01  What is an "Initial Assessment" and how can it help us?

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• It's the right way to start a good development project!

• Its objective is to identify the operational and/or cultural factors and aspects that currently have a direct or indirect impact on the operation and, in turn, affect the performance, execution and performance of its operation.  

• Likewise, it serves to identify the points or segments where there is room and opportunity to improve the results of your operation.

• Finally, it will act as a reference X-ray that will also serve to establish future relationships.

 

 

 02  How long could an operational development project take?

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Months or years! The correct answer will depend on each business. Each company has its own characteristics, situations and needs. They are like different planets but in the same galaxy. Based on these particular differences TSSPR you cannot predetermine how long a particular project will take. We have conducted projects that have tamed only three months and others, up to four years, most of them with excellent results regardless of the time taken.

 

The time will depend mostly on the particular needs of your company!

 

But what is really important is not the time that the development will take, it is the time that you will enjoy the final result!

 

 

 03  Which is a"re-engineering"of processes?

It is a simple and studied process in which various resources are implemented with the aim of achieving a systematic, progressive and appropriate change of the daily processes in a type of industry. The adjustment adopted must lead the operation to use simple, easy and productive processes to achieve the desired goals.

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 04  What are they"Operational Controls"and how do they help us?

Operational controls are the resources that a management team will use to maintain the optimal structure and processes, and thus achieve expected production and performance.

They are based on:

• standards

• Product Types Represented

• Organizational size and structure

• Customer movement or traffic

• And many other factors.....

 

With proper controls, an operation could achieve and maintain an optimal level of production and performance. Without them, the production, performance and even the future of the company could be at stake.

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 05  what is the"Absorption rate"of service?

Service absorption rate is the ability and capacity of a Parts and Service department to cover the dealer's fixed expenses. It is said that if the Fixed operations (parts and Service) are in charge of paying all the fixed accounts of the dealer, then this department absorbed 100% of the expenses.

 

So what would be a good number?

 

A 100% would be spectacular!! But depending on some economic and regional factors, an acceptable rate could be 65% to 75%.

 

Do you know what the absorption range of your Parts and Service operation is?

 

Download the calculation form (XLS) attached to the right side so that you have a

idea of what is the contribution of your Service department.

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 06Do you sell more to paying customers (PL) or, in Guarantees (WL)? 

Service sales are derived from different types of payments. In other words, depending on who pays for the service. Let's see:

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• If the regular customer pays for the service, then it is a PL (Pay Labor).

• If you are a regular customer, but it is a service covered by the warranty, then it is a WL (Warranty Labor).

• If the client turns out to be the same dealer or, the dealer will take charge of the payment, then it is considered an IL (Internal Labor)

• A healthy and safe distribution of these sales at the end of each month should be very close to:

  • LP - 60 to 75%

  • WL - 23 to 38%

  • IL -  1 to 3%

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Operations should focus their sales on the most common factors and with the greatest authorization access, customers. Warranty services are generally more limited and with many fluctuations. *

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*It should be noted that the aforementioned averages could vary as a consequence of exceptional events or conditions generated by each line of vehicles and the administration of its guarantee. 

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 07  What is a pricing structure with "Break Escalator"?

The pricing structure of a Parts and Service operation is one of the most important settings for any operation. It is the one that establishes the profit margin in advance. The one we commonly know is:

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• Cost + XX% = List Price

• List – XX% = Sale Price

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However, to take your trade to maximum profit, that is not enough. It is essential to have a more versatile structure. One where this configuration allows you to maximize your profit on each piece by offering the best price to your customer. It is known as aBreak Escalatorand we can configure it for you.

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 08  What is "Part Obsolescence"?

The industry says that "obsolete" is the classification given to a part that has been in its inventory for more than 12 months without a sale. for us inTSSPR, 12 months is a very long period for our times! Taking that into account, we suggest that you also include the part that is already on the road, the pieces that have not moved in more than 9 months.

So if your share of accumulated obsolescence is more than 2% of the total cost, your operation requires immediate assistance.

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When the costs of these parts exceed the operational standards suggested by the industry, they are generally the result of poor execution when exercising parts inventory controls.

How can we be sure that a piece will actually sell?

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We know that this is not as easy as it is said! However, we have managed to help operations reach levels "free of obsolescence” and some others, with levels much lower than industry standards. But, above all, at the same time that your sales double.

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Likewise, we know that the mismanagement of inventory controls results in large accumulations of parts, which, most likely, could end up in the trash, thus causing enormous losses for any operation. Often, this situation leads us to mistakenly limit purchases, as a control resource. But keep in mind, that this resource will also limit the purchase of good movement parts. Here are some of the guidelines that have helped us handle this issue:

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• Don't put your operation in the hands of“Superheros”. The operation is too large and complex to be handled only with manual controls that rely on human beings alone.

• An electronic system will be necessary well configured to manage your inventory.

• Even if they look very similar, never adopt control parameters from other operations. Inventory control parameters must be adapted and updated according to the needs and type of your operation.

• Count on us to help them set up their Parts & Service operation correctly.

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 09  Do you really believe that only with the help of the manufacturer and the operating system, you will take your company to the maximum level of efficiency and performance?

If the answer isNo, its Ttoin the right In my 35+ years in this industry, I have yet to come across a dealership that has a good overall efficiency and performance rating that hasn't required at least one outside professional consulting service to climb to the top of the industry.Success.

 

On the contrary, most of them have needed the help of several companies in addition to the resources of their manufacturer and their operating system.

However, it is worth noting that without the help of the manufacturer it would not be achieved either.

Among the benefits that we offer our customers, and that they will not get from their manufacturer are the following:

• Design of work plans based on your social and commercial culture.

• Customer Service Models adapted to our clientele.

• Processes based on any type of client, not only the Guarantee.

• Processes adapted to your organizational structure.

• Training adapted to your operational logistics needs.

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These and many other benefits are whatTSSPRcan offer you to take your company to the maximum of efficiency and performance.

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Do not wait more!What you have not achieved alone represents a high cost for your company. Every day that passes you stop making a lot of money.

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