Many car dealerships are implementing quick laning services to compete with independent shops and complete basic maintenance services quickly. However, quick lanes often fail to perform thorough vehicle inspections, missing opportunities to identify additional repair work. New technologies allow quick lanes to efficiently conduct inspections and identify further needed repairs, improving customer service and dealership profits. Dealers that successfully integrate inspections into quick lanes can match independent shops' speed while offering customers a more complete repair experience.
Regular vehicle inspections and a proactive truck maintenance program can help you control costs and keep drivers safe while on the road. Your maintenance program is essential to discovering unsafe conditions before they cause an accident or lead to a costly breakdown — not to mention fines or being put out of service during a roadside inspection.
At this HNI University workshop, a former FMCSA inspector will discuss critical elements of an effective vehicle maintenance program and share areas where many motor carriers fall short.
Randy Ferrese Collision CenterTraining Consultant RANDY FERRESE
On the following pages you will find a detailed description of a strategy or what can be a simple system designed around lean Manufacturing for the Collision Repair Center. Fact finding, blueprinting and using visual controls play a huge role in the form of communication .
Regular vehicle inspections and a proactive truck maintenance program can help you control costs and keep drivers safe while on the road. Your maintenance program is essential to discovering unsafe conditions before they cause an accident or lead to a costly breakdown — not to mention fines or being put out of service during a roadside inspection.
At this HNI University workshop, a former FMCSA inspector will discuss critical elements of an effective vehicle maintenance program and share areas where many motor carriers fall short.
Randy Ferrese Collision CenterTraining Consultant RANDY FERRESE
On the following pages you will find a detailed description of a strategy or what can be a simple system designed around lean Manufacturing for the Collision Repair Center. Fact finding, blueprinting and using visual controls play a huge role in the form of communication .
In his latest book “Driven to Delight: Delivering World-Class Customer Experience the Mercedes-Benz Way”, author Joseph Michelli presents a compelling case study and roadmap on how Mercedes-Benz USA, one of the most iconic brand names in the world, transformed and elevated customer sales and service experiences.
m-ize, software leader in enabling Connected Customer Experiences, hosted an interactive webinar with Joseph Michelli, New York Times #1 bestselling author.
During this webinar you will learn how to:
• Create a compelling vision for exceptional customer experiences
• Map out your key customer journeys and high value contact points
• Measure customer perceptions throughout their journey with you
• Mobilize employees and dealers to improve your delivery processes and resolve customer needs swiftly and constantly
• Link rewards and recognition to customer experience excellence throughout your organization
Webinar recording is available at http://m-ize.com/events/
In his latest book “Driven to Delight: Delivering World-Class Customer Experience the Mercedes-Benz Way”, author Joseph Michelli presents a compelling case study and roadmap on how Mercedes-Benz USA, one of the most iconic brand names in the world, transformed and elevated customer sales and service experiences.
m-ize, software leader in enabling Connected Customer Experiences, hosted an interactive webinar with Joseph Michelli, New York Times #1 bestselling author.
During this webinar you will learn how to:
• Create a compelling vision for exceptional customer experiences
• Map out your key customer journeys and high value contact points
• Measure customer perceptions throughout their journey with you
• Mobilize employees and dealers to improve your delivery processes and resolve customer needs swiftly and constantly
• Link rewards and recognition to customer experience excellence throughout your organization
Webinar recording is available at http://m-ize.com/events/
Полищук Юрий Иосифович – профессор, доктор медицинских наук, руководитель отдела психической патологии позднего возраста Московского научно-исследовательского института психиатрии – филиала ФГБУ «ФМИЦПН им. В.П.Сербского» Минздрава России; e-mail: yu.polischuk@mail.ru
Dealerships tend to feel every bump in the road along the path toward greater profits. Just as the automotive industry started to show signs of rebounding from economic recession, the pinch of margin compression has entered the picture. Dealerships may be selling more new and used cars in recent years, but thanks to margin compression this perceived success may be more of an illusion than anything else. Discover 7 solutions to combat margin compression in this guide.
