Larger shops, MSOs and other groups are readily able to get third parties (jobbers, paint mgf., etc) to assist with the creation and tracking of KPIs. Also available to shops are tools and reports from the various Management systems. Not all shops have access to these services or tools.
KPIs, or Key Performance Indicators, can help every business better manage their success, profitability and help to guide their future growth, regardless of the size of the operation. The adage that “You can’t manage what you don’t measure” is as true today as it ever was.
At first glance the task may seem daunting, but taken in small “bite” size portions, it can be accomplished easily.
I am asked several times a month about industry averages or percentages, as it relates to a shops KPIs or other measurements. In other words, how does my shop operation compare to the industry?
While I most always try my best to answer the question with some statistic or known data point, sometimes part of me wants to respond: Do industry averages really matter?
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.
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.
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.
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.
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.
You can’t necessarily expect that level of commitment from every painter—but, actually, it’s pretty standard for Jeramy Myers’ painters and estimators, who are all committed to improving paint and material profitability at Flawless Auto Body. The above example is case in point, as the painter presented his evaluations to the Flawless team, which led to the entire department more efficiently utilizing its surfacers.
Dallas Texas, July 2017 – 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 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.
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 Scotts Collision Center, Pennsylvania.
Independent single location Latuff Brothers, Inc., Minnesota.
Dealer Shop/Group Five Star Automotive, Georgia.
MSO group 6-20 locations The Collision Centers, New York
And the Grand Prize Winner of the 2017 Excellence in Material Management is …
Pro Care Automotive & Collision, Texas
2017 marks the third 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.
Ray Fratella Axalta Collision Services, Matt Dewalt Scotts Collison Center Pennsylvania, Jim Compton J. Hunter & Associates.
Ray Fratella Axalta Collision Services, William Latuff, Latuff Brothers Minnesota, Jim Compton J. Hunter & Associates.
Ray Fratella Axalta Collision Services, Charel Lock Five Star Collision Georgia, Jim Compton J. Hunter & Associates.
Ray Fratella Axalta Collision Services, Joe Amodei The Collision Centers New York, Jim Compton J. Hunter & Associates.
Ray Fratella Axalta Collision Services, Vince Brock & Paul Gage Procare Collision (Ellis & Salazar) Texas, Jim Compton J. Hunter & Associates.
Lean Material Management 