Body Shop Profits: Time Is Money Scott V. Rome President Rome Technologies Pasadena, MD 410-923-2000 scott@rometech.com Your Photo Goes Here 1 (INSERT VIDEO 1 CLOCK HERE) 2 BY IMPROVING……. 3 Cycle - Time INSURANCE REAL WORLD 4 Maximize Efficiency – Maximize Profits Process Technology People 5 Process • Maximize Accurate flow of information • Minimize Human Error • Must be able to be Audited • Must be able to be Benchmarked 6 Technology • Eliminates double entry • Provides a template that runs underneath the process • Provides infrastructure for each department • Ensures “best practices” for administration • Audits and accountability per employee • Dramatically expedites decision making • Wireless/paperless • Tech stations 7 People • Having the right number of employees for revenue goals • Having the right ratio of employees per job description • Ongoing analysis and bench-marking • Ongoing training and coaching 8 Typical Collision Center Insert video 2 9 The “Diagnosis” of a Typical Shop • • • • • • • • • • Body Man Ratio to Total Sales Body Man Ratio to Front Office Staff Front Office Staff to Total Sales Parts People Ratio to Total Sales Open RO Ratio to Total Monthly Sales Supplement Percentage after Tear Down to Total Sales Parts Returns by Percentage of Purchases Hours Lost Balancing Tickets Please Refer Hours Lost Doing Payroll to Handout Hours Lost Fielding Phone Calls 10 Information is Power When you DON’T have it: 11 Information Is Power When you DON’T have it: • Vehicle stall between 50-75 percent of the time after teardown • Returns are as high as 15 percent or more • Cycle time – average severity $2,000 – over five days • Reduced customer satisfaction • Every mistake = $1 off the bottom line • Every mistake = Reduced production 12 Information Is Power Respecting the uniqueness of collision repair in the automotive industry allows us to overcome our greatest hurdle. 13 Information is Power When you DO have it: 14 Information Is Power WRITERS AND TECH TEAMING Scalable Maximizes bandwidth Optimizes the quality and accuracy of information Inefficient Bottleneck 200% Increase 15 Information Is Power When you DO have it: • • • • • Fewer returns Reduced cycle time Increased customer satisfaction Increased profitability Increased volume of repairs 16 Maximize Efficiency – Maximize Profits 17 Maximize Efficiency – Maximize Profits 18 Information Flow 19 Maximize Efficiency – Maximize Profits 20 Setting the Stage for Repair MEASURE TO MANAGE • • • Parts cycle-time tracking Production cycle on any given day Projected delivery date • • Load on shop by Tech Writer Department Customer “love-call” cycle • • • Number of days in shop Type of collision Projected profitability • Defines action-item priorities by department Cars to fix Parts to buy Customers to call “Exceptional Managers Manage By Exception” 21 Cycle - Time REAL WORLD 22 Three Things That Affect Cycle Time Authorization From Insurance Company Analyzing Critical Mission Parts 23 Maximize Efficiency – Maximize Profits 24 Management Software App – Check In 25 Management Software App – Check In 26 Management Software App – Check In 27 Checking In – Drop Off 28 Management Software – Blueprinting 29 Management Software – Dispatching 30 Management Software – Dispatching 31 Cycle - Time REAL WORLD 32 Management Software – Production 33 Production – The “Walk Around” 34 Production – The “Walk Around” 35 Tech Station 36 Tech Station 37 Maximize Efficiency – Maximize Profits (Insert Video 3 Circle Animation Here) 38 Scheduling 39 Maximize Efficiency – Maximize Profits 40 It Begins With People…. Every body shop has four job descriptions, regardless of size. These are the cornerstones of information flow. 41 Job Description Impact on Shop Performance Revenue Per Parts Person Order Received Return Blueprint Dispatch Post Invoice Mirror Match 42 Information Is Power WRITERS AND TECH TEAMING Scalable Maximizes bandwidth Optimizes the quality and accuracy of information THIS IS A GAME CHANGER! Inefficient Bottleneck 200% INCREASE! 43 Job Description Impact on Shop Performance Revenue Per Writer Blueprint Dispatching “Walk Around” 44 Customer Service • • • • • • • Call Assignments Schedule Estimate Appointments Schedule Drop-Offs for Pre-Orders Review Repair Orders for Delivery Maintain a Paperless Environment Cashier Scan Docs 45 Scheduling • • • • • Schedule Appointments Drop-Offs By Severity Completion of Repairs Schedule Pick-Up 46 Maximize Efficiency – Maximize Profits 47 Maximize Efficiency – Maximize Profits Process Technology People 48 TIME IS MONEY 49 Please visit the NADA University Online booth in the Expo Hall for information on accessing electronic versions of this slide presentation and the accompanying handout material, and to order the workshop video-recording. Body Shop Profits: Time Is Money Scott V. Rome President Rome Technologies Pasadena, MD 410-923-2000 scott@rometech.com Your Photo Goes Here 50