FINAL PRESENTATION

My final presentation today went extremely well. I was able to convey the message across to the audience without boring them, and when it came time for comments and reflections at the end I had no remarks what so ever. Job well done I think!!

2ND REPORT DUE

We were at last able to rid ourselves of this burden that we have been carrying for almost a year, as today I  submitted the second  and final assessment. I am silently confident that we have produced a decent report seeing as we were extra careful in its preparation leading up to today.

For now, my sights are firmly set on my final presentation tomorrow.I hope things should go according to plan, seeing as I just need pick those important points from the report to showcase my research. Bring on the final presentation!!

REPORT CONCLUSION

Throughout the course of this assignment, I have learnt the importance of certain aspects in owning and operating a successful business. The importance of having skilled labour within the business and how it affects the work output and efficiency of the business is vital as it is the main working force that drives the business. It is also essential to continue to keep the workforce up to date with current technology to keep them skilled and efficient. 

Having your business insured against possible liabilities and damage is imperative as accidents will happen in this industry and having insurance makes that sure you are protected when accidents do occur and minimizes the risks. 

Important factors such as knowing the different organizations that affect your business, how they all contribute to the success of the business, how the competition will affect the smooth operation of the business, making sure the business has proper financing in order to keep the business running smoothly is also very important as this saves the business a lot of time when keeping track of income. 

Finally the working ethics and ethical practices that affect the business is another key factor. Ethical practices not only help to ensure the business is a trust worthy organization, but it also helps create a good working environment for the staff, making the business easier to manage and operate. With the business operating smoothly and efficiently, it is much easier to create a good and friendly relationship with customers which encourages them to come back therefore creating repeated business. 

Finally I believe it is important to keep up to date with current trends in the industry and adapting to these trends such as technology advancements, pricing, and service quality in order to have a successful business for the future.

RELATED ORGANISATIONS

New Zealand Transport Agency (NZTA)

The New Zealand Land transport agency is the main organization which governs and protects all that is related to the automotive industry. They work very closely to the relations of the industry and are responsible for affordability, safety and responsive sustainable land transport system. 

They also have a huge role in investigations on accidents, managing projects related to road construction, repairs and building new road systems. The New Zealand land transport agency is also responsible for enforcing all the rules and regulations relating to land use, transportation, and transportation services. They are also responsible for enforcing rules and regulations for businesses which are related to transport services, vehicle repairs and even vehicle dealers. 

If help is needed, the New Zealand land transport agency will provide advice and assistance even to government and private organizations upon request. NZTA is the government organization that administers the WOF to workshops and its technicians.

(NZTA, 2012)

Motor Trade Association (MTA)

Is a membership organization, set up in 1917, it has around 4000 members that stretch from vehicle repairers to car dealers. To be a member, an annual membership fee of approximately $800 is required.

The organization also provides WOF training, whereby one day of WOF training is around $552. If you are a member, the fee is half price at $276 bucks.

Upon joining the class and passing the exam, you will receive certification in WOF inspection. Also, if you are a member, you are permitted to carry the MTA logo on your work shop to show customers that you are a professional.

(MTA, 2012)

Occupational Health and Safety (OSH)

They are the government service responsible for inspections, information and training activities in the area of occupational safety and health. The objective of the Health and Safety in Employment Act (HSE) 1992 is to promote the prevention of harm to all people at work, and others in, or in the vicinity of the workplace.

The Act applies to all New Zealand workplaces and places duties on employers, the self-employed, employees, principals and others who are in a position to manage or control hazards. The Department of Labour administers and enforces the HSE Act in most workplaces.

(Department of Labour, 2012)

References:

WebLogix Ltd. (2001). “Simms”. Retrieved from: http://www.simmsautoelec.co.nz/wa4e6b.html

NZTA. (2012). “About Us”. Retrieved from: http://www.nzta.govt.nz/about/index.html

MTA. (2012).“About us”. Retrieved from: https://www.mta.org.nz/aboutus

Department of Labour. (2012). Health and Safety in Employment Act 1992 (HSE Act)”. Retrieved from: http://www.osh.dol.govt.nz/law/hse.shtml

SPECIALIZED SERVICES

During the repair process of a vehicle, there are instances where parts are deemed too expensive replace, either for new or second hand parts. In this case, it may be more cost effective to repair the old parts, therefore creating a need for automotive parts specialists.

Common repair work includes:

• Engine reconditioning
• Radiator repairs
• Auto electrical repairs

Examples:

Specialized Services Summary:

• Each company only specializes in one specific area of the vehicle for repair.
• They offer a top quality service and have professional, skilled staff 
• They are able rebuild key vehicle components, which would otherwise be costly to replace
• They do repair work that workshops are not equipped to do

2ND HAND SUPPLIERS

New Zealand has 4,327,944 people in this country and according to the World Bank report, there are 603 vehicles for every 1000 people, (The World Bank Group, 2012).  Some of these vehicles are older than ten years, and the older the vehicle becomes, it starts to display problems, and replacing the old parts become necessary.

While replacing wearable parts such as filters, gaskets, brake pads, are a common and are normally cost effective. Replacing larger and more complex parts such as starter motors, alternators, window control units, engines, and transmissions become a more expensive exercise and so on most occasions it is cheaper to replace with second hand recycled parts. This creates the need for second hand parts suppliers.

Key second hand parts dealers include:

• Pick-A-Part
• Parts Connection
• Dodsons Autospares

Second-Hand Parts Suppliers Summary:

• Second hand parts suppliers purchase their parts from parts dealers in Japan or as entire car bodies within New Zealand at damaged vehicle auctions.
• Most suppliers offer a warranty on their parts, which vary from approximately 2 weeks to 3 months.
• For security and return purposes, they will mark the parts by engraving or marking it with a colored marker. All suppliers have their own unique way of marking their products.
• As their parts are usually second hand, the resell price for the parts are normally cheaper than genuine parts.

