Matt Lattanzi & April DouglasWarranty & Continuous Improvement Update

• iWarranty (new system)• Department Metrics• Evaporator Coils• Condensing Coils• 2016 Warranty Term Changes• Continuous improvement• Questions

Warranty Update Agenda

iWarranty

• Introduction• Where to find information• Claim Types• Claim Status and RMA Status• Color Coded Errors• How to submit claims: friendly reminders• Claim Search

iWarranty Introduction

• New system to replace current antiquated/legacy system• 3+ years in development• PTC chosen provider after 12+ months of due diligence• Introduced at 2014 distributor meeting• Beta tested with 4 distributors since August 2014• Other distributors slowly moved into new system since May 2015• Goals:

– Efficiency– Accuracy– Better information used to improve products– User friendly

New Warranty Processing Benefits

• “Save” function• Flexibility to save claim and come back to it later• Provides ability to obtain “real-time” claim assistance – save

and call us

• RMA Process on parts returned to NORDYNE• RMA is attached to claim

• today’s back-n-forth process is eliminated• Prints shipping label

• Errors• Prominently displayed during claim process

• QP process simplified• Claim auto created after authorization

New Warranty Processing Benefits

• Claim Approval• Many claims without errors will be approved at the time of

submittal

• “Save As” function• Provides ability to duplicate similar claims to save keystrokes

• Reason codes• Menu driven• Provides information to NORDYNE that feeds into product

improvement processes

• Custom automated reports• Assists in warranty administration

• Claim upload feature

Where to find information

• The Residential Distributor Marketing Manual (Polices) • On e-Nora• Under Warranty tab• Warranty documents• Residential warranty documents

• The iWarranty How-to guide • On e-Nora • Under Warranty tab• Submit claim• New iWarranty how to guide

• The iWarranty Training video • On e-Nora• Under Warranty tab• Submit claim• Access Training video

Claim Types

• Standard Warranty: Applies to out-of-the-box warranty including Quality Pledge claims.

• Other: Auto populates on draft claims created by the system when an authorization number is requested on eNora.

• Parts (OTC): Applies to over-the-counter part-only claims.

• Tech Bulletins: Applies to tech bulletin claims.

• Watchdog ESA: Applies to extended warranty claims. Note: If the unit has standard part warranty claim, then two warranty claims need to be filed.

Claim Status

• DRAFT: This claim has been saved and held as a draft.

• READY TO SUBMIT: This claim is filled out and has no red errors, it is ready to submit.

• CORRECTIONS_NEEDED: This claim has been sent back by NORDYNE to request additional information. Please view notes logged in the claim, make appropriate changes hit save and then submit this claim.

• PENDING: This claim has been submitted by the distributor and is awaiting NORDYNE approval or rejection.

RMA Status

• READY: This claim has an RMA on it and the failed part is ready to be shipped. Please ship part to the testing facility and open the claim to enter in the sent date and the Tracking number.

• SENT: This claim has an RMA on it and has been sent to the testing facility.

• RECEIVED: This claim has an RMA on it and has been viewed at the testing facility. The claim is being held for NORDYNE approval or rejection based on test results.

• PARTS RETURN: This claim has an RMA on it and is awaiting testing results.

Color Coded Errors

• Gray and Green: These are informational errors and will have no impact on claim processing.

• Blue: The probability that the claim will be rejected or “need corrections” increases.

• Red: This claim cannot be submitted until the error is corrected.

Warranty Key Metrics

April Douglas

How to Submit Claims: Friendly Reminders

Submitting Claims

• Select the distributor number here – You will not be able to change in iWarranty once click “start claim

process”.– To edit a draft claim, you must select the exact same distributor

number used to start the draft claim or Authorization claim.

iWarranty Homepage

• The below screen shot is the work queue where all claims that need additional work are stored.

New claim screen

• Skip Coverage and Install date until you enter the service date and hit save.

Parts section

• In the Parts section, enter in the failed and installed part numbers, (If the parts boxes do not show up, please click “Add More Parts”), quantity, parts status and select a cause from the drop-down box.

Coil or Compressor claim• Complete the basic claim the same as the parts only claim including failure and parts

sections.

• Next, fill out the required fields in the Failure section, making sure to fill in the Failed Compressor or Coil Serial Number and fill out the Work Performed section.

Coil or Compressor claim

Next to the Installed part, click the to enter the serial number of the replaced part. Please note that the failed part serial number should have been entered in the Failure section above the Component Code.

How to file an Authorization claim

• Request an authorization number following the same process utilized currently on eNora. Once an Authorization has been approved, the claim will be auto-created within 24 hours with a DRAFT status. Do not manually enter a new claim in iWarranty.

• To edit the draft claim, you must select the exact same distributor number used when you requested the authorization number on e-Nora.

Claim Search

• All claims associated with a distributor may be searched by entering a Claim Number or the dealer number in the search bar at the top left hand side of the screen. Or, the Search Claims tool on your home page can be utilized.

Claim Search

•Any of the below criteria can be used to narrow your search results:

Claim Search

2016 Warranty Term Changes

2016 warranty term changes

• Effective for equipment manufactured after 1/1/2016

• QP on 16 SEER “J” series equipment will no longer be offered.

• QPs across all brands will be limited to one new unit.– A second compressor or HX failure will require replacing the

appropriate parts

Continuous ImprovementMatt Lattanzi

Claims Per Year Forecast

• Claims down 17% in 2014 versus 2013• Claims forecasted to be down another 18% in 2015 versus 2014

– currently down 20%• Forecast verified by third party actuary

Evap Coil First/Second Year Claims(thru June 2015)

Condensing Coil Claims (thru June 2015)

Claims consistently below .5% for many years!!

Thank You - Questions