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Automobile
Dealership/Repair Shop Tunes-up Its
Operations
Overview:
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Objectives
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Industry
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Date
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Place
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Mr. Murphy’s
Role
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Financial outcome or
benefit
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New Opening - Operational
& Management Planning
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Automobile
Dealership
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Sep 2003
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Nelson, AB,
Canada
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Project
Director
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Cost Savings
$136k
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Activities
Performed:
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SERVICE CONTROLS
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Developed a process flow analysis
of the service operation from the
time the customer drives up through
the final delivery for the purpose
of determining the possible choke
points in the workflow.
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Developed a system to track
technician productivity. Assisted
in setting production goals for
each technician and provided a
procedure that outlined the method
to calculate the revenue potential
per technician. Goal was to
determine if staffing levels
matched the requirements for
maximizing profitability.
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Implemented a system to track
service bay scheduling,
productivity &
utilization.
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Reviewed and revised the Service
Menu pricing using a Maintenance
Service Review to ensure that the
Dealership was getting the maximum
use possible out of the facility
resources to maximize efficiency
and minimize down time.
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To implement a system for
"up-selling" to maximize parts
sales and hours per repair order, a
procedure was created for advising
all customers of the service &
maintenance needs of their
vehicles
PARTS CONTROLS
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Reviewed and revised the current
Parts Department ordering
procedures, including Special Order
parts, to increase efficiency and
eliminate obsolescence, to
eliminate overstocking and
eliminate obsolescence or
write-offs.
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To ensure that a systematic method
of periodic parts counting was in
place so that the Dealership
investment in parts was being
protected from shrinkage,
pilferage, and damage, inventory
control procedures were revised a
system of cycle counting was
implemented.
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Reviewed maintenance procedures to
ensure tools and equipment were
being repaired/preserved in
accordance with safety and
maintenance standards.
FINANCIAL CONTROLS
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Developed departmental budgets and
variance reports which reflected
appropriate profit planning so that
managers had a budget that provided
a reliable measurement of their
performance vs. task, for
monitoring performance, and for
illuminating those areas in which
costs rose beyond the projections
of the company's fiscal
budget.
CUSTOMER SERVICE
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To identify levels of performance
of the service department staff and
to improve the department's image
surveys of customer satisfaction of
maintenance & repair services,
as well as procedures for
addressing complaints were
designed.
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Developed sales tracking methods to
measure each customer's needs for
parts and service, and to inform
customers of maintenance specials
for the purpose of improving sales
of parts and services to potential
customers on a regular
basis.
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Developed and instituted a daily
performance management and feedback
reporting system, which included
the key operating indicators to
enable the owner and department
managers to correct variances on a
timely basis, manage by exception,
and record trends.
SALES PLANNING
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Determined the market criteria,
scope, profitability, and customer
base of new and existing markets
for the purpose of assessing and
determining the current and
prospective markets and
segments.
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Developed a structured sales
presentation to give the sales
force an agenda to follow in their
sales meetings.
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Implemented a training program to
prepare the sales professional to
secure the sale.
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Established the personnel
requirements for the marketing and
sales functions, such as revenue
objectives, duties,
responsibilities, authority, and
measures of performance necessary
to manage and operate a sales
organization.
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Developed the position descriptions
for the marketing and sales
personnel staffing requirements,
including the marketing and sales
policies, procedures, forms, and
methods.
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Instituted a system for measuring
and evaluating the proficiency of
each sales representative, relative
to goals and values established by
management.
PERFORMANCE REPORTING
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