Diagnostic Time - Warranty Reimbursement: Overview
Group 01Warranty
Bulletin Number
01 09 95 (4318)
Woodcliff Lake, NJ
April 1997
Product Engineering
This Service Information bulletin is being re-issued without changes to emphasize the subject material. (Previously issued December 1995)
SUBJECT:
Reimbursement for Diagnostic Work
MODEL:
All
Situation:
This bulletin restates warranty policy for diagnostic time utilized while addressing a customer complaint.
Current Policy
BMW currently provides one of the most liberal policies in the industry for warranty repairs. The reason for this policy is to permit you to perform all warranty work and receive full reimbursement on one claim.
1. Valid diagnostic time necessary in conjunction with performing a warranty repair may be claimed for that repair.
2. Valid diagnostic time (up to a maximum of one half hour) which initially does not result in locating a defect may later be added to the warranty claim submitted in conjunction with a final defect repair.
3. Area Team authorization is available permitting you to claim for diagnostic time per repair order.
"Enhancement to Current Policy"
Warning Light on - (SRS, ABS, Check Engine Light, Etc.)
Also other diagnostic time - no problem found
Warranty Index over 100%
Should a customer request repairs due to a warning light being illuminated, the fault memory should be interrogated and diagnosis performed as necessary. BMW will cover the diagnosis and clearing fault memory under the terms of the applicable warranty for up to one half hour which may immediately be claimed. This policy also applies to other intermittent problems where diagnosis is performed but no problem found. Should the diagnostic time exceed one half hour, Area Team authorization is required.
Warranty Index at or below 100%
Dealers who have achieved a warranty index at or below 100% during the preceding 3 months, do not require Area Team authorization should diagnosis time exceed one half hour when no problem is found.
In General
Many of the situations which result in extended diagnostic time, lengthy road tests by the technician and work performed unnecessarily are the result of incomplete service write-up. Service Advisors need to take the time to carefully listen to the customer, inspect the vehicle during the write-up process verifying the VIN, mileage, vehicle condition and customer complaint. Often this may require a test drive with the customer explaining in detail how a system was designed and operates or otherwise defining the customer complaint. Time expended and parts used unnecessarily by the technician adds to the cost of ownership and customer dissatisfaction.
Proper component testing can lead to a repair rather than the replacement of a part. The replacement of an electrical component, for example, can often be avoided by physically separating, cleaning, inspecting for integrity and repairing the connection prior to reinstalling the part. Remember, a valid warranty claim does not require a part being replaced.
Test drives to warm up the vehicle, clarify a customer complaint and verify the quality of a repair are not covered by warranty.
Warranty Information:
Detect Code -
Always select the nearest code available for the cause or complaint requiring the diagnosis or cleaning the fault memory, however, if no further problem found enter 7 as the 7th & 8th digit.
xx xx xx 77 xx
Flat Rate -
0000005 - 3 for interrogating the fault memory when appropriate.
0099000 - WT for additional diagnosis and troubleshooting time as necessary when no problem is found.
Comments -
In all cases, please be specific as to what work was performed.
Quality Observation Report
A Quality Observation Report (pink sheet) for each case where no problem was found, must be submitted. The report should detail the diagnostic procedure performed and the fact that after diagnosis, no further repair is indicated.
Documentation Requirement
In all cases, valid time documentation must be maintained and correct diagnostic procedure be followed. Diagnostic time in excess of one half hour normally indicates the need to contact the technical hotline.
DIS printouts are to be attached to the repair order on file and provided upon request. With the release of software version 5.0 for DIS, a completed diagnosis report must be produced and kept with the R.O. Refer to the Warranty Policy and Procedure Manual, Section 5, 6 & 8.
All warranty payments are subject to audit.