CONTACTS 
0201 - S & C Ford                           415 553 4400 fax or 800...
020101 - Ms. Barbara Stone; Service Advisor
020102 - Service Department
0202 - S & C Ford                           415 553 4400 fax or 800...
020201 - Mr. Larry Smith; Manager
020202 - Service Department
0203 - S & C Ford                           415 553 4400 fax or 800...
020301 - Mr. Ray Siotto; 415 861 6000
0204 - S & C Ford                           415 553 4400 fax or 800...
020401 - Mr. Charles R. Mori; Controller

SUBJECTS
Millie's Mercury Sable, 940423
Ford Recall, Change Oil, Hoses, Tire Tread

0404 -    ..
0405 - Summary/Objective
0406 -
040601 - Follow up ref SDS 19 0000, ref SDS 18 0000.
040602 -
040603 - Larry explained initial research he has done on pending issues.  This
040604 - information indicates S&C owes a credit of approximately $524 for the
040605 - work performed on 990507.  He explained a number of mistakes S&C made
040606 - in this transaction, which impact earnings and policy.
040607 -
040608 - Discussed Communication Metrics to help Ford and S&C increase earnings
040609 - by avoiding mistakes and rework.  Adding "intelligence" to management,
040610 - and using the record to improve training, and policy formulation, is a
040611 - powerful way to use the Internet to improve earnings. ref SDS 0 9875
040612 -
040613 - Larry will investigate and call back next Monday or Tuesday.
040614 -
040615 -     [On 990611 did not hear from Larry, sent follow up. ref SDS 20
040616 -     0001]
040617 -
040618 -
040619 -  ..
0407 -
0408 -
0409 - Progress
0410 -
041001 - Larry advised of having talked to Barbara Stone about issues from the
041002 - the service S&C performed on 990507, as set out in ref DIP 1 linked to
041003 - the record, and to action items on 990507. ref SDS 10 6952
041004 -
041005 - He is now ready today to discuss action items in the record on 990507,
041006 - ref SDS 10 6952, submitted in the letter, ref DIP 1, sent to S&C on
041007 - 990519. ref SDS 13 2968
041008 -
041009 -
041010 -
0411 -

SUBJECTS
Tire Tread Inspection, 980619
Rotate, Tread Inspect, Rotate 990507
Align Wheels
Service Requirements, Procedures

0707 -
070701 -  ..
070702 - S&C Installed General Tires, Will Provide Specs and Warranty
070703 -
070704 - Follow up ref SDS 10 2025, ref SDS 6 1768.
070705 -
070706 - Larry advised that S&C installed General Tires on 990507.
070707 -
070708 -    [On 990708 S&C says Firestone tires installed. ref SDS 21 1935]
070709 -
070710 - He indicated that General Tire is the supplier for the tires S&C is
070711 - now installing for customers, as part of its expanded service into the
070712 - tire business, which Barbara Stone disclosed on 990507. ref SDS 10
070713 - 4140
070714 -
070715 - This aligns with policy reported by S&C's Controller, Charles Mori, on
070716 - 951031, that S&C should install tires that are comparable to original
070717 - Ford equipment. ref SDS 4 3717
070718 - ..
070719 - S&C will submit product specs and warranty information for the
070720 - tires installed on 990507. ref SDS 10 5548
070721 -
070722 -    [On 990708 S&C to submit warranty on 990709. ref SDS 21 1935]
070723 -
070724 -    [On 990715 S&C submitted General Tire warranty for Firestone tires.
070725 -    ref SDS 22 8966]
070726 -
070727 -    [On 991006 received Firestone specs and warranty. ref SDS 23 0001]
070728 -
070729 -
070730 -  ..
070731 - Warranty Shows Customer Entitled to $340 Credit on Tire Replacement
070732 -
070733 - Follow up ref SDS 10 2090.
070734 -
070735 - Larry has reviewed the General Tire warranty.  He has talked to a
070736 - representative from General Tire about applying the warranty to the
070737 - record on 990507.  He obtained independent opinion from two other
070738 - people who have experience with tire warranties.
070739 -
070740 - We reviewed analysis on 990507 showing S&C found the tires required
070741 - replacement after approximately 40K miles. ref SDS 10 2090
070742 -
070743 - We reviewed the General Tire warranty shown in the record on 951020,
070744 - which calls for full replacement, installation and balancing, if tires
070745 - require replacement within 60K miles. ref SDS 3 2146
070746 -
070747 - S&C's professional recommendation on 990507 to replace tires at 40K
070748 - shows entitlement under the warranty.
070749 - ..
070750 - Larry recalled that the General Tire rep relied on S&C's Quality
070751 - Care report on 990507 that says the tires required replacement due to
070752 - severe ware on one side. ref SDS 10 0945  General Tire has advised that
070753 - improper service can cause severe ware that led S&C to recommend
070754 - replacement in this case.  General holds that improper service by the
070755 - customer would deny recovery under the warranty.
070756 -
070757 - We reviewed S&C's record of tire inspections. ref SDS 10 2025
070758 -
070759 - The record shows S&C inspected and performed service in the manner
070760 - that General approved in accepting S&C as a qualified re-seller for
070761 - its products.
070762 -
070763 - Therefore, excessive ware must reflect a tire defect under the terms
070764 - of the warranty, and/or it supports review of inspection practice
070765 - under Quality Care policies.  The customer should recover the cost of
070766 - the work in the amount of approximately $340. ref SDS 10 3906
070767 -
070768 - Larry will visit with General about this point.
070769 -
070770 -    [On 990708 General refuses to honor the warranty. ref SDS 21 1935]
070771 -
070772 -
070773 -
070774 -
0708 -

