Sample Collision Center
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- Ada Lynch
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2 Benchmark Report Shop Number: 0000 Sample Collision Center 123 Any Street Anytown, USA Copyright PPG Industries. All Rights Reserved Disclaimer No part of this benchmark report may be reproduced in any form by any means - graphic, electronic, mechanical, or otherwise - without the prior written permission of PPG Industries. The information contained herein uses data that has been confidentially provided to PPG by the participating collision center. It is used to enable PPG to make estimates of PPG s customer s production processes, productivity and profitability and as such, it is informative and not meant as a completely accurate representation of data. It should be used for comparative purposes only, in combination with the customer s unique knowledge of the appropriate business environment. In no event shall PPG be held liable for any consequences of the business decisions arising from the use of this data. Further, your use of the data shall signify your acknowledgement and understanding of this Disclaimer.
3 Key Performance Indicators Business Performance Key performance indicators are used to measure and report on business and process performance. The pages that follow provide additional detail relative to each of the Key Performance Indicators included on this page. Your Company BenchMark Performance 5/24/ /31/2007 Labor Labor Rate $56.02 $56.82 Margin 54.8% 57.5% 57.2% 65.2% Parts Parts Rate $38.41 $38.96 $36.17 $39.97 Margin 21.3% 25.0% 26.1% 29.1% Materials Materials Rate $9.02 $9.89 $9.33 $9.99 Margin 18.0% 22.0% 28.8% 36.8% Sublet Sublet Rate $5.53 $5.39 $5.45 $8.97 Margin 9.7% 12.7% 20.2% 19.7% Gross Sales/Profit Total Hourly Sales Rate $ $ $ $ Margin 37.6% 40.7% 42.4% 47.3% MVP Performance GP$ / Available Hour $42.70 $51.07 $41.98 $69.50 Operating Expense Operating Expense % of Sales 29.1% 29.3% 30.0% 30.0% Net Profit Net Profit % 8.5% 11.5% 7.0% 9.4% Repair Order Average $$ / RO $2, $2, $1, $1, Average Hours / RO of 24
4 Key Performance Indicators Process Performance Your Company BenchMark Performance Technician Efficiency Administrative Efficiency Production Efficiency Annual Sales/Technician Average Admin Hours/Repair Order 5/24/ /31/ % 113.0% 96.6% 134.0% $235,892 $260,692 $197,537 $286, WIP (Keys To Keys) #ROs/365 Day Throughput Performance Average Lead Time (cycle time) Average Hours / RO TPI (Billable Hours/Day/Repair Order) Staffing Density Facility Capacity Average Vehicles/Day/Booth Annual Sales / Square Foot $ $ $ $ of 24
5 Business Performance Selling Rates Collision repair centers primarily sell labor hours and associated collision repair products; i.e. parts, materials and sublet. The Total Hourly Bill Rate is a unique indicator that can be used to quickly forecast sales based on the number of projected labor hours for a period. For example, if a process improvement is expected to generate 1,000 additional billable hours over a period of time, it becomes easy to calculate what the sales (and profit) result would be based on (average) current state performance. This indicator also serves as a benchmark for parts, materials and sublet sales mix Selling Rates Your Company BenchMark Performance Labor Rate $56.02 $56.82 Parts Rate $38.41 $38.96 $36.17 $39.97 Materials Rate $9.02 $9.89 $9.33 $9.99 Sublet Rate $5.53 $5.39 $5.45 $8.97 Total Hourly Sales Rate $ $ $ $ Parts To Labor Rate 68.6% 68.6% 68.6% 74.4% 5 of 24
6 Business Performance Gross Profit Margin Gross Profit Margin represents profitability as a percentage of sales. Two factors influence your gross profit margin on total sales. The gross profit margin earned on each product (i.e. labor, parts, materials and sublet) will influence gross profit margin earned on total sales. However, there is another factor that influences your total gross profit margin and that is your product mix. For example, if you were to sell labor only, your gross profit margins would be higher compared to same sales of parts, materials or sublet. On the other hand, if you were able to sell a higher mix of parts, materials and sublet for each labor hour sold your gross profit dollars would increase, while your total profit margin on total sales would decrease. With this in mind it is a good idea to track and work toward continuous improvement on margin, but to keep in mind that improving on gross profit dollars is the key to increased returns on your business investments Gross Profit Margin Your Company BenchMark Performance Labor 54.8% 57.5% 57.2% 65.2% Parts 21.3% 25.0% 26.1% 29.1% Materials 18.0% 22.0% 28.8% 36.8% Sublet 9.7% 12.7% 20.2% 19.7% Overall Gross Profit Margin 37.6% 40.7% 42.4% 47.3% Sales Mix Your Company BenchMark Performance Labor 51.4% 51.2% 51.2% 48.0% Parts 35.2% 35.1% 34.6% 35.2% Materials 8.3% 8.9% 9.1% 8.9% Sublet 5.1% 4.9% 5.3% 8.0% 6 of 24
