The Automotive Service Industry

Chapter 4:The Service WorkflowService OperationsTraditional Management ViewDealer PrincipleGeneral ManagerService DirectorGeneral Sales ManagerBusiness ManagerShop ForemanService AdvisorService ManagerParts ManagerBody Shop ManagerTechnicianTechnicianTechnicianService AdvisorParts CountermanService Cashier2FVB 20103/21004 (2011/2012)Traditional Management ViewAn organization is defined by its organizational chart - the hierarchy and politics of an organizationGraphically portrays the path of authority and how decisions and authority flow down through the management hierarchy to the workers on the floorDoes not explain how work actually gets done, the day-to-day operations of an organization and does nothing to help unravel the mystery of why things do not work properly, and thus it is really of little value in helping to solve problems and correct performance problemsPeople are viewed as the solution and also the sole cause of every problemFailure to perform is always a people problem3FVB 20103/21004 (2011/2012)Traditional ViewLooking at the organization based on its organizational chart and job titles within the organization

Traditional Management ViewFVB 20103/21004 (2011/2012)4Example:Joe has just been hired as service advisor at Mels Service. He is one of two advisors working at this shop that employs 24 technicians. During his first few days on the job, he notices that work seems to be very slow. He is only getting about ten customers to write up each day, and the technicians seem to be grumbling constantly about the lack of work. They are all sitting on their toolboxes after lunch with nothing to do. Each time the boss comes by Joe sees the disgusted look on his face. He hardly says a word to anyone. Joe asks his fellow advisor if he treats all the advisors like this. She indicates that she has only been there for a month. Finally Joes feelings of job insecurity get to him. He asks the boss to sit down during his lunch break to talk about things. Joe very cautiously approaches the topic of his concerns with the low morale and low performance of the shop. It does not take long for the boss to get Joes message. He responds, Well, thats why I hired you. Ive been through five service advisors in the last year trying to finally find someone who can really sell service and get this shop back to running the way it did in the past. I believe youre the man to turn it around, Joe. I hope you agree. Now get back to work!.Traditional Management ViewFVB 20103/21004 (2011/2012)5Based on the example, Joes boss may be using the traditional management approach; he believes all successes or failures are people issuesHe has tried over and over again to fix the problem (five advisors in one year)This indicates that his first rule of management is Get the job done, or else!The traditional view of organization and the traditional style of management are based solely on individuals performance

The Systems View of an OrganizationFVB 20103/21004 (2011/2012)6Looks at organization of department by how work flows through the departmentAlthough people play important roles in the system, it takes into account factors that go beyond personalities and personal skillsLook at operations as a complex system that includes people, other resources, and even the way resources are organizedThe way things are organized and the way work flows (or fails to flow) have a profound effect on overall performance

Systems ViewLooking at the organization based on the workflows within the organization and taking into account the inputs, processes, and outputs of these workflows

The Systems View of an OrganizationFVB 20103/21004 (2011/2012)7An example of this can be seen on an automobile assembly line:All parts flow in from various points and join up with the cars as they slowly but smoothly progress down the line. Each worker performs their individual task and work in concert. Because all the work flow down the assembly line, a blockage or delay at any point can stop the entire line. All it takes is for the worker at station number 250 to run out of the lug nuts to fasten the right front wheel onto the car. The car cannot continue down the line with only three wheels on it!The Systems View of an OrganizationFVB 20103/21004 (2011/2012)8Using the traditional management logic, the blame game could follow down the line as follows:It starts out as the assembly line workers fault: Why didnt he put the lugs on, it is his job?Once it is determined that the assembly line worker was not at fault, the blame would be passed on to the person who was designated to keep the parts stocked at the workstation: Why didnt he stock up the lug nut supply box on time?Oh, there were none left in the plant, then: Why didnt the truck driver arrive on time to deliver more lugs?The shipment was late: Why didnt the suppliers dispatcher send the shipment sooner?There was a shortage of stock at the plant. Well, then, Why werent the suppliers workers able to produce lug nuts faster to keep up with demand? and Why did we choose him as supplier?The Systems View of an OrganizationFVB 20103/21004 (2011/2012)9What is the common link between all of these reasons for failure? In every case, the blame is placed first on the individuals (he, the truck driver, the dispatcher, the workers, and the supplier)No consideration has been given to the possibility that the cause goes beyond the individuals involvedA 100% people-focused trail of accountability and blameIs there any possibilities that the line coming to a halt was caused by something other than the workers?Are there other factors that might have prevented this stoppage?Could different planning or method be devised to keep work flowing down the production line?

