Lincoln, Neb.--The average collision repair job in the United States takes 10 days to complete. Craig Johnson, owner of Wayne’s Body Shop, said his shop averages less than five days.
How has Johnson cut the national average in half? Three years ago, he said he implemented a throughput team system in his shop, which has resulted in a process easier to manage that produces faster repairs, more daily billable hours, and a higher quality of work.
Prior to the change, Johnson said his technicians on average would log 2.7 hours a day on a car. He said he has now reached just over four hours a day, almost a 50 percent increase.
“I knew that there had to be an easier way to complete the collision repair process,” he said. “From the management perspective, the traditional way was hard to manage because everybody had different abilities, so you had to cater to their abilities with every decision you made.”
With the throughput team system, he said he has multiple technicians divided into three teams according to their strengths—a disassembly/reassembly team, a body work team, and a paint team.
The crew not only works as a team, they are also paid as a team, reflecting each technician’s skill level, Johnson said. Approximately 43 percent of all labor costs are divided among the production teams, he said.
When Johnson started at Wayne’s Body Shop in 1996, and when he purchased the shop in 2002, the team system was not in place—everybody was a combination technician, he said.
“Even though each technician is cross trained, with the throughput system, each person becomes more specialized in their specific area,” said Johnson who employees 12 technicians. “It has also sped up the repair process, whereas before, each technician completed the entire repair process by themselves.”
Ordering parts, for example, has become much easier with the throughput process because Johnson said he no longer has 10 people coming to him on Monday morning with a parts order.
Instead, his production manager oversees all orders and returns, which streamlines the process.
For OE parts, he said he turns to local dealers, including Rusty Eck Ford of Omaha, Huber Chevrolet, and Russwood Chrysler. Most of his recycler parts come from Olston’s Auto Recycler and Jim Defreece Auto Parts, he added.
In the current state of the economy, as profit margins decrease and costs of goods increase, effective management is crucial, Johnson said, adding that the throughput team system has made managing the shop much more efficient.
“It is not like 10 years ago when the margins were three times what they are now,” he said. “You can make money, but great customer service, quality, and efficiency are critical. If we don’t figure out how to incorporate those things, locally owned body shops will become nonexistent. They will be overtaken by larger franchisees where the owner is never present or accessible.
Johnson Works with seven DRPs, which account for 60 percent of his business. This has been a positive partnership, but can occasionally be difficult because the insurance industry is often ahead of the collision repair industry with expectations and changes, he said. “When the insurance companies need a new step implemented into the repair process, such as vehicle photos, having the team system makes it easier to implement,” Johnson said. “Our process covers every insurance company’s guidelines, so when a DRP asks for something, we incorporate their request into our process as a whole,” he said. “If one says they want photos of the vehicle when it is done, than we implement that for all DRPs.”
Other changes that have been implemented to accommodate and provide a positive experience for customers at Wayne’s Body Shop include a remodeled waiting area, diverse communication with the customer, and targeted marketing campaigns. “Every decision we make must fit into our mission statement and core values,” he said.
“Customers make their decision in the first two minutes they are here, so we have to create the right first impression,” he said, adding that he expanded the office and waiting area, brought in couches and a flat-screen TV, and repainted the area with more comfortable colors.
“We are trying to treat the customer more like a shopper and individualize things to each customer,” he said.
This includes how Wayne’s handles the communication process with each customer, Johnson said.
“Each customer has a different desire,” he said. “To some it is an e-mail, others it is a phone call, and others like to show up to see what is being done. You have to cater to each one and find out what their expectations are.”
Johnson’s wife and co-owner, Kellie, is also developing marketing campaigns to increase awareness of Wayne’s Body Shop. Some of her strategies include local sponsorships and scholarships, direct marketing to insurance agents, and providing monthly continuing education classes for the agents. Wayne’s Body Shop also hosts annual golf and sporting clay tournaments, he said.
