Fixed Operations
Time Wasters–The Big Hurt
By Ed Kovalchick
Measuring and managing tech time should be one of the most important items in service and parts management on a daily basis. Following are the top time wasters that need attention in most operations.
Start Times
When I work with dealerships I always ask what time technician production time begins. At that time, say 8 a.m., I like to stand in the middle of the shop to identify what activities are taking place. Unfortunately time and again the techs are drinking coffee, putting uniforms on, just arriving on the lot, visiting, picking up yesterday's mess, and the list goes on. In a 720-hour month of bills per stall, there are only about 170 hours of time for generating the income to cover the cost of the stall. Losing 15 production minutes a day at the start time costs 5.25 hours per month, or about $540 in lost parts and service revenue per tech per month.
If the tech start time is 8 a.m. for example, everyone should arrive before 8, in time to prepare for the start time, including retrieving the paperwork for a job. Stand in your shop at the start time and see how much income you and the techs are losing everyday, and address this issue today.
Break Management
The infamous "roach coach" is a real time waster. It usually arrives while there are waiting service customers, and important service lane activities that need ongoing attention now. Ten-minute breaks turn into 20-minute breaks because the first 10 minutes are used to stand in line to get bad food, so that the employee could then take a break. Do yourself a big favor and put in a first-class vending area, and put the customer first. Losing another 10 minutes here is another $540 in lost revenue per tech per month.
Tool Trucks
How many do you need? The bottom line with tool trucks is this: they can visit before the starting time for production, during lunch, or at the end of production. Any other time costs the service and parts department so much money, it would be sickening to count it. Most of my clients select one specific tool company and make an agreement about arrival and departure times to eliminate any time lost during the crucial production time periods.
Phone Calls
Unless a technician has an emergency, take messages and let them return calls at break times. Valuable production time is wasted every day allowing techs to stop and discuss world politics in the middle of the day. Another dangerous situation is to allow cell phones in the shop. Automobiles are sophisticated and require concentrated attention to details during the repair process. There is no place for phone conversations while the repair process is taking place.
Estimates At Write-up
Probably nothing wastes more time than amateur service advisors, who fear or don't have the knowledge to provide appropriate estimates during the write-up process. The goal is to not call the customer with an estimate, when one could have been provided earlier. Customers are difficult to contact, technicians get frustrated, time promises aren't met, and the service and parts income is crushed time after time when technicians are held up for customer authorizations.
Vehicles should be examined closely by the service advisor and customer, and some type of determination made on the approximate amount of money it will take to repair the vehicle. If that amount turns out to be insufficient, then the customer is contacted. Slapping a minimal diagnosis charge on every repair order is more expensive than you can imagine.
Ask your employees
Do yourself a big favor and pass out a written survey to your service and parts employees and ask them to list the items that slow them down every day. Fix the time wasters and you will be surprised how these actions will improve the gross profit volume. You will find the time wasters truly are the "big hurt."
Ed J Kovalchick is CEO of Net Profit Inc, an international automotive manufacturer and dealer, training and management-consulting firm, located in Alabaster, Ala. Mr Kovalchick is a featured speaker and instructor at conventions, 20-Groups, associations, and other automotive related events worldwide. He is also a former six-franchise new car dealer, and independent shop owner. ekovalchick@dealeronline.com