The Systems View of an OrganizationFVB 20103/21004 (2011/2012)10Basic Systems Model

Inputs:All of the resources that are required for a system to be able to functionProcess: The series of actions and operations necessary to do work (produce a product or a service)Outputs: All of the products, services, and/or information produced by a systemThe Systems View of an OrganizationFVB 20103/21004 (2011/2012)11Advanced Systems Model

Feedback:Information generated as an output of the process that is used as an input for future workFeedback loop - an essential ingredient of continuous improvementIntentionally taking the output (feedback) and funneling it back into the system as an additional input (information), make things constantly and consistently better each time through the cycleActively seeking and using feedback is the best strategy to improve efficiency and overall customer satisfaction

InputsProcessesOutputsFeedbackSystems ThinkingFVB 20103/21004 (2011/2012)12Principle of systems thinking:Problems = 80% Systems + 20% PeopleA more holistic approach to viewing operations and performanceViewing operations from a broader perspective gives the opportunity to identify and fix the root cause of performance problemsAllows to improve existing systems and design new ones that will flow smoothly and increase productivityOptimum goal - To provide a workflow that allows systems and people to be successfulProvides valuable insights to move in the right direction and stay on course to make sure that objectives are reached and prevents from destroying the most valuable asset, employees!SystemsThinkingAn approach to viewing operations and performance based on workflows and the resources needed to make them work, not just the people who work in them

Case 4-1FVB 20103/21004 (2011/2012)13As a technician and then the shop foreman at a local shop, you have seen the shop go through five service managers in the past 3 years. In each and every case the story is the same: He came to us highly regarded but he just could not get the job done so we are going to have to replace him. The owner then turns to you and asks, I would like to see you take over the job here as service manager. Interested?.

You decide:Based on the information provided in this chapter, what do you think is the reason the shop has had a high turnover of service managers?Based on the information presented above, what would you want to see changed before you could feel comfortable taking the job as service manager?

Case 4-1FVB 20103/21004 (2011/2012)14The shop has had a high turnover of service managers because the owner may be using the traditional management approach; he believes that all successes or failures are people issues. He has tried to over and over again to fix the problem (five service managers in 3 years). He clearly believes that failure to perform is a people problem. His pattern of behavior also indicates that his first rule of management is Get the job done, or else! What other possibilities are there? Look at things from the systems view, based on the workflows within the shop and taking into account the inputs, processes, and outputs of these workflows, to determine what and where the real problems are. Although people play important roles in the system, the way things are organized and the way the work flows (or fails to flow) have a profound effect on overall performance.

The Repair ProcessFVB 20103/21004 (2011/2012)15Takes into account each step that must be completed to move from the start, where customers need/want service, to the end, where repairs were done correctly and that the customers are satisfiedThe repair process goes through the following steps:

Repair ProcessThe series of steps or tasks necessary to resolve a request for service

The Repair ProcessFVB 20103/21004 (2011/2012)16AppointmentAppointment basis - service shops can be certain that resources are available to quickly and efficiently provide services once customers arrivedMajority of appointments are made by phone; others are face-to-face or online appointment schedulingThe customer contact the service shop to arrange a convenient time to have services performed

AppointmentA prearranged data and time to have service performed

The Repair ProcessFVB 20103/21004 (2011/2012)17ReceptionThe service personnel meets and greets the customer and gathers necessary information about needed services and repairsHe, then, discusses the requested services, verifying that he has an accurate and thorough understanding of the customer needs and wantsBoth come to an initial agreement about the cost of repairs and when the repairs are expected to be completed This information is documented on the repair orderReceptionThe meeting, greeting and initial contact between the customer and the service department in which the concerns and other requests for service are verified and an initial estimate providedThe Repair ProcessFVB 20103/21004 (2011/2012)18Work DistributionMay be done manually, using a dedicated work-routing system or an automated systemStrive to assign each technician to the work he does bestTechnicians produce more work in a day with fewer errors, the shop sells more service in a day, and the customers are more satisfied because they get their cars back sooner and with greater assurance that they are fixed right the first timeWork DistributionScheduling and assignment of repair jobs to specific technicians based on careful evaluation of priorities and available physical and personnel resources

The Repair ProcessFVB 20103/21004 (2011/2012)19Work PerformanceUsing the repair order, the technician verifies the customers concerns, diagnoses the vehicle to verify the cause, and performs the needed repairsOften, the technician will require external information, parts, equipment, or additional approval from the customer to quickly and accurately complete the repairOnce the repair is completed, the technician writes up a detailed explanation of what he found and what he did to resolve the customers concern before he passes the repair order on for processing

