OPERATIONS MANAGEMENT REPORT ON FIELD VISIT TO HILTON HYUNDAI SERVICING CENTER

Submitted By, Mohammed Hasil Neethu T Mathew Sujith V. S.

Operations in Hilton Hyundai Servicing Center

Acknowledgement
We thank Prof. K. Ramakrishnan, Director of ASB, Prof. V. Harihara Subramanian, PGPM Head for Placement, Prof. K.G. Satheesh Kumar, PGPM Head of Academics, and Ms. Mercy Mathew, Faculty at ASB, who gave us this opportunity to put to use what we learned in the class and has taught us the subject. We thank him for his assistance and support in completing our project. We thank Mr. Antony Josepherson and Family, who gave us the permission to do our field visit in his Service Center. We thank the Service Manager of Hilton Hyundai, Mr. Sanjeev, who has given us the required details. We thank the employees of Hilton Hyundai, who helped us with more details. We thank our classmates for their encouragement and support. We thank the Almighty God, without whose help, we wouldnt be able to reach anywhere.

Mohammed Hasil, Neethu T Mathew, Sujith V S

Operations in Hilton Hyundai Servicing Center

EXECUTIVE SUMMARY
The purpose of this report is to help the reader understand the Operations Perspective of the Hilton Hyundai Servicing Center at PTP Nagar, Trivandrum. The main Findings include: The main operation at Hilton Servicing Center is servicing a car, which includes washing too. The details of each process have been furnished in the report. Another operation is the Management of spares parts in the Servicing Center. On an average 35 cars are being serviced on a day. Each car takes an average of 4 hours to get serviced.

Mohammed Hasil, Neethu T Mathew, Sujith V S

Operations in Hilton Hyundai Servicing Center

CONTENTS
CHAPTER 1.........................................................................................................................4 INTRODUCTION................................................................................................................5 CHAPTER 2.........................................................................................................................5 ORGANIZATIONAL STRUCTURE..................................................................................5 CHAPTER 3.........................................................................................................................7 SERVICING A CAR...........................................................................................................7 CHAPTER 4.......................................................................................................................10 INVENTORY MANAGEMENT.......................................................................................10 CHAPTER 5.......................................................................................................................12 VALUE CHAIN ANALYSIS............................................................................................12 CHAPTER 6.......................................................................................................................14 KEY FINDINGS................................................................................................................14

CHAPTER 1
Mohammed Hasil, Neethu T Mathew, Sujith V S

Operations in Hilton Hyundai Servicing Center

INTRODUCTION
Hilton Hyundai Servicing Center at PTP Nagar, Trivandrum, was established in the year 1998. It is one of the three servicing centers of the Hilton Group. This servicing center is the first and the most important servicing center of the Hilton Group. Mr. Antony Josepherson is the Proprietor of the Hilton Group. The main objective of this report is to study the Operations in Hilton Hyundai Serving Center. The operations are mainly classified into two: Servicing a car and Spares Management. The details of the two processes are discussed along as we go down the report. The scope of this report is to only view the operations in a servicing center. It neither comments on the efficiency of the operations nor give a recommendation regarding any operation.

CHAPTER 2 ORGANIZATIONAL STRUCTURE

Mohammed Hasil, Neethu T Mathew, Sujith V S

Operations in Hilton Hyundai Servicing Center

Before we understand the operations at Hilton Hyundai Servicing Center, we will have to first peek through the organizational structure. There are 105 employees in the servicing center. The organizational chart is given below:

Proprietor

Service Manager

Finance Dept

Customer Relations Executive

Floor in-charge Supervisor

Spares in-charge

Service Advisor

Technicians

Fig 2.1. Organizational Structure

Washing Boys, Driver, Helpers

Mr. Antony Josepherson is the sole proprietor of the Hilton Hyundai servicing center. Under him are the service manager and the finance department. Since we are interested in the operations at the servicing center, we focus only on the service manager. Under the service manager, are the Customer Service Executives, Floor in-charge and Spares in-charge. The customer relations executive deals with the relationship with the customers. They are near to the customers. The service manager and other HR staffs come under the Customer relations executive. The service manager is the person we are interested in, in the report. The floor in-charge is the Supervisor. He is the main person who is responsible for the proper functioning of the operations in the work floor. The supervisor commands the technicians who are in turn helped by the helpers and the washer boys. There is a driver, who picks and drops cars from the customers who are not free to bring their cars for service.

