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Communication Key to Effecting Changes In Collision Estimating, Repair SoftwarePosted 10/7/1999By Levy Joffrion
You're an estimator for XYZ Collision Repair. And a good one. You know how important it is that you come up with an accurate estimate, one that will be fair to both your customer and your shop. You've got to fix the customer's car right at a fair price. That price has to include enough profit that your firm can make a little money and stay in business. It also has to be acceptable to the insurance industry, because the insurance company paying most or all the bill isn't going to stand still for any frivolous or extra charges. To help you arrive at a reasonable estimate, you have a lot of good information at your fingertips. You probably rely on software created by companies that specialize in estimating software. You tell it what needs to be done (for example, you know a fender needs to be replaced) and it will outline the procedures for fixing the problem and give you accepted time and charges for each repair. These are guidelines generally accepted in the industry and by insurance companies. Sometimes, though, there are variances and exceptions to the guidelines. And you can't just pick a number out of the air to include in your estimate. It has to be acceptable to the insurance company. And a price fair to your customer and shop. The Automotive Service Association (ASA) recognizes this problem. And it periodically takes such issues and its recommendations to the companies that create automated estimating programs. It also periodically asks these firms to meet to resolve these problems. For example, in the past year it has taken a number of issues and recommendations to the leading automotive industry providers of collision estimate and repair information, including ADP, Mitchell International, CCC Information Services Inc., and MOTOR Information Systems. Among the issues and recommendations:
ASA takes seriously its responsibilities in trying to improve estimating procedures and inappropriate times. It knows a shop can't very well, on its own, resolve all the problems that arise. But collectively, the shops - through ASA - and the estimating software creators, together with help from other entities within the industry, can resolve these issues. Effective communication is the key. And ASA accepts its role as the articulator for all its Collision Division members. It serves as the facilitator for taking issues to the automated estimating companies. Repair facility owner-members of the ASA Collision Division Operations Committee periodically take issues and recommendations to the estimating software companies. But ASA knows that taking suggestions from its member-shops to the automated estimating companies is time consuming and often limited without the insurance companies agreeing to the suggestions and changes. That's why it really takes the whole industry working together to put suggestions and changes into effect.
Recognizing that, ASA's Collision Division Operations Committee in June sponsored a summit to which all of the major insurers, paint companies and Inter-Industry Conference on Auto Collision Repair (I-CAR) were invited. The meeting was held at ASA's headquarters in Bedford, Texas. The attendees reviewed a lengthy list of repair procedures and came up with solutions to be presented to the information providers. "Good, effective communication is the key to resolving the problems we face," says Sharon Merwin, Collision Division manager for ASA. "We have found it most productive to just hold a meeting where everyone is there and can have a say-so in regard to the issues and recommendations." Merwin says ASA's bringing issues and recommendations to the automated estimating providers and others in the industry is in keeping with its overall mission of doing everything it can to make ongoing improvements in the industry to help independent collision repair businesses. How do the automated estimating companies feel about it? Perhaps a letter to the director of ASA's Collision Division summarizes it best. In the letter, Mitchell International says: "We look forward to continuing to work with you and ASA on these and other issues affecting our industry." The letter was from Mitchell International's Steven Hansen, vice president of database strategy communications and development and licensing; and Tom Fleming, vice president of database. Unfortunately, industry changes and improvements are often slow in coming. It seems like it's more by evolution than revolution. Present and past members of ASA's Collision Division Operations Committee, as well as others, sometimes voice their frustrations at what they perceive as feet-dragging on the part of the automated information providers. Joe Sanders, AAM, a former chairman of ASA's Collision Division Operations Committee, says: "As long as I've worked for ASA and that has been for many years, I find information providers are always cordial and willing to openly discuss any items; however, their lack of action in implementing recommended changes is very discouraging." Sanders is senior vice president, corporate development, for Caliber Collision Center, which has shops in Texas and California. If you talk to the information providers about why it takes so long, they will tell you that they do listen to their customers and that there are good reasons why it sometimes takes a while to effect a change. Jim Powers, vice president of market management for the Automotive Services Division of CCC Information Services, points out that CCC uses numerous mechanisms to ensure that they're continuously improving their products and service to customers. "For example, we meet with groups of customers to ask how we can improve. And we send detailed customer surveys to all of our repair facility customers," says Powers. "We also have an advisory board of collision repairers and insurers that provides us with feedback on current products, potential enhancements and new products. Plus, we pay close attention to the input we receive from associations like ASA." Powers adds, "Most important, CCC doesn't just listen - we take action. For example, in response to customer feedback, clearcoat paint can optionally be based on actual, not capped, hours." CCC customers who feel that specific labor times are insufficient should phone 1-800-4aMotor. Callers should press 2 for Technical Product support after reaching MOTOR and provide details on why they feel the labor time is insufficient. The labor time will be examined and consideration