WHOLESALE SUPPLIERS

In New Zealand there are four key parts suppliers; these are BNT, Repco, Part masters, and Auto stop. They supply anything from a small bolt to belts, gaskets, pistons etc. Normally any wearable part that is replaceable can be supplied or out sourced by these company’s.

Wholesale Parts Suppliers Summary:

• They provide a good service, and offer quality products at a competitive price.
• They are easily accessible to everyone, both trade and general public customers.
• They have sufficient storage capacity to store all bulk parts and products. 

When purchasing parts through a supplier, if you belong to a work shop you do not need pay the bill immediately, you are just required to setup an account, and then settle the account at the end of each month. Upon purchasing a part or product, you need to present an order number, which is usually the registration number belonging to the repair vehicle, and this helps with processing the bill.

SPARE PARTS SUPPLIERS

In the part one internal factors section, I mentioned how to order parts. In this part I will explain how workshops deal with parts suppliers.

The parts supplier has two sets of pricing:

• Retail price: To those people buy parts without account
• Trade price: To those people buy parts with account

How to set-up an account

The parts supplier welcomes most businesses to sign up for the trade scheme, but the work shop is required to apply and sign an application form.

 

What is the meant by a reference?

In the application form, a prerequisite is that you provide reference suppliers that can vouch for your good trade history. These are usually previous suppliers which you have had and dealt with on a regular basis. 

The new parts supplier will check your record with your reference suppliers, and if your record and credit is good and clear, your application will be accepted.

Work order numbers

An order number is the key identification code for a job and is usually the registration or plate number of a vehicle. For instance, if a vehicle being worked on requires a reverse light, we would order from the parts supplier and the order number used to identify this particular job would be the registration (i.e AKQ403).

In this way, the workshop and part supplier can communicate by referring to the registration number as the work order number, which means that the supplier does not need the year, model, engine number, or chassis number as this can be found out on a database site such as “Carjam”, just by entering a vehicles registration.

How the company settles the account bill?

If the workshop has an account, on November you need pay the October bill, the part supplier will send you an invoice statement which has a list of all the ordered parts for the month. The invoices are normally arranged from the months beginning purchases to the months end. The account is usually paid for in full on the first week of every month.

How the crediting system works?

When you order parts from the parts supplier, the supplier sometimes confuses the order and so they allow return options for these cases. In one instance, you might receive more than one of the same products in which case you may choose to keep one and then return the rest. Another case might be that you order a part and found that the part is incorrect, and so you may return it, and reorder the correct part.

Whatever the scenario, if you order parts and they are placed on the company’s account, the account will be charged out irrespectively. But once the part has been returned, the supplier will then credit the account. In order to receive a credit, you need to present the invoice to the supplier, as the invoice contains the invoice number, the workshop name, and order number.

 

Other organizations that also contribute to a successful workshop are parts suppliers and specialist workshops. Not all workshops can afford high quality or original parts that require time to acquire either from an overseas source or from a dealer. Spare parts suppliers help contribute to workshops wellbeing by providing the necessary parts at special prices pre-set for trade customers. 

In this way, business relations are encouraged so that workshops are being supplied products that they need at competitive price and the supplier is making money by selling more goods. 

   

Specialized organisations such as panel beaters, tyre specialists, and also transmission specialists can help by providing the necessary skill and work that the workshops might not be fully equipped for. 

Specialised workshops are important and necessary as general workshops are mostly only able to provide services to small problems that are common. 

The more difficult problems require very skilled labourers who have a advanced knowledge in that field which most normal workshops do not have. General workshops can get help from the nearby specialist workshops for a small fee. This way the general workshops can keep a good rapport with customers instead of sending them away to other workshops. 

There are three main categories of suppliers. These are:

• Wholesale Parts Suppliers
• Second Hand Parts Suppliers
• Specialized Services

OUTSOURCING

It is very rare for one workshop to be equipped for every vehicle and motorcycle problem. For this reason, the workshop needs to co-operate with other specialist workshops in order to survive. For instance, if a job is an electrical problem, then they need to take the vehicle to an auto electrician is well trained in vehicle diagnostic procedures.

SKILLED LABOUR

Simply put, one of the most important aspects of running a successful business is the effective and skilled labour of the staff. There are different ways of ensuring that a staff member is effective and skilled through training and supervised work or simply hiring an already skilled mechanic. Both of these methods have their advantages and disadvantages. 

Advantages

Hiring an unskilled labourer and training such an employee would take a lot of time and effort to train up to a reliable and effective employee however this way the employee will be very familiar to the business and how everything operates in that particular business. This way the trained employee not only will be effective but can also contribute to the business in other ways such as giving feedback on how to improve the business from the experience he has acquired through training in such a business. 

Disadvantages

Hiring a skilled labourer with qualifications such as the NZQA approved National certificate in Automotive Engineering would already know what to do but the employee may not be very efficient at the start as it may take time for the newly hired employee to become accustomed to the new workshop and the working environment. 

However, having employees that are capable of doing their job alone is not enough to be efficient. Proper managing of the employees and allocating appropriate time for the work and proper distribution of responsibilities are also very important to effective staffing and work. One of the most obvious problems that I have observed is that the distribution of responsibilities within a workshop is not always optimal due to a lack of trust. 

Often employees are made to work under supervision and this could take up time from another employee. This is usually resolved over a long period of time when the supervisor finally trusts the employee to work on his or her own without problem. This lack of trust is due to the supervisor or manager having to take on a lot of liability should an accident occur or if anything gets damaged.