7 Business Performance Gross Profit Per Available Hour Gross Profit Dollars per Available Hour represents your total gross profit earned on sales for each hour available. This indicator is influenced by gross profit margins earned for each product you sell (i.e. labor, parts, materials and sublet) and also by your product sales mix. However, production efficiency and throughput performance typically offer the greatest opportunity for improving Gross Profit Dollars per Available Hour Your Company BenchMark Performance Gross Profit Dollars / Available Hour $42.70 $51.07 $41.98 $ of 24
8 Business Performance Repair Order Analysis Repair Order Analysis offers important insights into your work mix and estimating and sales effectiveness. Your average repair order may increase or decrease as your parts usage changes. For example, an increase in use of aftermarket and LKQ parts will reduce your average repair order. The type of work you do will also raise or lower this indicator. For example collision centers repairing luxury cars tend to have higher repair order averages while companies processing average vehicles, small repairs, dealer warranty or fleet work tend to have lower averages. While the Benchmark Performance is included for review and comparison, following your own performance from one period to the next will provide a more meaningful comparison Repair Order Analysis Your Company BenchMark Performance Average $$/RO $2, $2, $1, $1, Average Hours / RO # ROs / Year # ROs / Month # ROs / 365 Day of 24
9 Business Performance Net Profit Performance This page does not include benchmark performance due to variation that results from reporting of operating expense and net profit. Instead, your Net Profit Performance is presented here to reflect on your performance and comparison to reporting from the previous period. Additionally, a Breakeven Analysis and 1% Effect are included to provide additional insights relative to your business and process performance improvement planning. Sales & Profitability Annualized Last Period This Period Total Sales $1,887,135 $2,085,533 Direct Costs $1,176,635 $1,235,759 Gross Profit $$ $710,500 $849,774 Gross Profit Margin 37.6% 40.7% Operating Expense $549,451 $610,247 Operating Expense as % of Sales 29.1% 29.3% Net Profit $161,049 $239,527 Net Profit as % of Sales 8.5% 11.5% 9 of 24
10 Business Performance Breakeven Analysis The following table shows your breakeven in terms of sales and hours. Also included is the number of calendar days it takes before breakeven is achieved on average. This information can be shared with managers and other employees and used to monitor the months performance against breakeven. Breakeven Analysis Sales Hours Breakeven/Year $1,499,378 13,502 Breakeven/Mo $124,948 1,125 Breakeven/Day (365) $4, Breakeven/Day (250) $5, Days to Breakeven Point (365) 262 Days to Breakeven Point (250) 180 The 1% Effect Net Profit increase A 1% reduction in operating expense will yield a net profit increase (assuming operating expense remains stable) A 1% improvement in production efficiency combined with throughput will yeild a net profit increase (assuming operating expense remains stable) A 1% improvement in labor gross profit margin will yield a net profit increase (assuming operating expense remains stable) A 1% improvement in parts gross profit margin will yield a net profit increase (assuming operating expense remains stable) A 1% improvement in materials gross profit margin will yield a net profit increase (assuming operating expense remains stable) A 1% improvement in sublet gross profit margin will yield a net profit increase (assuming operating expense remains stable) $2,359 $10,773 $6,132 $1,829 $408 $ of 24