Work PerformanceThe process of verifying customer concerns, performing specific diagnosis, and performing repairs to resolves the customers concern

The Repair ProcessFVB 20103/21004 (2011/2012)20Quality AssuranceTo verify that the repairs have successfully resolved the customers concerns and that the vehicle has been returned to the condition in which it was receivedThe technician performing the repairs double-check his work before he turns in the repair order as completeThe completed repair order is then routed for verification of the repairs - done by the advisor who wrote up the repair order or by the shop foreman/quality assurance technician

Quality AssuranceThe act of verifying that the customers concerns were addressed and resolved and that the vehicle is in proper condition to be returned to the customer

The Repair ProcessFVB 20103/21004 (2011/2012)21InvoicingIncludes three main operations; reporting what was done, assigning repair operation numbers, and calculating the final billTechnicians are not responsible for determining the value (charges) that are assigned to his effortsAnother service employee is responsible for looking in the flat-rate manual and assigning the jobs flat-rate time (to assure fairness and consistency of pricing)Once labor operations and times have been documented, a pay ticket is prepared to pay the technician for his/her time and completely price out the labor, parts, and other supplies that the customer is to be chargedThe charges are then compared against the approved estimate to be sure that they fall within the amount approvedThe Repair ProcessFVB 20103/21004 (2011/2012)22InvoicingIf the repairs are done under manufacturer warranty, invoicing includes looking up and coding the order with specific operation numbers required by the manufacturer to obtain reimbursement for the repairs Warranty administrator - individual responsible for looking up and properly assigning warranty labor operations and tracking warranty claims for paymentInvoicingComplete and accurate documenting of what was done including explanations, assignment of operation codes (as needed) and final pricing of the repair order

The Repair Process FVB 20103/21004 (2011/2012)23DeliveryOnce the work is completed and the charges calculated, the shop notifies the customer that the car is ready to be picked up and review the work done and the total charges due at pick-upIf there are any misunderstandings or concerns, these should be resolved before the customer arrives to pick up the vehicle and pay the billDeliveryReviewing with the customer that vehicles repairs are completed, what has been done to address their concerns, the price for those repairs, and making final arrangements for pick-up of the vehicleThe Repair Process FVB 20103/21004 (2011/2012)24CashieringHaving already reviewed the repairs and charges with the shop, the customer arrives to pick up the vehicle and settle the billThe customer is given copies of all repair documents detailing the requests and concerns, what was done to address each one, and a detailed cost breakdown for each item along with a receipt for paymentCashieringProviding customer with a copy of the bill and an explanation of services performed, handling payment and issuing a receipt for payment

The Repair Process FVB 20103/21004 (2011/2012)25Follow-upA post repair activity, performed one to three days after the customer has picked up the car from the repair shop, that is intended to assure customer satisfactionHaving given the customer adequate time to drive the car to verify that the repairs are satisfactory, the repair shop contacts the customer (usually by phone) to verify that the customer is satisfiedIf there are any concerns/questions, the follow-up information is then channeled back to the shop immediately, so that the shop can make arrangements to address the concernsFollow-upContacting customers after completion of the repairs and customer pick-up to verify that they are satisfied with the services provided and making arrangements to resolve any questions or concerns, if they existsCase 4-2FVB 20103/21004 (2011/2012)26As a service manager you have a top technician who has a great deal of difficulty getting along with the other workers in the department. She is constantly complaining that she is underpaid and that she is the only one who really produces any work around there and makes the shop any money. Based on the information provided:

You decide:Is she just complaining, or is she right? Why? How might you approach her to improve her attitude?

Case 4-2FVB 20103/21004 (2011/2012)27Use the systems view to determine if the environment is one where things get done efficiently by the right people with the right tools. It would be a good idea to have the employees evaluate the process with you. Be sure to look at the inputs, processes, and outputs. Then, develop a plan for feedback action to improve the process if necessary.

Charting the WorkflowFVB 20103/21004 (2011/2012)28Flowcharting helps to analyze how work actually gets done in the systemIt diagrams the flow of work from person to person and task to task as the transaction moves through the process, from the customers first contact with the shop to the end of the follow-up call that verifies the customer is satisfied with the quality of repairs

FlowchartingA graphical representation of the flow of work as it progresses through the major steps involved in a workflow

Charting the WorkflowFVB 20103/21004 (2011/2012)29Graphically portraying the flow of work helps to identify and analyze problem areasHelp to see areas where workflow slows down or comes to a stop - may be caused by a lack of people performing an important task or simply by timingIf too many customers, too many cars, too many repair orders, and too many bills arrive at the same place at the same time, the flow of work slows down dramaticallyIdentifying these bottlenecks is the first step to improve the flow and productivity of the shopReassign job tasks and see the potential impact on the rest of the shopEvaluate the possible effects of adding additional people to your shopCharting the WorkflowFVB 20103/21004 (2011/2012)30Flowcharting BasicsStepThe box represents a specific action that takes place in the process (e.g.: Road testing a car to verify that repairs were completed correctly).

