This is Part 3 in a four-part article. Consignment Cabinets In the early 1980’s, Toyota Motor Sales USA developed a process of utilizing parts consignment cabinets to stimulate wholesale parts sales. It was referred to as the “STAR” program. This program was designed for a multitude of reasons, but there were two particular issues that were addressed: There was a concern that there were a large number of non-franchised repair facilities performing repairs and services… Alternatives to a Parts Back Counter – Part 3Read More Alternatives to a Parts Back Counter – Part 3
This is Part 2 in a four-part article. III. Pre-Pulling Parts The first question posed in connection with any change in operational dynamics is “Why?” What benefit can we expect to derive from this process? The pre-pulling of parts for technicians appears to have at least three basic benefits: It will almost certainly reduce technician “lost time” at the parts counter. Most technicians, when asked, will estimate this lost time factor to be at least… Alternatives to a Parts Back Counter – Part 2Read More Alternatives to a Parts Back Counter – Part 2
This is Part 1 in a four-part article. Introduction In the age-old conflict between parts departments and service organizations, one concept that never fails to spark debate is the issue of order fill and how best to reduce technician wait times. The assumption is that any reduction in this wasted time will result in increased production capacity. The four techniques or procedures described in Sections II. – V. below (and in later newsletters) illustrate various… Alternatives to a Parts Back Counter – Part 1Read More Alternatives to a Parts Back Counter – Part 1
Right now, everyone is looking for Technicians. The average shop could use at least two more Technicians. This same shop typically has a Technician with plans to leave. If that Technician actually leaves, we now need to find three Technicians. Two Technicians was hard enough to find and now we need to find another one? We can’t afford to keep losing Technicians. What are we going to do to stop this insanity? We have to… What’s Your Plan To Retain Your Technicians?Read More What’s Your Plan To Retain Your Technicians?
Have you heard the saying, “What gets measured gets managed”? Peter Drucker, best known as the man who invented modern business management, is credited for coining that phrase. Mr. Drucker felt, if you cannot measure something, and know the results, you cannot possibly improve it. With that being said, I am continually surprised by the number of Service Managers I speak with who do not know what the actual inventory of their service department is,… Do You Track Your Service Department’s Inventory?Read More Do You Track Your Service Department’s Inventory?
There’s a consensus in the industry that there’s a serious shortage of automotive technicians able to work on today’s advanced cars and trucks. Now, some analysts and experts say that simply recruiting more technicians will not help. Dealerships today are losing technicians too fast for recruitment to make up the emerging gap. The numbers are staggering. Two of the major domestic brands estimate there will be a need for 15,000 plus new technicians for their… Is Flat Rate Compensation Ruining Our Service Business?Read More Is Flat Rate Compensation Ruining Our Service Business?