11 Throughput Performance Production Efficiency Production Efficiency is an indicator of your process efficiency and is not a reflection of individual technician productivity. Production efficiency is the percentage of billed hours to available technician hours. Production efficiency improvements must be balanced with throughput performance otherwise increasing efficiency without balanced improvement to throughput will result in higher levels of work in process reduced cycle time performance. Your Company BenchMark Performance Production Efficiency 104.0% 113.0% 96.6% 134.0% Billed Hours 17,316 18,780 Total Available Hours 16,640 16,640 Avg Available Hours/Year/Technician Technicians ,560 2,560 2,017 1,932 Alternate View Your Company BenchMark Performance Sales/Tech/Year $235,892 $260,692 $197,537 $286,933 Sales/Tech/Mo $19,658 $21,724 $16,461 $23, of 24
12 Throughput Performance Administrative Efficiency Admin Efficiency is measured by the average number of administrative hours per repair order. As administrative efficiency improves, the business can increase sales (number of repair orders) without expanding its administrative resources in direct proportion to sales. This reduces overhead and drives gains to the bottom line, increasing the return on investment. Your Company BenchMark Performance Number of Admin Resources Total Admin Hours 8,944 8,944 Total Admin Hours/Employee 2,236 2,236 1,950 1,950 Average Admin Hours / Billed Hour Average Admin Hours / Repair Order Alternate View Your Company BenchMark Performance Sales/Admin/Year $471,784 $521,383 $433,987 $579,523 Sales/Admin/Mo $39,315 $43,449 $36,166 $48, of 24
13 Throughput Performance TPI (HRs/Day) Performance Throughput Performance indicators reflect how fast work is flowing through the keys to keys process. Cycle Time is measured in days while TPI (Throughput Performance Indicator) measures how many billable hours are produced per repair order per day. Cycle time is the result of how many vehicles are in process on average and how many are completed each day. Reduce the number of vehicles in process or increase the daily output rate and Cycle Time/TPI improves. However, if your work in process is not growing each month it is likely that your output is balanced to your market demand. This suggests that in order to improve Cycle Time, the most viable approach is to reduce the number of vehicles in process by eliminating waste and process defects and leveling the production schedule Your Company BenchMark Performance Average WIP (Keys To Keys car count) Average WIP (Production to Keys car count) Daily Output Rate (# ROs or cars/calendar day) Average Cycle Time (Keys to Keys) Average Cycle Time (Production to Keys) Average Hrs per RO TPI ( Keys to Keys) of 24
14 Process Performance TPI & Cycle Time Analysis TPI Analysis TPI (Hrs / Day) WIP or car count Cycle Time (Days) Your Current Performance For TPI performance to be 3.0 then WIP and Cycle Time must be Assume the output rate (ROs or cars/day) of the shop remains at 2.5 and the average HRs/RO remains at 20.9 Cycle Time Analysis Your Company BenchMark Performance Avg Total Keys to Keys Cycle Time Avg Production to Keys Cycle Time Avg Keys to Production Cycle Time of 24
15 Process Performance Facility Capacity Facility capacity is determined by how many technicians the facility can support and your production efficiency performance. For example, if your facility could support one additional technician the potential result would be monthly or annual sales equal to your current state performance of sales/technician. If you double your current production staff by adding alternate shifts, the sales capacity of the facility would potentially double. Reducing and eliminating process waste and defects allows technicians to work on fewer vehicles at any given time, which requires fewer work cells (repair stalls) per technician which can then be used to support additional technicians. With this in mind, Staffing Density provides a measure of how many work cells are currently required for each technician on average. As staffing density improves, facility capacity increases. This assumes there is enough market demand to take advantage of additional capacity. Your Company BenchMark Performance Total Production Stalls Technicians Staffing Density Sales / Square Foot $188.7 $208.6 $177.1 $214.3 Staffing Density # Technicians Annual Sales/Technician Facility Capacity Your Current Performance This table shows your current performance and the facility capacity based on staffing density performance for one shift $320,851 $2,566, $320,851 $2,053, $320,851 $2,566, $320,851 $3,422, $320,851 $5,133, of 24