Once the employees are properly trained, supervised and are effectively working on their own with the proper workload distribution you have achieved a very skilled and effective staff. However, this must be maintained as well. Regular meetings with staff to discuss any changes and making sure that the employees are aware of their responsibilities are very important. 

Also employees need to be kept up to date on new technologies in the automotive industry and the managers can help by sending their employees to have special classes to learn about new technologies. This way the effectiveness of the staff is always kept up and kept up to date with new technologies.

APPLYING FOR WOF CERTIFICATION

For the workshop it is a relatively straight forward process to achieve WOF certification. WoF inspecting organisations must:

a) Meet the requirements for inspection premises and equipment

b) Be fit and proper (according to section 2.6 of the Rule). The criteria considered with any application include:

i. Relevant criminal convictions

ii. Transport-related offences

iii. Relevant warnings, penalties and disciplinary actions imposed

iv. Relevant complaints

v. The public interest and land transport safety

c) Have currently employed a vehicle inspector approved for the relevant classes of vehicles.

(NZTA, 2012)

WoF Inspector Requirements

You must currently be employed by or sponsored by a business which is authorised to issue WoF's, and be qualified as:

• An automotive technician with either NZ Trade Certificate, National A-Grade Registration, NZ Advanced Trade Certificate or equivalent
• An automotive technician with either National Certificate in Automotive Engineering, National Registration or equivalent, and three years recent relevant work experience
• A person who has worked in full-time employment carrying out repairs and maintenance to the safety aspects of motor vehicles for at least five continuous years.

You will also need to supply copies of your Trade Qualifications or Proof of Employment in letter form, signed by a Justice of the Peace or a Notary Public. It is a legislative requirement that all applicants must hold and supply a full New Zealand Drivers License.  The future inspector must provide proof of formal training, such as attending an MTA WoF Inspectors course. Within one year you can apply three times, if fail all of them, you need to wait one year to apply. Each time you are required to pay $97.40 to apply and sign a form.

(MTA, 2012)

There are some strict regulations for WOF inspectors for instance, if you had been charged for a driving offence, you will lose your inspector license, or at least receive a suspended WOF license for 12 months. To avoid this from occurring, it is important for an inspector to abide by all the transport laws.

References:

NZTA. (2012). “Appointments”. Retrieved from: http://vehicleinspection.nzta.govt.nz/virms/in-service-wof-and-cof/introduction/appointments

MTA. (2012). “WoF Inspectors Course”. Retrieved from: http://www.mta.org.nz/wofinspectorscourse

WASTE DISPOSAL

There are three types of waste in a workshop:

• Waste liquids
• Waste metals
• Waste rubbish

A workshop generates a lot of waste such as, old parts, waste liquid, waste rags, gloves, packaging, containers, used tires, etc. These waste products all need to be sorted out.

Waste Liquids

Waste liquids like used engine oil, transmission oil, power steering oil, coolant, gear oil, cannot be disposed of in the storm water system as this is an illegal practice and is harmful to the environment.

Instead, usually located at the rear end of the workshop; a blue colored tank is used for containing the used liquids and it will holds up to 300 L. The tank levels are inspected daily, and when you see that it is nearly full, the oil collection company is just a phone call away. The collection company used by Honda is Salters. Normally, collection times are scheduled and collection is free.

Waste Metals

Common recyclable metal products include suspension arms, disk rotors, radiators, starter motors, alternators, car body etc. At Honda, a large steel bin is used to contain all the metal. The collection company (CMA Recycling) empties the bin fortnightly. During the collection process, they sort out the metal, and then weight it.

After the weighing process is completed, they will issue the workshop with a receipt containing payment information, and the money will be automatically credited into Hondas account on a later date. Nowadays, metals like aluminum and copper is fetching a higher price than the iron and steel.

General  Waste

In the workshop there is plenty of rubbish not so different from rubbish at home. For this, a large rubbish bin is used to store all general waste ready for collection.

The company responsible for collecting waste is Enviro-Waste, who normally empty the bins once a week, but you can make a request to get more frequent pick up if required. The price for of collection each time is $50.

 

MARKETING

Marketing can be described as the process of discovering customer’s needs up to the point when the actual sales can be made. It involves the presentation of your products or services; promotion of the products or services to potential customers, distributing the product and looking after customers before, during and after sale has taken place.

Marketing seeks to increase profit by identifying the needs of the customer and exploiting all available opportunities with the available resources. It involves a number of factors including:

• The co-ordination of activities of a dealership operations i.e. selling, delivering, pricing and presentations.

• The assessment of sales potential and customer needs.

• Motivating customers so that they want to purchase the dealership services and goods.

• Ensuring the customer can obtain goods and services in the way that best suits them. 

(“How To Promote A Workshop”, 2007)

Market Research

To begin marketing, it is important to study the market. In order to do this; we need to find out about two sets of people:

a) The customers

We need to know who our customers are, where they are, and what they need. In order to direct our marketing efforts to the right people in the right places and offer them exactly what they want, it is necessary that we find out everything about our potential customer.

b) The competitors

We need to find out who our competitors are, where they are, the kind of services that they offer, how they operate, their strengths and their weaknesses. 

The Marketing Mix

One common way of looking at the market is to consider the Marketing Mix (the four “P`s” of Marketing). These are:

I. The Product

 The customer must be provided with the right product or services. Planning the product therefore involves the discovery of what the customers‟ wants are and how these wants can be profitably met.

II. Pricing

The customer is offered a quality product at a price acceptable to him.

III. Place

The physical location of a dealership will have a critical effect on its success. The product should be provided in the right place or in a convenient manner for the customer.

IV. Promotion

This is the process of increasing customer awareness and desire. It involves providing the product in a manner attractive to the customer.

