Optimising Workshop Operations
Meer Salauddin, GM (Workshop Operations), Unitech Automobile
"To keep vehicle out of workshop" is the thumb rule of automobile
workshop operations; this means that every individual in
the workshop must aim to push the vehicle out of workshop
with dispatch and excellent quality of job done.
Enormous time is wasted in the workshop process, which delays
the entire process from receiving to delivery of vehicle.
For example, a service advisor takes half an hour or more
to attend to the customer; passing of the job card from
the service advisor to the service supervisor may take another
one hour. There is a further delay by the supervisor in
allocation of vehicles to technicians, due largely to lack
of effective control on manpower allocation by the workshop
controller.
Of the various case studies conducted on 'time management
in workshop process', it has been observed that a vehicle
is attended only 33% of the time by mechanics, out of the
total time the vehicle is available in the workshop. We
can also say if a dealer is doing 33 vehicles in his workshop,
he can do 100 plus easily. In other words, up to 90% of
workshops are just achieving minimum passing marks of 33%.
Given below are the results of case studies on important
parameters in workshop process:
| 1. |
Delays
in job card opening - 90 out of 100 vehicles take
10 to 60 minutes; only 10% of vehicles are attended
on time i.e. within 10 minutes. |
| 2. |
Delay
from stores - only 33% of parts are supplied on
time i.e. within 5 minutes. |
| 3. |
Delay
in transferring jobs from Service Advisor to Service
Supervisor - 33% of vehicles get delayed in shifting
of job cards; 67% of job cards reach supervisor
within 5 minutes. |
| 4. |
Delay
in billing - Job card must reach bill clerk as soon
as the vehicle goes for washing or the bill should
be ready before customers comes to take delivery.
However, the studies show that only 20% of customers
receive the bill within 5 minutes. In 80% cases,
a customer has to wait for 10 to 30 minutes for
the bill to be ready. |
| 5. |
Delay
in taking customer's approval for additional jobs
- 34% of vehicle delays occur because of SA’s
inability to take customer's approval for extra
or additional jobs on time. |
A Workshop Can Be Among The Most Profitable Business
Without Any Rocket Technology
Keeping in view the startling revelations of these case
studies, most of the workshops can, in fact, dispense with
the system of giving appointments & should be ready to take
any vehicle at any time. The reason for giving appointments
and not accepting vehicles at all times is to make our service
advisors comfortable. The solution of this problem is very
simple; for example, all the back office staff available
in workshop like, warranty clerk, telemarketing executives,
supervisors and even technicians can open job cards during
peak hours, which will also give them a sense of involvement
in mainstream business activity.
It has, by and large, been observed that in the name of
a good system, a customer is treated like an unwanted element
in workshop premises. For example, security staff does not
guide the customer as to where to park his vehicle. When
a customer enters the front office, the office boy simply
gives him a token or asks him to wait in "Q". It is the
same story when the customer comes to collect his serviced
vehicle. After paying the bill, the customer is left at
the mercy of the washing boy. Nobody accompanies him to
answer his doubts, except washing boys who commonly have
the habit of abusing or finding fault with other workshop
staff. Many a time, the customer prefers to take the vehicle
without the vehicle being properly cleaned.
After this horrifying experience, the customer may find
that his expensive gifted key chain, glasses or floor mats
are missing; either his reading lamp, music system or some
part of accessories is not working, which was in perfect
condition before he left his vehicle in the workshop; hand
brake light is on without using hand brakes, A/C cooling
is low or the roof light is permanently on, etc.
The service supervisor, quality controller or service advisor/
supervisor must accompany the customer to deliver the vehicle
and to satisfy the customer that the vehicle and, for that
matter, all fitments/accessories therein are in perfect
condition in order to avoid the unpleasant experience of
the customer.
It has been observed that non-dealer workshops or authorised
service stations, where customers are not just left to be
taken care of by the security guards, office & washing boys
but are attended to by trained personnel, are receiving
more than 1500 vehicles a month for servicing and are having
very high Customer Satisfaction Index (CSI).
10 Points To Increase Workshop Business Three-fold:
| 1. |
Identify
and avoid waste of time at various stages of vehicle
repair/servicing; review & redesign the process
based on the experience/feedback of customers from
time to time. |
| 2. |
Stop giving appointments. |
| 3. |
Service
advisors must accompany the customer while opening
and closing the job card. |
| 4. |
Quick
service within 2 hours: All free services, paid
services & minor repair job, which contribute 60%
of a day's load in a workshop, should be completed
in 2 hours. All other jobs in 4 hours (except engine
& gear box and major accident jobs). |
| 5. |
Sale
of accessories can increase the monthly revenue
of dealership/workshop by 25%. |
| 6. |
By making Sundays working, there can be a 13% increase
in business within a span of 6 months. |
| 7. |
The
customer should be made aware of the services that
are being extended. |
| 8. |
Allow
the customer in the workshop. |
| 9. |
While
closing the job card and handing over the bill to
the customer, the service advisor should explain
the jobs done during vehicle servicing and the bill
thereof. |
| 10. |
To increase workshop business, service marketing
is a crucial tool. A workshop must come out with
one value-added-service scheme for customer every
month. For example
|
Sale and renewals of Service Contracts: A very low cost
Service Contract or Lubrication Contract can be designed
from Rs. 2,500 to Rs. 4,500 in case of Maruti & Hyundai
vehicles. The amount of charges for service contract is
not important; important is the life-long ownership & retention
of the customer.
Illustration:
Advantage of selling 150 nos. of contracts in a month or
1800 in a year (For workshop getting 1000 vehicles a month)
Every customer would visit 4 times in a year.
This means 1800 x 4 = 7200 visits
Increase of 7200 vehicles in a year or 600 in a month.
In terms of revenue
Let's take Rs. 3,000 as the cost of a contract & average
billing per vehicle per visit to workshop to be Rs. 1,000
Additional revenue generated in a month after selling 150
contracts:
| No
of contracts 150 x Rs.3,000 = |
Rs. 4,50,000 |
| No
of Vehicles 600 x Rs.1 ,000 = |
Rs.
6,00,000 |
| |
Rs.
10,50,000 |
Workshop operations constitute a core profit centre
in a dealership today. A dealer servicing 33 vehicles a
day in his workshop can reach 100 plus, by just implementing
a few common ideas.
In view of the importance of contract selling & renewals,
a dedicated telemarketing team should follow up regularly
and should send service reminders after every 10th week
coinciding either with some festival, customer birthday
or wedding anniversary. A reminder call for service due
date will ensure that the vehicle comes for servicing. Also,
incentives should be given to sales staff if they are able
to achieve the sales target.
Regular interface & communication with customers is likely
to enhance the level of their comfort with the particular
workshop that would, in turn, lead to more drive-ins at
the workshop for vehicle service & repair, resulting in
growth of workshop revenues and profitability.
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