SUBJECTS
Caliper RR Replaced, 990507

0804 -
080401 -  ..
080402 - Caliper Replaced on Rear Brakes; S&C Record is Incorrect
080403 -
080404 - Follow up ref SDS 10 3483.
080405 -
080406 - Larry advised that research indicates S&C's record on discovering the
080407 - failed caliper, shown on 990507, ref SDS 10 4293, is incorrect.
080408 -
080409 -     [On 990715 S&C offers credit of $100. ref SDS 22 3483]
080410 -
080411 - He has interviewed Barbara Stone and the mechanic.
080412 - ..
080413 - The mechanic recalls that excessive and severe oil leakage on
080414 - the replaced caliper was observed at the time the brakes were serviced
080415 - in the morning, not, as shown in S&C's invoice, after the brake work
080416 - was performed and after the vehicle was road tested, as related by
080417 - Barbara on 990507. ref SDS 10 7582
080418 -
080419 - Larry said S&C's invoice that says the problem was discovered after
080420 - the vehicle was road tested in the afternoon, ref DRP 1 4824, is
080421 - incorrect, based on this new information from the mechanic.
080422 -
080423 - Larry now understands that the mechanic prepared S&C's record of work
080424 - on the brakes in advance of doing the work, and so had to make a
080425 - second entry on the Calipers, after starting work on the brakes, and
080426 - discovering the caliper problem.
080427 -
080428 - We reviewed the sequence of entries in S&C's invoice showing work on
080429 - the caliper was the last task performed, item M. ref DRP 1 4824, which
080430 - reflects Barbara's call in the afternoon on 990507. ref SDS 10 7582
080431 -
080432 - Brake work was the first task performed, item A, when the car was
080433 - received at 0718 in the morning. ref DRP 1 7493   Thus, S&C's invoice
080434 - seems to align better with the context of the full record, than with
080435 - the mechanic's recollection 4 weeks later, that the invoice was
080436 - prepared incorrectly.
080437 - ..
080438 - Larry advised that Roman inspected the calipers and confirmed
080439 - there was excessive oil leakage that required immediate repair.  There
080440 - is no mention of Roman's inspection in the record, including the
080441 - Quality Care report.
080442 -
080443 -
080444 -  ..
080445 - Caliper Failure Varies in Severity; Driver "Feels" Severe Problems
080446 -
080447 - Larry explained that caliper failure varies from minor seepage that
080448 - requires no action, similar to the water hose problem reported on
080449 - 990507, ref SDS 10 0977, to the severe condition reported by the
080450 - mechanic on 990507. ref SDS 10 4293  This impacts determination of
080451 - conditions that warrant replacement cited on 990507. ref SDS 10 4875
080452 -
080453 - He said at the severe stage, the driver will generally feel and hear
080454 - the impact of caliper failure, when driving and applying the brakes,
080455 - as reported by Bob Swanson on 990525. ref SDS 15 0001  This answers
080456 - the question raised on 990507. ref SDS 10 2128
080457 -
080458 -
080459 -  ..
080460 - S&C Mistake Not "Bagging" Replaced Part for Payment, Warranty Review
080461 -
080462 - Larry advised that defective parts replaced during service are needed
080463 - for warranty review by product manufacturers.
080464 -
080465 - S&C routinely "bags replaced parts" to support warranty issues.
080466 -
080467 - Larry noted the law requires service vendors to provide replaced parts
080468 - to customers, if the customer makes a specific request.
080469 -
080470 - He indicated that, apart from the law, it is good practice to show the
080471 - customer defective parts, in order to complete the record on why
080472 - replacement was performed, because customers generally do not have
080473 - time to visit the mechanic and inspect reports of needed service,
080474 - under analysis on 951102. ref SDS 5 5688
080475 -
080476 - Larry will try and find the calipers that were replaced, to complete
080477 - the record of service on 990507.
080478 -
080479 -
080480 -  ..
080481 - Review Indicates Customer Should Recover $100 on Caliper Work
080482 -
080483 - In the absence of missing parts, and since there have been no reports
080484 - of impacts during driving that indicated caliper failure, the proposed
080485 - credit of $100 on this item may be justified, as explained above, and
080486 - shown on 990507. ref SDS 10 0336
080487 -
080488 -     [On 990708 S&C could not find replaced parts; demand for $100
080489 -     credit made. ref SDS 21 3483]
080490 -
080491 -     [On 990715 S&C offers credit of $100. ref SDS 22 3483]
080492 -
080493 -
080494 -
080495 -
0805 -