(“How To Promote A Workshop”, 2007)

Honda’s Marketing Approach

The following are some marketing strategies which Honda uses to promote their products and services:

-Honda has a current website which can be accessed both nationally and worldwide. 

-Set up are free listings for Honda in the internet search engine local directories. 

-The company has established business profiles or pages up on social networks such as Bebo, Facebook, and Twitter. Here the business profile includes a good description, keywords and a link to the Honda website. 

-The company has business cards and business stationery stamped with their name on it. Included on these items are the company’s details such as the company and employee name, physical address, contact details, and website address.

-The company is constantly seen in newspaper and magazine articles, where their expertise in the field is flaunted. 

-The company networks with others who are doing the same type of work and on occasions takes on their work overloads i.e sharing customer with Toyota when overwhelmed with work.  

-There are streaming videos of the company products and services on YouTube and other video sharing and slide sharing sites.

-The company vehicles have the company name and contact information professionally sign written on the side of the vehicles. In this way, the vehicles are utilized for transportation and advertising the business. 

-The company offers a free, no obligation consultation to people you think could use your services. During such consultations offer some practical suggestions or ideas--and before you leave ask for an "order" to implement the ideas.

-Honda place ads on the local directory, i.e the whitepages and yellow pages; both in the hardcopy (book) and softcopy (website) versions.

(Source: www.verdurehealth.com)

Reference:

“How To Promote A Workshop”. (2007). Retrieved from: http://www.avocadoconsulting.com/marketing/c/2007/12/04/467/how-to-promote-a-workshop.html

RUNNING COSTS

The running cost for an average sized workshop costs approximately $200 a month, which is cheaper than the running costs of a three bedroom house in winter, while the water bill would be around $100. The telephone however poses a bigger issue. In your home normally you have one telephone line for the telephone, while a workshop requires two line or more, not to mention a line for the fax machine.

A good way to save money is to transfer the telephone line to the internet line as the internet line is cheaper, though sometimes you may experience bad reception during a phone call. Workshops generally require internet access for everyday business activities, and so usually a telephone company provides a business package which includes the phone and the internet lines for around $180. At Honda, they tend to use the main suppliers available. They are as follows.

Meridian Energy

Meridian generates electricity from New Zealand's renewable resources. They develop electricity from renewable resources such as, wind, water and the sun both here and overseas. Along with retailing electricity, they also develop innovative energy products and services. Currently, they generate and develop renewable energy for New Zealand, Australia, USA, Ross Island, and Tonga.

(Meridian Energy Limited, 2012)

Telecom

Telecom Corporation of New Zealand Limited (Telecom) was formed in 1987 out of the telecommunications division of the New Zealand Post Office, a government department. In 1990 Telecom became one of the first telcos in the world to be fully privatised. Today, Telecom has a significant level of operational scale within the New Zealand telecommunications market, with assets including:

• the PSTN network equipment for fixed line calling
• the XT 3G mobile network
• national backhaul networks
• a 50% ownership interest in the Southern Cross international cable
• one of Australia's most extensive fixed IP networks

(Telecom, 2012)

Water Care

Each day, Watercare supplies around 370 million litres of drinking water to the people of Auckland and treats around 350 million litres of wastewater and trade waste. The company draws water from around 30 sources, treats it and delivers it to homes and businesses via a vast network of pipes. It also collects, treats and disposes of wastewater, including trade waste from industry.

The company also works to ensure the Auckland of tomorrow and its people continue to enjoy dependable services by planning, constructing, and delivering new water and wastewater infrastructure in a cost-efficient manner.

Watercare provides water and wastewater services to around 1.3 million people in the Auckland region. In Papakura, the company provides bulk services to Veolia Water that manages the local network and retails services to the local community.

Watercare is a council organisation, wholly owned by the Auckland Council. The council appoints the company’s board of directors who in turn appoint the chief executive.

(Water Care Services, 2010)

Trade Waste Charges

Trade wastes charges cover the costs of receiving, treating and disposing of wastewater from trade premises on a "user - pays" basis. The trade wastes charge is an annual charge for the period 1 July - 30 June, based on the customer's actual peak discharges to the wastewater system.

The charges are based on three factors:

1. Flow (Rate of Discharge)

This covers the transportation of wastes through sewers and pumping stations to the Treatment Plant, distribution through the various treatment processes, and disposal of the treated effluent to the Manukau Harbour.

2. Suspended Solids

This covers the separation of suspended solids from the wastewater, treatment by digestion, and dewatering and disposal of the resulting bio-solids.

3. Biochemical Oxygen Demand (BOD)

This covers the treatment of the organic wastes after separation of the solids, by biological processes and includes the treatment and disposal of the resulting bio-solids. “BOD” is a measure of the strength of the waste. 

The occupier of a trade premise must pay the greater of:

• the actual discharge with the charge formula applied, or
• a uniform annual charge

(Water Care Services, 2010)

(Source: www.propertycommunity.com)

References:

Meridian Energy Limited. (2012). “Company”. Retrieved from: http://www.meridianenergy.co.nz/company/

Telecom. (2012). “About Telecom”. Retrieved from: http://www.telecomgroup.co.nz/content/0,8748,200633-1548,00.html

Water Care Services. (2010). “About Watercare”. Retrieved from: http://www.watercare.co.nz/about-watercare/about-watercare/Pages/default.aspx

Water Care Services. (2010). “Trade Waste”. Retrieved from: http://www.watercare.co.nz/business/trade-waste/Pages/Trade%20Waste.aspx

PROFESSIONAL ETHICS

The ethical practices of any business that is related to the automotive industry should be fair and un-bias. It should be respecting of the morals and values of the profession therefore helping any employee having good ethical practice. 

