BluePrinting the Body Shop: A Process for Improving Efficiency & Profits

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Allan Stevens
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1 BluePrinting the Body Shop: A Process for Improving Efficiency & Profits with Greg Criss, President of Criss Consulting Moderated by Mike Bowers, DealersEdge Executive Editor Thursday, November 21, :3pm ET Greg Criss, President of Criss Consulting Mr. Criss' career began in the Automotive Sales Industry while searching for the "right" secondary teaching job having just earned his Bachelor of Arts Degree in Teaching. His first two years were in Sales; however, he was intrigued by the service department at the Toyota Dealership where he was working in the 1980's, and when an opening became available, he accepted the position of Service Manager. Since that day, Mr. Criss has managed large metro facilities in various cities as a Fixed Operations Director, earning and maintaining titles such as Cadillac Masters, Nissans Presidents Club, Pontiac Masters, etc. Mr. Criss worked as a consultant for MSX Corporation in the late nineties, and soon started his own Fixed Operations Consulting Firm with a partner in the Pittsburgh Area. His firm helped numerous Dealerships in the Pittsburgh and Cleveland Metro Area. He has been a featured writer with Fixed Operations Magazine. In January of 2006, Mr. Criss began consulting with Dealer Service Corporation and NCM Associates. Through his presentations and consulting, he has improved fixed operations results for Dealers in net profit and consumer happiness all over the United States. Mr. Criss has spoken before large association groups such as the Chicago Auto Trade Association, Eastern New York Car Association of Retailers (ENYCAR), and has performed dozens of weekly training workshops such as "Service Advisors Bootcamps," "Service Manager's Bootcamps," and On-Site Seminars for Mega Dealers such as the Holman Group, the Ridell Auto Group and the Sunset Auto Group.

2 Blueprinting Your Body Shop Process for Improving Efficiencies And Net Profits Presenter: Greg Criss

3 The Background Toyota Production System Theory is to work the process from the customer, not from the raw materials

4 Kaizen ( 改 ) Japanese for "improvement" or "change for the best", refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, and business management. Kaizen ( 改 ) From Kaizen theory many management improvement ideas developed such as ISO9000, Six Sigma, etc.

5 Kaizen ( 改 ) Blueprinting Vehicles came from this same process of reducing waste and time and maximizing profitability while offering a great product. Blueprinting Every Shop typically has at least one metal technician that the other technicians may dislike.

6 Blueprinting That technicians usually performs the work in record time, and constantly is looking for work. Blueprinting Sometimes that technician becomes your go to technician handling more difficult issues and time sensitive issues.

7 Blueprinting Other technicians may say that you are feeding this technician. Blueprinting The fact is that this technician is probably employing some, most, or all of the blueprinting techniques.

8 Blueprinting Don t you wish all of your metal techs were able to turn that kind of flat rate time with excellent quality? Blueprinting Usually when we bring this technology to your facility, your tech who is using these techniques isn t too happy because he/she knows the consequences.

9 Blueprinting The consequence is that the work goes through your shop quicker allowing you to bring in additional work. (More dollars/ More Net Profit). Benefits of Blueprinting Touch Time is Increased and Cycle Time is Decreased In Most Shops without Blueprinting, touch time is usually 3.5 hours to 4.5 hours

10 Benefits of Blueprinting So, what is Touch Time? Touch time is calculated taking the total flat rate hours of the job divided by the number of days Here. Benefits of Blueprinting So, what is Touch Time? Number of Days here is calculated by the day we took possession of the vehicle until we finished, uploaded the final estimate, and delivered the vehicle.

11 Benefits of Blueprinting So, what is Touch Time? So, if the vehicle was here 5 days, and the job paid 20 flat rate hours, the touch time per day was 4 hours. (or 4 hours a day was spent on the vehicle average) Benefits of Blueprinting So, what is Touch Time? Disclaimer: Different insurance companies calculate touch time differently, but this is a good overall way to calculate it.

12 Benefits of Blueprinting Why is a high touch time important? Insurance Companies monitor your touch time. The higher the touch time, typically, the less rental expense involved for them. Benefits of Blueprinting Why is a high touch time important? In this competitive market, you may be putting yourself at risk by not having a high touch time. This could lead to lower assignments and DRP?

13 Benefits of Blueprinting Why is a high touch time important? More and more competitive repair companies are moving into metro and rural markets to compete with you. They may already have Blueprinting techniques? How will that affect you? Benefits of Blueprinting Customer Satisfaction Scores Rise because the customer is now receiving their vehicle much quicker. In this economic climate, people don t want deal with their vehicle being down.

