Assignment 2 - Architecture and Design

KiaOra Campervans : Interview Transcript – Frank Hibbert

KiaOra Campervans KiaOra Campervans is a small campervan rental agency in New Zealand. They are looking to expand their operations from their current single office business based in Auckland into a distributed operation with offices in Auckland, Wellington, Christchurch and Queenstown. They think they need a new IT system to support this expansion. Your firm has been asked to analyse their business and come up with a proposal for a new rental system.

Extract from Interview with chief executive Frank Hibbert (at this point Megan has already introduced herself and preliminary polite amenities have been concluded)

MS: So Mr Hibbert, I'd like to get an overall idea of what you are hoping to achieve with the new system. Could you start by giving me an overall idea of what you want the system to do?

FH: Well, we really want to expand. There are a lot of tourists coming to New Zealand who want to start in Auckland and finish up somewhere else like Wellington or even Christchurch. We are missing all that business because we only have one office here in Auckland. So we want to open depots in the other major cities, and we need be able to pick up and return campervans from any of those depots.

The other thing we really need to do is make it easier for customers to make a booking with us. At the moment they need to ring the office or email us, and we develop a quote and email it to them or tell them over the phone. Then, if they want to make a booking they need to tell Honi their credit card details and she charges for the deposit. The thing is they need to get in touch with Honi so she can make the charge and set up the booking. That process just isn't working for international visitors; it’s too expensive and inconvenient. I think we are losing business. I'd really like it if the system would allow customers to get a quote and make a booking without needing to get the office involved.

MS: OK. Could you explain the rental process a bit more?

FH: Well, I'm not that clear on the details, I leave that to Honi. I focus more on managing the vans and men. You’ll have to talk to Honi about the rental process.

MS: So what is involved in managing the vans?

FH: Well, it’s mainly making sure we always have enough vehicles to satisfy the hires. You see we can’t hire out as many vehicles as we own. We always have to keep a couple of each type in reserve in case there is an accident, or to substitute when one is in for servicing. So we don’t associate hires with specific vans until just before the pickup. Instead, we reckon a given number of vehicles can only support a certain number of hires, so we identify ‘hire lanes’ which correspond to the hires we can support. That way we can pull a vehicle for servicing, or get one repaired, without having to shuffle everything.

The trick is to make sure that the servicing gets spread out so that you don’t have too many vans needing to be serviced at once. Every van has a major service every 20,000 kays (kilometres), or every 6 months, whichever comes first. I like to keep on top of that because it saves trouble in the long run. We check the mileage after every hire so we know when a vehicle is coming due for a service. I might pull one early or let it go a little late in order to keep things smooth. Generally, I’d have three more vehicles than hires for each type of vehicle, but it depends a bit on how many in the fleet, and how reliable they are.

Apart from that, it’s just making sure the available vans are ready to go out when they are needed.

MS: How do you keep track of all that?

KiaOra Campervans : Interview Transcript – Frank Hibbert

FH: I have a spreadsheet. For each vehicle I have an entry for mileage, and the date of last service, so it’s quick to see what is coming due. I also have a file for each van which keeps track of the service records, and any damage they have accumulated or had to have repaired.

MS: What’s involved in getting vans ready for hire?

FH: Not much. I get a list of hires due out the next day, allocate each of them to one of the available vehicles, and then assign one of the boys to do the pre-hire check. They make sure the vans have been serviced, that they're full of fuel, the tire pressures are right, oils OK, coolant levels are OK, and they are clean and the waste tank is empty. Also, that the 'dump kit' is present and correct, and the gas bottle is full. We have a checklist. If the after-hire servicing has been done properly, it’s not a problem. We just do it to catch anything that’s fallen through the cracks.

MS: What does the after-hire servicing do?

FH: Well, it starts with the inspection. We check that the customer has brought the vehicle back fuelled up, gas bottle full, and the waste tank clear. Mainly they’re pretty good, but sometimes it doesn't happen. We care because it costs a lot to fill one of the big vans; over $150 for a tank, and $40 for a gas bottle. And who wants to clear someone else's waste tank? Anyway, there's a charge for any of those things that hasn’t been done. We also note the mileage and check for new damage. That’s all part of finishing up the hire paperwork.

After that we take it into the garage and do the standard turn-around service. Mainly the van has to be thoroughly cleaned and all the bedding changed over – we have contract cleaners and a laundry for that. We fix up anything the customer forgot to do and go through the pre-hire checklist. Once that’s all been done it’s ready to go. We generally give ourselves a full day to turn a vehicle around. If the van needs a service, or needs repair, then we pull it from the available pool until that’s complete. That’s when I have to worry about having enough vehicles to satisfy hires.