It is important for any business that their staffs have good business ethics and also personal working ethics. This means that the staff will all work fairly and with one another and also treat customers with respect and in doing so can help create a good trusting relation with the customers. 

This can also help in keeping the staff working efficiently as there is a strong build-up of trust between the staff. Having good ethical practice can be reflected on the business as the staff can work efficiently this can improve the operations of the business and help make it run smoother.

In terms of competition with other businesses, it is not uncommon to see unethical methods of attracting more customers or using tactics to win customers from other workshops. It is important to have good ethics as this builds good relations with potential investor who can invest in your business provided you can give a safe and trusting relation with the investor. 

This can also affect your relations with your employees and their performance in the business. Having good relations and ethics with your employees ensures that they are not cheating your business and are working for the benefit of everyone within the business.

(Source: www.peopleint.wordpress.com)

ACCOUNTS

What work is involved in an account’s job?

• Making an account book
• Paying the salary to the staff
• Paying the PAYE
• Dealing with water, telephone, alarm company etc.
• Making the salary statement
• Making year account book
• Paying the tax

Smaller companies normally can ill afford to hire an accountant, and so the job usually falls back on the workshop owner to do the book keeping. The accounts person would typically make a rough account book then they would forward the book information on to a registered accountant. This way, the workshop saves a lot of money and time.

Other than the tasks listed above, another primary task of an accounts person is checking the accounts statements from the parts suppliers as it is common for  suppliers to make mistakes such as, charging the wrong parts, putting another workshop name on your name, incorrect charging etc.

One of the most important tasks of an accounts person is paying staff. The last thing you want is to lose staff confidence in you and them complaining that they didn’t get paid and so it is vital to get the job done right the first time. Also, staff members can get sick and take days off from the working day, and so you need make pay adjustments and send out the correct pay statement.  

Having a hired accountant on the payroll, allows you access to company statistics and performance trends such as, knowing whether the company has profited this month or not. Knowing how much money is spent on parts for a set period, and how much money is spent on the salaries etc.

(Source: www.scan2archive.com.au)

LANDLORDS

You need sign a contract with the landlord and negotiate the price for the rent fee and the period for the rent time. The rent fee is usually paid by monthly instalments, and some landlords prefer payments by direct debit, while others prefer bank cheques. On contract some landlords want you to pay the land rates, and so before signing the contract make sure you have read every detail.

The rent time normally is about three to eight years depending on the contract. During midway through the period you have one entitlement to have a break, otherwise known as the break period. For example, if the contract is six years you can stop the contract at the end of the third year, but if you pass the break period then you cannot holt the contract.

When it comes time to sign the contract you both you and the landlord are required to each have a lawyer present for the signing. The lawyers will help define all clauses and help clarify the responsibilities of each party. For example, if the property sustains any damage, then the renter or person who took out the lease will responsible for the damage and will have to pay for it. On the other hand, the landlord needs keep the property well maintained.

(Source: www.stuff.co.nz)

INSURANCE

Insurance is very important in the automotive industry as accidents do occur and very often some of these accidents are very severe. These accidents may include damage to property, damage to customer vehicles and even accidents that can put employee’s lives at risk.Not all workshops have the funds necessary to keep the workshop operating after a big accident and that is where the insurance comes in. Having insurance for workshop owners will minimize the risk of losing their business should an accident occur.

An example of one of the more common types of insurance that a lot of workshops usually get is “business asset insurance”. The business asset insurance cover protects the business property, the internal contents such as stock and customer goods, repairs and cost of replacement for damages that are caused unintentionally.

Depending on the insurance company and the additional protection you want from your insurance package, you can protect even the onsite facilities, signs, gates and fencing, machinery, tools, equipment, and even furniture. You can even have your business insured for the full rebuilding of your business property should a huge accident occur which may result in you losing everything.

(Source: www.abaunited.com)

BANKING & FINANCIAL SUPPORT

One of the important aspects of having a business is the financials of the business. One of the financial aspects is banking. Banking is extremely important for any business as it provides a safe loaning option should you wish to expand or develop your business.

It is also a safe and easy way to keep track of all the money that the business needs and provides a method of receiving payments from customers as well such as eftpos payments. Having good relations with your bank can be very beneficial to your business as this enables you to apply for more loans to further the growth of your business.

Different banks will give you different offers. For instance ANZ is better than the ASB, in that ASB charges fees on every transaction, while ANZ is offers free transactions.
Selecting the right accounts to use is important for making sure that you make the most of the services and benefits that a bank has to offer.  Generally, a credit card is a better option than an Eftpos card, because you do not need to deposit money on a credit card. Also, with a credit card, you normally have 10,000 to 20,000 credit limit for businesses.

Applying for Financial Support
If you want financial support from banks or potential investors, you need to prepare an account book, and a complete track record of the workshop performance to date. The potential investors want to run a financial checking of your workshop.
They want to know if you have the ability to return the support and with interest.
If a workshop provide proof of profit for each year and each month, it is easier to receive approval for financial support.

What you must know:

• The amount you want to borrow
• The period or payment term
• The interest and finance rate

If you can get financial support you are better off extending the payment term, so you have sufficient time to pay the debt, whilst having the ability to pay off the loan earlier. If you cannot pay the debt on time, then you should at least pay the interest on time, otherwise the result will be a bad record on your credit history.

The finance rate is usually around 6% to 29.5% per year, and the finance company acquires the money from the market at around 10% interest, they will charge you 15% to 20% in finance rate per annum. For example, if you borrow $20,000 over a period of two years at an interest rate of 19.5%. The finance company will receive the interest fee by monthly debit and it is divided in to 24 instalments. For the first month, you will pay $833.33, with an interest fee of $325 dollars.  In the second month the payment will be $833.33, with an interest fee of $311.45. As you can see, as time progresses, while the instalments remain the same, the interest fee is reducing every month.