16 Production Resources Avg Available Hours / Year / Tech Business and Process Improvement Current State The 1% Effect The following table shows your current state performance and the potential gains from even small improvements in each of the areas that impact sales, gross profit and net profit. This performance model is provided as an example of how the KPI (Key Performance Indicators) can be used to set target performance, quantify expected outcomes and begin to develop (high level) business strategy (Increase market share). Target Performance Future State # of Technicians Increase market share 2,560 2,586 2,586 Increase available hours and Total Available Hours 16,640 20,892 Production Production Efficiency 113.0% 114.1% 114.1% Increase production efficience & throughput Efficiency Billable Hours 18,780 23,844 Labor Rate $56.82 $57.38 $57.38 Increase labor rate Labor Labor Sales $1,066,985 $1,368,223 Sales / Profit Labor Margin 57.5% 58.0% 58.0% Increase margin Gross Profit $613,231 $794,226 Parts Rate $38.96 $39.35 $39.35 Increase parts rate Parts Parts Sales $731,671 $938,240 Sales / Profit Parts Margin 25.0% 25.3% 25.3% Increase margin Gross Profit $182,918 $236,906 Materials Materials Sales $185,654 $238,068 Sales / Profit Materials Margin 22.0% 22.2% 22.2% Increase margin Gross Profit $40,767 $52,799 Sublet Rate $5.39 $5.44 $5.44 Increase Sublet rate Sublet Sublet Sales $101,223 $129,800 Sales / Profit Sublet Margin 12.7% 12.8% 12.8% Increase margin Expense Materials Rate $9.89 $9.98 $9.98 Increase margin Gross Profit $12,858 $16,653 Total Hourly Sales Rate $ $ Increase to total sales rate Total Sales Total Sales $2,085,533 $2,674,331 Increase to total sales /Gross Profit Total Gross Profit Margin 40.7% 41.2% Increase gross profit margin Total Gross Profit Dollars $849,774 $1,100,584 Increase to gross profit dollars Operating Operating Expense $549, ,956 $543,956 Decrease operating expense Operating Expense (% of Sales) 29.3% 20.3% Decrease operating expense Net Profit Net Profit $ $100,253 $556,627 Increase to net profit Net Profit % of Total Sales 12.7% 20.8% Increase net profit margin 16 of 24
17 Setting Business and Process Targets Target Performance Planning Tool This form can be used to review your current state performance, establish target performance goals, quanitfy expected outcomes and develop your high level business strategy Refer to the benchmark report "Users Guide" for specific calculation details Production Resources Avg Available Hours / Year / Tech Current State # of Technicians ,560 and Total Available Hours 16,640 3 Production Production Efficiency 113.0% 4 Efficiency Billable Hours 18, Future State Performance Labor Rate $ Labor Labor Sales $1,066,985 7 Sales / Profit Labor Margin 57.5% 8 Gross Profit $613,231 9 Parts Rate $ Parts Parts Sales $731, Sales / Profit Parts Margin 25.0% 12 Gross Profit $182, Materials Materials Sales $185, Sales / Profit Materials Margin 22.0% 16 Gross Profit $40, Sublet Rate $ Sublet Sublet Sales $101, Sales / Profit Sublet Margin 12.7% 20 Expense Materials Rate $ Gross Profit $12, Total Hourly Sales Rate $ Total Sales Total Sales $2,085, /Gross Profit Total Gross Profit Margin 40.7% 24 Total Gross Profit Dollars $849, Operating Operating Expense $549, Operating Expense (% of Sales) 29.3% 27 Net Profit Net Profit $ $100, Net Profit % of Total Sales 12.7% of 24
18 Benchmark Profile General Information Business Name: Sample Collision Center Contact Person: Street Address: 123 Any Street Title: City, State, Zip: Anytown, USA Address: Phone Number: Fax Number: Are you a CertifiedFirst Participant? Yes X No Do you currently participate in any 20 group programs? Yes, MVP Round Table Yes, Other Yes, PPG ParaKaizen Performance Group No X Business Type X Independent Dealership Manufacturer (s) Franchise / Consolidation Group Fleet Repair (Number of Locations ) (If Dealership, please list the vehicle manufacturers sold as this location) Primary Paint Manufacturer X PPG Sikkens Dupont Standox BASF Spies Hecker Sherwin Williams Nexa Other Estimating Systems ADP Shop Link / Windows CCC EZEst/Pathways Mitchell Estimate / UltraMate X Other/Computer Manual System Mitchell On Demand - Estimator ADP - Stellix ADP Dealer Management Autoquote CCC Enterprise (MSO) Other/Computer ADP Shop Link / Windows Other/Computer ICM Autowriter X Other Management Systems Mitchell ABS (Advanced Business System) Michell on Demand - Manager Reynolds/Reynolds (Dealer) Other/Computer ADP Shop Link / Windows Other/Computer Accounting System Used: Other 18 of 24