will be given to adjusting the time if warranted, says Powers. Repairers with Estimate Review Requests may also send a fax to MOTOR, at (248) 828-3508. Rick Tuuri of ADP's Claims Solution Group says his company listens too. ADP surveys its clients regularly. In addition, any repairer who has a question may call 1-800-NOW4ADP and follow the telephone menu to the Request for Review (RFR) department. Tuuri says ADP has five database experts who answer those calls and will research your question, whether it's parts- or labor-related. Repairers also may send ADP's estimate review group a fax at (925) 866-4838. "We will do whatever it takes to make sure our information is accurate, up to and including performing a time study on the operation in question, if necessary," says Tuuri. "This service is available to the entire industry, clients and non-clients alike." Tim Hain, Mitchell International's senior product manager for electronic estimating products, says that for database-related questions, a customer may call (800) 854-7030, extension 8220, or fill out a reader reply card that each Collision Estimating Guide contains. Mitchell is the provider of the UltraMate system. Hain says UltraMate also contains Database Evaluation Request and Reader Reply forms that can be printed out, filled in, and sent or faxed to Mitchell. For technical assistance with the UltraMate software or to submit a software change request, says Hain, customers may call the Technical Assistance Center at (800) 448-4401. Estimate Review Request forms are also available from ASA. The forms may be mailed or faxed directly to ADP, Mitchell International or MOTOR (CCC). Or, ASA has a standing offer of a $50 reward each month to the person sending to ASA the best estimate review request that month. As to why it takes so long for a change to be made, Powers says: "Changing software is a complex process. But the process is important because it allows us to ensure that CCC is meeting the needs of the broadest possible range of customers. With approximately 25,000 Pathways Collision Estimating units deployed across the country, we receive numerous enhancement requests. But what works for one customer may not work for another. For this reason, we need to review change requests to determine if they are fair and if customers want the change." Powers says that once a requested change has been determined to be both beneficial and fair, it is prioritized based on two factors: First, the extent to which it will provide value to the largest number of customers; and second, the degree of resources required to implement the change. The high priority items are assigned to a program release and the necessary programming is completed, which requires "time and expertise." "Before rolling out a new release, we put the product through a rigorous quality assurance program followed by field certification with a number of repairers and insurers," says Powers. "The product is then fine-tuned, if need be, before we send it out to our customers. As you can see, this process is time consuming, but it's robust. It's clearly designed to give our customers the best results." ADP's Tuuri says, "If it's just a database change, we can do that quickly. For example, if a labor time or a part price is wrong, we can make the change within a month. But if it's an enhancement, that's a different story. First we have to validate that we should make the change. We can't just base it on someone saying, 'Hey, you oughta do so and so.'" Once it is determined that changes need to be made, it goes through a software development process. "The software people have to go through an internal and external design process and their work has to be reviewed by the appropriate people and this is all very complex, so it may take two to six months, depending on the complexity of the change," says Tuuri. "There are lots of variables and a lot of things to consider in the development process, and after all that is done, it has to be tested," Tuuri points out. "We have to make sure our software will work on all the different kinds of hardware our customers are using. "So something that looks to the outside world like it should just take the flip of a switch is much more complex. Moreover, we only do two releases a year, so that our customers aren't bombarded with constant changes." Mitchell International's Hain, asked why it takes so long for software change requests to be implemented in UltraMate (or any other software product), replied: "Since the UltraMate customer receives an updated CD-ROM approximately every month, there is the assumption that the entire product changes accordingly. What is important to know is that the software itself does not change monthly, only the vehicle data that the software uses, such as the parts, part prices, labor times, and new vehicle services added to the database." Hain says there is a very complex and involved process that is required to change any software application, beginning with defining and prioritizing the changes that need to be implemented and ending with rigorous quality testing cycles. "It is not uncommon in the industry to see this process taking months or up to a year or more to complete," he says. "Since there are many hardware and software applications that each customer is likely to have, it is imperative that all the features and functionality of the product be tested under as many of these configurations as possible to produce a quality and dependable product." He says that software change requests are prioritized based on what the majority of customers have requested. "Some of these change requests appear to be quite simple to the user, but are actually very complex to implement and test," says Hain. "The number and complexity of implementing and testing these changes are what dictates the length of time necessary to produce the new version of the software." In spite of all the time it takes to effect a change, if it's a valid request, eventually it will get done. So, ASA will continue to do everything it can to bring about improvements in estimating times and procedures. And you can help. How? By passing along - to ASA's Collision Division Operations Committee - problems you encounter with estimating procedures and times. One of the best ways to communicate with ASA's Collision Division is to simply submit a completed Estimate Review Request (who knows, you just might win the $50 prize for the best one that month). Or, you may call Sharon Merwin at (800) 272-7467, extension 228. Her fax number is (817) 685-0225 and her e-mail address is sharonm@asashop.org.