SUBJECTS
Serpentine Belt

0904 -
090401 -  ..
090402 - QC Report that Two Drive Belts Inspected was a Mistake
090403 - Serpentine Belt Replacement Cost Credited to Customer $100
090404 -
090405 - Follow up ref SDS 10 6671.
090406 -
090407 - Larry advised the S&C record showing two drive belts were inspected,
090408 - as reported on 990507, ref SDS 10 6671, is prepared incorrectly.
090409 -
090410 - The QC report showing a non-neoprene drive belt and a neoprene drive
090411 - belt were inspected is incorrect due to haste and oversight.  Larry
090412 - advised there is only one drive belt on the vehicle.
090413 -
090414 - If the Quality Care report is prepared without adequate attention, as
090415 - a separate task from performing the actual work, then conclusions
090416 - drawn from the record are not supported.
090417 -
090418 - Examples are hose inspection discussed below, and the caliper problem
090419 - above. ref SDS 0 3483  Conflicts in the record reduce trust and
090420 - confidence in service recommendations, and cause mistakes that lead to
090421 - costly rework, and frustrations, reported by Charles Mori on 951031.
090422 - ref SDS 4 0896
090423 - ..
090424 - Larry advised that drive belts generally last about 60K miles.
090425 -
090426 - At that point grooves wear down and there is visible cracking that
090427 - shows the belt needs to be replaced.  This aligns with information
090428 - from Larry's former boss, the previous Service Manager, who reported
090429 - on 950615 that he did not see any signs of cracking that justified
090430 - replacing the drive belt. ref SDS 2 2688
090431 -
090432 - Larry advised that he has not discussed with Roman findings from the
090433 - confirmation inspection required by the Quality Care program, as
090434 - reported on 990507. ref SDS 10 0800
090435 -
090436 - It was unclear from the discussion today whether this was an oversight
090437 - or that it means there was no confirmation inspection, as was reported
090438 - for the calipers. ref SDS 0 1232
090439 -
090440 - Larry will try and find the drive belt that was replaced, to complete
090441 - the record.
090442 - ..
090443 - The belt needs to be inspected to see why the belt required
090444 - replacement at half to two-thirds of design life.
090445 -
090446 - In the absence of missing parts, and since previously there was an
090447 - erroneous report the belt needed to be replaced, in combination with
090448 - other reporting errors in the current record, shows the potential for
090449 - error in the record supports credit of $100, as estimated on 990507.
090450 - ref SDS 10 0984
090451 -
090452 -     [On 990708 S&C cannot locate replaced parts, demand $100 credit.
090453 -     ref SDS 21 6671]
090454 -
090455 -     [On 990713 S&C offers credit of $100. ref SDS 22 6671]
090456 -
090457 -
090458 -
090459 -
0905 -

SUBJECTS
Seasonal Inspection, Safety Check
Transmission Fluid, Brake Fluid
Power Steering Fluid, Coolant Recovery Reservoir Fluid
Hoses
Horn, Lights, Lamps, Exterior
Turn Signals, Hazard Lights

