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InterviewNotesInterviewDate:Feb.22,2000IntervieweeName:Mr.WangChanghui,Position:ManagerofService&ComponentDepartmentCompanyandAddress:FAWSalesCompanyYingChunRd.LuYuan,Changchun,130011Telephone/Fax:0431-7651588/0431-5909761InterviewerName:PaulGao,JaneXuIndex1.Service1)Organization2)Keyissues2.Component1)Organization2)Keyissues3.Hypothesisneedstobecheckedinfieldwork1.Service1)OrganizationChartofServicebusinessServiceCenterServiceCenterDescriptionNumber:430servicecentersAverageservicescope:within60-70kmradius1Service&ComponentDepartmentinFAWProvincialSalesBranch(28)ServiceCenter(403)Control&ManagementControl&ManagementBusinessscope:1)Repairservice;2)Component;3)Trucksales(onlyminorpartoftheservicecentersdothebusiness,1/3ofallservicestationshavetrucksaleslicense)*Mostoftheservicecenteralsoprovideserviceforthetruckfromcompetitor;JieFangtruckenjoythefirstpriorityservicethereRelationshipwithFAW:FAWcompensatetheservicecenterfortheservicechargeforJieFangtruck/component;FAWdonothaveshareinservicecenterServiceCentertypeandfeaturesServiceCenterTypePercentageMainFeaturesSOE90%Builtbasedonoldlocalservicefactories,Unsatisfiedservicequality(serviceattitudeandservicetechsupport)andoperatingprofitPrivate-owned10%Goodserviceattitude(competitive),unsatisfiedservicetechsupportBarrierinestablishingprivate-ownedservicecenterPrivateserviceestablisherislikelytobuildcenterformoreprofitablebusiness,e.g.carUnsatisfiedservicetechsupport:servicestationsrequiretechnicalexpertisethatishardtobuildupquicklybyprivateinvestors.ProvincialSalesBranchPersonswhotakechargeoftheservicecenterpaylessattentiononthebusiness,theyfocusmostoftheenergyontakingbacksalesaccountreceivablesService&ComponentDepartmentinFAWHeadcount(35)FunctionNewservicecenterestablishmentWarrantycompensationandpaymentsettlementComplaintsolvingTrainingontechServicecenterinspection,PR(withkeyclients)2)KeyissuesServicechargeWithinthewarrantyperiod:FAWbearalltheJieFangservice/componentchargeinservicecenter;Servicecenterprovidetheservicefirst,FAWwillcompensatetheservicecenterinaverage4.52months.EvenwheytheyarecompensatedbyFAWforwarrantyservice,thepaymentsarenormallymadeintheformofcomponents,ratherthancash.--FAWestablishescriteriatodeterminetheresponsibilitiesofproblemsencounteredduringwarrantyperiod--StandardwarrantyfeeisupdatedeveryyearbyFAW(onlyfornewmodels)--LaborcostisdeterminedbyFAW,andisthesameacrossthecountry.Componentretailpriceisdeterminedbytheservicestations.Afterthewarrantyperiod:ServicechargeandcomponentchargeofJieFangtruckcouldbedecidedbyservicecenter,thereisnostandardforthefeeNote:WarrantyPeriod—Within1.5yearsand50,000kmMajorserviceitemiscomponentreplacement,thereisnospecificrequestfromFAWtousethestandardrepairtoolingandequipmentTrainingTrainingbudgetisdecidedbyFAWbasedonthefinancialconditionofthewholecompany(normallyhasnocorrelationtonumberoftruckssoldorareinservice),annualtrainingplanismadeaccordingtothetrainingbudgetNewproductrepairtrainingisprovidedtoservicecenterbyService&ComponentDept.everyyear,maximum2peoplefromeachservicecentercouldattendthetrainingInitialinvestmentInitialinvestmentforaservicecenterisaroundRMB2,000,000(excludinglandandcomponentinventorycost)2.Component1)Organization3Service&ComponentDepartmentinFAWComponentCenter(13)ComponentProvidingControl&Management2)Key...