Body Shop Profits: Time Is Money

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Body Shop Profits:
Time Is Money
Scott V. Rome
President
Rome Technologies
Pasadena, MD
410-923-2000
scott@rometech.com
Your Photo
Goes Here
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(INSERT VIDEO 1 CLOCK HERE)
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BY IMPROVING…….
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Cycle - Time
INSURANCE
REAL WORLD
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Maximize Efficiency – Maximize Profits
 Process
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 Technology
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 People
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Process
• Maximize Accurate flow of information
• Minimize Human Error
• Must be able to be Audited
• Must be able to be Benchmarked
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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
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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
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Typical Collision Center
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The “Diagnosis” of a Typical Shop
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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
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Information is Power
When you DON’T have it:
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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
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Information Is Power
Respecting the uniqueness of collision repair in the automotive
industry allows us to overcome our greatest hurdle.
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Information is Power
When you DO have it:
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Information Is Power
WRITERS AND TECH TEAMING
 Scalable  Maximizes bandwidth 
Optimizes the quality and accuracy of information
Inefficient
Bottleneck
200%
Increase
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Information Is Power
When you DO have it:
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Fewer returns
Reduced cycle time
Increased customer satisfaction
Increased profitability
Increased volume of repairs
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Maximize Efficiency – Maximize Profits
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Maximize Efficiency – Maximize Profits
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Information Flow
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Maximize Efficiency – Maximize Profits
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Setting the Stage for Repair
MEASURE TO MANAGE
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Parts cycle-time tracking
Production cycle on any given day
Projected delivery date
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Load on shop by
 Tech
 Writer
 Department
Customer “love-call” cycle
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Number of days in shop
Type of collision
Projected profitability
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Defines action-item priorities
by department
 Cars to fix
 Parts to buy
 Customers to call
“Exceptional Managers Manage By Exception”
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Cycle - Time
REAL WORLD
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Three Things That Affect Cycle Time
 Authorization From Insurance
Company
 Analyzing
 Critical Mission Parts
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Maximize Efficiency – Maximize Profits
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Management Software App – Check In
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Management Software App – Check In
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Management Software App – Check In
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Checking In – Drop Off
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Management Software – Blueprinting
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Management Software – Dispatching
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Management Software – Dispatching
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Cycle - Time
REAL WORLD
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Management Software – Production
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Production – The “Walk Around”
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Production – The “Walk Around”
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Tech Station
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Tech Station
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Maximize Efficiency – Maximize Profits
(Insert Video 3 Circle Animation Here)
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Scheduling
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Maximize Efficiency – Maximize Profits
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It Begins With People….
Every body shop has four job descriptions, regardless of size.
These are the cornerstones of information flow.
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Job Description Impact on Shop Performance
Revenue Per Parts Person
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Order Received
Return
Blueprint
Dispatch
Post Invoice
Mirror Match
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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!
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Job Description Impact on Shop Performance
Revenue Per Writer
 Blueprint
 Dispatching
 “Walk Around”
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Customer Service
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Call Assignments
Schedule Estimate Appointments
Schedule Drop-Offs for Pre-Orders
Review Repair Orders for Delivery
Maintain a Paperless Environment
Cashier
Scan Docs
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Scheduling
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Schedule Appointments
Drop-Offs
By Severity
Completion of Repairs
Schedule Pick-Up
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Maximize Efficiency – Maximize Profits
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Maximize Efficiency – Maximize Profits
 Process
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 Technology
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 People

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TIME IS MONEY
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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
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