05om01_operations Management Report on Field Visit to Hilton Hyundai Servicing Center_mohammed Hasil+Neethu t Mathew+Sujith v s

8/6/2019 05om01_operations Management Report on Field Visit to Hilton Hyundai Servicing Center_mohammed Hasil+Neeth

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OPERATIONS MANAGEMENT REPORT ON FIELD

VISIT TO HILTON HYUNDAI SERVICING CENTER

Submitted By,

Mohammed HasilNeethu T Mathew

Sujith V. S.


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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 2


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EXECUTIVE SUMMARY

The purpose of this report is to help the reader understand theOperations 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 havebeen furnished in the report.

Another operation is the Management of spares parts in theServicing Center.

On an average 35 cars are being serviced on a day. Each cartakes an average of 4 hours to get serviced.



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CONTENTS

CHAPTER 1.........................................................................................................................4

INTRODUCTION................................................................................................................5

CHAPTER 2.........................................................................................................................5ORGANIZATIONAL 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



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INTRODUCTION

Hilton Hyundai Servicing Center at PTP Nagar, Trivandrum, wasestablished in the year 1998. It is one of the three servicing centers ofthe Hilton Group. This servicing center is the first and the most

important servicing center of the Hilton Group. Mr. Antony Josephersonis the Proprietor of the Hilton Group.

The main objective of this report is to study the Operations in HiltonHyundai Serving Center. The operations are mainly classified into two:Servicing a car and Spares Management. The details of the twoprocesses are discussed along as we go down the report.

The scope of this report is to only view the operations in a servicingcenter. It neither comments on the efficiency of the operations nor givea recommendation regarding any operation.

CHAPTER 2ORGANIZATIONAL STRUCTURE



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

Fig 2.1. Organizational Structure

Mr. Antony Josepherson is the sole proprietor of the Hilton Hyundaiservicing center. Under him are the service manager and the financedepartment. Since we are interested in the operations at the servicingcenter, we focus only on the service manager.Under the service manager, are the Customer Service Executives, Floorin-charge and Spares in-charge.

The customer relations executive deals with the relationship with thecustomers. They are near to the customers. The service manager andother HR staffs come under the Customer relations executive. Theservice manager is the person we are interested in, in the report.

The floor in-charge is the Supervisor. He is the main person who isresponsible for the proper functioning of the operations in the workfloor. The supervisor commands the technicians who are in turn helpedby the helpers and the washer boys. There is a driver, who picks anddrops cars from the customers who are not free to bring their cars forservice.


Proprietor

Service Manager Finance Dept

Customer RelationsExecutive

Floor in-chargeSupervisor

Spares in-charge

Service Advisor Technicians

Washing Boys,Driver, Helpers


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The Spares in-charge is responsible for the availability of spares in theservicing 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 theHyundai 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 3SERVICING A CAR



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The main revenue for any servicing center is through the servicing of avehicle. So the operations involved in servicing a car can be broadlyclassified 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 callfrom the service station or

the company sends a driver for the customer.

The call is made 5 days before the promised servicing date given andservice will be adjusted depending on the capacity and manpower ofthe station.

3.2. Job Card Creation

The service advisor prepares the job card. The details such asscratches, 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 detailsregarding the complaints, fuel reading, tool kit are present along withdetails like the distance covered (Km reading), promised time and dateand the estimated cost are included. The original copy of the job cardis given to the customer and the duplicate copy will be retained by theservice station.

3.3. Service Works

The car and job card are handed over to supervisor. The supervisorreviews 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 bytechnicians from the supervisor. The technician first empties the fueltank. After the fuel tank is emptied, it is stored in cans. Then the airfilters and the oil are replaced. Then other specific complaints areattended to. The technician does the work and if they find anycomplaint they will call the customer. If the customer does not give apositive feedback then it is noted for future use. If the customer gives apositive feedback, the complaint is noted. Then the job card is updated



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for the billing process. After the work the supervisor inspects the carand 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 rampand the operation is done by 2 employees with a car washer. Afterwashing, the car is checked by the supervisor. Then the car is vacuumcleaned 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 isinformed about the bill payment. After the payment the customertakes the car. The data base is updated by the service station. Thecustomer 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

3.6. Other Internal Supporting Systems



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3.6.1. Water Treatment Plant

There is a water treatment plant of capacity 9500 liters for purifyingthe water that comes after washing. The plant operates continuously

for 7 hours and the water is recycled for the purpose of washing. Threeemployees are engaged in this work.

3.6.2. Generator

A generator of capacity 64 kW is installed for the uninterruptedoperations.

Table 3.1. Per Car Details

Time 4 hours

Service advisor One

Technicians Two

Service 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 4INVENTORY MANAGEMENT



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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 needsit, 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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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 5VALUE CHAIN ANALYSIS



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5.1. Inbound LogisticsThe inbound logistics for a servicing company is the bringing in of thecars. This major activity is supported by procurement of spares parts toservice the cars. Different models have different spares parts. So areorder level is there for all the spares parts. Spares parts also include

tools, waste cloths and so on.

5.2. OperationsOperations in the servicing company include the servicing of the car asmentioned above. The value is added in all operations as the sparesare replaced. If any faults are found, they are rectified during theoperations. This primary activity is supported by TechnologyDevelopment, Human Resource Management and Firm Infrastructure. Technology Development includes replacing of any antiquatedtechniques, and also other technology. Human Resource Managementis the main and crucial supporting feature in the operations. Effective

management of the human resource helps in reducing bottlenecks andambiguity in doing a job like car allocation, etc.

5.3. Outbound Logistics



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The outbound logistics is the delivering of the car to the customersafter bill payment. The customer can inspect the car, if wanted, andgives their valuable suggestions to the service advisor.

5.4. Marketing and Sales

The marketing and sales includes the features like free delivery of carsto the required customers and reminding the customer about theservice dates. This is supported by Human Resource Management. Thesame customer shouldnt be called many times by different customers.There is also a limit for calling a customer. All these are controlled bythe Human Resource Management section. Some times free marketingcamps are also provided to attract the customers.

5.5. Servicing The servicing would include post servicing activities like calling thecustomer and asking how they can improve the services, are they

happy with the services and technology, etc. For servicing, thesupporting activity which is vital is the human resource management.A better training is provided for the customer relation staffs for propermingling with the customers, etc.

CHAPTER 6KEY FINDINGS



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This project helps us to study operations in a servicing center in detailand 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 learntin operations management.


Documents

05om01_operations Management Report on Field Visit to Hilton Hyundai Servicing Center_mohammed Hasil+Neethu t Mathew+Sujith v s