19 Facility Information Administrative Staff Hours Number of Administrative 8 hour Shifts per day 1 Average work week for a staff member of the administrative department? 43 Total Available hours for this period 4300 Production Staff Hours (Excluding Lunch) Number of Production 8 hour shifts per day 1 Average work week for a staff member of the production department? 40 Total Available hours for this period Production Work Area and Staffing For Body Shop Only (Note: List combination employees only once. If a production employee splits his duties, list as 1/2 or 1/4 as needed. If a administation person spends part of his time doing billable hours work, add that portion to production staff. ) Production Stalls Production Employees Tear Down / Reassembly 1 Tear Down / Reassembly 0.5 Metal 8 Metal 4 Mechanical 0 Mechanical 0 Frame 1 Frame 0.5 Total Metal Stalls 10 Total Metal Employees 5 Prep 3 Prep 1 # Paint Booths 1 Paint 0.5 Buff / De - nib 1 Buff 0.5 Total Refinish Stalls 5 Total Refinish Employees 2 Total Detail Stalls Total 1 Total Detail Employees 0.5 Total Production Stalls 16 Total Other Employees 0.5 Total Estimating Stalls 1 Total Delivery Stalls 1 Total Other Stalls 2 Administrative Employees Production Area Square Feet (include Detail) 10,000 Total # of Estimators 1.5 Total # Administrative Staff of 24
20 Production labor pay plan: Estimator pay plan Benefits paid Financial Information Employer P/R taxes Worker's Comp Health Ins Other Benefits Retirement Paid Vacation Uniform # of weeks for this period 52 Cust. Paid & Insurance CP & INS DRP WARR Flat Rate Hourly Hourly/Bonus Commission Salary Hourly Salary Commission % of Gross Profit % of Sales Other Warranty (Dlrs) DEALER INTERNAL Body & Paint Labor Rate: $58.00 $56.00 $0.00 $0.00 Frame Labor Rate $58.00 $56.00 $0.00 $0.00 Mechanical Labor Rate: $58.00 $56.00 $0.00 $0.00 Material Allowance per Refinish Hour: $24.00 Approximate Percentage of Work Done Under DRP Arrangements: % Avg. Repair Order ( inc. parts, labor, materials, etc.) $2, Avg. Month's Total Body Shop Sales (inc. parts, labor, materials, etc.): $173, Avg. Number of Hours Billed each Month: 1,565 Avg. Number of Vehicles Repaired Per Month: 75 Average WIP (Keys to Keys) 23 Average WIP (Production to Keys) 17 The Financial Data Below is for the (number of Months) 12 Month Period from 12/31/2006 to 12/31/2007 Internal (Dlrs) Metal Shop Labor Sales $669, $0.00 $0.00 Cost of Metal Labor $307, $0.00 $0.00 Refinish Labor Sales $397, $0.00 $0.00 Cost of Refinish Labor $145, $0.00 $0.00 Labor Sales - Other Services $0.00 $0.00 $0.00 Cost of Other Labor Sales $0.00 $0.00 $0.00 Total Labor Sales (if not separate) $1,066, $0.00 $0.00 Total Cost of Labor Sales $453, $0.00 $0.00 Material Sales $185, $0.00 $0.00 Total Cost of Material $144, $0.00 $0.00 Cost of Liquid Materials Only $101, $0.00 $0.00 Cost of Body Materials / Consumables $43, $0.00 $0.00 Parts Sales (Dealers to Body shop Only) $731, $0.00 $0.00 Cost of Parts $548, $0.00 $0.00 Sales of Sublet Repairs and all other sales $101, $0.00 $0.00 Cost of Sublet Repairs and all other sales $88, $0.00 $0.00 Overhead Costs: (Overhead costs equal operating expenses not directly related to repairs (ie., rent, utilities, administrative salaries, and advertising, etc. for the same financial period indicated above.) Admistrative Staff Wages $235,932 Other Overhead Costs $374,315 Total Overhead Expenses $610, of 24
21 Business Outlook / Forecast Based on the financials submitted For the first six months, Do you feel business was?: Up 10-15% Up 5-10% X Up 0-5% Flat or Even Down 0-5% Down 5-10% Down 10-15% For the second six months, Do you feel business was?: Up 10-15% Up 5-10% Up 0-5% X Flat or Even Down 0-5% Down 5-10% Down 10-15% Looking forward, what does the 3 year growth opportunity look like for your shop? Up 10-15% Up 5-10% X Up 0-5% Flat or Even Down 0-5% Down 5-10% Down 10-15% Do you feel the population in your market area of 20 miles is: Growing X Flat or Even Declining Rank the following challenges / opportunites on a scale of 1-5 (1 being the most challenging and 5 being the least challenging) Need for more insurance or DRP assignment Finding / Keeping / Developing Employees Shrinking profitability Meeting Insurance DRP performance requirements Leading Change within your facility Competition Increasing Losing work to competitors Most Least 1 X X X X X 1 X X Process Performance How many vehicles do you process and deliver each month (For Period) How many vehicles do you have on location and in some stage of the repair process (on average)?: What is your average Keys-to-Keys cycle time (including weekends) If you are measuring Hours per day, what is it? What % of repairs do you find hidden damage and/or parts issues after a tech is assigned to the job? What is the average # of supplements per R.O.? What % of total cars received during a week come in on: % 2 5 % Sun 60 % Mon 10 % Tues 5 % Wed 10 % Thurs 5 % Fri 5 % Sat What % of your repair orders have more than 1 part order? What % of all recieved parts have some sort of problem, caused by either vendor or the shop? On average, how many vehicles does each metal technician have in some stage of repair? 75 % 40 % 4 21 of 24
