Blog

Excellence in Material Management Awards 2018

Nashville, TN July 2018 – Awards were announced for Auto Body Repair shops achieving Excellence in Material Management. One shop is chosen from each of the Mike Anderson Axalta Business Council Groups. Collision Advice.com

Shops must meet high industry standards in order to be considered for these awards, including meeting or exceeding all environmental regulations, minimizing waste and using quality warranted paint materials. Shops are compared with several separate metrics that include measurements demonstrating the minimization of waste and environmental impact, cost control as measured in per RO and per refinish labor unit and producing quality repairs. Their cumulative ranking is compared to National Percentiles of these KPIs where each job was the top in their respective peer group.

These shops were chosen out of the groups who 1) Agreed to have their KPIs compared within their respective group 2) Had their purchases submitted independently 3) Supplied several key sales inputs needed to complete the calculations 4) Lean Material Management Reports compared for at least one year.

Finalists:

• MSO Group 2-5 Locations Leflers Collision, Newburg, IN.
• Independent Single Location Flawless Auto Body, Great Falls, MT.
• Dealer Shop/Group Ken Barrett Chevrolet, Batavia, NY
• MSO group 6-20 Locations Mackin Auto Body, East Vancouver, WA

And the Grand Prize Winner of the 2018 Excellence in Material Management is …
Flawless Auto Body, Great Falls, Montana

2018 marks the fourth year that J. Hunter & Associates has presented these awards. J. Hunter & Associates is an independent company that assists Auto Body Shops and PBE Jobbers nationwide in managing material usage and the shop level. More information about J. Hunter & Associates can be found at their web site. www.LeanMaterialManagement.com.

2017 Results

Advertisements

Keys to Paint Dept. Profitability

Article Excerpt … From the paint department to the estimators, both Lefler and Myers—owner of the $4 million Flawless Auto Body in Great Falls, Mont., and a member of Mike Anderson’s Axalta Business Council 1—have completely revamped their approaches to managing paint and materials (P&M) sales and costs. In fact, they each have had the most notable P&M turnarounds within their lean materials management company group, J. Hunter & Associates, managed by industry consultant Jim Compton.

Full article in Fender Bender Magazine (click here) Jan. 2018

The Keys to Paint Department Profitability

The Keys to Paint Department Profitability
Managing paint and materials sales and costs requires careful attention to KPIs and a unified team effort. Ensure profitability is part of shop culture by discussing these numbers with your team, from the paint department to the estimators.

For 30 days, he dedicated time and effort to it. On each successive job, he concentrated on his efficiency, his technique, his use of a primer surfacer when refinishing vehicles, all in an effort to improve the tool’s profitability.

 

Read the full article on Fenderbender.com: https://www.fenderbender.com/articles/9046-the-keys-to-paint-department-profitability

 

 

ADAPTING MANAGEMENT STYLES TO NEW GENERATIONS

Managing is not the only way to lead a work force. Coaching is a slightly different way to lead and is much more apt to appeal to new generations. Think of helping your kids with homework or coaching little league. The approach is different than typical manager employee relationship.

Full Article

2018 Excellence in Material Management Awards

FOR IMMEDIATE RELEASE:

CONTACT:

Jim Compton
July 11th, 2019
J.Hunter & Associates
Email: jim@LeanMaterialManagement.com
http://www.LeanMaterialManagement.com

 

2018 Excellence in Material Management Awards

San Diego, California, July 2019 – Awards were announced for Auto Body Repair shops achieving Excellence in Material Management.  One shop is chosen from each of the Mike Anderson Axalta Business Council Groups.

Shops must meet high industry standards in order to be considered for these awards, including meeting or exceeding all environmental regulations, minimizing waste and using quality warranted paint materials. Shops are compared with several separate metrics that include measurements demonstrating the minimization of waste and environmental impact, cost control as measured in per RO and per refinish labor unit, and producing quality repairs. Their cumulative percentile ranking in multiple KPIs determined their rank within their peer group.

These shops were chosen out of the groups who 1) Agreed to have their KPIs compared within their respective group 2) Had their purchases submitted independently 3) Supplied several key sales inputs needed to complete the calculations 4) Lean Material Management Reports compared for at least one year.

Finalists:

  • BC01 European Collision Repair, Sandy Springs, GA.
  • BC02 Keri Coachworks, Westbury, NY.
  • BC04 Paap Auto Body, Matoon, IL.
  • BC08 Northwest Arkansas Collision, Farmington, AR.
  • BC09 Five Star Automotive, Wimbish, GA.
  • BC10 Branning Collision, Freehold, NJ.

