired. You may not have much time off, this might be a busy time with year-end reporting, invoice processing, sales, and billing for as many service work orders as you can before the end of the year but rest is a critical component of health and stress and can’t be ignored.

Rest reduces stress. Chronic stress leaves us at higher risk for illness and health issues. Not so great for those of us in high stress and face-paced work environments. But rest also improves productivity. It improves our ability to make better decisions and makes us more creative, which is a must in the current business environment. It helps with focus and the ability to learn new things. So really, resting helps us to work more effectively. Yet even knowing all that, some of us still struggle to turn off our heads and get the rest that our bodies desperately need.

While it’s probably too late to schedule an impromptu end-of-year siesta, there are ways to sneak in some much-needed breaks and create habits to use throughout the year.

Get enough sleep – easier said than done but it still has to be said

Take a walk or exercise in the morning to clear your mind and start fresh

Take a handful of quick breaks throughout the day to step outside or close your door and take a few deep breaths

Resist the urge to check email 24/7

Ask for help – while everyone else is likely as stressed as you are, do not suffer in silence

Meditate

Actually, take your lunch breaks – you know who you are

Have some fun! Spend some time making memories that don’t involve a spreadsheet.

For those of us working from home, it’s all the more important to create boundaries between work and life. At the end of the day, shut the door to your office and give your brain a chance to reset. Your body, your outlook, and even your work will thank you for it. Have a wonderful holiday season!

Did you enjoy this blog? Read more great blog posts here.

For our course lists, please click here.

December 20, 2022

Managing the New Machine Sales Pre-Delivery Inspection Process.

This week is all about logistics, with guest writer Ron Wilson writing about "Managing the New Machine Sales Pre-Delivery Inspection Process."

While my wife and I were sitting in a car dealership and listening to the salesperson explain there is a delay in completing the pre-delivery inspection, my memories of the importance of managing the New Machine Sales Pre-Delivery Inspection reoccurred.

Pre-Delivery Inspections provide a foundational starting point for the new machine in the following areas:

Customer Satisfaction: Ensures that the customer receives equipment that is fully functional and free of defects and matches what was ordered by the customer.

Safety & Compliance: Verifies that all safety features are operational and ensures that the equipment complies with all relevant regulations and standards.

Quality Control: Helps maintain high standards by catching and addressing any issues before delivery.

Minimizes Early Field Service Calls: A measure of success can be the number of hours the machine has operated from the first day it was delivered to the date first requesting repairs.

PDI Process at an Equipment Dealership Includes:

Development of a PDI list: The PDI list is usually a list of items recommended by the OEM, and specific areas that have been defined by the dealer. There are common items across all machines and specific items that have been determined based on previous warranty claims submitted to the OEM by the dealer and local dealer requirements.

Receive Equipment: When new equipment arrives from the manufacturer, log it into inventory, schedule and prepare it for inspection.

Assign and Conduct Inspection: Assign the PDI task to a qualified technician, ensuring they have the necessary tools and checklists. The technician performs the inspection, following the PDI checklist and documenting any issues found.

Address Issues and Final Check: Any defects or problems identified during the inspection are repaired or resolved. Proper warranty claim documentation is completed and submitted back to the OEM. This information can assist the OEM in addressing these issues at the factory, preventing future quality issues on other machines.

Prepare for Delivery: Clean the equipment, gather all necessary accessories and documentation, and prepare it for delivery to the customer.

Customer Handover: Review the PDI report with the customer, demonstrate key features, and address any questions they may have. Best practices of this process should include the machine sales and product support representatives being scheduled to be at the site on the delivery date. Depending on the machine a technician may need to be scheduled as part of the delivery.

Key Aspects of a Pre-Delivery Inspection

Visual Inspection and Functional Tests

Check the exterior and interior for any damage, scratches, or dents.

Ensure that all parts and accessories are present and correctly installed.

Verify that labels, decals, and instructions are in place and legible.

Test all mechanical, electrical, and hydraulic systems to ensure they are operating correctly.

Check fluid levels (oil, coolant, hydraulic fluid) and top them up if necessary.

Verify that lights, signals, and indicators are functioning properly.

Safety Features

Inspect safety features such as brakes, seat belts, alarms, and emergency stops.

Ensure compliance with safety regulations and standards. This may vary by client.

Test any software-based safety systems for proper functionality.

Software and Firmware Updates

Check for any available software or firmware updates to be installed.

Verify that all digital systems are working as intended and are up to date.

Performance and Operational Checks

Conduct performance tests to ensure the equipment operates within the specified parameters.

Test the equipment underload (if applicable) to ensure it performs as expected.

Documentation

Review and complete all necessary documentation, including warranty forms, registration papers, and manuals.

Provide a detailed PDI report, noting any issues found and actions taken to resolve them.

Final Preparations

Clean the equipment thoroughly, removing any protective coverings or shipping materials.

Ensure all accessories, tools, and documentation are included with the equipment.

Perform a final quality check to confirm that the equipment is ready for delivery.

Additional attachments are included as defined within the sales document.

Scope Creep of the NPI Process: Over time the NPI list can become outdated and excessive based on experiences that caused a task to be added to the NPI list and is no longer relevant. Some considerations when updating and managing the NPI list:

Is the task still needed or has it been addressed in the OEM machine assembly process?

Review the time allocated to perform each task. Can the task be connected to another task that would reduce the individual time needed to complete both tasks?

Have there been/can there be efficiency gains that would improve and streamline the overall process?

Updating and managing the PDI process is a critical step in the overall new machine delivery experience for the customer and managing the cost related to overall process within the dealership.

Here is an example of the impact (the numbers below are not actual but we can gain a sense of the impact).

Total units sold 1,000

Average hours per PDI 20

Total Hours 20,000

Hourly Rate $90.00

Total PDI Costs $1,800,000

PDI Cost Savings 10% $180,000

As can be seen a 10% reduction in PDI cost in the above example provides $180,000 for the Sales Department’s profit relating to these 1,000 machines. This also allows the technicians’ hours to be allocated to other revenue sources.

By following a thorough up to date PDI process dealerships can ensure customers receive high-quality reliable equipment, enhancing their overall experience and trust in the dealership, and control the dealership cost of the overall PDI process. A Win-Win for both the customer and the dealership.

Did you enjoy this blog? Read more great blog posts here.

For our course lists, please click here.

June 4, 2024

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