Document 6511117

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Governing Procedure:
GP009-02 Processing Carrier-Responsible Claims for Inbound Damage
Division:
Category:
Primary User:
Author:
Plant PCO: All Divisions Plant PCO: Assembly Plant PCO: All
Manufacturing Plant PCO: Powertrain/Casting Plant PCO: All
Stamping Plant PCO: Central Stamping Plant PCO: Satellite
Stamping
Receiving Records Follow-Up Floor Material Flow Extension of
Plant Logistics Miscellaneous
Production Control, Material Control, EOP - Extention of Plant
Shelly Eagen/PS/DCC/DCX
Purpose:
The purpose of this process is to provide the standard, minimum requirements for filing transportation claims due to carrier-responsible damage.
HIGH-LEVEL QUALIFIERS TO CREATE / PROCESS A VALID CLAIM:
Damage, shortage, and lost production claims must be submitted to Corporate Logistics within 30 days from the date of incident.
NOTE: If damage or shortage claim contains a CR 29 or CR 30 expedite, you must create the claim within 10 days of the CR AETC creation.
In turn, the completed/validated claim must be submitted to the Carrier [by Logistics] within 9 months from the date of incident.
Remember to review those claims which have been submitted back to you for “rework” (those older than 9 months will be cancelled due to expiration).
The plant is credited once the claim has been submitted for payment from the Carrier or has been closed.
NOTE: All CR’s other than CR29 (shortage) & CR30 (damage) are processed through the SPOC/AETC system and should not be processed as a carrier claim.
NOTE: One of the "Primary Users" in the header of this document only specifies EOP - Extension of Plant. Due to a systems limitation, this is the only option programmed for selection of this type. Therefore, this
procedure is considered applicable to all EOP's, TPP, and Module facilities that bail productive material parts on behalf of Chrysler Group LLC.
*NOTE: This procedure is published in Covisint under the Reference Section, under the Purchasing category.
System(s) Used:
1) Carrier Claims System
2) NCT System
3) Assembly Stock Status (Scrap Ticket Entry) or CMIS (Scrap Ticket Entry)
Inputs / Outputs of Process:
Inputs:
Outputs:
Required evidence to determine carrier-responsibility for inbound damage.
All notifications were sent to all parties communicating the incident & a fully completed & submitted carrier claim with all evidence as required (including a closed NCT
and Scrap Ticket for inbound damaged material).
Frequency:
On demand
Additional Frequency information (if applicable):
N/A
Chysler Group LLC
PCO How-To Guide - GP009 - 02
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Definitions:
See RM001 Acronyms for an extensive list ----->
NCT - NonConformance Ticket
Description / Activity:
Scope:
This procedure applies to all Productive Material damaged upon receipt for all U.S., Canadian, & Mexican plants. Inbound Steel is exempt from this process.
NOTE: All damaged material must be received at its final destination plant.
Responsibilities:
Managing this process is the responsibility of Plant Production Control, both office and floor departments.
Chrysler MUST NOT REFUSE ANY DAMAGED FREIGHT!
1. Per the National Motor Freight Classification, the Carrier has the right to sell all material for salvage, if the trailer has been declined more than 15 days by both the plant and supplier. Therefore,
Chrysler Group LLC MUST NOT DECLINE OR REFUSE ANY FREIGHT OR MATERIAL.
2. Suppliers are not obligated to receive material back because the material is FOB Supplier.
3. Chrysler Group LLC does not want the carrier to have the right to sell the material due to warranty issue (where damaged parts could be sold to dealers and installed on Chrysler vehicles).
* Chrysler Group LLC also pays for detention on trailers while a disposition is being made.
4. Receive in the material.
a. If the trailer was in an accident, THE MATERIAL MUST STILL BE DELIVERED TO THE FINAL DESTINATION PLANT!!
i. Receive all of the material - Do not have the supplier ASN cancelled.
ii. Create a DP NCT and ensure an email notification is sent to the carrier.
iii. Follow the process to file a transportation claim.
iv. Follow internal procedures for scrapping damaged material.
b. If the trailer is in an accident or material is damaged and the supplier agrees to rework:
i. Receive all of the material - Do not have the supplier ASN cancelled.
ii. Create a DP NCT and ensure an email notification is sent to the carrier.
iii. Allow carrier inspection (allowed 5 days): do not disposition the material until they inspect or give up the right to inspect.
iv. Send the material back to the supplier by issuing an RMO shipper (put in the notes due to carrier damaged - this is so the supplier does not get paid twice for the material).
v. Coordinate with Material Supply Operations to exclude this incident from the Supplier's delivery performance.
