Delft University of Technology
Faculty Mechanical, Maritime and Materials Engineering Transport Technology
R.J.M. Westerman Increasing visibility and controllability of the handling of damaged cars
Engineering Assignment, Report 2005.TL.6992(IO 05.089), Transport Engineering and Logistics / Industrial Organisation.
This report is the final step of the master studies "Industrial Organization". The thesis describes an investigation in the car damage handling processes at Rotterdam Car Center (RCC). The processes at RCC are aimed to deliver cars in the condition the importer or its customers' wants. In cooperation with Rotterdam Car Terminal (RCT) and Rotterdam Automotive Services (RAS) a total package is delivered of car transhipment, de-conservation (removal of protecting covers), pre-delivery inspection, technical modifications and car repair.
In the last three years the number of processed and stored cars has grown enormously. This led to increased control difficulties and inefficient working methods. To improve the process controllability and reveal the pressure points, the company is studied thoroughly. The first part of this report showed that improvements can be found in the car repair process. The indications where difficulties in lead time fulfilment and unnecessary damage handling cost. Analysis in the repair procedures made clear that one third of the average repair time is lost in the registration and valuation of car damages. The root causes are the interruption of the external damage appraiser, a lack of standardization and indistinct damage forms. For 95% of all damages an external appraiser is brought in who will determine, if a damage must be repaired and will give approval to the valuation reports made by the car repair center. In case of small damages, ±40 euro, the cost of the valuation at RAS, the external appraiser and car transportation to RAS are higher then the repair cost itself. Moreover the time needed to repair such small damages is unacceptable for many customers.
To improve the controllability, an improved structure is developed which will divide all notified damages into three groups at first inspection point: Acceptable damages will, compared to the old structure, not enter the damage process and pursues the regular process.
Small damages will be repaired at RCC in a new developed quick repair center. These types of damages do not need a valuation and approval of the customer.
Larger damages will be repaired at RAS following the existing repair procedure.
The calculations and quantitative analyse in Chassis showed large saving, up to 50%, can be achieved in the valuation cost for the customer. The new structures will also result in a reduction of repair lead time for small damages and savings in transportation cost. It is expected that the investment in the repair center will return within one year.
To realize this new structure a number of pre conditions must be fulfilled. A development program is needed to develop the damage inspectors which will make them able to determine the severity and type of damage. The type of damages and repair methods has to be defined of each customer in a quality handbook. This book will serve as a reference book for all parties in the damage process. The last pre condition is that the customers have to agree with the new structure in which RCC will repair more cars without the external appraiser and approval of the customer.
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