How can we make our Workshop business profitable and growing?

❖ Defining every process to deliver excellent results.

❖ Success of implementing a process is good results and a strong review mechanism.

❖ Finding gaps in non-achievements or failures and correcting process inefficiencies.

❖ Be aware of where we failed in adherence to the process or else it becomes difficult to improve.

Workshop Business Process Management of an Automobile Dealer depends upon its robust process, and its ability to analyze and implement improvements. A management approach that views a business as a collection of processes, managed to achieve the desired result through defined processes, clear roles & responsibilities, robust review mechanism, and approach/scope for continuous improvements. If you want your business to be profitable it is important to understand the need for aligning processes to give the best of results in terms of output, efficiency & deliverables, they can be defined as your commitments to Customers by meeting & exceeding their expectations. Let us understand by few examples wherein team non-adherence/deviation to the defined processes or we can say by not doing things in the desired manner your business may incur a tangible or nontangible loss:

  • The service Advisor missing an additional job which could have been done in case he followed the complete Car/Vehicle survey with the Customer at the time of opening the job order – Loss of labor & parts margin and Customer extra visit.
  • The technician did not follow the complete service schedule which led to missing changing a critical component during regular service The final Inspector/Floor Supervisor missed it – causing loss of labor & parts margin and liability of anything going wrong with the vehicle along with serious Customer dissatisfaction.
  • The service Team not delivering at the time commitment given to the Customer during the opening of job order & vehicle handover, which may be the result of poor coordination among the service team – Causing Customer dissatisfaction which in turn would consume more valuable man-hours to satisfy the Customer resulting in loss of productive time implying loss of revenue.
  • Service Advisor not adhering to the cost commitment which is the promised estimate to Customer vs actual bill – Causing Customer dissatisfaction which further causes loss of Customer trust in your Organisation implies he may not trust to spend his money on you in future. 
  • Revisit of a Customer within a short period after service or repair may fetch Customer dissatisfaction along with productive manhours getting wasted in either correcting the last job done or diagnosis of earlier Customer concern which engages your Service Advisor, Floor Supervisor & most importantly your Technician who will surely cause loss of productive hours since 75-90% of revisits/repeats do not give revenue on the second visit job order.

We can share an endless list of where the team deviated from the defined & laid down process without delivering the required results causing Customer dissatisfaction examples like poor washing, delay in attending breakdown, poor paint job, repeat concerns, etc. and this would result in loss of revenue, Customer trust and man-hours. The Business objective is to increase process efficiency, ensure consistent quality, reduce costs, and improve labor output & profits. The correlation between output & input. This can be understood when we can correlate Customer verbatim with the quality of repairs being done inside the workshop and time & cost commitments done by our Service Advisors. Analyzing processes for efficient output with quality to ensure the final deliverables to our Customers are highly appreciated & were able to exceed expectations. Devise & inculcate a review mechanism among the team & stakeholders for quality results which could be even the smallest pointer from our Customer to be thoroughly for immediate corrections.

Conclusion:

Setting standards wherein Teams/Stakeholders understand delivering quality results every time & at all times, to become a hygiene factor for the entire Organisation is achieved through setting up a robust process & review mechanism which completely eradicates the factor of chance. The Organisation strategy should be to draw a clear correlation between processes and the vision that supports your Company to plan strategies for success in the long run.

Leave a Comment