CONTACTS 
0201 - S & C Ford                                                                                                                                                         O-00000569 0201
020101 - Mr. Larry Smith; Manager                                                                                                                                         O-00000569 0201
020102 - Service Department                                                                                                                                               O-00000569 0201

SUBJECTS
Millie's Mercury Sable, 940423
Ford Recall, Change Oil, Hoses, Tire Tread
Don't Get Mad; Get Better

0505 -
0505 -    ..
0506 - Summary/Objective
0507 -
050701 - Follow up ref SDS 16 0000, ref SDS 15 0000.
050702 -
050703 - S&C agrees to refund 40% of invoice for service on 990507, to pay for
050704 - warranty coverage, and due to inadequate support in the record on two
050705 - repair matters.  This effort may support improved management, and
050706 - could lead to use of the partnership model reviewed recently by Kaiser
050707 - for doctor/patient communications.
050709 -  ..
050710 - Submitted ref DIT 1 linked to this record, accepting S&C's offer, and
050711 - proposing continued business relations, and that the refund in this
050712 - case be applied to S&C's christmas fund.  Linked to Fortune article on
050713 - CEOs failing due to poor communication. ref SDS 13 0001
050714 -
050715 -     [On 990722 S&C is sending a check. ref SDS 17 0001]
050717 -      ..
050718 -     [On 990731 received credit memo. ref SDS 18 0001]
050720 -  ..
0508 -
0509 -
0510 - Progress
051101 -  ..
051102 - $408 Credit On Invoice of $1007 - $40% Refund - Accepted
051103 - S&C Requests Customer Use Another Vendor Due to Loss of Confidence
051104 -
051105 - Received ref DRT 1 from Larry at S&C Ford.  The document is dated
051106 - 990708.  There is no explanation for a 7 day delay receiving S&C's
051107 - letter today 990715.
051108 -
051109 - In sum, S&C offers a $408 credit.  This is accepted.
051110 -
051111 -     [On 990722 S&C is sending a check. ref SDS 17 0001]
051113 -      ..
051114 -     [On 990731 received credit memo. ref SDS 18 0001]
051116 -  ..
051117 - Larry's letter cites discussions "this time and the last time you were
051118 - in." ref DRT 1 2091  He cites no specific language nor inference from
051119 - any discussion, and none from the following express record...
051120 -
051121 -     1.  On 990603 telecon. ref SDS 7
051122 -
051123 -         This discussion*was confirmed by letter on 990611. ref DIP 2
051125 -          ..
051126 -     2.  On 990708 telecon. ref SDS 15
051127 -
051128 -         This discussion was confirmed by letter on 990708. ref DIP 3
051130 -  ..
051131 - Proposal to End Business Relations is Incorrect and Conflicting
051132 -
051133 - Larry makes the following comment...
051134 -
051135 -    a.  ...considering the fact that you do not have any confidence in
051136 -        my people's ability to make recommendations of repairs that
051137 -        should be made now or later, to prevent any breakdowns in the
051138 -        future, perhaps you should consider another repair shop to take
051139 -        your vehicle for service. ref DRT 1 2091
051141 -         ..
051142 -    b.  We do have a service department with an overwhelming amount of
051143 -        experience and qualifications.
051144 -
051146 -  ..
051147 - S&C's proposal is incorrect and conflicting for the following
051148 - reasons...
051149 -
051150 -    1.  A firm with an "overwhelming amount of experience and
051151 -        qualifications" should not be fired because of occassional
051152 -        snafus.  S&C's service recommendations have by and large been
051153 -        accepted, as seen in the record on 990507. ref SDS 6 1782  S&C
051154 -        reported on 990603 that errors occurred in the service on
051155 -        990507, ref SDS 7 0001; and, on 990708 S&C was asked for a
051156 -        written opinion on the proper dispositon.
051158 -         ..
051159 -    2.  S&C's willingness to make good on its quality care promises, as
051160 -        shown in Larry's letter today, ref DRT 1, builds confidence in
051161 -        the firm's leadership, which is essential for continual
051162 -        improvement.
051164 -         ..
051165 -    3.  Peter Drucker points out that firms have about the same