Mohammed Hasil, Neethu T Mathew, Sujith V S

Operations in Hilton Hyundai Servicing Center

The Spares in-charge is responsible for the availability of spares in the servicing center. Hilton has an Enterprise Resource Planning System (ERP system), called Global Dealer Management System (GDMS) provided by the Hyundai Company. This has been provided by the Hyundai Company to all dealers, to get the details of all vehicles in a servicing center and to get the details of inventories like spares, tools, etc.

CHAPTER 3 SERVICING A CAR

Mohammed Hasil, Neethu T Mathew, Sujith V S

Operations in Hilton Hyundai Servicing Center

The main revenue for any servicing center is through the servicing of a vehicle. So the operations involved in servicing a car can be broadly classified into: Car Arrival Job card Creation Service Works Washing Bill Payment and Car Departure

3.1. Car arrival The car can be brought to the service station in two ways, either the customer himself brings after he/she receives a call from the service station or the company sends a driver for the customer. The call is made 5 days before the promised servicing date given and service will be adjusted depending on the capacity and manpower of the station. 3.2. Job Card Creation The service advisor prepares the job card. The details such as scratches, fuel reading, stepney, medical kit and tool kit are noted. This is checked so that the customers, after the finishing of the service, shouldnt complaint that things are missing. Thus these details regarding the complaints, fuel reading, tool kit are present along with details like the distance covered (Km reading), promised time and date and the estimated cost are included. The original copy of the job card is given to the customer and the duplicate copy will be retained by the service station. 3.3. Service Works The car and job card are handed over to supervisor. The supervisor reviews the job card and enters it in his log book. He allocates the available work force to do the work. The car is then taken by technicians from the supervisor. The technician first empties the fuel tank. After the fuel tank is emptied, it is stored in cans. Then the air filters and the oil are replaced. Then other specific complaints are attended to. The technician does the work and if they find any complaint they will call the customer. If the customer does not give a positive feedback then it is noted for future use. If the customer gives a positive feedback, the complaint is noted. Then the job card is updated

Mohammed Hasil, Neethu T Mathew, Sujith V S

Operations in Hilton Hyundai Servicing Center

for the billing process. After the work the supervisor inspects the car and if there are no complaints the car is sent for washing. 3.4. Washing The car is sent to this unit for washing. The car is lifted on to a ramp and the operation is done by 2 employees with a car washer. After washing, the car is checked by the supervisor. Then the car is vacuum cleaned and an air refresher is used for the fragrance. 3.5. Bill Payment and Car Departure If there are no problems after washing the bill is prepared and is informed about the bill payment. After the payment the customer takes the car. The data base is updated by the service station. The customer is called after the 3rd and 15th day of delivery and his feed back is recorded as a part of follow up actions. The Flowchart of the whole process is shown below:

Call Customer Send Driver

Fig 3.1. Flowchart for Servicing a Car

Cu C

3.6. Other Internal Supporting Systems

Mohammed Hasil, Neethu T Mathew, Sujith V S

Car Coming
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Operations in Hilton Hyundai Servicing Center

3.6.1. Water Treatment Plant There is a water treatment plant of capacity 9500 liters for purifying the water that comes after washing. The plant operates continuously for 7 hours and the water is recycled for the purpose of washing. Three employees are engaged in this work. 3.6.2. Generator A generator of capacity 64 kW is installed for the uninterrupted operations. Table 3.1. Per Car Details Time Service advisor Technicians Service 4 hours One Two Oil, filter (oil and air), brake, light, a/c, etc.

