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  Guest Editorial

Implementing CRP in Your Business

Posted 8/13/2001
By Richard Altieri

There is an old saying, “If you always do what you've always done, you'll always get the results you've always gotten.” Take the estimating and repair process, for instance. For the most part, repairers write estimates today much the same way as they did in the 1970s. The customer walks in, referred by an insurance company in many cases, and asks for an estimate. Or, if it's a direct repair, the shop contacts the customer directly after receiving an assignment from an insurer. In both cases, the first step of the repair process almost always starts with an estimate.

That estimate generally takes the form of the estimator making notes and getting digital photos of the damage and then writing up an estimate of repair. Once the necessary authorizations are received, the parts are ordered and the repair is scheduled into production.

The car is then disassembled by a technician, who often finds additional damage not evident during the preliminary estimating phase. The technician moves to another job while the additional parts are ordered, supplemental billings are authorized and parts are received. When the additional parts arrive, the technician is probably already busy repairing another vehicle. So the job sits and waits, sometimes for days. Eventually, the technician begins again only to discover that another critical part is needed or that one of the parts received is the wrong part. The job stops again!

Finally, the car is near completion and ready for the alignment rack. However, the technician here may discover that a suspension part is damaged, preventing the alignment from being completed. The car is pulled off the rack and again put off to the side to allow for the next job to come through.

Sound familiar? If you always do what you've always done, you'll always get the results you've always gotten!

Years ago, when you opened the hood of, say, a 1973 Monte Carlo, the frame rails, radiator support, bumper absorbers, fender skirts and brackets were all in clear view. You could write a relatively accurate estimate if you just took the time to really study the damages.

Open the hood of almost any new automobile today, though, and it doesn't take an expert to realize that the chance that there will be hidden damages is highly probable. So why are we using the same old estimating and parts ordering processes?

Some shop owners are starting to change the process. One shop we recently visited disassembles all vehicles dropped off for repair almost immediately upon arrival. The estimator then audits the preliminary estimate, capturing all of the supplemental damage up front and ordering the necessary parts within an hour of the vehicle's arrival. Next, the vehicle is placed in a holding area as the parts are checked for accuracy and supplemental parts are ordered and received. The actual repair is started only when all of the critical parts are in and checked for accuracy.

The goal, of course, is to reduce the overall cycle time of the repair and to increase production efficiency. Everyone has had a job where all the right parts were delivered, there was no hidden damage and all authorizations were in place - the car just greased its way through the system. The repair job was profitable, the technician was proud of his success, the customer was pleased to get the car back on time and everybody won!

The difference between shops that enjoy this type of high productivity and low cycle time and those that don't can usually be boiled down to one common theme: consistent repeatable processes (CRP). It is CRP that allows fast food franchises to complete an order in record time. It is CRP that differentiates one hotel from another at check-in. And it is CRP that sets one shop apart from another in terms of quality, safety, productivity and profitability.

An excellent example of this is McDonalds. In 1958, McDonalds produced a 75-page operations manual. Today, the manual is a four-pound, 750-page affair. And all they do is make sandwiches and fries. Imagine the impact that CRP might have on your business, which is far more complex than flipping burgers.

So where do you start? Workshops and seminars designed specifically for collision centers are now available from a number of organizations - including the Inter-Industry Conference on Auto Collision Repair (I-CAR); the Automotive Management Institute (AMI); the Automotive Aftermarket Industry Association (AAIA); the Paint, Body, and Equipment Association (PBEA); and even from suppliers. Let them help you start building CRP into your collision repair business today!

Altieri Richard Altieri is manager of market operations for the PPG Automotive Refinish Maximum Velocity Performance (MVP) business development and support program for collision repair centers. A 30-year veteran of the collision repair industry, Altieri is a former collision shop manager and developed one of the first computer management systems for the industry in the 1980s. PPG's MVP program offers business development training, consulting services and Benchmark analysis to help collision centers improve productivity and profitability.

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