DecisionThe diamond-shaped box represents a point where the flow can go in two or more directions depending on the results (e.g.: Is the car fixed? Y/N). The next step would be different depending on the answer to that question.FlowThe line represents the process moving from step to step, decision to decision, and the point at the end of the arrow designates the direction of the workflow (e.g.: Anytime when the repair order moves, such as when the order is written up and moves from the service advisor and is given to the dispatcher).LoopThe line combined with an arrow heading back toward any previous step of the workflow represents the need to repeat a step again (e.g.: When quality of repairs are checked and found to be incomplete and the car needs to be returned to the technician for further repairs).OutputThe oval or rectangle with rounded corners indicates an ending point or a product (e.g.: The successful completion of a repair).

Charting the WorkflowFVB 20103/21004 (2011/2012)31Workflow Chart TaskEmployeeAppointmentReceptionWork DistributionWork PerformanceQuality AssuranceInvoicingDeliveryCashieringFollow-upService AdvisorDispatcherTechnicianParts SpecialistShop ForemanCashierCase 4-3FVB 20103/21004 (2011/2012)32Marge Jones calls in and makes an appointment to bring her car into the shop on Tuesday for an oil change and to check out a strange noise that happens every time she applies the brakes. On Tuesday morning she arrives on time and speaks to Hannah, the service advisor. Hannah greets Ms. Jones and verifies that she wants an oil change and that the noise appears to be coming from the right front of the car and only happens on hard braking, but it seems that the car stops fine with no pulling to either side. After writing up the repair, Hannah gets Ms. Jones to verify that the information is correct and complete and gives her a preliminary estimate for the oil change and tells her that because her car is only five months old with 4,360 miles on it, that the repair to the noise should be covered under her manufacturers warranty. Hannah then sends the completed paperwork on to Dave, who dispatches the shops work. Dave assigns the car to Heather to check out the noise and perform the oil change. Heather verifies the complaint and finds that there is a broken retainer clip on the right front brake pad. Because this is a faulty part, it is covered under warranty. Heather gets the parts from Fred in the parts department and replaces the defective pad. She also completes the oil change and road tests the car. She then completes the paperwork. When the completed repair order returns to Hannah for her to call Ms. Jones, she calls over Jerry, the shop foreman, and asks if he can road test the car again to be sure everything is all right, because Ms. Jones is one of their best customers. After his road test Jerry comes in and notifies Hannah that the car is fine and Hannah prepares the paperwork. She calls Ms. Jones and gives her the good news that the noise is fixed and that the only charge is for the oil change. Ms. Jones can come and pick up the car any time before 7 p.m. Ms. Jones arrives at 5:30 p.m. to pick up the car, pays the cashier, gets her receipt, and drives home. On Wednesday afternoon the cashier calls Ms. Jones to make sure she is satisfied. She is satisfied.Case 4-3FVB 20103/21004 (2011/2012)33Sequence of steps:

Ms. Jones calls in and makes an appointment with the advisor, Hannah.Ms. Jones arrives and the advisor, Hannah, writes up her car.The paperwork then goes to the dispatcher, Dave.Dave assigns the work to Heather, the service technician.Heather diagnoses the cause of the problem and needs to get a new part from parts department.Heather goes to Fred, the parts specialist, and gets the new brake part.Heather completes the repairs and the oil change and sends the completed paperwork to Hannah.Hannah reviews the paperwork and asks Jerry, the shop foreman, to quality control the car.Jerry road tests the car and verifies that the car is fixed and returns the paperwork to Hannah, who prepares the invoice.Hannah calls Ms. Jones, telling her the good news, the total charges, and advises her that the car is ready to be picked up.Ms. Jones arrives at the dealership and speaks to the cashier, and pays her bill, gets her receipt and drives off with her car.The next day, the cashier calls and verifies that Ms. Jones is satisfied.END - Ms. Jones is another satisfied customer, who will undoubtedly return and also tell her friends what a great job the repair shop has done.

Case 4-3 FVB 20103/21004 (2011/2012)34

Workflow chart: