February 2001
Gus's Garage

Last month we discussed how repair quality and service are largely dependent on preparations and activities conducted prior to the actual repair activities. Specifically, we introduced "staging" as the final quality check (QC) and preparation phase prior to inserting the vehicle into Repair Work in Process (WIP).

The objective of Staging is to improve quality, service, and profits by eliminating unexpected WIP delays and maximizing technician performance.

Continuing with the problem RO from last month, Gus and I debated the merits of heavier hits. I suggested that in terms of WIP throughput and WIP labor margins, that a single well-staged heavy hit would most times outperform several smaller jobs equaling the same revenue total when several jobs are assigned to a single technician.

I explained to Gus that a single $5,000 job is the revenue equivalent of five small $1,000 jobs. Fewer resources are used for the single job. There is one file, one insurance adjuster, less supplements, less parts orders, less customer care, less selling, less waste for moving five vehicles in and out of work spaces, and less tech movements from car to car. In addition there is only one vehicle unit to potentially disrupt the total shop’s workflow, scheduling and dispatching when unexpected problems arise. When a Heavy Hit Metal Tech is properly supported, he would on average produce better WIP efficiency than if he were assigned multiple smaller driveable jobs.

The heavy hit or tow-in should have the least amount of WIP delays, the best on-time delivery, the highest labor gross margins, or basically, make the most efficient use of the shop’s WIP resources because these jobs should be better prepared for production than all other smaller driveable jobs.

Staging assures that key information is compiled and quality checked for use in the Work Order Package that will be used by the production technicians. Staging also assures that the vehicle is prepared to receive repair processing and that the parts are inventoried, quality checked, and transferred to the workspace.

Key Information Points

• Customer concerns or special requests
• Shop special promises to customer (i.e. additional minor repairs)
• Customer pay sale’s repair order
• Customer repair (sales) authorizations
• Insurance company damage appraisal
• Insurance company authorizations
• Repair sales order
• First supplement repair order
• Parts order sheet and order status (verification of parts received)

Maximum Technician Performance

Technician Staging prepares the vehicle and work spaces for efficient repair processing. A full workday can be allocated for this step. When the full shift is not required, the tech is available to assist others, conduct training, or perform equipment maintenance.

Ideally, the vehicle and parts are pre-loaded on the frame machine during the end of the prior workday. The "heavy-hit" tech should essentially have two consecutive days of less intensity; the day before and the day he stages his new heavy hit job. Gus has to be disciplined to not assign any in-between jobs. The day prior to Staging is used to give the tech the opportunity to prepare his workspace and re-adjust mentally to a new complex repair assignment. He should not be struggling to complete the re-assembly and/or final troubleshooting of his last job assignment to meet a late delivery date. Instead, the prior day is valuable time for assisting others, training, maintenance, coaching, team building, and de-escalating. Instead of having to dread facing the next heavy hit tomorrow, the tech should feel confident that he would be un-pressured to use the full shift, if needed, to effectively stage (make ready) his next assignment.

Technician supplements should be reduced to two at the most, further reducing delays. The first, when he initially stages the vehicle, and one thereafter during WIP. 99 percent of all parts requirements should be identified on the first day the tech stages the vehicle.

In Gus’s smaller shop, these work rules will improve workflow, organization, orderliness, and process cycle-time. Gus should realize gains in repair quality, customer service, and profits.

Staging Steps for Gus’s Smaller Shop

Step 1: Estimator - In-lot proofing of damages and repair processing

1. 15-30 minutes of processing
2. Record the "high certainty" supplement items
3. Generate preliminary first supplement order
4. List "low certainty" supplement items
5. List the activities to improve certainty (i.e. "pull core support, put on lift, expose doors and center-pillar, need electrical power)
6. List repair processes requiring outsourcing

For severe damages with numerous "low certainty supplement questions" and/or additional resolution of total loss determination - teardown and further diagnosis is required immediately.

Step 2: Estimator and Metal Tech - In-lot review of damages and repair items (preferably the technician who will perform the repairs):

1. 10 - 20 minutes of processing
2. Quickly review Step One with tech
3. Look for omissions and feedback on the initial repair order and supplement order
4. Solicit feedback on verifying and/or confirming supplement certainty
5. List the verification activities needed to improve certainty (i.e. "pull core support, put on lift, expose doors and center-pillar, need electrical power)
6. Schedule verification activities for immediate processing

Step 3: Estimator - construction of Work Order Package - order parts - schedule WIP loading date

1. 15-30 minutes of processing/Creates first supplement and generates full parts order
2. Notifies insurance rep of supplement
3. Creates work order package
4. Boldly marks vehicle to define repair areas
5. Schedules WIP entry date and technician

Step 4: Production manager - load vehicle and parts - QC work order

1. 15-30 minutes of processing
2. Verify Work Order Package construction
3. Clean and protect vehicle
4. Load vehicle onto tech’s frame machine
5. Load all parts into tech’s work area

Step 5: Metal Tech - QC and prepare for repair processing

1. Half to full shift of processing time
2. QC Work Order Package and vehicle readiness
3. QC all parts for accuracy and quality
4. Record part order defects
5. Process part order defects
6. Dispatch parts for edging and cut-in
7. Organize and store parts as needed (on cart, return to parts room)
8. Teardown and disassembly, access pulls
9. QC outsourcing needs with work order
10. First technician supplement - notify Gus if more than five line items
11. Clean and organize work space - parts, fluid spills, equipment, tools
12. Protect vehicle and parts access points

As we continue next month to explore readiness and preparation, it will become evident that there are many more upstream events and activities that affect the staging process and the resulting outcome on quality, service, and profitability.