When seeking financial support it is vital to be aware of all the fine print as the interest sometimes increases more and more with time and businesses can collapse by the overload of interest. Also, bare in mind that when you borrow the money the finance company is very friendly, however when you cannot pay the debt and interest, they will become very impatient and at times rude, and so it pays to keep on top of your bills.

(Source: www.elca.ch.com)

LEGISLATIONS

Corporate structure options

Four main avenues are open to overseas entities wishing to set up a business in New Zealand.

They are to:

• Register a branch

• Form a subsidiary company

• Merge with or take over an existing New Zealand company, or

• Enter a limited partnership.

Taxation

New Zealand has a broad-based tax system consisting principally of:

• Income tax and fringe benefit tax

•Resident and non-resident withholding tax (RWT and NRWT)

• Goods and services tax (GST)

• Accident Compensation levies

• Import tariffs and miscellaneous excise duties, and

• Local authority rates on property.                                                                                         (Tripp, 2011)

Stamp duty, gift duty and death duties are not payable in New Zealand. Tax advice provided by lawyers enjoys legal privilege, that is, it does not have to be disclosed to the authorities in most circumstances.

Income Tax (Residency and rates of tax)

For individuals and companies defined as “resident” in New Zealand, income tax is imposed on worldwide income. Non-resident individuals and companies, on the other hand, are taxed only on income derived from New Zealand, and their tax liability may be reduced by the provisions of an applicable double tax agreement. Individuals are regarded as resident in New Zealand for income tax purposes if they have a permanent place of abode in New Zealand or are present in New Zealand for more than 183 days within a 12-month period.

A company is regarded as resident in New Zealand if:

• It is incorporated in New Zealand

• It has its head office in New Zealand

• It has its centre of management in New Zealand or control in New Zealand.

Companies (both resident and non-resident) are taxed at 28%. Individuals (both resident and non-resident) are taxed incrementally at between 10.5% and 33%. As noted above, non-residents are taxed only on their New Zealand-sourced income.

For individuals, assessable income includes (among other items) salary and wages, bonuses, other employment benefits or remuneration, partnership income and investment income. For salary and wage earners, tax is deducted at source through the Pay As You Earn (PAYE) system. Non-cash benefits provided to employees are subject to fringe benefit tax which is payable by the employer.

(Tripp, 2011)

Goods and Services Tax (GST)

GST is a consumption tax charged at 15% on the supply of most goods and services in New Zealand. GST-registered taxpayers must charge GST on the goods and services they supply and can obtain a credit for any GST they pay in the course of their business. In this way, the burden of GST is passed along a chain of registered suppliers until it reaches the final consumer.

(Tripp, 2011)

Those making supplies in New Zealand are required to register for GST if they carry on a taxable activity (which is similar in concept to a business, but wider in scope) through which they will make taxable supplies of more than NZ$60,000 per year. 

A person carrying on a taxable activity (whether in New Zealand or outside New Zealand) can voluntarily register for GST even if they are under this threshold. Certain supplies of goods and services can be either exempt from GST or zero-rated (e.g. the supply of financial services, services performed as an employee, some services supplied to non-residents and residential rental accommodation).

(Tripp, 2011)

Accident Compensation Levies

New Zealand operates a no-fault accident compensation scheme whereby persons suffering from accidental injuries need not prove fault before receiving compensation. The scheme provides for some financial assistance for medical expenses, loss of earnings, and compensation for dependants in the case of death. All compensation is paid by the Accident Compensation Corporation (ACC), which is funded by:

• Levies paid by all employers, self-employed persons and private domestic workers for work-related accidents. The levy for the self-employed and private domestic workers is set by regulation, whereas the levy for employers is determined by the industry risk class applying to the employer, and may be adjusted up or down depending on the individual employer’s safety management practices

• Levies paid by self-employed persons, private domestic workers and employees for non-work related accidents

• A residual claims levy paid by employers, private domestic workers and the self-employed to cover claims outstanding prior to the introduction of the Accident Insurance Act 1998, and

• Funds set aside by Parliament to fund compensation for injuries to non-earners.

(Tripp, 2011)

Another option is the ACC’s accredited employer programme under which employers can elect to pay no levy, or a reduced levy, in return for funding all or a share of any compensation entitlements incurred at their workplace. To be accepted for the programme, the employer must satisfy a number of criteria, including a minimum level of safety expertise and financial solvency.

Consumer protection

The principal pieces of consumer protection legislation are the Fair Trading Act 1986 and the Consumer Guarantees Act 1993.

The Fair Trading Act

The Fair Trading Act applies to anyone involved in trade. It prohibits (generally whether the activity is intentional or not):

• Engaging in conduct which is likely to mislead or deceive

• Engaging in conduct that is liable to mislead as to the nature, manufacturing process, characteristics, suitability for purpose, or quantity of goods

• Engaging in conduct that is liable to mislead as to the nature, characteristics, suitability for purpose, or quantity of services

• Engaging in misleading conduct in relation to employment that is or may be offered to a person

• Making false or misleading representations in respect of goods or services.

(Tripp, 2011)

The Fair Trading Act also deals with consumer information, falsely applying trademarks, using coercion in connection with supply, offering prizes without providing them as offered, bait advertising, pyramid selling schemes, consumer information standards, product and service safety standards, product recall and the sale of unsafe goods. The Act is enforced by the Commerce Commission and gives consumers direct rights of action. Anyone providing goods or services needs to be aware of the Act.

The Consumer Guarantees Act

• Provides consumers with certain basic warranties in relation to goods and services

• Sets out certain guarantees that relate to the quality, suitability and other aspects of goods and services

• Gives consumers remedies against suppliers where goods or services fail to comply with one or more of those guarantees.

