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Is working with a consultant the answer to your shop’s struggles? E-mail
Written by John Yoswick   
Tuesday, 01 January 2008
 


Noaker cites a laundry list of changes he’s implemented based on Zimmer’s input, including:


    • Accounting system improvements that enable Noaker to better track, for example, purchases, inventory and sales (as a percentage of total sales) of materials.
    • Goals and more regular feedback to technicians in terms of productivity, and to office staff in terms of sales.
    • Customer satisfaction improvements by “under-promising” on delivery dates and regularly updating customers throughout the process.
    • A more detailed job assignment process that involves going over estimates with the technicians and using markers to indicate on the vehicles what needs to be done.


In addition to some subsequent email and phone exchanges, Noaker had Zimmer back into the shop for what he calls ‘fine-tuning.’ After spending a Friday afternoon at the shop, Zimmer met with the entire staff the next morning, using examples of specific problems he saw at the shop and getting buy-in from individuals on things they now understood should be done  differently.


Noaker said he’s spent about $10,000 between the two consulting visits by Zimmer. He’s confident it’s been a worthwhile investment. The shop, for example, went from losing 10 or 15 percent on materials to making 12 percent on them one quarter, and 32 percent in another.
“And since Chuck was out here the first time, we’ve averaged between 5 and 6 percent net profit, which is a heck of a lot better than zero,” Noaker said.


To continue in business – or not
As shop owner Beavers considered whether to stay in the collision repair game or get out, he began searching the internet for an outside consultant and eventually spoke with John Steadman, president of JOVI Enterprises, Inc., which offers consulting to both dealership and independent collision repair operations.

 

Steadman spent four days at Car Crafters Collision Repair in March of 2006, after which Beavers signed on for a six-month contract under which Steadman spent two days a month at the shop.


Together, Beavers and Steadman focused on ways to improve the shop’s productivity and profitability. Daily sales, for example, are posted in the office to help Beavers and his staff understand where they are in terms of their break-even point for the month.

 

A software system that Steadman’s company developed helps the shop determine expected cycle time for each job, making it easier to track which vehicles are falling behind. The system also has improved the shop’s scheduling by showing how many hours of labor are scheduled in each day in relation to what the shop is capable of producing.

 

“We used to take everything in on Monday and promise it by Friday,” Beavers said, “That created havoc on Friday, trying to get all those jobs delivered. Now we deliver one or two cars just about every day.”

 

Perhaps the biggest change Steadman recommended and helped Beavers implement was a shift to a team system within the shop.

 

“Instead of just dedicating one man to a job, if something has to go today, they can all pull together as a team and get it knocked out,” Beavers said. “It took a while to get everybody to buy into it. But it seems to be working pretty smoothly.


Beavers said he’s seen gradual improvements in his shop’s numbers. He’s no longer dipping into his own pocket to pay the shop’s bills. And the help gave him the confidence to go ahead and build a new 12,000-square-foot facility.

 

Beavers said he spent about $12,000 for Steadman’s initial consultation and 6-month contract.


“I really didn’t have a choice (about spending the money) if I was going to keep the business running,” Beavers said. “But I would recommend it to anyone to get on track, to understand how the business side of the body shop is supposed to work.”


Hard work, not just consultant, is key
Beavers and Noaker both say that although they are both pleased with the results their consultants have helped them achieve, no one should look at bringing in a consultant as an easy cure-all their shop’s problems.

 

“You really have to want to make the changes they recommend,” Noaker said. “They can’t do it for you. You just have to keep plugging away at it. It’s a lot of work.”


John Yoswick is a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988. He can be contacted by email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

 



 
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