1909 -
190901 -  ..
190902 - Notice that Hoses Require Replacement was a Mistake
190903 -
190904 - Follow up ref SDS 10 2400.
190905 -
190906 - Larry advised the S&C record is prepared incorrectly on this item.
190907 -
190908 - The report should have stated that, based on time and mileage,
190909 - consideration should be given to replacing hoses.
190910 -
190911 - We reviewed policy that time and mileage are a good guide for S&C to
190912 - make inspections, and if a problem exists the customer should be
190913 - notified of an actual problem.
190914 -
190915 - Larry feels this is a good policy for service inspections, since S&C
190916 - has better access to product specs that does the customer.
190917 - ..
190918 - Larry advised that the call to Millie on 990507, was incorrect.
190919 - ref SDS 10 9772
190920 -
190921 - He seemed to explain that Roman may have confused a report on another
190922 - vehicle, which required hose replacement, with our car.  Since it was
190923 - late in the day, everyone was hurrying and a mistake was made in this
190924 - case.
190925 -
190926 - Larry feels experience using the new Quality Care procedure needs to
190927 - be reconciled with continuing practices reflected in S&C's invoice
190928 - practice.
190929 -
190930 -
190931 -
190932 -
1910 -

SUBJECTS
Air Filter, Change

2004 -
200401 -  ..
200402 - Air Filter, S&C Mistake Not Notifying Customer Replacement Needed
200403 -
200404 - Larry advised that S&C made a mistake not notifying the customer that
200405 - the air filter needs to be replaced, if that is required, as shown on
200406 - the S&C invoice on 990507. ref SDS 10 6700
200407 -
200408 - He is unsure why the Quality Care report does not mention the air
200409 - filter needs replacement, if it needs to be replaced.
200410 -
200411 - He feels that since the air filter is not mentioned in the Quality
200412 - Care report, there may have been another mixup in reporting a need
200413 - for air filter replacement need for another vehicle.
200414 -
200415 - The air filter will be inspected on the next visit to evaluate the
200416 - need for service.
200417 -
200418 -
2005 -

SUBJECTS
Spark Plugs
Tune Up

2205 -
220501 -  ..
220502 - Tune up Not Applicable - Spark Plugs Serviced at 60K
220503 -
220504 - Did not discuss how this scope gets into the work stream, since it is
220505 - not on the QC report. ref SDS 10 0744
220506 -
220507 -
220508 -
220509 -
220510 -
2206 -

SUBJECTS
S&C Ford

2304 -
230401 -  ..
230402 - Communication Metrics Improves Earnings, Training and Policy
230403 -
230404 - Larry advised the SDS record for service on 990507, ref SDS 10  which
230405 - was submitted by ref DIP 1 on 990519, ref SDS 13 2968, helped S&C
230406 - understand the complex sequence of events, and assess alignment with
230407 - policy and management objectives toward reaching a timely solution to
230408 - issues that arose in this service transaction.
230409 -
230410 - He used the mouse in the computer to quickly find related details and
230411 - background on pending action items.  He did not know S&C invoices are
230412 - also linked into the record, so that alignment can be determined
230413 - directly, as for example on S&C's inspection of tires. ref SDS 10 2025
230414 -
230415 - The record on this transaction reflects a widespread problem managers
230416 - have dealing with a complex information environment that compounds
230417 - small mistakes into constant crisis. ref SDS 1 0200
230418 -
230419 - We recalled that on 951031 S&C's Controller, Charles Mori, wanted to
230420 - make good business decisions quickly. ref SDS 4 0896  Both S&C and the
230421 - customer incurred considerable extra cost and frustration at that time
230422 - due to lack of good...
230423 -
230424 -                        "intelligence"
230425 -
230426 - ...as explained POIMS. ref OF 1 0582
230427 -
230428 - On 981119 a manager with the U.S. Army Corps of Engineers found the
230429 - benefits of adding "intelligence" to management, delivered anytime,
230430 - anywhere on the Internet, are self-evident. ref SDS 7 2272
230431 -
230432 - On 990426 the Service Manager for JPS, an Internet Service Provider
230433 - (ISP), found, like Larry today, that the SDS record was helpful in
230434 - reaching a good solution to a complex problem, quickly. ref SDS 8 9400
230435 -
230436 - Good management requires good "intelligence," policy, training and
230437 - follow up.  Good earnings generally flow from good management.
230438 -
230439 - We discussed following up work in 1996 proposing Communication Metrics
230440 - for adding "intelligence" to management at Ford.
230441 -
230442 -
230443 -
230444 -
2305 -