full announcement - ServiceMatters.com - Whirlpool Corporation

MEMORANDUM: REMANUFACTURE OF CONTROL BOARDSTO:All Whirlpool Authorized Service CompaniesDATE: February 2, 2009RE:Announcing Parts Return Process ChangesIn the past several months, Whirlpool Corporation has encouraged all areas of its business unitsto understand the changing economic environment and investigate ways to do businessdifferently, as we prepare for an even stronger future.Therefore, we are excited to share with you that a cross‐functional team has been analyzing thecurrent program of remanufacturing electronic control boards. After studying the process andrequesting input from Parts Distributors, Servicers and consumers, the team has developed twoinitiatives to test and analyze results in order to create a ‘best practice’ process.Both initiatives will have their own list of SKUs, and will be differentiated as follows:1) A refresh of the current core charge and return process… incorporating bettercommunication to help build awareness of the need to remanufacture control boards, whileintegrating a customized label that will quickly identify SKUs that are part of the process,and2) A voluntary return process with NO core charge applied… making it simple to participate byincluding a pre‐paid, shipping label for either the technician or the consumer to drop thereturn part in the mail. This eliminates the need for a core charge debit and credit process.This new process is being tested to see if the return rates will be adequate.As the two initiatives are tested, the benefits will become evident through…• Better service for our consumers – maintaining FSP® standard part availability• Improved quality – Whirlpool engineers can analyze data from the returned core boards• Protection of the environment – recycling is a more efficient use of resourcesAttached are reference pages that provide examples of the return labels, instruction sheets, thenewly created identification label for boards that are part of the program, as well as a FAQ forthe Reman Initiative.Whirlpool Corporation and the Reman Team appreciate your willingness to participate, as wework together to formulate a best‐practice for a valuable program. If you have any questionsregarding the information, please feel free to contact your Field Service Representative.Attachment: Instruct‐FAQ for Reman Initiatives

REMANUFACTURE OF CONTROL BOARDSRequired Remanufacturing Process with$35 Core Charges included…Each SKU listed on the previous page will beshipped with the following items…A Green Label on theexterior of the packageidentifying that theenclosed control boardhas beenremanufactured…meeting Whirlpool FSP®Standards.Voluntary Remanufacturing Process withNo Core Charge included…Each SKU listed on the previous page will beshipped with the following items…A Green Label on theexterior of the packageidentifying that theenclosed control boardhas beenremanufactured…meeting WhirlpoolFSP® Standards.Within the package is aCore Return Tag thatoutlines information onthe product beingrepaired. This providesinformation back to boththe Whirlpool CollectionCenter and eventually toWhirlpool Engineering foranalysis.Within the package areinstructions for returningthe damaged controlboard back to theWhirlpool CollectionCenter. It includes theinstruction for noting theAppliance Serial Numberon the return label forfurther quality analysis.Also included is thereturn instructions forboth the core chargedebit/credit process, aswell as packaging thedamaged board forshipping back to theWhirlpool CollectionCenter through yourParts Distributor.NOTE: A strip of tape willalso be included so thecustomer can easily resealthe cartonAlso included is aprepaid shippinglabel, allowing eitherthe technician or theconsumer to simplydrop the packageinto the mail box forshipping back to theWhirlpool CollectionCenter direct.

REMANUFACTURE OF CONTROL BOARDSFrequently Asked QuestionsQUESTIONWhat was the idea behindthe Voluntary ReturnProcess?How does the VoluntaryReturn Process work?Why are there both aVoluntary and a Core ReturnProcess?How was the list of SKUschosen for the VoluntaryReturn Process?Do remanufactured boardsmeet Factory SpecificationPart (FSP® ) standards?Do the boards beingreturned in this programsupport only out‐ofwarrantyservice calls?Is it the technician’sresponsibility to return theboard, or the consumer’sresponsibility?ANSWERThe Voluntary Return Process is modeled after other popularrecycling programs like printer ink cartridges for instance. Bymaking the return process virtually effortless, customers can dotheir part to protect the environment without sacrificing time orconvenience.The customer or technician simply repackages the old computerboard, using the new part’s bubble wrap and carton. Write theappliance serial number in the space provided on the partnumber label, and seal the carton with the tape provided. Placethe merchandise return label on the outside of the box, and crossout any other shipping labels or markings. Drop the carton in theU.S. Mail for pick‐up.We will be evaluating the results of both the Voluntary and theCore‐Charge Return Processes to determine which provides thehigher rate of return. Since the returns of electronic controls arevital to future supplies of parts, it is imperative that there is avery high percent of participation. While we would prefer tocontinue with a volunteer process, we will evaluate the returnrate of both in the coming months.Many variables were taken into consideration, including theexpected future demand, vendor relations, and the complexityand cost of the computer boards.All new and remanufactured computer boards meet FSP®standards and have the same 90 day warranty. Whirlpoolengineers work closely with vendors to ensure remanufacturedboards meet or exceed OEM specifications.This program includes computer boards that are used for allpayment types, including warranty, COD, and Extended ServicePlans.In warranty, the technician should take responsibility to returnthe part. However, the program is set up so that anyone canleave the part for the Postal Carrier to pick up.

REMANUFACTURE OF CONTROL BOARDSFrequently Asked QuestionsQUESTIONWhat if the customer wantsto keep the part?This is going to take up quitea bit of time; who is going topay me for this addedexpense?Where is the return centerthat is collecting boards forthe Voluntary ReturnProcess?Can I just bring the part tothe local recycling center?ANSWEROn an in‐warranty repair, the part belongs to Whirlpool. So,unless the customer is willing to purchase the part, or there is adamage claim and the customer wants to retain the part for theirinsurance company, the part should not be left with thecustomer.If the customer is being charged for the part and a core‐charge isinvolved, the customer would have the option of paying theadditional core‐charge to keep the part.If a core –charge is not involved, the servicer should try toconvince the customer that it is best to recycle the part for boththe environment and for future part fulfillment.The program is designed to be the most convenient method ofreturning parts. The time involved is minimal and the futureassurance of part availability and environmentally friendlyrecycling will be good for everyone.Returned boards are being sent to:Whirlpool Parts Return Center1404 Progress ParkwayEveleth, MN 55734No; the local recycling center is not equipped to handle this typeof electronic control and will be simply disposed of in a “green”way. The importance behind returning the board to our recyclingcenter is so that the controls may be remanufactured to ensureadequate supply in the future and/or diagnosed for futureimprovements.