8052-Warranty Basics

Scene Number : 80521010 - Objectives

The Warranty Basics module will provide information on warranty philosophy, the responsibilities of
each partner and specific items that all warranty administrators should be familiar with.

After completing this module the learner will have more detailed information on warranty and the
process flow.

Scene Number : 80521020 - What is Warranty?

Warranty is a guarantee given to the purchaser by a company stating that a product is reliable and
free from known defects and that the seller will, without charge, repair or replace defective parts
within a given time limit and under certain conditions.

Scene Number : 80521030 - Cummins Warranty

Cummins provides the best warranties and Extended Coverages in the industry. Authorized Cummins
service providers play a vital role in the delivery of these programs to customers.

Customers expect Cummins and its authorized service providers to:

stand behind Cummins products. -

repair all failures that are a result of defects in material or factory workmanship. -

provide the benefit of the coverage, immediately and

treat all customers fairly and consistently.

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Scene Number : 80521040 - Cummins Warranty Philosophy
The underlying principles behind the administrative procedures that authorized service providers
follow are:

Cummins expects high quality repairs to be made to its products; meaning engines are not over or
under repaired.

Cummins pays to fix all failures that are a result of defects in material or factory workmanship.

Cummins does not pay for failures that result from customer abuse or neglect; meaning the service
provider must ensure that their customers understand the corrective actions required to avoid future
failures resulting from abuse and/or neglect.

Cummins delegates this authority only to those service providers that administer warranty and
extended coverages according to these principles and procedures.

Scene Number : 80521050 - Is Warranty Free?

The cost of warranties affect all of the members of the warranty partnership: the customer, the service
provider and Cummins.

Warranties are not free and the cost of the warranty is built into the price of the product. Therefore, it
is important to recognize that each member of the warranty partnership can help reduce warranty
costs.

Cummins can reduce the cost of warranties by using the information collected about repairs to make
the necessary modifications and adjustments to future products.

Scene Number : 80521060 - Who is Involved?

Cummins authorized service providers play an important role in the administration of Cummins
warranties.

The customer, the service provider and Cummins are all integral parts of the warranty partnership
and each has responsibilities in making the warranty agreement a success.

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Scene Number : 80521070 - Benefits of the Partnership
Cummins wants its customers to receive immediate benefit from coverages. This is Cummins way of
helping its customers reduce the amount of downtime they experience as well as certain operating
costs.

A unique aspect of the Cummins Warranty and Extended Coverage administration is that the
authority for making warranty decisions is delegated to the Cummins authorized service providers.

This is extremely important to Cummins because the manner in which a warranty is administered
reflects upon Cummins as a business. As an agent of Cummins, the service provider is entrusted to
administer the warranty fairly and consistently at all times and to all customers.

Scene Number : 80521080 - Warranty Decision Makers

Warranty decision makers act as agents of Cummins in the warranty administration process and are
entrusted to administer warranty coverage evenly and equitably in accordance with published
practices and procedures at all times to all customers.
Warranty Decision-makers Should Become Familiar with:
-Warranty Statements
-Warranty Administrative procedures
-Pre-authorization Programs
-Operations and Maintenance Manuals
-Proper product installation
Proper troubleshooting procedures, which are important to:
-Determine what caused a failure, including improper operation, or improper/inadequate
maintenance.
-Assign payment responsibility for a failure; such as Cummins, a service provider, or a customer.
-Ensure that the root cause and the failure are repaired.
-Explaining to the customer the proper operation and/or maintenance to prevent future failures of this
nature, if appropriate.
Products under normal use will wear, Cummins reuse guidelines are to be used to determine parts
that should not be reused during a warranty repair.

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Scene Number : 80521090 - Responsibilities - Customer / Owner
To ensure that the terms of the Warranty and Extended Coverages contract are fulfilled, each of the
warranty partners have certain responsibilities.
The customer has the responsibility to:
- Use and maintain Cummins products as recommended in the Cummins Operation and Maintenance
Manual.
- Maintain an operating odometer or hour meter. For service providers working on a product without
an operating odometer or hour meter, please Refer to Procedure 503-005 in the Warranty
Administration Manual.

Before the expiration of the applicable coverage:

- Notify a Cummins service provider of any covered failure,
- Provide documentation, if necessary, to verify product warranty start date, and
- Deliver the product to a service provider, if required, or make the product available for repair during
the valid coverage period.

The owner is responsible for reviewing and understanding their coverage terms and limitations.
The owner is responsible for communication expenses, meals, lodging, rental and similar costs
incurred by the owner as a result of a warrantable failure.
The owner is also responsible for non-product repairs and for "downtime" expenses, cargo damage,
fines, any applicable taxes, all business costs and other losses resulting from a warrantable failure.

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Scene Number : 80521100 - Responsibilities - Cummins
Cummins authorized service providers also have responsibilities.

Covered repairs to Cummins products must be made by Cummins authorized service providers.
These locations are limited to:
-Cummins Distributor or Distributor Branch.
-Dealers approved by a Cummins Distributor. Dealers are approved based on qualification criteria of
Cummins.
-Other repair shops authorized by a Cummins Distributor or Distributor Branch.
All authorized Service Providers must have and maintain qualified decision makers and claim
processors.
-For Cummins Engine Warranty filing locations, the maximum period to be without qualified personnel
is 90 days for Warranty Virtual College and 180 days for Warranty Classroom training.
Newly established Service Providers must complete Warranty Virtual College training before filing the
first claim.
-Cummins Power Generation Warranty filing locations are to maintain current training via the link on
the PGBU Warranty System.
At no time should a customer be invoiced for any items covered by a warranty program. Any service
providers found to be invoicing Customers for expenses incurred for warranty repairs risks review and
potential loss of their Cummins repair certification.
Cummins has given Service Providers the authority to make warranty decisions on covered items
during a warranty repair, however Cummins reserves the right to make the final decision upon
reviewing all claims.