22 Best Practices In Managing Your Shop Administration Does staff participate in a daily organizational meeting to discuss daily business? Y N X Are all administrative steps in writing so that any employee can understand them? Y N X Is there any effort to cross train administrative staff to prevent interruptions in customer service? Y X N Are there resources available for training the Administrative staff? Y X N Does the owner or manager track production and sales daily? Y X N Are all parts ordered by fax (electronically), and is VIN number included? Y X N Are parts delivery procedures and responsibilities written and agreed to by suppliers? Y N X Are all essential documents assembled into a job file jacket? Y X N Is there a procedure in place for documenting return parts? Y N X Does the Staff have a method to determine how much work to schedule? Y X N Does shop have a checklist of requirements for each insurance company? Y N X Is someone responsible for accepting all parts invoices and checking for any price increases? Y N X Have estimators received technical training that allows them to prepare accurate estimates? Y X N Sales & Marketing Does shop monitor CSI rating, to increase repeat and referral business? Y X N Does your customer service advisor resell the job to the customer upon delivery? Y X N Does shop continually pursue DRP agreements with insurance companies? Y N X Do outside sales reps call on agents, companies, fleet managers and dealerships? Y N X Is ample parking available, clearly marked, and visible from the street? Y N X Are reception area and rest rooms neat and clean? Y X N Do employees greet customers promptly, make eye-contact and call them by name? Y X N Does the shop measure their performance of on-time deliveries? Y X N Do estimators track estimates that have been converted to repair orders (close ratio)? Y N X Have estimators received formal sales training to increase close ratio? Y N X Do customer service representatives have accountability for customer satisfaction? Y N X Does shop have a financial incentive for performance of sales representatives? Y N X Does the shop have a method to educate the customer on the repair process? Y X N Do you record how each prospect learned about your shop when writing estimate? Y N X Does shop measure effectiveness of each advertising expenditure? Y N X Are you doing any CE (Continuing Education) training? Y X N Do you have strong relationships with the Top 10 insurers? Y X N Do you have a detailed shop profile to market your facility to DRP managers? Y X N Do you have alternate profit centers within your facility to market to your customers? Y X N Financial Performance Does the shop track sales individually by Labor, Parts, Materials, & Sublet and overhead accounts? Y X N Are costs allocated properly between Labor, Parts, Materials, Sublet & Overhead Accounts? Y X N Are technicians notifying staff of supplemental billing opportunities? Y X N Is there a shop business plan in place? Y N X Does the shop benchmark its departmental performance against industry standards? Y N X Does the shop owner know and understand his/her facility potential? Y N X 22 of 24
23 Financial Performance Does shop calculate monthly break-even point? Y X N Does the shop owner monitor administrative staff costs as a percent of sales? Y N X Is technician materials usage tracked and compared to hours produced? Y N X Does shop measure and monitor "Parts-to-Labor ratio"? Y X N Does the shop measure Gross Profit per Technician Clock Hour? Y X N Does the shop measure the efficiency of the administrative staff? Y N X Does the manager measure the average repair order for each estimator? Y N X Does the shop perform Job Costing on each repair? Y X N Does the shop track past/due accounts receivable with an aging report? Y N X Throughput & Cycle Time Are you currently measuring keys to keys cycle time? Y X N Are you currently measuring hours per day "touch time"? Y N X Is the cycle