SalesDepartmentServiceandSparePartsDepartmentINTERVIEWDATE:18April2000INTERVIEWERNAME:WeiZhu,SherryDing,JulianMa,AnneWang,JaneXuIntervieweeName:Mr.HuXingguang,SalesDept.Mr.WangChanglin,ServiceandPartsDept.CompanyandAddressFAWTelephone/Fax0431-7656911GeneralCommentsFromService:problemsinserviceandsparepartsarebasicallyidentifiedcorrectly.However,A.T.Kearneyneedstoidentifyin-depthcauseoftheproblems,andgiveFAWasolution.FromSales:A.T.Kearneyneedstofurtherdetailtheproposedsuggestions,suchasthecriteriafor"5in1"dealerselection,andKPI'sfordealers'performanceevaluation.KeyIssuesInA.T.Kearney'sreport,ServiceDepartmenttakesstrictcontroloverservicestations.Thisdescriptionisinaccurate.FAWbranchhastherighttosetupnewservicestationsinitsterritory.ServiceDepartmentisonlyresponsiblefortheapprovalincompensationofcorecomponentssuchasengineorchassis.Toprotecttheirownbenefit,FAWcomponentsuppliersrequireServiceDepartmenttocentralizetheapprovalofcompensation.Currentsparepartssalesisnotsatisfactory,andMr.WangthinksthattherearemultiplereasonsPriceofFAWpartscannotcompetewiththatfromsmalllocalproducersforthecostoflatterismuchless.EnduserswillchoosethelattereveniftheyknowthequalityofFAWpartsarebetterReasonsforthehighpriceisduetothehighlaborcostandredundantprocessesacrossdifferentFAWdepartmentsFAWsuppliersgivehigherpricetoFAWthantheirdirectsellingprice.FAWGroupFinance,whichisresponsibleforcheckingthepurchaseprice,isnotclearaboutmarketpriceofparts.Inordertoreducetheprice,Mr.WangwantsA.T.Kearneytoquantifytheprice,i.e.,howhighapriceisstillacceptableforenduserstochooseFAWparts.Mr.Wangalsoadmitsthatthedelayinsettlementdoescausesomeworkingcapitallosstoservicestations,buthethinksthesumissmall.(avg.100,000-200,000RMBperstation).Areallysuccessfulservicestationshouldhavemoreworkingcapitalthatthatnumber.SalesMr.Huaskedaboutthefeasibilityofencouragingservicestationstoselltrucksinsmallcities.SalesDepartmentagreesthatthedealernetworkshouldbere-designedandwouldlikeA.T.KearneytosetupacriteriaindealerselectionInevaluatingtheperformanceofdealers,SalesDepartmenthopeA.T.KearneycouldhelpFAWtodesigntheKPIsysteminnextstepworks