MS: Have you got a copy of that checklist?

FH: Sure. Here. (See Attachment 1)

MS: I think we’ve covered van management for the moment. What about managing the men?

FH: Oh, look, I don’t think the rental system has to worry about that. Wages and stuff is pretty separate from the rentals. I’ve got a couple of permanent staff, but a lot of it is just casual labour I hire on during peak periods. Besides, each of the branches will be dealing with staff locally; I don’t want to do it. Don’t worry about managing people.

MS: OK. Couple more questions and we are through. First: how are you going to deal with hires starting in different locations from where they are returned?

FH: It doesn’t take that long to get from one end of the country to another, so we can absorb the time it takes to move vehicles into the after-hire servicing period.

MS: Anything else you think might be a concern?

FH: Oh yes. I’m worried about incomplete or duplicate hires. What happens on the new system if someone pays their deposit, but the system crashes before the booking processing is complete? We don’t want to make the booking before we get the money, but if we do get the money then the booking should definitely go through. How are we going to deal with that? Will they lose their booking? What do we do with the deposit?

Then, what happens if two people book the last available hire at the same time? One of them should get knocked back, and the other one should be successful. But we don’t want them both to succeed or both to fail.

KiaOra Campervans : Interview Transcript – Frank Hibbert

In the same vein, I’m worried about keeping track of transactions. There are a lot of points in the rental process where we deal with money, and it’s important that we don’t lose track of any of those transactions, even if the system crashes. We really don’t want a bad reputation in that area.

Finally, I’m worried about security. Customers will be making bookings over the internet and I don’t want hackers getting in and mucking things up. Also, the other branches will need to see and update data relating to hires and vehicles, and once again I don’t want anybody else to be able to see that information, or do anything to it.

Oh yes, another thing. If this expansion works out like I hope, we should get a lot more business, and when the other branches open up, that should increase even more. I don’t want the system to grind to a halt just because we are getting more business. That wouldn’t be any use to us at all.

MS: Yes, I can see that those issues are a concern. However, I am sure we can find a solution that meets your requirements. I think I’ve got enough to begin with. Can I contact you again to follow up on any issues we run into?

FH: Yeah, sure, that will be fine. It’s been great talking to you Megan, and I'm really looking forward to the new system. It's absolutely essential to the expansion, and it’s going to bring us in a lot of new business.

MS: OK. Sure. It will take us a few days to come up with an initial proposal, and then we'll be back in touch.

FH: Yes, Keep in touch. Bye.

MS: Bye.

<end of transcript>

KiaOra Campervans : Interview Transcript – Honi Awatere

Extract from Interview with office manager Honi Awatere (once again preliminary introductions

have been completed)

MS: OK, Honi, could you tell me a little about the process of hiring a van?

HA: We've got a range of vans: 2, 4 and 6 berths. We hire these out at different rates depending on the capacity, and the season. We also apply a discount depending on the length of hire.

MS. Have you got those figures and dates handy?

HA: Yes, I’ve got a schedule somewhere … ah – here it is. (See Attachment 2)

HA: OK, a customer begins to make a hire by ringing the office. They tell me what sort of vehicle they want and when they want it, and I look in the ledger to see if we can satisfy that request. If we can, I give them a quote for the hire. If they want to take up the hire, I start a new hire form, take down their personal and banking details, and charge them a holding deposit. I record what type of van they’ve booked on the hire form and update a hire lane in the ledger to show a van has been booked for that period. Finally, I send them an email with the details of the hire, and confirmation that we’ve got their deposit.

MS: How much is the deposit? And could I see a hire form, please?

HA: The deposit is 10% of the total hire charge. Here’s a hire form. (See Attachment 3)

MS: What happens next?

HA: A week before they have to confirm, I contact them via email to let them know that the balance of the hire charge is due. They contact me that week to authorize a second credit card charge, or make a direct funds transfer. I confirm this payment while they are on the phone, or by checking our banking records each morning. Once I’ve confirmed the full payment, I update the hire form to note that the hire has been confirmed, and send them another email acknowledging receipt of the full payment.

MS: How long is the confirmation period?

HA: 30 days.

MS: What if they don’t confirm?

HA: Well, first I send them another email telling them that they have to, or they will lose the hire. Then if they don’t confirm within the next week, I cancel the hire. If I have to do that, they forfeit their deposit.

MS: How would they cancel a hire?

