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Letter to the Editor

Going Lean

Is Lean Production a viable concept in collision repair, or just the latest consultant catchphrase?

Every few years, a new diet plan seems to capture the attention of the millions of Americans with some excess weight to shed. The “Atkins” or “South Beach” or any of the other diet plans that have caught fire in recent decades have done so in part because they can be effective – but also in part because they seemed to offer just the latest and greatest solution to a widespread (no pun intended) problem.

Much the same can be said of business improvement “solutions.” Every few years, a “new” theory gets touted as the key to surviving and thriving in a competitive market. As with the diets, such business solutions can work. But they generally are not the panacea they are often touted to be.

“Lean production” appears to be among the current key catchphrases being used by progressive collision repairers and the industry consultants they work with. The key to success in this industry, they say, is going lean: finding ways to do more with less.

It is true that collision repairers need not look far for an example of what lean production can do for a company. As Toyota Motor Company continues its track to becoming the largest automaker in the world, it has done so using the concept of lean production.

But does such a concept, clearly successful in the production world of manufacturing, have an equal place in the every-job-is-different, service-rather-than-manufacturing world of collision repair?

Steven Feltovich, for one, believes it does – if lean production is understood and implemented at its core level. Feltovich conducts estimating and other training as the manager of business consulting services for Sherwin-Williams Automotive Finishes, and is no stranger to Toyota’s efforts to implement lean production concepts in its dealership collision repair facilities.

Just as many dieters fail because they do not grasp and adopt all of the elements of what may be a “fad” yet effective weight loss plan, Feltovich believes too many shop owners are looking for “lean-in-a-box” or a quick and simple way to get “lean” implemented within their business in a few weeks or months.

“But lean is a journey that never ends,” Feltovich said. “It takes a long time and a lot of effort. But is it worth it? You bet.”

A simple concept

For Feltovich, no matter what other labels are slapped on the concept of lean production, it is based on W. Edwards Deming’s principles for “achieving maximum productivity with the least amount of effort or expense.” Deming was the American business consultant whose concepts Toyota has worked successfully to implement over the past 50 years.

Deming’s views of lean production can really be summarized in just a few words. It is really a chain reaction that begins by improving quality. That quality results in lower costs and higher productivity because it eliminates the time and expense involved with quality issues: rework, mistakes and delays, and inefficient use of equipment and materials. In turn, this better quality and its lower costs allow a company to capture more market share and grow.

Going lean, therefore, entails creating “a process that delivers quality the first time because it’s cheaper than defects and errors,” Feltovich said. “Some programs out there suggest dealing with bottlenecks, delays and snags by throwing more people, equipment, or materials at the problem, or by building a bigger building. Deming’s way is quite the opposite of that. In lean manufacturing, you need fewer people, less space, and less equipment. Toyota’s output, for example, is four times as productive as some of our domestic [automotive manufacturing] systems.”

That does not mean, however, that the key to becoming lean is just shedding employees or other “visible” costs, Feltovich cautioned, because such ruthless cutting often results in “hidden costs.” Instead, he said, it involves seeking out waste and anything that negatively impacts quality.

“For body shops, you’re stripping out redundancies and rework, the time and effort, for example, involved in multiple supplements and parts orders,” Feltovich said.

Key elements

Although Feltovich repeatedly pointed out that lean production is more of an ongoing improvement process than a series of specific actions, there are elements of shop operations that can indicate a shop is “going lean.” They include:

• Blueprinting: When a frame rack or a paint booth becomes an “expensive parking space” for a vehicle because of a delay, or when in-process cars sit untouched for days waiting for a part, that is a sign of a process that needs to be improved to eliminate waste, according to Feltovich. Lean production calls for adequate damage assessment up front, by completing the necessary tear-down to determine all necessary parts (one parts order should be the norm and goal), and by obtaining all insurer approvals before the vehicle moves into non-stop production.
• Equipment in use: Feltovich said that during two consecutive days he spent in one shop for which he was doing some consulting work, two of that shop’s four frame racks sat unused. But eliminating the problem of cars tying up a rack waiting for insurer approvals, for example, can often mean a shop can get by with fewer racks. Shops that go lean, Feltovich said, often find they can sell such excess equipment without any loss in productivity and throughput. Too often in the past, he said, bottlenecks have been solved by buying more equipment while the current equipment in the shop is not being used to its full capacity.
• Quality in-process, not just at final inspections: You cannot inspect quality into a job, Feltovich said. It has to already be there. Many shops do a final inspection of a vehicle just before the customer arrives, but by then it is too late to avoid the expense of fixing any problems found. The expectations for quality must be adequately communicated so such problems ideally do not occur in the first place, or at least are caught and corrected before the vehicle has moved forward in the process.
• A facility size and employee headcount that are in line: If a technician is not apt to have any delays once he has a vehicle that has been put in process, how many vehicles and stalls does he need at any one time? Feltovich advised that if your shop has more than two stalls per technician, look at improving your processes long before you look at adding more space (and the overhead expense that accompanies it).
• General cleanliness: Improving quality to reduce costs does not mean polishing vehicles more; it means reducing the need to polish. That may mean understanding that good housekeeping in a shop is a lean-style investment in improving quality, reducing rework, and preventing wasted time and materials.
• Training: Quality is not about sanding a panel more or grinding a weld smoother, Feltovich said. It is about knowing how to use the right sanding technique and materials the first time. It is about welding more effectively so grinding is not necessary. Lean shops have well-trained employees, Feltovich said.

Lean is not mandated, but…

“It’s not necessary to change,” Deming once said. “Survival is not mandatory.”

Feltovich and others touting lean production generally do not go so far as to say it is necessary for survival in the Collision Repair Industry. But, they warn, you will likely be competing against at least some repair businesses that have moved to get lean.

“You can dig your heels in deep and hard and say, ‘I’m not changing. I’ve been at this 35 or 40 years, and this is the same way we’ve always done it and I’m not going to change,’” Feltovich concluded. “But guess what? Then I can tell you this: Your future is getting dim.”   o

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