5. Supplier disposition:
a. Instruct the supplier fill out a work order, for the amount of parts scrapped, the material scrapped (of the part and to fix it), the cost of labor, and the cost of the transportation move. This information is required
to be input into the carrier claim for potential reimbursement to the plant but will then need to be debited back to the supplier.
b. Instruct the supplier to ASN any good material back.
c. If the carrier does not agree with the inspection and/or outside sorting:
i. Receive the material.
ii. Create a DP NCT and ensure an email notification is sent to the carrier.
iii. Allow the carrier to inspect:
1. If inspections do not agree on results of the inspection and/or want an outside sort- the carrier may pay for an outside sort (if that is possible) that Chrysler Group LLC and the Supplier agree to. Carrier
sets up payment.
a. The plant must receive all material, scrap the damaged, and use the 'certified' parts.
b. "Safety" regulated parts are non-negotiable for sorts per the US government.
2. If Chrysler Group LLC can not scrap the material:
a. Create an NCT.
Chysler Group LLC
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b. Chrysler Group LLC will return the material back to the supplier via an RMO (after inspection by the carrier) and require an RMA (Return Material Authorization) number from the supplier, prior to
filing a claim (this should only be for hazardous material). No scrap value will be given to the carrier, except if the supplier submits any additional charges.
Monitoring/ "Exception" Control:
See HT108 for monitoring.
Flow Chart / Other Reference:
1. Look for any visual damage
prior to unloading the trailer
1.
Perform a visual
inspection of load
prior to unloading
2. Stop unloading the trailer if
encounter damaged material and
notify your supervisor immediately
2a. A yellow suspect sticker will
be placed on a container that an
ILC suspects the material to be
damaged
2.
Upon seeing
damaged freight,
stop unloading and
notify supervisor
NOTE: The ILC's
are required to
attach a yellow
sticker upon
THEIR
identification of
inbound material
damage
2b. Obtain the required
information to determine who
is responsible for the
damaged material
2.
Is there a
yellow sticker
on material?
3.
Take 3 photos on
the trailer
4a.
*3 pictures
*Trailer
number
*BOL
4.
Follow the plant
Process for
recording
disposition hours)
5b.
Plant Process
dictate notification
3. If there is not yellow sticker
three photos need to be taken
on the trailer (photos of 3
different angles)
4. A DP NCT needs to be
created and the photos,
trailer number, and BOL are
needed
No
3a.
*Date and
Time stamp
* 3 different
Angles
5a.
Email is sent to
Carrier
(Through the NCT
and by plant)
Yes
2a.
Obtain the following info
from the sheet / ILC:
ILC, date, time, contact info,
and pictures of damaige
2b.
Determine damage
responsibility (supplier, ILC
delivered, or prior ILC on
route)
5. Notification is sent to
the carrier/supplier and/or
the plant/ILC personal
5a. Carriers are sent an email by
the plant and systematically when
a DP NCT is created, if the
carrier's email profile is set up
5b. Plant/ILC notification of
claims coordinator and quality/
receiving inspection will be
dictated by plant process
5.
Notification is sent
to appropriate
people
2c.
Follow the proper
Damage Process
6. The dock person
continues to unload the
trailer
7. The dock person is to
receipt the trailer per the
plant procedure
6.
Continue
Unloading
7.
Receipt trailer per
the plant process
End Process for
Dock Person
Chysler Group LLC
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1. The carrier DP NCT notification will be set up
according to the plants process. This, and the plant's
email notification, will initiate a possible claim with a
carrier.
2. Update the DP NCT with any historic information
that will help recreate the event (i.e. list of calls
made) or update with any added infomation (i.e. sort
information)
3. This decisions can be found out by the Audit Screen
in CHAMPS (view 4- pool point) or through a routing
instruction in LEEN.
3a. No DCTI claims can be filed
1.
Create DP NCT, and
notify the carrier per
plant process
2.
Verify and Update the
DP NCT as required for
Transportation Claim
4a, 5a, 6a. Banded refers to shrink wrap, securing
devices to pallets, metal and plastic banding. Proper
Packaging refers to containers that are supported to be
stacked three high - per small lot and packaging
manual. Also, all material is to be secured to and on a
pallet
3.
Did it go through
an ILC, TL, Geo
or DCTI?
ILC/ Crossdock
4b, 5b, 6b. Secured in the trailer refers to the DOT
regulation 392. (Material to be secured so there is no
shifting or sliding within the trailer).
TL, Geo
DCTI
5.
Was the damaged
noted prior to plant
arrival?