And the Grand Prize Winner of the 2018 Excellence in Material Management is …

Keri Coachworks, Westbury, NY.

2018 marks the fourth year that J. Hunter & Associates has presented these awards.  J. Hunter & Associates is an independent third party company that assists body Auto Body shops and PBE jobbers nationwide in managing material usage and the shop level. More information about J. Hunter & Associates can be found at their web site. www.LeanMaterialManagement.com.

– END –

Focus on three improvements for your shop

Taking the ABC priority list a little further along with a little introspective, we need to face the fact that despite how great of multi-taskers we all think we are, there is a limit to how many things we can be working on at the same time.

Read more

 

Avoid rabbit holes

bunny cute ears easter bunny
Photo by Mikes Photos on Pexels.com

Avoid rabbit holes by staying focused on what is actionable in your shop

Friday, March 1, 2019 – 08:00 As published in ABRN (Auto Body Repair Network)
For almost everyone in business there is far too much to do and too much information to reasonably digest. Both suppliers and shops generate and receive an overwhelming amount of information daily. There is always the latest innovation, critical concern or alarming piece of information.

Avoiding rabbit holes can mean avoiding (from day-to-day operations) measures and information that are not actionable. Look for ways to move the needle, make improvements or maintain quality and consistency. Set yourself up to avoid rabbit holes. For Key Performance Indicators (KPI) focuses with staff, look for measures that people can relate to in their work space. Speaking with your paint department about a poor paint and materials (P&M) gross profit percentage may not be the best tool or method to help them relate and in turn move the needle. Having a conversation about what goes into the P&M costs as measured by hour is more relatable for production staff. Production staff is aware of the labor hours per job per repair order (RO) (you are providing these to staff, right?). More specifically, sharing cost per ounce of color, clear and surface prep is something very tangible for most production staff. Avoid the rabbit hole and discuss ounce and hours with paint staff.

I see this a lot with KPIs and similar business measures. These KPIs, or Critical Profit Variables (CPVs), are great and are valuable tools to help everyone better measure, and therefore better manage, their business. But all measures are not the same for all businesses. Financial measures and ratios such as Current Ratio, Breakeven, Cash Flow, ROI, RO, Return on Sales and more are wonderful measures, but are not always the best references with non-financial personnel. Other measures may not be the most suitable for all businesses. Two misunderstood measures that come to mind are sales per square foot and sales per employee. I’m not suggesting that these are not relevant or valuable measures; I’m suggesting that they are not as actionable as other measures. For these you can only increase sales or reduce employees (or even less likely, reduce square footage). So once these measures have been performed, they aren’t the best drivers of the day-to-day operations for body shops.

With KPIs, it is easy to go down a rabbit hole. Before spending too much time on any measure ask yourself: is it actionable? In the example above, you can discuss ounces used per refinish hour with your paint staff; they in turn can use that measure as a guide in their daily tasks. Avoid the rabbit hole.

Those sales per employee measures can be better used by jobbers, as this is a more suitable measure for this group, where staggered shifts and part-time employees can have a significant impact on staffing. Some jobbers will have part-time employees helping with order pulling and deliveries only during peak times, such as when they process and ship stock orders. With this group, we now have an actionable measure.

Find and use the KPIs that are best for you and those members of your team you are working with. All KPIs can help — just not always for all issues by all members of your staff. Find relatable, actionable measures that will provide opportunities for improvement and/or consistent performance.

Chasing solutions

Yet another rabbit hole is chasing a solution to a perceived problem. An example I was recently exposed to was with a friend’s shop — he was getting bids on a second spray booth. This can be a daunting task and can consume a lot of time. He was concerned about the apparent bottle neck in production. Rather than explore how the shop was currently utilizing the existing booth, he had already determined that a second booth was the answer. The rabbit hole thinking here was that he failed to explore other ways to get more production from the existing equipment. Stepping back (climbing out of the rabbit hole), some ideas were tossed out with a little roundtable discussion. What impact would spraying more parts off the vehicle have on booth utilization? One vehicle might still leave room for other parts from other ROs that can be painted and cleared alongside. What if nothing entered the booth until it was completely ready to spray (paint mixed, color matching done, virtually completely masked)? What if the first car of the day was readied the night before and could be sprayed at 8 a.m. (or start time)? The goal is working towards no idle booth time, making that expensive chunk of sheet metal earn its keep. My friend still ended up buying a second booth, but he was able to delay that purchase for almost two years. Sometimes you must stop, look around and make sure you’re not in a rabbit hole already.