My just-published article “Connected Car & Vehicle Repair” (Fixed Ops Magazine – November-December 2015, pp 98 & 99) reviews the game-changing impacts Connected-Car telematics are bringing to vehicle maintenance and repair – including a shift in share to franchised vehicle service departments – based on interviews with a dozen industry leaders (many on the record in this article). I also flag changes DSPs will need to consider in their service lane, digital marketing and scheduling solutions.
SLP1 Example Excellent Ford, Inc.NOTE This is an example of id.docxbudabrooks46239
SLP1 Example: Excellent Ford, Inc.
NOTE: This is an example of identifying and discussing the issues of Productivity and Process Improvement. Your paper may or may not take on the same form or format depending on the business you choose and the nature of the issues you identify. I have generated this business from my experience. You will see that I used four references. You should use at least three references (more is better) and citations to back-up your discussion about productivity and process improvement, as well as any information about the nature of your company that you may have obtained from the literature.
Introduction & Company Background
This discussion is about a fictitious Ford dealership, Excellent Ford, Inc. Excellent Ford, Inc. sells new Ford cars and trucks as well as quality used cars. The dealership has these departments: New Vehicle Sales, Used Vehicle Sales, Parts & Service, Body Shop, and the Accounting and Back Office. The dealership has generally done well over the many years it has been in business, serving the community of 50,000 and surrounding area of farmers and small businesses.
The business is managed day to day by the General Manager. As in any other business, productivity at Excellent Ford is measured by the ratio of output/input, as defined in many references such as Wikipedia (n.d.-a) and Kumar (2008). Productivity has generally not been an issue except during tough economic times, such as Excellent Ford has been experiencing the last several years and up to now. Each department has its own productivity issues since they are staffed and structured differently and each has its own goals.
The New Vehicle Sales department is managed by the New Sales Manager. There are several ways that productivity is measured. Keeping in mind the general form of Productivity, Output/input, productivity measures for new car sales are:
Total number of new cars sold/cost of new cars sold
Profit from sales of new cars/cost of new cars sold
Profit from sales of new cars/Number of new cars sold
Profit from sales of new cars/number of prospects on the lot
The Service department is managed by the Service Manager. And there are several ways to measure productivity.
Total Retail Sales / Repair Order
Tech time sold / Repair Order
Parts sold / Repair Order
Tech time sold / Total Tech time paid
Processes at Excellent Ford, Inc.
Excellent Ford, Inc., like all businesses, is comprised of many processes as defined in the Handbook for Basic Process Improvement (n.d.) Here are some examples:
New and Used Vehicle Processes:
ORDERING NEW VEHICLES FROM FORD
PREPING NEW VEHICLES ON ARRIVAL FOR SALE
BUYING/SELLING USED VEHICLES AT AUCTION
REPAIRING USED VEHICLES TO MEET STANDARDS AND PREP FOR SALE
SELLING AND DELIVERY OF VEHICLE
Parts and Service Processes:
ORDERING PARTS
RECEIVING AND STOCKING PARTS
TALKING TO CUSTOMER AND WRITING A REPAIR ORDER
REPAIRING A CUSTOMER VEHICLE
Productivity and Process Improvement
This discussion will review producti.
Against wrong selection of suppliers, many people tend to go for the cheapest in the market. Just as the most expensive is the not the best so also in most cases the cheapest may spell doom for the objective.....
How can you increase profits while your money is literally going out the door? We have identified 10 common service problems companies experience and provided some solutions to those problems, which will help you fix your revenue leakage as well as increase efficiencies and drive more revenues.
The Financial Benefits of Investing in Car Wash Equipment (For Businesses)Hercules Systems, Inc.
Are you looking for ways to boost your business's profitability and efficiency? Have you considered the financial benefits of upgrading to the best-in-class car washing equipment? Whether you're a car dealership or a cab service, the right equipment can significantly enhance your ROI. Let's explore how this investment can pay off.
Critical Facilities Operations Process: Explanations and illustrative examples.
For training videos, please visit https://m.youtube.com/channel/UCYw2fG4p7buyhJD0EYHahuQ
2. FEATURE
p. 46
M A R C H / A P R I L 2 0 1 6 | | F I X E D O P S M A G A Z I N E
As I travel around the country and vis-
it dealerships representing a variety of
makes, the trend of implementing a quick
lane seems to be at a fever pitch.
