PLAYBOOK

SECTION 13

SERVICE MANAGEMENT

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Service Department Management

An efficient, customer centric service department is the key to long term success as a boat dealership. For many store managers, this is the toughest part of the business to manage. The reality is that the sales and service team don’t always speak the same language. If you ask the service team they would be quick to tell you that sales gets all the glory and they get all the “……” A large part of the store managers job is to bridge the gap that exists between these departments. Frustration will always be there to some extent, particularly due to last minute deliveries (end of the month, etc). The service team is trying to satisfy retail and warranty customers at the same time as juggling a sales delivery schedule they have little control over. The biggest service issues often come down to communication issues, or a failure to escalate a problem quickly enough. Communication means both with the customer and between departments. Make sure you support the team when the time comes to escalate a customer problem, including bringing manufacturer or vendor resources to bear. Sales can do a lot to help build a closer relationship with service. The Bi-weekly management meetings are a good start, since it gets your team on the same page and aware of each other’s goals. Daily stand-up huddles are an additional key component to enhancing communications.

Other ways to foster a closer relationship to the service team include having sales grill monthly for the service team, someone bringing them ice cream or freeze pops….it’s sometimes the little things that count. Pitching in to help at a boat show or clean a boat goes a long way.

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Service Department Process Map

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Service Advisor RO Cheat Sheet

NOTES - NOTES - NOTES $1000 BILL NEEDS $1000 WORTH OF WORDS LABOR RATES - make sure that the correct labor rates are applied "L=" put at the end of each job line as a reference to labor sold - Once job is complete delete the "L=" before submitting to customer HAZARDOUS WASTE FEE - $12/ engine on any oil changes Applied as a part within the job Part number is "Hazardous Waste Fee" BATTERY FEE - $1.50 / battery replaced Apply as a part number in job line Part number is "BATTERY FEE" BATTERY CORE - core charge on additional batteries Apply as part number in job line

-Under Group 31 = $15/ battery -Group 31+ = $20 / battery MISCELLANEOUS CHARGES

SHOP SUPPLIES -Auto-calculated at 5% of labor total FREIGHT - 2% manual calculation of parts total SHIPPING AND HANDLING - 3% manual calculation of parts total Unless special ordered materials approved by customer for EXPEDITE S/O material applied in PARTS SERVICE WASH - if we do it, put it on the work order at no charge In the system for standard jobs as "COMPLIMENTARY SERVICE WASH" SUBLET VENDORS -Vendor is always "SUBLET LPC" -Description line is name of sublet vendor and description of work -Standard Mark up is 20% on all sublet -Cost goes in cost line below All fuel charged out through sublet with vendor being "GAS TICKETS LPC" Description is purpose of fuel, date, stock number. DISCOUNTS - applied as a method of payment by cashier - amount and description of discount to be placed in notes for cashier -DO NOT APPLY ANYWHERE ELSE ON RO

END OF DAY HAVE WORK LINED UP FOR TECHNICIANS FOR THE FOLLOWING DAY Have Parts Ready for following jobs to improve efficiency

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Remote Assistance

Remote assistance is provided across all our locations and performed in a similar manner. Customers who do not have the ability to bring their vessel in for repair are treated no differently than if it was brought in on a trailer. The complaint is identified, the work is scheduled, technicians dispatched. If work is simple maintenance, it is performed on site and technician/ technicians return and customer is contacted about review of the 3 C’s. If work is more involved and the boat must be brought back to the shop, a chase boat is launched and the vessel is towed to a ramp where it can be loaded and brought in for repairs. Technicians are very careful to identify and document (through photos, videos, etc…) any other existing issues to provide documentation to customer for further service work.

Technician access Technicians at all locations have access to a technician computer for researching parts, manuals, service information via the internet. Each location has at a minimum one laptop with the specific software for the tasks that need to be performed. Parts are accessed through a technician window at the parts department where they coordinate ordering, and procuring parts for their specific job. Shop tools are kept in a specified area on the shop floor and specialized high dollar parts are kept in the parts department where they are checked in and out via the service writer or parts personnel.

Timely Service

Timely service begins with proper scheduling and follows up with communication and efficiency. Communication in a customer’s mind is more prevalent than timeliness, but lingering work orders will allow for things to be forgotten and cause an undue burden on parts inventory as well. Properly scheduling the work based on committed work and urgency level is key to making sure that we have the customers’ expectations set up front so that we do not fall behind less any unforeseen issues that may arise during the repair process.

Repair Progress notification

Lightspeed provides us with the ability to categorize work orders to an infinite amount of categorization. We have several categories that allow for parts hold, needs scheduling, scheduled, etc…

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The categories allow for us to stay on track for what we are doing as far as the repair order process.