051166 -        resources and expertise, see review on 931130. ref SDS 1 2134
051167 -        Overtime, the occassional innovation monopoly, that propels
051168 -        some to intial advantage, is moderated by market forces, so
051169 -        that the only effective basis on which competition occurs is
051170 -        the quality of management.
051172 -         ..
051173 -        Under Drucker's rule, going to another service organization
051174 -        would not yield better mechanics, tools nor techniques.  A
051175 -        constructive response to error, is adding intelligence to
051176 -        management, so that resources are applied productively for
051177 -        reducing mistakes.  Gather the troops.  Review a case study,
051178 -        pointing out "Hey, we had to pay out 40% on this order.  It's
051179 -        hard to increase pay and vacation time if we keep this up. What
051180 -        can we do?  Who's got a suggestion?"
051182 -         ..
051183 -        The only justification to change vendors is loss of confidence
051184 -        in the management team to stand behind the work.  Again, S&C's
051185 -        willingness to be accountable builds confidence.
051187 -  ..
051188 - Of course, if S&C determines the customer seeks to avoid fair payment,
051189 - or is unreasonable, it should insist on declining service.  As well,
051190 - if S&C feels personality issues prevent effective working relations
051191 - with the customer, then a change should occur.
051193 -  ..
051194 - A third course, rather than the...
051195 -
051196 -           •  customer quitting the vendor, or the
051197 -
051198 -           •  vendor discarding a customer,
051199 -
051200 - ...is to look for constructive lessons learned, under S&C's quality
051201 - care program.
051202 -
051204 -  ..
051205 - Partnership Can Make Customer and Vendor Happy
051206 -
051207 - On 951102 a similar circumstance on the application of a tire
051208 - warranty, led S&C's Director of Parts and Service, Charles Mori, to
051209 - ask...
051210 -
051212 -                   ..
051213 -                  What will make the customer happy?
051214 -
051216 -  ..
051217 - Our goal today, remains the same... to ensure good service, and to
051218 - retain good working relations with S&C. ref SDS 4 5822.
051220 -  ..
051221 - One way to achieve this may be to move toward a method being tried by
051222 - Kaiser to foster effective doctor/patient communications through a
051223 - partnership business model.
051225 -  ..
051226 - This model is reviewed on 990625. ref SDS 12 4185
051228 -  ..
051229 - Better communication generally lies at the heart of most business
051230 - problems, and so it drives the quality of management cited by Drucker,
051231 - noted above, ref SDS 0 0736, as the core competitive advantage of
051232 - enterprise.
051234 -  ..
051235 - On 951106 the prior matter disucssed with Charles Mori on 951102, was
051236 - reviewed for lessons learned.  One concept that emerged was to strive
051237 - for improvement in business processes under the rule...
051238 -
051239 -
051240 -                      Don't get mad, get better
051241 -
051242 -
051243 - ...this is a key concept to avoid a cycle of escalating recrimination,
051244 - ref SDS 5 7233, that results from inevitable snafus, as occurred in
051245 - this case.
051247 -  ..
051248 - While these are all wonderful lofty ideals, the only way to give them
051249 - energy is to help people slow down long enough to think. In this case,
051250 - for a firm like S&C to pay out $408 is not of large enough moment for
051251 - leadership to pause long enough to think.
051253 -  ..
051254 - What may get some attention is for the customer to endorse the payment
051255 - back to the firm, say for the christmas party fund, or something.
051257 -  ..
051258 - This is a stronger message, than say notifying S&C not to write a
051259 - check, because in that case, no organizational capital is expended, no
051260 - machinery is moved, and so no notice is given of the underlying
051261 - issues, and in that case no improvement can occur, and the next
051262 - problem will likely be bigger, making it harder to achieve our goal
051263 - not to get mad, but to get better.  When stakes escalate, people get
051264 - mad spontaneously.
051266 -  ..
051267 - Our goal is to get better.
051268 -
051269 -
051270 -
051271 -
0513 -