Table 3.2. Per Day Details Time 9 hours + Overtime (2 hrs)

Service Advisor

5 to 6 cars

Maximum Capacity

35 cars

CHAPTER 4 INVENTORY MANAGEMENT

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Operations in Hilton Hyundai Servicing Center

Hilton Hyundai is maintaining a MIS system called GDMS (Global Dealer Management System) which contains all the details of different vehicles coming in and about all Inventories like Spares, Tools, etc. Systems and processes that identify inventory requirements, set targets, provide replenishment techniques and report actual and projected inventory status. Spares manager will check the GDMS system to know the spares level .When the spares reaches the reorder level spares manager will order via online to Cochin. Reorder level of different spares is different. According to the no of cars coming in and the usage of the spares the reorder days will also differ. The scope of inventory management also concerns the fine lines between replenishment lead time ie, one week There are three basic reasons for keeping an inventory: To maintain certain amount of inventory to use in this "lead time" Inventories are maintained as buffers to meet uncertainties in demand, supply and movements of goods. Ideal condition of "one unit at a time at a place where user needs it, when he needs it".

4.1. ISSUE OF SPARES Spares are issued under a Vehicle Job Card , two copies will be maintain one for reference and other will be pinned with job card for billing purpose. Spares are mainly using for Accidents and Repairs 4.2. EMPLOYEES Uniform is compulsory for all the workers. The company ensures proper training for all the workers both in electrical and mechanical works. 4.3. MACHINE MAINTENANCE

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Operations in Hilton Hyundai Servicing Center

All maintenance for machines is done by the suppliers itself. In every two months supplier will come and check the machines. Some of the main machines are Compressor, Pneumatic Machines, Electrical Machines, etc 4.4. MARKETING ACTIVITES 4.4.1. Free Service Camps There is no labor charge for any services done in free service camp. This is done so that customers flock towards the servicing center. 4.4.2. Promotion as an Eco-friendly Servicing Center They attract their customers by promoting the fact that, by joining with the servicing process, they are in fact helping towards the eradication of global warming process. 4.4.3. Annual Maintenance Schemes The company brings out annual maintenance schemes with only cost for the spares parts. This can improve their marketing and promotions.

CHAPTER 5 VALUE CHAIN ANALYSIS

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Operations in Hilton Hyundai Servicing Center

5.1. Inbound Logistics The inbound logistics for a servicing company is the bringing in of the cars. This major activity is supported by procurement of spares parts to service the cars. Different models have different spares parts. So a reorder level is there for all the spares parts. Spares parts also include tools, waste cloths and so on. 5.2. Operations Operations in the servicing company include the servicing of the car as mentioned above. The value is added in all operations as the spares are replaced. If any faults are found, they are rectified during the operations. This primary activity is supported by Technology Development, Human Resource Management and Firm Infrastructure. Technology Development includes replacing of any antiquated techniques, and also other technology. Human Resource Management is the main and crucial supporting feature in the operations. Effective management of the human resource helps in reducing bottlenecks and ambiguity in doing a job like car allocation, etc.

5.3. Outbound Logistics

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Operations in Hilton Hyundai Servicing Center

The outbound logistics is the delivering of the car to the customers after bill payment. The customer can inspect the car, if wanted, and gives their valuable suggestions to the service advisor. 5.4. Marketing and Sales The marketing and sales includes the features like free delivery of cars to the required customers and reminding the customer about the service dates. This is supported by Human Resource Management. The same customer shouldnt be called many times by different customers. There is also a limit for calling a customer. All these are controlled by the Human Resource Management section. Some times free marketing camps are also provided to attract the customers. 5.5. Servicing The servicing would include post servicing activities like calling the customer and asking how they can improve the services, are they happy with the services and technology, etc. For servicing, the supporting activity which is vital is the human resource management. A better training is provided for the customer relation staffs for proper mingling with the customers, etc.

CHAPTER 6 KEY FINDINGS

Mohammed Hasil, Neethu T Mathew, Sujith V S

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Operations in Hilton Hyundai Servicing Center

This project helps us to study operations in a servicing center in detail and it helped us to look at operations from a service point of view. Through the report we have been able to apply the concepts we learnt in operations management.

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