1. Initial contact when work begins on boat 2. Diagnosis results 3. Parts requisition information – availability, lead time, pricing information, alternatives, etc… 4. RO updates/ completion notification followed by payment and pick up information.

Finished on time process

Completion dates or promised to dates are utilized for scheduling work based on availability of technicians, parts availability, and urgency for customer pick up. In Lightspeed we have a “promised date” The promised date field is used to make sure that we are not overlooking any scheduling commitments made to the customer. A complete list of these promised dates is displayed on the desktop of each users login so that whenever they log in, this is the first thing they see in the morning.

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Route Sheet

Our route sheet is utilized through the Lightspeed Estimates and repair order tabs within the service module. This shows the category in which the work order is in as mentioned in 11.6, status (new RO, partially complete, parts billed but no labor, labor no parts, etc…), customer name, work order number, in date, boat information, service writer, date promised, jobs within the work order, and any notes pertinent to the RO. All of this can be seen at a quick glance and categories can be changed immediately for quick view for all personnel in service to see. This is updated in real time and can be seen by anyone with access to the Estimates and Repair Orders tab within the service module.

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Putting Dealer Options to Sold Unit

We don’t have the ability to utilize the quoted and applied options through Lightspeed, so we have developed a quick work-around that allows a smooth flow from sales to service. Follow this process, and make sure you stay out of options and applied options.

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In the Quote/General tab everything remains the same. The price of the boat and added options are combined in the top line price. Similarly, the estimated cost is input into the adjusted cost portion of the deal so that you can accurately work the deal with the customer. Once the work order is created and the labor and parts are input, the adjusted cost figure can be removed and the margin dollars and percentages should be the same.

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The screen below is the customer general tab that can have internal notes that do not print anywhere and external notes that are printed on our Purchase Agreements. The "extra line" field is where you can keep track of the selling price of the boat, selling price of the options, and estimated cost to the deal that you are provided from either your price guide and/ or a quote from the service department. The "Notes" field shows the customer what we are including in the deal and will print on the Purchase Agreement. Delivery dates or other stipulations can be added here as well.

INTERNAL NOTES. DOES NOT PRINT ON BUYERS ORDER. USE FOR DEAL HOT BUTTONS AND ANY PERTINENT INFORMATION.

CUSTOMER NOTES FOR THE DEAL. INCLUDE ANYTHING INCLUDED IN DEAL THAT IS IMPORTANT TO THE CUSTOMER. INCLUDE ANY STIPULATIONS. IE. CLOSE DATE, FINANCE, ETC...

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Below you will see what the buyers order looks like with the adjusted price reflecting the added options, and a listing of the added options that we are including at that sale price.

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Processing the Work Order

For the deal to finalize and any/all costs associated with the work to be realized we will be generating the internal work order with all parts and labor associated with the job. The parts will be sold over with the correct part numbers (not miscellaneous) and labor charged out as yard tech for the job. If a part is not in stock we will force the sale, pushing the part into the negative and avoiding the special-order function. Once parts arrive they are received in which will put the inventory quantity to the correct amount. The parts are then tagged with a copy of the PO ticket and placed in a customer hold area away from in stock parts. Labor is quoted and closed out under yard tech for all labor associated with the work to be performed.

Estimated Setup Amount process When the Products team enters a new piece of inventory they will refer to the OWM rigging spreadsheet to determine the proper amount to be entered in Estimated Setup Amount field of the Purchasing tab. When an option needs to be added to an INVENTORY unit follow the steps below to ensure the proper adjustments are made to reporting and the inventory. If an option needs to be added to an inventory unit the General Manager or Sales Manager will get a firm quote from the service department for the option. Once the quote is received it will be sent over to the Products team so they can adjust the Estimated Setup Amount, adjust MSRP and DSRP, and add the option to the Options tab to ensure that it prints on sales deals and quotes. The service department will create a new RO to the stock number and complete the installation of the option. The service department should use the sales type “TO SALES – MU PREP.” Once the RO is cashiered the cost of the major unit will be automatically adjusted.

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Service Process for We-Owe Items

As we well know, we don't start adding things to the boat before the deal is solidified and/ or closed. If a deal has we-owe's for options, services, etc. that are going to be installed later, we need to account for these accurately on parts and labor.

● For we-owe items that are deferred to a later date or cannot be completed before the deal finalizes, we will be creating two work orders. The first work order will hit the deal for the parts and labor and the service department will recognize the revenue and the deal costs will calculate correctly. The work order must be closed with all parts, labor, and any other charges before the deal is finalized to account for costs and revenue. This is accomplished by selling over the parts to the work order on the we-owe work order and applying labor through the yard tech.

● The second work order will be the opened up under the customer's name and unit. The second work order will be a net zero or zero dollar work order when the work order is performed.