14 Benefits of Blueprinting We actually have the ability with the same staffing to run 25% or MORE vehicles through our department each month. Benefits of Blueprinting We will have less RETURNED parts. We will be more efficient by not writing unnecessary supplements. The repair will not be delayed by the discovery of unseen additional damage.

15 Benefits of Blueprinting Eliminates having to wait on adjusters to show up and approve supplements. Eliminates additional Accounts Receivables to track, and/or negotiations of additional work needed. Benefits of Blueprinting Bay space is maximized because the technicians actually need less space. They can work on the vehicle in front of them and not have to stop. The job will flow from metal to paint.

16 So Exactly, what is Blueprinting? Blueprinting is a process that begins at drop-off, and continues until the vehicle is completed. So Exactly, what is Blueprinting? Blueprinting allows our technicians to accurately repair a vehicle through visual markings on the vehicle.

17 So Exactly, what is Blueprinting? Blueprinting outlines the steps and dates of the production so that management can follow the vehicle by looking at the vehicle. So Exactly, what is Blueprinting? Blueprinting includes complete disassembly of the vehicle prior to the beginning of the metal repair.

18 So Exactly, what is Blueprinting? Blueprinting allows you to discover if a vehicle has immediate potential for being a total loss. So Exactly, what is Blueprinting? Blueprinting allows you to discover if a vehicle has immediate potential for being a total loss.

19 What do I need to begin Blueprinting? A Dedicated Parts Guy His/her Role will be to be present when the disassembly is performed. What do I need to begin Blueprinting? A Dedicated Parts Guy That way, all the correct parts are ordered right then and there. If used parts are needed, that person should find those.

20 What do I need to begin Blueprinting? A Dedicated Parts Guy This person must expedite parts to increase Touch time. And, should walk the lot daily To make sure that we are not missing anything. What do I need to begin Blueprinting? A Dedicated Parts Guy I prefer this person to be paid on the productivity of the shop vs. parts dollars sold. Why?

21 What do I need to begin Blueprinting? Parts Carts The optimum way is for the technician to disassemble the vehicle. So what do we do with the parts? What do I need to begin Blueprinting? Parts Carts Parts should go onto a parts cart and when the replacement parts arrive, they are billed, placed on the cart, and production mgr/technician is alerted.

22 What do I need to begin Blueprinting? Grease Pencils/Windshield Markers/Mirror Hanger Tags When the vehicle is taken in, we need to develop a way to communicate with everyone. What do I need to begin Blueprinting? Grease Pencils/Windshield Markers/Mirror Hanger Tags The vehicle should be marked with the following: Date In, Date to Metal, Date to Paint, Completion Date, Insurance Company, RO Number, Estimator, and any Sublets.

23 What do I need to begin Blueprinting? Grease Pencils/Windshield Markers/Mirror Hanger Tags The end result should be that anyone walking through your lot should be able to understand what is going on with that vehicle. What do I need to begin Blueprinting? Technician Training I-CAR now has a certified class in Blueprinting, and they have been very helpful in coming to dealerships to perform this class.

24 What do I need to begin Blueprinting? Workstation or Laptop with Wi-Fi connection It is easiest to prepare the final estimate or first supplement in the bay of the disassembly. Blueprinting Process Estimators When a vehicle is brought in, the Estimator should walk the guest to the vehicle.

25 Blueprinting Process Estimators The Estimator should then mark in grease pencil all of the areas that we will be repairing under the Estimate. Blueprinting Process Estimators There are some shops with language issues that this eliminates waste and errors.

26 Blueprinting Process Estimators An Excellent Idea: Let s mark the areas in a different color that are pre-existing issues. Let s offer to make an estimate for these additional areas and call the customer with the estimate. Blueprinting Process Estimators An Excellent Idea: There s never a more convenient time than now to get the work done. After all, they may already have a rental vehicle.

27 Blueprinting Process Estimators An Excellent Idea: And since their vehicle is already here, let s make them a great offer to get the additional work done. Won t they be really happy to see their vehicle almost brand new? Blueprinting Process Estimators When the vehicle is finally dropped, then someone is assigns the vehicle production dates, then the vehicle windshield is marked or a hanger tag installed. Now it is scheduled for Disassembly.

28 Blueprinting Process Estimators Will begin the process with sublet to order and schedule work based on the timeline. Blueprinting Process Metal Tech or Disassembly Tech? In many shops, a Disassembly technician disassembles the vehicle to the deepest point of damage and prepares the final estimate or first supplement with the parts person, and the estimator.

29 Blueprinting Process Metal Tech or Disassembly Tech? A dedicated workstation in the shop is nice, but a laptop will be just fine (with Wi-Fi). Blueprinting Process Metal Tech or Disassembly Tech? If you use a disassembly technician, you will have to accrue flat rate time from the estimate. A good way to figure this is to capture 10% or 20% of the metal time. So the metal tech will be paid the balance.