ADP Incorporates "Two-Stage" Default in Shop Software Latest proof that it does came August 10 in a news release from ADP Collision Repair Services of San Ramon, Calif. ADP announced that it will now provide an automatic default to "two-stage" painting times with the latest release of Shoplink for Windows, its leading collision repair estimating system. ASA first approached the major information providers in 1996 suggesting that this and other changes be implemented. ADP said its release of Shoplink 6.1 marks the first time that any information provider has changed the refinish default to two-stage paint for both the interior and exterior surfaces of repaired vehicles. "When ADP introduced computerized collision estimating in the United States, the collision repair industry used nothing but single-stage paint so ADP built its system with single-stage paint times as the system default," explained Rick Tuuri, director of industry relations for ADP Claims Solution Group. "Since that time, two-stage has become the standard for collision repair so we changed our system to default to two-stage paint times in Shoplink 6.1. Both interior and exterior surfaces can be selected to reflect the appropriate type of repair needed." ADP's announcement follows hard on the heels of a news release that ASA issued March 22. The ASA news release reiterated some key concerns, including the two-stage paint issue, that ASA had presented to ADP. The news release said Nick Gojmeric, representing ASA's Collision Division Operations Committee, asked ADP about two-stage refinish default. Since the majority of vehicles today are refinished with a two-stage process, Gojmeric said, ASA's Collision Division would like for ADP to provide the default to two-stage paint rather than the single-stage default, which requires additional entry. Kevin Caldwell, AAM, director of ASA's Collision Division, said ASA is pleased that ADP has included two-stage refinish default in its latest version of Shoplink, but expressed concern that it has not yet changed in the insurers' version. Caldwell said, "I understand there may be some Y2K problems involved and maybe that's why the insurers' version, PenPro, hasn't yet changed, but until it does, it won't be fully beneficial to the industry. The insurers will still be seeing different numbers than what we (repairers) come up with." In answer to that, Tuuri said insurers will get the same numbers if repairers inform them up front that they're going to use the two-stage refinish default for both the interior and exterior surfaces of the vehicle being repaired. "Insurers can select options that will give them the same numbers," said Tuuri. Tuuri also said that the two-stage refinish default will be incorporated in the next release of the insurers' software, PenPro. The new version of PenPro will be released in the first quarter of 2000, he said. "We would have incorporated it before then," said Tuuri, "except the insurers put a moratorium on implementing new software for them because they wanted to get past the onset of the year 2000 to be sure there were no Y2K problems and that everything would work right."
ASA Offers Estimating Reference Chart Profit-Making Tool Available to Collision Shops When a shop receives an insurer's estimate that is written on an estimating system the shop does not use, the likelihood of "Not Included" procedures being overlooked increases, said Chris Dameron, chairman of the ASA Collision Division Operations Committee subcommittee on Automated Estimating. The reference chart minimizes this likelihood by identifying common replacement parts and providing a listing of what is not included in the replacement of that part in the estimating systems of ADP, CCC and Mitchell International. The chart not only identifies the not included items, it also shows what options, operations, remove and install steps, and refinish items are not included in each system. "A good way to utilize this helpful business tool is to keep it close to your estimating station and use it as a quick reference. This will save you time on each estimate you receive," said Kevin Caldwell, chairman of ASA's Collision Division Operations Committee. "This is another example of what ASA is doing for the entire industry," Caldwell continued. "We understand that every repair facility may not have all three systems, and questions often arise when a shop receives an estimate not written on the system used by the shop. By keeping this chart handy, answers to the most common questions are at your fingertips." The reference guide does not replace the P-Pages, Caldwell said. "ASA cares that everyone in the industry creates a better understanding of all estimating systems so that the industry will become more efficient. We want to share with the industry this helpful business tool," he concluded. One free copy of the estimating guide has been mailed to all ASA Collision Division members. Additional copies may be ordered for $5 each, by calling ASA at (800) 272-7467, ext. 240. Any industry professional may order a copy, for the same price, by calling ASA at that same number.
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Copyright (c) 1996-2009. Automotive Service Association®. All rights reserved.
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The Automotive Service Association (ASA) taking issues and recommendations to the estimating software providers does some good.