3a
End Process do
not file a claim
4a.
W as it banded or
proper packaging?
Yes
4b.
Was it secured
in the trailer?
Yes
4e.
End Claim
Process Supplier
Responsible
Yes
5a.
W as it banded or
proper packaging?
Yes
No
Yes
5b.
Was it secured
in the trailer?
5c.
End Process with a
Transportation Claim
ILC
5e.
Change NCT and
CHAMPS RDR to
the last touch ILC
before noted
damaged.
A
Chysler Group LLC
No
No
5d.
W as the last
touch a ILC or
supplier?
5f.
End Process with a
claim for the
last touch ILC
No
No
4d.
Notify Plant Quality
the issue is supplierrelated and follow
plant process for
supplier responsible
issue; update NCT
4c.
End Process with
a transportation
claim
4c, 5c, 6c. The transportation
claim should be filed against
the line haul carrier for rough
intransit or accident causing
damage, since the material was
banded and secured.
5g.
Notify Plant
Quality the issue
is supplierrelated and
Supplier
follow plant
process for
supplier
responsible
issue; update
NCT
4f.
Notify Plant Quality the
issue is supplier-related
and follow plant process
for supplier responsible
issue; update NCT
4d. Since the material was
banded and not secured and it
did not go through an ILC, the
carrier is not responsible.
Modify NCT to show supplier
responsible.
4e. Claim process ends supplier
responsible.
4f. Since the material did not
go through an ILC and was
not banded or proper
packaging the carrier is not
responsible. Change to
supplier-responsible NCT.
5h.
Notify Plant
Quality the issue is
supplier-related
and follow plant
process for
supplier
responsible issue;
update NCT
5i.
End Claim
Process Supplier
Responsible
5. Did an ILC note the material
damaged, before it came to the plant?
Did they put a yellow suspect sticker on
the material?
5d. Last touch refers to the last shipper
that loaded the material before it was
denoted damaged by the ILC.
5e. Based on the first ILC to note the
material damage, change the
CHAMPS RDR to the last ILC that
shipped the material since they are
responsible for the damage
5f. Process ends with a transportation
claim filed against the ILC.
5g. If the first ILC on the route noted the
material damaged, then the carrier is not
responsible. Modify NCT to show
supplier responsible and end claim
process.
5h. Since the material was not banded
or proper shipping container, the issue
is supplier responsible.
5i. Claim process ends with supplier
responsible NCT.
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A
No
6a.
W as it banded or
properly
packaged?
Yes
Yes
6b.
W as it secured
in the trailer?
6c.
End Process with a
Transportation Claim
No
6d.
File claim against the
last touch ILC
No
6e.
Reverse the
CHAMPS Carrier
DRDR to Supplier
& modify NCT
6f.
End Process
Supplier Responsible
6d. Since the material was not
noted damaged prior to arrival to
the plant (the material was
banded but not secured) the last
touch ILC is responsible
6e. Since the material was not
banded or proper shipping container,
the CHAMPS DRDR is to be reversed
to supplier.
6f. The process ends with supplier
responsible .
ALL RDRs must be submitted at the time of receipt to the plant in accordance to GP051!
Related Document(s):
RM019 Link to NCT website
RM020 Link to Carrier Claim website
RM060 Carrier-Damage Checklist
HT106 Create DP from URL
HT107 Create DP from Scratch
HT108 Monitor Carrier Claim Status
HT162 Notify Carrier
Function:
Purpose of Reference:
Reference Source/Example:
Related Document(s):
Information / Data Required:
Document/Form Example:
Document Retention:
Additional Retention information (if applicable):
Report Source:
Chysler Group LLC
PCO How-To Guide - GP009 - 02
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Disposal Method:
Electronic Notification:
Distribution List:
Revision History:
Rev Num
Edited
Comments
History of Status:
This Governing Procedure was 'Proposed For Approval' on 10/10/2008 02:15:25 PM by Michelle Eagen
This Governing Procedure was 'Approved' on 10/14/2008 12:55:04 PM by Michelle Eagen
This Governing Procedure was sent to the electronic notification list on 10/14/2008 12:55:09 PM by Michelle Eagen
This Governing Procedure was 'Proposed For Approval' on 06/30/2009 09:05:50 AM by Michelle Eagen
This Governing Procedure was 'Approved' on 06/30/2009 09:16:40 AM by Michelle Eagen
This Governing Procedure was sent to the electronic notification list on 06/30/2009 09:16:46 AM by Michelle Eagen
Old Revision History
Rejection Notes
Chysler Group LLC
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