HA: It’s pretty simple. They just ring up or email me with the hire number, and I return their deposit, and cancel the hire. We’ve got their banking details on the hire form from when they first booked. As long as they ring up before the confirmation date it’s OK.

MS: Assuming they confirm, what happens the next time you are in contact with them?

HA: That’s when they come in to pick up the van. Although they often ring or email a few days before to let us know they are still coming.

MS: OK. That’s good. When they arrive, what happens?

HA: Well, first they come into the office, and we finish filling out the hire form. That’s to note who the designated drivers are, check licenses, and go through things like insurance, and any travel restrictions. Then one of the garage boys takes them out to familiarise with the vehicle with, and fill out the previous damage report. When they come back in they sign both the damage report

KiaOra Campervans : Interview Transcript – Honi Awatere

and the hire form, and so do I. Once everything is signed, they are free to take off with the van. I attach the damage report to the hire form and file it with current hires.

MS: OK. Why the previous damage report? Can I see one?

HA: It saves argument when they return the vehicle. Customers pay a bond you see, to cover damage. If they return the vehicle undamaged, then they get that back, but if they ran over a rock or broke something inside then we charge them for that and take it out of the bond. We don't like to argue with customers about whether they did the damage or whether it was already like that when they hired the van, so it works out best if everyone agrees on the state of the vehicle before they take it away. Here’s a blank form (See Attachment 4)

MS. I see. What happens when they bring the van back?

HA: Well, they come into the office, and one of the boys goes out and inspects the van for fuel, gas, and waste. They are meant to refill the tank and the gas bottle and empty the waste tank before they return the van. The boys note the mileage, and check the van for new damage. If everything is OK, we just complete the hire form, and return the bond. If they haven’t refilled the tank, or the gas bottle, or haven’t emptied the waste tank, then there is a standard charge we take out of the bond for each of those items, but we just do that on the spot, and still complete the hire. However, if there is new damage then it gets a bit more complicated.

MS: Why? What happens then?

HA: If there is new damage and it’s not just normal wear and tear, then we don't return the bond just yet. Instead we keep it until we get quotes for the repair. Then we make the appropriate charges and return the balance. If the repair cost exceeds the bond, we keep the bond, but we don’t charge the customer any more. Instead we file an insurance claim. The bond basically covers the excess for the insurance.

HA: I see. How does a van get returned to service?

MS: They have to be cleaned and serviced. It’s only after that’s done that they can go out again. We always schedule at least one full day for service time after a hire before the van can become available again. If a major service is due, or they have been damaged, then they are marked as unserviceable and don't become available again until they come back from the garage or repair shop.

MS: Tell me about the ledger. It seems to be really important.

HA: Oh, it is! It tells me everything about the operation. Basically, it’s a big spreadsheet. I have dates across the top, and there is a row for every hire ‘lane’ – that is every hire we can support. When a customer makes a booking, I put their name down on the date when I need to send a reminder, the date they need to confirm, and the date when the hire starts in the row for the hire lane. That way I can see quickly what hires are available on what dates and I can see just by looking down a column everyone I need to contact that day.

MS: What do you think of the expansion?

HA: Oh, it’s going to be so much better! So much more business! And I can't wait for the new booking system. It’s so much bother checking the ledger for what's available and taking down all the banking details. And really there is no reason why the customers can't do that for themselves. I mean, I shop on line all the time. I told Frank we needed a proper website where people can see what we have, make bookings, and pay for them all online. I won't have to spend all my time sending emails. I'll be able to sit with customers and complete their pickups or returns without the phone going off in the middle all the time.

MS: Do you have any concerns?

KiaOra Campervans : Interview Transcript – Honi Awatere

HA: Well, it won’t just be Frank, me, and the boys here anymore. We’ll be sending out vehicles and they’ll be returned somewhere else, and we’ll be getting vehicles from the other depots. So sharing the information in the hire forms is going to be important. Also, it’s going to be tricky making sure all the vans are at the right place at the right time. I think it’s going to be very different, but we are going to make a lot more money, so I guess it’s a good thing.

MS. Thank you Honi. You have been extremely helpful. Do you mind if we contact you to clarify any details?

HA: No, no, that should be fine.

MS: OK. Bye for now.

HA: Bye.

<end of transcript>

KiaOra Campervans : Attachment 1 – Pre Hire Checklist

KiaOra Pre-Hire Checklist

Van Number: ________________________ Van Type: 2 / 4 / 6 Berth Mileage: ________________

Hire Number: ____________________ Hire Date: _______________ Pickup Time: _____________

Maintenance:

Engine oil clean? Headlights/parkers work?