Managing email

It’s easy to see rabbit holes forming from negative thoughts — or worse yet lack of thought. Over-analyzing data rather than focusing on solutions or changes to make is a big rabbit hole. One rabbit hole we all can fall into (Ok, maybe it’s just me) is our email inbox. How much time do we spend sorting through this growing mass of communication? Here, too, a little prioritizing can be helpful. Most emails can have a delayed response and maybe even a delayed reading. Consider having your emails automatically put into separate folders (easy to do with Outlook, Yahoo and Google mail). Having a separate email address for personal or family use can help scrub the inbox. Now your email inbox is less of a rabbit hole. Monitoring your inbox perpetually all day can be a distraction. Consider checking your email only a few times per day. First, check it in the morning when you are setting up your priorities, and then again as needed during the day. Emails, unlike phone calls, are not a “right now” action item most of the time. Usually people are expecting some delay in emails (as opposed to phone calls or texts). Don’t let your inbox become a rabbit hole.

Balancing workload

Another aspect of avoiding rabbit holes is prioritizing what we work on and with. Don’t forget the A-B-C rules of adjusting your daily list of things to do. Let’s be honest — you’re not going to get everything on your list done (too much to do and not enough time, for most of us). Making a list of tasks (avoiding other tasks as rabbit holes) every day will help. Some suggestions to consider: Mark all priorities as “A” tasks. These should be limited to tasks that if you don’t get them done will have serious consequences. You can then prioritize them as A-1, A-2 etc. in order of importance. “B” tasks are only to be worked on when you have no remaining “A” tasks. These would be nice to get done but are not critical. Consider delegating some or all these tasks to someone else. Your “B” priority can be some else’s “A” task. The remaining “C” tasks are all rabbit holes. Ignore them —they will go away or move up in rank to “A” or “B” tasks.

In short, rabbit holes are something we venture into all on our own either through over-thought or negative thoughts. Step back and take a breath. Is this “thing” I’m pondering so deeply worth the time? Is it truly an “A” priority?

Do you 20 group? Here’s why you should.

There seem to be so many advantages to being involved in industry 20 groups; I am sometimes surprised when I realize that not every business owner or manager has found their way into a 20 group. I have had the good fortune to participate in several 20 groups in several industry segments. For those not familiar with the concept, there are a few common-ground rules that most groups seem to have:

To read the full article click here!   << Link to ABRN

2018 Excellence in Material Management Awards…. coming in July 2018

Awards will soon be announced for Auto Body Repair shops achieving Excellence in Material Management.

Shops must meet high industry standards in order to be considered for these awards, including meeting or exceeding all environmental regulations, minimizing waste and using quality warranted paint materials. Shops are compared with six separate metrics that include measurements demonstrating the minimization of waste and environmental impact, cost control as measured in per RO and per refinish labor unit, and producing quality repairs. Their cumulative ranking in six KPIs determined their rank within their peer group.

Shops chosen :

  1. Agreed to have their KPIs compared within their respective group
  2. Have their purchases submitted independently
  3. Supplied several key sales inputs needed to complete the calculations
  4. Lean Material Management Reports compared for at least one year.

Want to find out if your shop could make the list?

Why clear cost definitions are needed for P&M accounting, accountability

Working with jobbers, shops and manufactures across the continent, I have found several definitions of what people consider Paint and Materials (P&M).

Since accounting and accountability are both bi-products of keeping track of P&M, should there be a standard definition? 

To read the Full Article in ABRN Magazine (Click Here)

 

Thanks for the input and requests for this article link on Paint Dept. KPI’s…

The Keys to Paint Department Profitability
Managing paint and materials sales and costs requires careful attention to KPIs and a unified team effort. Ensure profitability is part of shop culture by discussing these numbers with your team, from the paint department to the estimators.

For 30 days, he dedicated time and effort to it. On each successive job, he concentrated on his efficiency, his technique, his use of a primer surfacer when refinishing vehicles, all in an effort to improve the tool’s profitability.

Read the full article on Fenderbender.com: https://www.fenderbender.com/articles/9046-the-keys-to-paint-department-profitability