● Labor will be accounted for in the we-owe work order through the yard tech. Yard tech

● Below you will see how the yard tech is utilized again as a negative and the assigned technician as a positive. This will result in a net zero labor charge to the work order.

Parts process for we-owe items

The idea behind parts is to sell over on the original we-owe work order and kit the parts in the customer hold area of your parts department (or similar area away from parts in inventory). They must be tagged and identified as sold we-owe parts with the work order reference.

● Parts in stock - sold over to the work order and kitted/ tagged with the work order number and customer we owe information.

●

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Parts not in inventory look up - utilize the price book feature when pulling up the part within the system. The drop down menu on the right hand side of the part look up pop up defaults to part inventory. Change to price book if the part does not come up in our inventory and the parts information will be loaded automatically in the system allowing the part to be sold over to the work order using the force function as described later on in the process.

● Parts not in stock - force the sale in order to be able to close the work order and not put the part into special order. Once the order is forced the parts will be put into a negative quantity and when the parts are received in, they are to be tagged and placed in the customer hold area of your parts department (or similar area away from the parts in inventory). If you sell the part over as special order, you will not be able to cashier the work order and sales will not be able to finalize the deal.

● Ordering of the forced parts - once the work order is created and the parts are forced over, parts must order using the RO number as the purchase order number in order to easily identify them as they are received. Once the parts are received in, the negative quantity caused by the forced sale will return to zero.

Tracking of we-owe's

● The rigging manager or service writer responsible for writing the work order needs to keep a separate copy of the cashiered we-owe work order in a we-owe file that will be used for tracking what work is outstanding.

● Once all parts are received in, customer is contacted and work is scheduled for completion of the we-owe work following the process for the resulting net zero work order under the customer and customer's unit.

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Rig/Check-in Process

• Boat arrives at location.• Boat is changed from incoming/on order status to active or in inventory. Notification is sent by sales

admin of new inventory.• Boat is offloaded from trailer.• Boat bags are tagged and go to boat bag storage location.• Work order is created and scheduled for rig.

o Utilize the standard jobs for consistency across the board, and so that nothing is missed.o We do not leave boats in shrink wrap at southern locations.

§ They are rigged so that any warranty/missing items can be identified and resolved prior to delivery.

• Four forms are to be completed when performing a rig:o Generic PDI – systems check for the entire boat. Any missing items, failures noted and

documented.o Cosmetic Review – Cosmetic discrepancies are noted and pictures are taken of air voids,

scratches, hazing, mold marks, etc. Pictures are emailed/texted to service or rig manager.o Rig Work Order – Consolidated information to show discrepancies found and rig time for

technicians.o Engine specific PDI form – required for warranty registration and must be done prior to sale. A

Sea Trial must be done to complete this form with running information.• Any damage/defects/missing items are noted in the work order for warranty repair.

o The more that is found pre-delivery, the better the customer experience is.o Any warrant items that need addressed will be documented in writing with pictures to be

submitted for warranty.• Completed condition report form and generic PDI are scanned and attached to the major unit so that

they are retained with the unit for future reference.o These can be dragged and dropped or copy and pasted, or use the Attach File button to find and

attach the files.o The attachments tab is located under Sales/Major Unit inventory/Specific Stock

Number/Attachments tab at the top of the screen. • Upon receipt of warranty approval, and approved work is completed and boat is returned to sales lot.

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Policy Billing OneWater has three primary GL accounts in place to expense certain items related to Customer satisfaction, Damage, and maintaining our inventory. Below are the guidelines for items that should be expensed to those accounts. Please note that the Store Manager at each location MUST approve any items expensed to one of the three accounts ant the reason for the expense must be clearly noted.

• Inventory Maintenance (74503-50) – This account is exactly what the name implies, inventory

maintenance. Charges to this account should include o periodic washes/details o service for demo boats o generally anything related to keeping the inventory in sellable condition. o This DOES NOT include gel repairs, prop repair, canvas repair, etc. Those items will fall into one

of the two categories below. Service Policy and Sales Policy are much broader accounts.

• Service Policy (71300-30)–Charges should include o damage to an inventory unit done by service personnel, (gel, prop, canvas, vinyl repair) o damage to canvas done because water was not removed from the cover, o damage to a customer’s unit done by service personnel, or o charges/write-off to help maintain customer satisfaction related to service. o Parts for inventory units misplaced by Service

• Sales Policy (71300-10) – Charges should include

o damage to an inventory unit done by the sales department staff (gel, prop, canvas, vinyl repair) o any charges/write-offs to maintain customer satisfaction related to a sales transaction. o Parts or items for inventory units misplaced by Sales

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Helpful Service Forms (Available in Forms Library)

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Additional Service Resources

Additional Lightspeed manuals for Service are available in the forms library.