30 Blueprinting Process The blueprinting process requires knowledge learned through experience and education of the entire repair process. As a part of the blueprinting process, the vehicle will need to have: Blueprinting Process vehicle maker repair information that pertains to the damaged vehicle. an initial inspection. disassembly. inspection for hidden damage. quick checks for suspension and structural damage. three-dimensional measurements of the entire vehicle.

31 Blueprinting Process Example of Hidden Damage Adaptive Cruise Control Blueprinting Process Technician will measure the vehicle to determine unseen damage. (Again, I-CAR training will train all of your technicians in the proper procedures)

32 Blueprinting Process All door panels, rocker panels, etc that need to be removed will be removed and clips broken or missing will be on the estimate. We can see that now, because it is a real time inspection. Blueprinting Process Many facilities choose to use fishing tackle boxes to put screws, clips, and small parts. These parts can be marked with masking tape over the drawer compartment in the box.

33 Blueprinting Process The parts removed and saved are loaded onto a parts cart and labeled with the job number, repair order number, etc. and secured. Blueprinting Process When the parts arrive, the parts carts will be loaded so that the whole job can be completed. The cart is not to the tech until the parts are all here.

34 Blueprinting Process The parts go to the technician, he finishes the metal work, installs the parts, and it goes to paint. If there is a supplement, then there was a mistake. Blueprinting Process The vehicle goes to paint, gets trimmed out, buffed when necessary, cleaned and delivered.

35 Side Effects With every change, there is side effects, but most of these side effects are good. Side Effects Your Techs can run out of work quicker. When a vehicle is in a stall not doing anything, it looks more productive than nothing in the stall.

36 Side Effects Think about it. You are actually running the same amount of business, but because of the increased efficiency, it feels like you are running less business. Side Effects The Fix.Take in more business.

37 Side Effects Intakes are the key. Since jobs can vary in hours so drastically, it is important to establish how many intakes we can take today. Side Effects Changing Estimators Thinking Many of your Estimators are in Reaction Mode. They are waiting for the next customer to come in, or for the next assignment to be ed to you.

38 Side Effects Changing Estimators Thinking Begin a daily Sales focus to get vehicles in. Discuss your daily goals, how we did yesterday, what the week looks like. Side Effects Changing Estimators Thinking Estimators now have more time to de-horse customers and find additional work. After all, we have reduced the amount of supplements we are writing.

39 Side Effects Review your Mixing Accuracy Reports With us firing more work at the painters, it is important that their quality does not suffer. By monitoring the Mixing Accuracy Reports, we can address any issues. Reasons NOT to Blueprint Excuses People say I can t blueprint in my repair facility because: we have a system that works fine. Repair facilities may already have a system, but that system should be constantly monitored and adapted to make improvements.

40 Excuses Reasons NOT to Blueprint People say I can t blueprint in my repair facility because: blueprinting takes too long. This is not true. With the blueprinting process, one of the main tasks being done is taking steps that are typically done in the middle or end of repairs and moving them to the beginning. So by changing the order of the process, it can allow for an accurate damage report. Excuses Reasons NOT to Blueprint People say I can t blueprint in my repair facility because: our insurance relationships won t let us. In some cases, the vehicle may not be able to be disassembled during the initial inspection. But once the vehicle comes in for repairs, it should have a completed damage report as the first step in the process.

41 Excuses Reasons NOT to Blueprint People say I can t blueprint in my repair facility because: we do not have the space. The blueprinting process can be adapted to any facility. company. Excuses Reasons NOT to Blueprint People say I can t blueprint in my repair facility because: we do not have the staff. Staff roles may need to change, but it is not necessary to add additional staff in all cases. This is something that needs to be assessed by each company.

42 Blueprinting Bottom Line The Bottom Line of Adopting the Blueprinting Culture is higher customer satisfaction, higher insurance company satisfaction, more assignments, more thruput, and more net profit. (Less Supplements and Liabilities) Blueprinting Change Resistance Most Body Shops have a culture that dates back decades. Many of your technicians have provided a living for their families for years without interruption.

43 Blueprinting Change Management Requires a Leader to embrace the change, and move into the current day s techniques. Someone who is looking for constant improvement. Blueprinting Change Management Many meetings and training to implement. Should have processes written down, training performed, pay plans aligned, and installed and instilled.

44 Facilitation: Blueprinting Change Management Greg Criss President Criss Consulting, LLC (724) Blueprinting Free Offer! Free Phone Consultation: Is Blueprinting your NEXT best Step?

45 Facilitation: Blueprinting Change Management Greg Criss President Criss Consulting, LLC (724)

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