The New Audit Approach 2.0 For BMW Centers (SI B00 03 21)

THE NEW AUDIT APPROACH 2.0 FOR BMW CENTERS

SERVICE CAMPAIGN BULLETIN

SERVICE INFORMATION

This Service Information bulletin (Revision 01) supersedes SI B00 03 21 dated February 2021 

What's New: 

• This updated and reformatted Service Information Bulletin introduces the New Audit Approach 2.0

SITUATION

BMW of North America, LLC (BMW NA) has further enhanced the New Audit Approach for BMW Centers.

The New Audit Approach 2.0 was designed to minimize disruptions and enhance each Center's ease of continuing to do business by creating a more seamless procedure that implements the best practices developed and instituted in response to the prior audit approach.

In the New Audit Approach 2.0, we address Center concerns regarding the frequency and scope of audits by increasing our focus on Data Analytics.

CAUSE

Centers will be selected for a Review and/or Audit based on a data analytics driven approach; they will no longer be based on time cycles.

Retail Audit will analyze all Centers':

• Defect count,
• National/regional/market cost and defect shares,
• Elite Workshop KPIs, and
• WHAT outliers.

From the above, Retail Audit will focus its Review and Audit activities on Centers with identified data anomalies, this will determine which Centers will be selected and scheduled for a Review and/or Audit.

The information in the PROCEDURE section describes the New Audit Approach 2.0.

Please also refer to Section 8 in the Warranty Policy and Procedure Manual (WPPM), which has also been updated with this information.

CORRECTION

All Centers are required to complete the Dealer Self-Review Tool in On Track as part of the AVP Center Training Compliance Component twice a year.

Centers are also required to monitor their own Warranty claims processes through the Dealer Self-Review Tool and the Warranty Health Assessment Tool (WHAT) as follows:

• As part of the AVP Training Compliance Component all Centers (Parts & Service Director, Service Manager, Warranty Administrator, Shop Foreman) are required to complete the Dealer Self-Review Tool through On Track twice a year (in Q2 & Q4). Completing the Dealer Self-Review Tool will result in an action plan, which the Center is required to submit to Retail Audit for documentation purposes.
• Centers should monitor the Warranty Health Assessment Tool (WHAT) on a regular basis for trends and potential outliers/anomalies (e.g., Regional/National Cost and Defect Shares).
• Centers should monitor the monthly Elite Workshop KPIs to make sure they are at or below the regional average.

PROCEDURE

Reviews and Audits 

In an effort to partner with Centers by creating a learning activity that may possibly eliminate the need to perform an Audit, BMW NA will offer a Remote Warranty, Maintenance/Certified Preowned (CPO) Warranty/Extended Vehicle Program (EVP) or Specialty Review.

This Remote Review has no debit associated with it. Moreover, if the Remote Review is in line with BMW NA's Retail Audit Standard (meaning an Error Rate at or below the Retail Audit Standard) then no further action will be necessary.

The Retail Audit Standard is the national average of the Error Rate (Potential Chargeback/Total Claim Population=Error Rate over the past rolling 12 months).

Only if the Remote Review findings are not in line with BMW NA's Retail Audit Standard (e.g., an Error Rate above the Retail Audit Standard), will BMW NA schedule an Extrapolated and/or Specialty Audit. In some cases, the Audit can occur as an extension of the Remote Review.

BMW NA will schedule a Warranty, Maintenance/CPO Warranty Extrapolated and/or Specialty Audit if your Center:

1. Fails to complete the Dealer Self-Review Tool through On Track as part of the AVP Training Compliance Component,
2. Does not meet the Retail Audit Standard based on their Warranty, Maintenance or CPO Warranty Remote Review; or
3. Opt outs of the Remote Review.

Warranty, Maintenance/CPO Warranty and EVP Audits will be based on the process information that is contained in the updated Warranty Policy and Procedures Manual (WPPM), Center Operations Manuals (Maintenance, CPO, EVP, and AMP) and other published information bulletins (Service, Parts and Aftersales).

BMW NA may conduct Specialty Audits at all Centers based on the analysis of the Elite Workshop KPI reports and the Warranty Health Assessment Tool (WHAT), which Centers can access through the S-Gate Dealer Universal Portal.

Additional data sources may be used for data analytics, e.g., the Top 30 Defect Code Benchmark Reports (Warranty, Maintenance, Certified Pre-Owned), Work Time Report, Add-on Repairs, Warranty Goodwill Measurement Tool, Cost per Defect, WT/FRU Labor Operations, Defects per Vehicle, etc.

Unless otherwise required by state law, all Audits (Warranty/Maintenance/CPO Warranty) will use an extrapolated method using the sample's audit finding results against the corresponding claim population.

Specialty Audits may be extrapolated or non-extrapolated depending on the determining factors identified in the KPI matrix and/or WHAT tool.

Retail Audit will determine the schedule for Remote Reviews or Audits based on and in compliance with the Center's applicable state law. Other types of audits and investigations may be conducted in accordance with published information (AVP Program, Dealer Agreement, Special Bonus & Incentive programs, Recalls, Exports, etc.).

Not applicable.

CLAIM INFORMATION

As a prerequisite to the above, during repair order writeup and while performing covered repairs, please refer to the BMW Warranty Policy and Procedure Manual, the VIN-specific key Reader/ISPA Next/AWP (Aftersales Workplace) applications, Warranty Inquiry Information and AIR to assist your Center in the claim submission process.

FEEDBACK REGARDING THIS BULLETIN

Retail Audit Mail Box	Retail.Audit@bmwna.com
Warranty Feedback	Refer the Warranty Policy and Procedure Manual (WPPM) - Section 8. To submit feedback on this bulletin and related topics: Submit an IDS ticket to the Warranty Department, or use the chat available in the Warranty Documentation Portal

Supporting Materials