Many dealers tell me that their manufactur-
ers are pressing that this is a critical part of
their Fixed Operations vision. They’re told
that dealerships yet to deploy a quick lane
process put significant incentive program
dollars and improved Customer Satisfac-
tion Index (CSI) scores at risk.
In addition, for years, many dealers have
allowed portions of their Fixed Ops busi-
ness to be usurped by local competitors,
who have taken much of the recurring
maintenance and less-skilled repairs such
as brakes, exhaust and tire replacements.
QUICK CASH
OR
QUICK LOSSES?
Q U I C K L A N E S C A N W O R K W E L L — W H E N D O N E C O R R E C T LY
B Y M AT T PA R S O N S
3. p. 48
All dealerships are looking for ways to stay
engaged with their customers throughout
the lifecycle ownership process. With the
average age of the U.S. vehicle fleet ap-
proaching 12 years — and an estimated
250 million vehicles on the road — there
are significant opportunities to intersect
with customers over an extended period of
time. And there are significant repair dol-
lars at stake.
On the surface, the quick lube or express
lane seems to be a no-brainer. Establish a
process that allows customers to get their
vehicle into a dealership for normal main-
tenance items (oil changes, filter check /
changes, tire rotations, fluid flushes, etc.),
perform these services in a ‘fast’ fashion
at a competitive rate and everyone wins.
But do they?
Drawbacks of Quick Lanes
Securing a steady stream of menial main-
tenance work is good if your business is
designed to support these services. But
there are potential problems.
For example, assigning mundane mainte-
nance work to Master Technicians or those
with extensive skills in automotive repair
can quickly prove to be a money-losing
venture. Dealerships that create express
lanes wind up hiring people who have con-
siderably less training and experience to
staff these functions in order to turn a fair
financial return on the jobs that are sold.
In addition, radical changes to business
processes often have to be established
in order to facilitate commitments such
as time-to-job-completion in order to be
viewed as a reasonable alternative to the
local independent operators. This may
mean dedicating special bays with unique
vehicle lifts or an oil change pit, the abil-
ity to stock commonly used parts at-the-
ready and changes to the customer recep-
tion and cashiering processes.
Finally, experienced Technicians may re-
sent the new approach because getting to
do a few of the “easy” jobs each day was
a nice reprieve from the often complicated
electronic and drivability issues they more
typically handle.
Unintended Consequences
The largest unintended consequence that
some dealers are starting to identify is that
quick-lane customers are not receiving a
very extensive or detailed multi-point in-
spection (MPI) and, all too often, high dol-
lar repair work that’s sitting right within the
facility’s four walls is going unidentified
and unquoted.
The underlying scenario that creates this
unintended consequence is often a lack of
vehicle repair knowledge, coupled with a
“quick-lane mentality” by the staff mem-
bers performing the service. The excuse
that many stores give for this is that a
quality MPI, accurate Service quotation
and presentation of results cannot be per-
formed in the timeframes established.
Dealerships that have instituted a com-
prehensive vehicle MPI process with their
traditional repair clients typically see $150
to $300 of identified upsell opportunity
per vehicle inspection completed, with a
sell rate on-the-day for strong performing
stores that ranges from $75 to $150 in ad-
ditional purchases.
SOME DEALERS ARE STARTING TO IDENTIFY
THAT QUICK-LANE CUSTOMERS ARE NOT
RECEIVING A VERY EXTENSIVE OR DETAILED
MULTI-POINT INSPECTION AND, ALL TOO OFTEN,
HIGH DOLLAR REPAIR WORK THAT’S SITTING
RIGHT WITHIN THE FACILITY’S FOUR WALLS
IS GOING UNIDENTIFIED AND UNQUOTED.
4. p. 50
By comparison, many of these same
stores have told me that when they seg-
mented out their quick-lane clients, they
could immediately see that they were not
identifying much additional work beyond
the customer’s primary concern (i.e., the
oil change). Thus the value of each quick-
lane client interaction was delivering little
additional profit to the business’s bottom
line.