Engine oil topped up? Brake lights work?

Coolant topped up? Blinkers work?

Windscreen wipers OK? Tyre pressures OK?

Windscreen washer topped up?

Consumables:

Fuel tank full? Waste tank empty?

Gas bottle full? Dump Kit present and correct?

Water tank full?

Interior:

Cabin clean? Doors open, close, lock OK?

Bathroom clean? Windows open, close, lock OK?

Windows clean?

Linen:

Linen clean? Number of pillows?

Number of sheets?

Number of doonas?

Cutlery:

Cutlery clean? Number of spoons?

Number of knives? Number of teaspoons?

Number of forks?

Crockery:

Crockery clean? Number of bowls?

Number of large plates? Number of glasses?

Number of small plates? Number of cups?

Cooking:

Cookware clean? Gas cooker works properly?

8” saucepan present? Kitchen knife present?

26cm frying pan present? Tin opener present?

Mixing bowl present? Bottle opener present?

Whistling kettle present? Spatula present?

Optional Extras:

GPS installed and functional?

Outside chairs and table present and correct?

Notes:

__________________________________________________________________________________________

__________________________________________________________________________________________ __________________________________________________________________________________________

Pre Hire Checklist Completed:

Name:____________________________________ Supervisor:______________________________

Date:_______________________

KiaOra Campervans : Attachment 2 – Rental Rate Schedule

Hire Rates Van Type Peak

21 November – 20 February

Shoulder 21 February – 20 April, 21 October- 20 November

Off-Peak 21 April – 20 October

Bond

2 Berth $200/day $150/day $100/day $400

4 Berth $300/day $225/day $150/day $600

6 Berth $400/day $300/day $200/day $800

Discounts: Hires longer than 14 days 10%

Hires longer than 30 days 20%

Optional extras: GPS $10/day

Outside chairs and table $5/day

Terms and Conditions.

A deposit of 10% of the total hire charge is payable when a booking is made. The balance must be

paid on confirmation of the hire 30 days prior to the beginning of the hire.

The deposit is fully refundable if a hire is cancelled prior to the confirmation date, but is forfeit if a

hire is cancelled after that date.

The bond is fully refundable, unless significant non wear and tear damage occurs to a vehicle during

the hire period.

All drivers must be over 25.

No travel on beaches or on designated 4WD only tracks is permitted.

Vehicles must be fully refuelled when returned.

Gas bottles must be refilled before vehicle return.

Waste tanks must be emptied before vehicle return.

KiaOra Campervans : Attachment 3 – Hire Agreement

KiaOra Campervans Hire Agreement

Customer Name: ______________________________________________________

Contact Number:______________________________________________________

Email Address: _______________________________________________________

Address: ____________________________________________________________

Credit Card: Visa MasterCard

Card Number: ___________________________

Expiry Date : __________Month _________Year CVV: ____________________

Van Type: ___________________________________________________________

Van Id:_____ ________________________________________________________

Charges:

____ days at ______/day $________.__ Bond: $________.__ Discount: $________.__ Total: $________.__

Terms and Conditions. Bonds are fully refundable, unless significant non wear and tear damage occurs to a vehicle during the hire period. Only designated drivers may drive the vehicle. All drivers must be over 25. No travel on beaches or on designated 4WD only tracks is permitted. Vehicles must be fully refuelled when returned. Gas bottles must be refilled before vehicle return. Waste tanks must be emptied before vehicle return.

I have read and understood the terms and conditions, and I agree to abide by them.

Deposit Paid Confirmed Picked Up Returned Finalized

Hire Date: _______________________________ Return Date: _____________________________

Pickup Time:_____________________________ Return Time:_____________________________

Pickup Location:__________________________ Return Location:__________________________

Start Mileage:____________________________ End Mileage: ____________________________

Designated Driver 1 Designated Driver 2

Name: _________________________________ Name:__________________________________

Contact Number:_________________________ Contact Number:_________________________

Signed:_________________________________ Supervisor: ______________________________

Date: __________________________________ Date: ___________________________________

KiaOra Campervans : Attachment 4 – Pre Hire Damage Report

KiaOra Pre-Hire Damage Report

I have inspected the vehicle, and agree that the above table describes all damage identifiable on the

vehicle prior to commencement of rental.

Name:____________________________________ Supervisor:______________________________

Date:_______________________

Van ID: _______________________________ Hire Number: ____________________________

Front Left Exterior Front Exterior Front Right Exterior

Left Side Interior Right Side

Left Rear Exterior Rear Exterior

Right Rear Exterior