time performance on your DRP work lower than on your Non DRP work? Y X N Do you "expedite" any select DRP work to meet cycle time performance requirements? Y N X Is the amount of DRP work at your facility increasing? Y X N Are you taking steps to reduce overall cycle time performance in your shop? Y N X Do you use any type of load leveling system to level the number of vehicles per day entering the shop? Do you use a repair planning type process that includes disassembly of the vehicle to identify all damage? Y X N Y N X Are parts unboxed and verified for quality / accuracy prior to assigning the vehicle to a technician? Y X N Do you routinely have more than one metal technician working on one car? Y N X Is there a visual method of tracking vehicles through the production process? Y X N Production Management Are repair procedures standardized, written and adhered to by all technicians? Y N X Are quality standards communicated and understood by the production staff? Y X N Do you have a formal process for measuring repair quality? Y X N Does a detailed work order accompany every repair? Y X N Is the work order reviewed with the technician prior to starting the repair? Y X N Are inventory and billing methods in place for small parts, hardware, and supplies? Y X N Is a maintenance log kept for major pieces of equipment? Y N X Are parts labeled with work order number and stored in marked storage area? Y X N Are technicians I-Car or manufacturer trained in respective job responsibilities? Y X N Do technicians have financial incentives for production performance? Y N X Is technician efficiency measured and shared with the individual or posted? Y X N Do technicians work from portable tool boxes and movable carts? Y X N Is work inspected after major steps in the repair process? Y X N Is a supplement sheet attached to the vehicle at all times? Y X N Does the shop have the proper equipment needed to do quality work consistently? Y X N Do you need Facility layout and Design services to support your business in the next 1-3 years? Y N X Personnel Management Are all employees familiar with company policies and their job description? Y N X Do employees feel that management has a concern and interest in them as people? Y N X Do all employees receive formal periodic review with good two-way communication? Y N X 23 of 24
24 Personnel Management Are employees given recognition for a job well done? Y X N Do employees participate in discussions of changes that will affect them? Y X N Does shop offer opportunities for advancement and professional growth? Y X N Are all employees held to the same accountabilities (no preferential treatment)? Y N X Are production employees paid on an incentive or business performance based plan? Y N X Is this production employee incentive pay plan in writing? Y X N Are estimators paid on an incentive or performance based plan? Y X N Is this estimator incentive pay plan in writing? Y X N Is employee turn-over a problem? Y X N Does posting of sales & production allow employees to see progress towards company goals? Y N X Does the owner provide an organized work environment with clean rest rooms and break room? Y X N Are employees credentials recognized and posted for customers to view? Y X N Are employees empowered to make decisions based on company policies? Y N X Are employees proud of employer's image in the community? Y X N Does the shop have an apprentice program to develop and train new technicians? Y X N Health & Safety Is the OSHA workplace poster properly displayed? Y N X Do you have scheduled safety meetings? Y N X Do you have first aid supplies in the facility? Y X N Does the electrical installation in hazardous areas meet the National Electrical Code? Y X N Are exits visible, unobstructed, and posted with proper signs? Y X N Are fire extinguishers inspected monthly and noted in an inspection log? Y X N Are no smoking signs posted in a visible area? Y X N Is proper protective equipment available for technicians in paint areas? Y X N Does shop have explosion proof equipment in mixing and spray areas? Y X N Are MSDS available for all products used? Y X N Are employees trained to understand the MSDS? Y X N Are there skin and eye flush stations in spray areas? Y N X Is there documentation of your hazardous waste hauler, including I.D. number? Y X N Does shop store hazardous waste in approved containers? Y X N Are the hazardous waste containers properly marked? Y X N 24 of 24
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