Dealerships cannot afford to spend the
time, energy and expense to attract cus-
tomers to their facility and then allow them
to leave with significant undisclosed re-
pair work that could have been addressed
while the customer was there.
Fixed Ops Managers are starting to learn
that each customer driving into their Ser-
vice lane on average has a $100 bill hiding
somewhere in or on the vehicle. The ques-
tion is: what process or approach do they
have to find it?
A Developing Trend
Independent quick lube businesses don’t
need to perform a detailed MPI. Why
would they? Most have no interest in iden-
tifying additional work that they don’t have
the capabilities to perform. Dealerships,
on the other hand, are designed to perform
a thorough check of a consumer’s vehicle
and to identify items that need additional
attention from a safety, security and overall
vehicle performance perspective.
With this in mind, I see a secondary trend
occurring. Progressive dealers are deploy-
ing advanced technologies to deliver a
quality experience to every Service Opera-
tions client while maximizing the value of
that interaction.
These technology-based solutions support
a less-skilled employee in performing a full
and thorough MPI and can significantly
speed the process of both their mainline
Technicians and their quick-lane team
members.
DEALERSHIPS
CANNOT AFFORD TO
SPEND THE TIME,
ENERGY AND EXPENSE
TO ATTRACT
CUSTOMERS TO THEIR
FACILITY AND THEN
ALLOW THEM TO LEAVE
WITH SIGNIFICANT
UNDISCLOSED REPAIR
WORK THAT COULD
HAVE BEEN ADDRESSED
WHILE THE CUSTOMER
WAS THERE.
5. p. 52
M A R C H / A P R I L 2 0 1 6 | | F I X E D O P S M A G A Z I N E
In either case, the employee can quickly
perform an MPI, capture photographic
evidence supporting repair recommenda-
tions, electronically route and instantly
price recommended services.
This process improvement enables the
Service Advisor to review any additional
Service recommendations with the cus-
tomer in a matter of minutes, all while the
standard oil change or other base mainte-
nance services are being performed.
We also see this trend in the deployment
of advanced wheel alignment stations. A
dealership I recently visited had deployed
two of these alignment stations in the quick
lane and in a matter of three minutes was
able to determine if a vehicle’s alignment
fell within the manufacturer-recommended
specifications.
The Fixed Operations Director advised me
that prior to installing this solution, the
operation was performing 10 to 15 align-
ments per month. After the install and
adoption of a process in which every ve-
hicle was checked, it was selling upward
of 150 alignments per month.
Another approach that seems to be gath-
ering momentum is to create a team-
ing environment, in which a less-skilled
employee is responsible to perform the
quick-lane services while a more seasoned
employee performs the MPI in parallel with
quick-lane services. This approach works
best in high-volume environments where
these two member teams can be kept suf-
ficiently busy throughout the day.
Providing automotive consumers with fast,
convenient and competitively priced ser-
vices is the goal of both independents and
franchised new car dealerships. Historical-
ly, the independents excelled in speed of
Service, while dealerships delivered deep
vehicle repair knowledge and extensive
Parts inventories in a more complete, al-
beit, time-consuming Service experience.
Dealerships don’t have to allow the inde-
pendents to continue to own the “speed-
of-service” component of vehicle repair.
With integrated MPIs and other advanced
technologies, dealerships can now match
the independents’ speed-of-service with-
out sacrificing a quality customer experi-
ence. That can only be found within a deal-
ership’s Fixed Operations Department.
Matt Parsons is the Vice President of
Sales & Marketing with Plymouth, Mich-
igan-based IFM Americas, a company
of Infomedia Ltd. He has spent 30 years
in support of the automotive retailing
and automotive OEM market sectors
and is an expert in how technologies
impact the automotive retailing sector
and consumer experience.
WITH THIS IN MIND,
I SEE A SECONDARY
TREND OCCURRING.
PROGRESSIVE
DEALERS ARE
DEPLOYING ADVANCED
TECHNOLOGIES TO
DELIVER A QUALITY
EXPERIENCE TO EVERY
SERVICE OPERATIONS
CLIENT WHILE
MAXIMIZING THE VALUE
OF THAT INTERACTION.