The Act does not apply to dealings with business customers and commercial contracts usually contain a specific acknowledgment of this effect. It applies only to persons buying goods or services for the purposes of household or domestic use.

(Tripp, 2011)

Resource Management Act 

The Resource Management Act 1991 (RMA) is New Zealand’s principal statute relating to the use of land, water, minerals, the coast, air and physical resources. The Act aims to promote “sustainable management of physical and natural resources”. The Act also seeks to maintain and enhance New Zealand’s “clean, green” image. The RMA has major implications for industrial projects and property developments. A new development may require a number of consents under the Act before it can go ahead.

Controls on development are administered by locally elected Government authorities and are expressed through a range of publicly notified plans. These include regional plans, regional coastal plans and district plans. Plans set out rules for activities in various locations or “zones”. Parties seeking consent to proceed with a development must follow the procedures set out in the relevant plan, and this may involve public participation through the public notification of the consent application.

Privately owned land may be designated in the district plan as being required by the Government for a public work, which may result in the land being acquired by the Government (compulsorily if necessary). The current market value of the land would be paid as compensation.

(Tripp, 2011)

Building Works

The Building Act 2004 is designed to regulate and control building work and the use of buildings. Every new building and most substantial alterations or additions to existing buildings will require a building consent. Multiple-use approvals are available for group home builders who build homes throughout New Zealand using the same or similar plans.

On completion of works, a code compliance certificate will be issued, provided compliance with the building consent has been satisfied. Allied to the Building Act is the Building Code. This sets criteria to ensure buildings are safe, sanitary, have adequate means of escape and, in the case of public buildings, have access and facilities for disabled persons. Existing buildings, which are being altered, may require upgrading in the course of the alterations in order to comply with these criteria as nearly as is reasonably practicable. Buildings considered earthquake prone may also be required to be upgraded.

The Act imposes restrictions upon occupation of a building where public areas of that building are subject to building works for which a code compliance certificate has not yet been issued.

(Tripp, 2011)

Labour and employment (Employment Relations Act 2000)

The Employment Relations Act is the principal statute governing employment in New Zealand. It aims to promote good faith in the employment relationship and the right of workers to bargain collectively.

Agreements must be in writing, and may be individual (between an individual employee and the employer) or collective (between one or more unions and one or more employer). As of 1 July 2011, employers must hold a signed copy of employment agreements.

Union membership is not compulsory but all collective agreements must be negotiated and concluded by a union.

(Tripp, 2011)

Good faith

The parties to an employment relationship must not do anything, either directly or indirectly, to mislead or deceive each other. They must be “active and constructive,” as well as “responsive and communicative” in their dealings.

The Act also requires parties to bargain in good faith. Employers and employees/unions must, at a minimum, come to the bargaining table, listen and respond to what the other party puts forward.  Parties bargaining for a collective agreement must conclude the collective contracts unless there are “genuine reasons” not to.

Further, employers proposing to take an action that may have an “adverse effect” on their employees must (subject to genuine although strict confidentiality exceptions) provide information about the decision and consult with their employees in good faith before the decision is made.

(Tripp, 2011)

Reference:

Chapman Tripp. (2011).DOING BUSINESS IN NZ: Regulations affecting business. Retrieved from: http://www.chapmantripp.com/publications/Pages/DOING-BUSINESS-IN-NZ-Regulations-affecting-business.aspx

EXTERNAL FACTORS ASSESSMENT BEGINS

In our first assignment we investigated a workshop and observed their day to day activities, followed their operations and compared some of the New Zealand regulations and legislations with the workshop. This assignment however will talk about the external side of the business that we normally won’t observe but is also an important part of any workshop as it involves business aspects that are needed in order for the workshop to function and operate efficiently.

Source: www.leoisaac.com

REPORT DUE

We were at last able to rid ourselves of this burden that we have been carrying, as today we submitted the assessment. I am silently confident that we have produced a decent report seeing as we were extra careful in its preparation leading up to today.

For now, our sights are firmly set on our discussion in a few days time.
This morning our group congregated  and had discussion regarding  this. We have worked out who will cover what in the discussion and now we are in the process of preparing slides.
I would hate for things to go downhill from here as we have done well up until now.

I hope things should go according seeing as we just need pick those important points from the report to showcase our research. Bring on the discussion!!

SUMMARISING FINDINGS

Conclusion

After observing the East Auckland Honda workshop, we have come to the realization that the company is compliant with New Zealand regulations. Based on the past experiences with working at other workshops, there are many workshops out there that struggle to comply with regulations as they lack the proper business knowledge and capacity. These types of workshops usually become more prone to having accidents or incur silly errors made by technicians on vehicles, costing the business large amounts of money, which on many occasions can be avoided.

Honda have countered these issues by setting up the employees to follow strict policies when working on vehicles, and following workshop manuals so that when working on a vehicle errors can be eliminated.

Throughout the course of the observations we have learnt the importance of rules and regulations in the automotive industry, and believe that we are lucky that in New Zealand we have a governing body that regulates and enforces those rules. Without such rules and regulations, health and safety for employees within a company would seize to exist and accident levels and death tolls would be high.

Overall, in every business whether it be a dealership or a parts company; it is imperative that they follow the New Zealand regulation’s so that they can produce a safe and sustainable environment for people to work in. When setting up a business of any kind, it is important that we come to terms with and also understand each and every operating context so that we can distinguish what is right and wrong in order to meet all the expected obligations that the New Zealand government has implemented. In the end, it is for the greater good of us all.

5TH OBSERVATIONS

Honda Waste Management System

Honda has a very reliable waste management system. They have bins that are easily accessible inside and outside the workshop. Rags which are used for cleaning are properly disposed of in allocated bins once they have been used. 