Scene Number : 80521110 - The Four C`s - Definition

The Four C's section will provide information on the logical steps to follow in every repair situation.
The learner will become knowledgeable on what the Four C's represent, what the goals of each step
are and why documentation is integral to the repair process.

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Scene Number : 80521120 - The Four C`s
Management-by-fact follows the rule that all repair and service decisions must be based on fact.
Decisions based on fact are more easily substantiated and communicated than those based on
speculation and guess work.
Following the Four C's provides a road map for collecting facts throughout the repair process and
helps to alleviate uncertainties. Each step requires facts and decisions based on those facts. Basing
decisions on facts greatly increases the probability of the decision being an accurate one. Using
management-by-fact will ultimately benefit everyone in the warranty agreement.

Scene Number : 80521130 - What are the Four C`s?

The Four C's is an acronym for a logical set of steps to follow in any repair situation, whether or not it
is a warranty repair.

Following this process ensures that all warranty partners handle a service or repair in the most
effective and efficient manner. The different parts of the Four C’s are:
Complaint – The description of symptom(s) or fault code(s) present that caused the repair event.
Cause – The description of the root cause(s) of failure Cummins published troubleshooting
instructions should be used to identify the root cause(s) of failure.
Coverage - The extent to which a warranty or other program will pay for the failure and repair.
Correction – The description of the actions performed to address and repair the complaint.

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Scene Number : 80521140 - Goals
Relying on the Four C's in any repair situation will help achieve several goals important to all of the
members of the warranty partnership.

The goal of the recording the COMPLAINT information is to understand the problem from the
customer's perspective.

Using diagnostic logic to arrive at the root cause of the problem is the goal of determining the
CAUSE.

The goal of determining COVERAGE for the repair is to determine who is responsible for payment of
the repair and why.

Finally, using repair logic to achieve a quality, cost effective repair is the goal of CORRECTION.

Scene Number : 80521150 - Importance of Documentation

Documentation is important because it provides a way for the service provider to authenticate or
substantiate a warranty claim or customer billing.

Therefore, it is very important during the repair process that any activity associated with the repair is
documented clearly and accurately according to the minimum claim documentation section in the
Warranty Administration Manual.

This is the responsibility of service writers, service technicians, service managers and warranty claim
filers.

Clearly documenting the work completed during a repair makes it easy to reconstruct details of the
repair for warranty claim filing, customer billing, warranty compliance reviews and other business
related reasons.

Now let’s discuss the warranty process flow.

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Scene Number : 80521160 - Process Architecture
The Process Architecture section will provide a description of the process flow for RAPIDSERVE
Web, Business Management System (BMS), MOVEX, and KA91.

After completing this section you will have a better understanding of the process flows associated
with warranty repair.

Scene Number : 80521170 - Process Flow

Let’s take a look at the Warranty Process.
First, a customer’s complaint is recorded. Then, troubleshooting procedures are completed and
warranty coverage is determined.

A Warranty decision is made, which will require a repair decision. Once warranty coverage is
determined by the service provider or Cummins Care, the repair process is completed and the claim
is filed to Cummins.
If the repair is covered by Warranty, Cummins will reimburse for the necessary repairs. Remember,
this is largely dependent on accurate and complete documentation on the Repair Order.
If the claim is accepted, payment is then submitted by Cummins.

If the repair is not covered by Warranty, a customer provides the decision on the repair process, the
repairs are completed and the customer is appropriately billed.

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Scene Number : 80521180 - Description of Process Flows
The following is a description of the process flows for RAPIDSERVE Web, Global Web, BMS, Movex
and KA91.

Claims may be filed through a variety of mediums. Locations outside of US and Canada use
Rapidserve Web, Movex, and KA91. North American distributors use BMS, and dealers use
RAPIDSERVE Web.

Before a claim is accepted by Cummins Warranty systems, it undergoes a standard check to verify
that it meets the basic repair order information requirements necessary to file a claim.

If the claim does not meet the requirements and more information is required it is returned to the
system that it originated from with a rejection notice that conveys what piece of data needs to be
corrected for successful submission of the warranty claim.

Once the claim is submitted it undergoes an additional set of edits to verify that all the necessary
elements are available to process the claim.

Once a claim is approved, a payment file is sent to accounts payable or accounts receivable.

The primary path for warranty credits are issued to distributors who in turn disburse the payments to
the appropriate service providers with some exceptions around OEMs and Customer fleets.

Scene Number : 80521205 - Assessment

The warranty partnership includes:

Scene Number : 80521210 - Assessment

In the warranty partnership, who is responsible for making warranty decisions according to the
appropriate published procedures?

Scene Number : 80521220 - Assessment

Which of the following is NOT a responsibility of the customer in the warranty partnership?

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Scene Number : 80521230 - Assessment
What is the third step in the 4 C's?

Scene Number : 80521240 - Assessment

The goal of determining the cause of the complaint is:

Scene Number : 80521250 - Assessment

Using repair logic to achieve a quality, cost effective repair is the goal of which of the 4 C's?

Scene Number : 80521260 - Assessment

Who is responsible for documentation?

Scene Number : 80521270 - Assessment

When does the CORRECTION step of the Four C's process begin?

Scene Number : 80521280 - Assessment

Who does not make warranty decisions?

Scene Number : 80521290 - Assessment

Why is it important to have accurate and complete documentation on the Repair Order?

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