SUBJECTS
Rotate, Tread Inspect, Rotate 990507
Warranty

0704 -
070501 -  ..
070502 - General Tire Warranty Submitted for Firestone Tires
070503 - S&C Offers Pro-rating Entitlement on Tire Warranty Based on Mileage
070504 -
070505 - Follow up ref SDS 15 8148, ref SDS 7 1935.
070506 -
070507 - S&C submits a General Tire warranty. ref DRT 1 7636
070508 -
070509 -     On 990708 Larry advised that S&C installed Firetone tires on the
070510 -     car during serevice on 990507. ref SDS 15 1935
070512 -      ..
070513 -     Investigation has revealed that the car has Firestone tires, not
070514 -     General Tires.
070516 -      ..
070517 -     It is unclear if the General Tire warrantly is intended to support
070518 -     S&C's refund offer, reviewed below; or, that it is intended to
070519 -     fulfill the request on 990603 for the warranty on the newly
070520 -     installed tires, ref SDS 7 3569, which is needed to guide future
070521 -     transactions.
070523 -  ..
070524 - We need product specs and warranty for Firestone tires.  This is cited
070525 - in the letter today. ref DIT 1 0360
070526 -
070527 -     [On 990722 called and left another message to submit product specs
070528 -     and warranty. ref SDS 17 9766]
070529 -
070530 -     [On 991006 received Firestone specs and warranty. ref SDS 19 0001
070531 -
070533 -  ..
070534 - S&C offers a refund of $208, explained as follows...
070535 -
070536 -     I have enclosed the General Tire warranty and have talked with the
070537 -     factory warranty manager.  He has agreed on issuing a goodwill
070538 -     credit for a percentage of the tire usage.  Based on miles used
070539 -     65% - $208.00. ref DRT 1 7636
070541 -  ..
070542 - S&C's calculation of $208 is unclear, but seems to be correct...
070543 -
070544 -   1.  The total cost of tire replacement is shown in the record on
070545 -       990507 in the amount of $340. ref SDS 6 3712
070546 -
070547 -       $208 = 65% of $320  -- What reconciles $320?
070549 -        ..
070550 -       Actual charges shown in S&C invoice 314868, ref DRP 2 1560, on
070551 -       990507 are...
070552 -
070553 -        4T 4 4 TIRE MOUNT, BALANCE
070554 -               365 CPC                                    42.00
070555 -         4 9003*057649* FT70C P205/65/R15                251.80
070556 -         4 STEMS TIRES STEM                                1.50
070558 -          ..
070559 -         HAZARDOUS WASTE TIRE REMOVAL $1.75 PER TIRE
070560 -               365 CWH                                     7.00
070561 -                                                        --------
070562 -                                                         302.30
070563 -
070564 -             Assume tax at 8.5%                           25.70
070565 -                                                        ========
070566 -                                                        $328.00
070568 -        ..
070569 -       This valuation seems close enough to S&C's amout of $320.
070571 -        ..
070572 -   2.  Larry's letter says that a General Tire Warranty is submitted.
070573 -       ref DRT 1 7636  Use of the warranty for Firestone tires is
070574 -       discussed above. ref SDS 0 8966
070576 -        ..
070577 -       The document needed for this calculation is the warranty in
070578 -       effect when the tires were installed by S&C on 951009, as shown
070579 -       in the record on 990507. ref SDS 6 2090
070581 -        ..
070582 -       General's warranty in effect on 951009 provided for pro-rated
070583 -       replacement, including mounting and balancing, if the tires had
070584 -       to be replaced within 48 months or 60,000 miles, as set out in
070585 -       the record on 990507, ref SDS 6 0546, citing the record on
070586 -       951020 which quotes the General Tire warranty. ref SDS 3 2146
070588 -        ..
070589 -       The applicable warranty provision on page 2 is section 2b and
070590 -       para 3. ref DRP 1 4461
070592 -        ..
070593 -       S&C's calculation aligns with these provisions.
070595 -  ..
070596 - Accordingly, S&C's offer is accepted.
070597 -
070598 -
070599 -
0706 -

SUBJECTS
Caliper RR Replaced, 990507

0803 -
080401 -  ..
080402 - S&C Offers $100 credit on Caliper Repairs
080403 -
080404 - Follow up ref SDS 15 3483, ref SDS 7 3483.
080405 -
080406 - S&C offers a refund of $100, explained as follows...
080407 -
080408 -     S&C Ford will refund you S100.00 on the brake calipers, due to the
080409 -     fact that we are unable to inspect the one in question. I do
080410 -     believe we were acting in the best interest of the customer by
080411 -     suggesting it be replaced because it was leaking. I also believe,
080412 -     if we had not replaced it, the driver would have had a larger
080413 -     repair bill down the road. ref DRT 1 4087
080415 -  ..
080416 - This offer reflects the record on 990507, ref SDS 6 4293, and review
080417 - with Larry on 990603. ref SDS 7 3483
080419 -  ..
080420 - It is therefore accepted.
080422 -  ..
080423 - We concur that S&C was acting in the best interest of the customer.
080424 - Errors in record cited by Larry on 990603 do not support a conclusion
080425 - that caliper work was required on 990507. ref SDS 7 3483
080427 -  ..
080428 - On 990507 repair estimate was $160 when the car was delivered to S&C
080429 - in the morning.  In the afternoon repair estimate had become grown to
080430 - $2,200.  On 990603 Larry advised that this 15 fold increase in the
080431 - cost of repairs was erroneous, due to miscommunication. ref SDS 7 2400
080433 -  ..
080434 - We share S&C's goal to achieve effective preventive maintenance.  One
080435 - way to achieve this goal and avoid undue cost escalation may be to
080436 - improve communications, as discussed with Larry on 990603. ref SDS 7
080437 - 9875
080438 -
080439 -
080440 -
0805 -

SUBJECTS
Serpentine Belt

0903 -
090401 -  ..
090402 - S&C Offers $100 credit on Serpentine Belt Replacement
090403 -
090404 - Follow up ref SDS 15 6671, ref SDS 7 6671.
090405 -
090406 - S&C offers a refund of $100, explained as follows...
090407 -
090408 -     S&C Ford will refund the $100.00 for the serpentine belt. Again, I
090409 -     am not convinced that it should not have been replaced because I
090410 -     did not see it. I will leave it as a questionable issue.
090412 -  ..
090413 - This offer reflects the record on 990507, ref SDS 6 6671, and review
090414 - by Larry on 990603, who reported drive belt should last about 60K
090415 - miles, and so it is uncharacteristic for replacement to occur after
090416 - only 44K miles as occurred here. ref SDS 7 5016
090418 -  ..
090419 - S&C's offer is therefore accepted.
090420 -
090421 -
090422 -
090423 -
090424 -
090425 -
090426 -
090427 -
0905 -