The waste management company sends in trucks to remove the general waste bins on a weekly basis, as the bins have the capacity to store a large amount; with the option of early removal just a phone call away if needed.

Recycling truck picking up cardboard                               Truck picking up rubbish

There are also storage containers to dispose of any fluids. These bins are specially designed to contain fluids so that they do not become exposed to people and the environment. These bins are kept along rear end wall of the building. Once the tanks are full, a waste disposal truck arrives to collect the waste by pumping it into a storage tank on the truck. The waste product is then taken away to be disposed recycled or disposed of. 

In New Zealand, the used oil collection system is divided into public collection points, industrial and commercial sites, collection agents and disposal services. 

                                                        TRANSPACIFIC Recyclers

Summary

It is evident that Honda has followed all the legal requirements for waste management, and has played a huge role in keeping employees, the wider community, and the environment safe by promoting sustainable practices, and disposing of waste in a safer manner. This is why Honda is a great company to work with, and it show through the employees and the satisfied customers.

4TH OBSERVATIONS

Health and Safety

It is mandatory for all staff and visitors entering into the workshop to dress according to the Occupational Health and Safety (OSH) standards. This means that staff and visitors are required to wear tight, fire proof clothing or clean overalls to protect the skin from contacting any harmful substance, safety boots with steel toe caps to protect feet from falling objects, safety glasses for eye protection, and breathing respirators to protect from harmful substances in the air.

Customers and visitors are not permitted to enter the works shop at all times, unless accompanied by a senior staff member, and are required to wait in the waiting area in the office. The customers waiting area (office) is separated from the mechanical and panel shops by sound proof walls to prevent harmful gases and noise from entering into the room. This is to ensure occupant safety in the office.

Wash Bays

Located inside the workshop are wash bays with cleans rags, which may be used for wiping up oil spills or cleaning hands. All rags or paper towels used for cleaning must be placed in steel bins as they can spontaneously ignite and start a fire.

Safety Information

Accidents or near misses such as oil spills, gas leaks, etc are a common occurrence in in the workplace and may cause harm if the correct precautions are not taken to rectify the issue. For this reason, Honda has set safety policies in a manual form and Material Safety Datasheets (located in the office), and safety equipment to protect workers.

Located around the entire workshop are safety signs that act as a reminder to wear the proper protective equipment. A safety sign is displayed by the front entrance as you enter the workshop through the roller door. Everyone who enters the workshop must comply with these safety signs, irrespective of who you are. 

                                 Safety equipment Sign                Product Safety Card

Product cards containing a brief description about a product for quick identification and reference purposes are located near dangerous goods. shows instruction procedures on how to safely operate a painting booth. Each instruction is explained in detail, and is displayed beside the painting booth control panel inside the Honda workshop.

A Material Safety Data sheet folder containing in-depth information about all the types of substances used in the workshop is kept in the office, which may be useful when attempting to determine the content of a substance during a spillage.

                                                      Material Safety Data Sheet folder

Work Setup

Work is divided into areas and are labelled clearly. Each vehicle is parked in its own area, while parts being kept separately in a different area to avoid crowding and promote safety in working environment.

Vehicles parked to one side                                       Parts placed seperately

Cleanliness           

Sweeping and steam cleaning the floor  helps keep the floor free from dirt and dust, reducing the possibility of slipping or inhaling dust, which are common safety hazards in a workshop.

Employee sweeping floor                                               Steam cleaning

Ventilation

The workshop integrates a ventilation system which helps remove hazardous gases from the air inside the workshop area, by sucking inside air the through duct ports, cycling the air through a filtration system, before expelling the resultant clean air to the outside atmosphere. At the same time, clean air is been cycled into the workshop from the outside. This allows for clean air in the work space employees to breath. The company also uses many sealed doors at each passage way to prevent dust and gusts of wind from entering the work area, which may hinder the painting process.

Air vents draw in clean air from outside                  Air tight doors locks out dust

Lifting of Heavy Objects
All employees who carry out work in the workshop are required to follow strict guidelines with reference to health and safety. This means that under any raised vehicle either on a trolley jack or hoist must make an effort to secure the weight by locking in the hoist or by lowering a raised jack down onto axle stands rated to suit the vehicle load.

The workshop supplies all the required safety equipment and operation guidelines in order for the employees to safely complete the work, though it is ultimately the employee’s responsibility to follow these guidelines and make use of the equipment being supplied. All specialized equipment is inspected by a licensed professional on a regular basis.

Hoist is locked into position                                     Service label

First Aid Kits

Honda has also has many first aid kits for all sorts of injuries that can occur in the workshop. Honda uses the same first aid table which is shown in the above information but with different quantities and few extra items.

Fire Safety
The workshop area contains a lot of flammable goods such as oil, fuel and other items which can potentially start a fire and cause the area to burn very quickly. From our observations, all employees strictly abide by the no smoking rule. No employees can be seen smoking anywhere within the premises due to the risk of a fire. The employees however are allowed to smoke only during break times and are advised to smoke at least ten meters offsite, away from where the risk of a fire starting is very unlikely.

In terms of preventative equipment, there are several fire sprinklers, hoses and extinguishers that have been strategically located around the workshop in the event of a fire breaking out. Fire alarms are also present to allow staff to quickly notify the fire service when required.

Summary
Judging from the observations above, Honda follows the legal requirements and requires that every employee has to go through an induction training process in the workshop, and be familiarized with the company’s health and safety policies before commencing work.

In relation to the theoretical requirements previously described, Honda management can be seen actively looking after the well-being of their employees, trainees and visitors. As Honda holds health and safety to high regard, this makes them a prime example of when it comes to health and safety.