LKQ of Washington invests $2.5 million in recycling ... - Parts & People

New multishop operator event at NACE proves to be a popular draw
by John Yoswick
Orlando, Fla.—In what appears to be a
win for organizers of the 2011
International Autobody Congress &
Exposition (NACE), this year’s event
included its first day-long symposium for
multishop operators (MSOs) in the
collision repair industry.
About 130 such MSOs attended, and
their presence at NACE was noted by a
number of exhibitors interviewed as the
show ended.
In kicking off the MSO symposium,
consultant Marcy Tieger of Symphony
Advisors noted that MSOs this past
decade have developed the systems,
training, and talent to provide the
consistent performance among locations
that make them attractive partners for
insurers.
While much of the industry reports that
Matthew Ohrnstein of Symphony Advisors moderates a
panel of representatives of four top multishop operators,
which combined have more than 412 shops.
sales have been flat or have grown
modestly, Tieger said, MSOs are
averaging 10-percent growth for the four
quarters ending earlier this year. “So
MSOs are moving
rapidly ahead of the
pack,” she said.
Matthew Ohrnstein,
the managing director of
Symphony Advisors,
introduced a panel that
included representatives
of four of the largest
MSOs: ABRA Body &
Paint, Service King,
Caliber Collision
Centers, and The Boyd
Group (which operates in
the U.S. under the
Gerber Collision and
True2Form trade names).
Ohrnstein cited news stories about those
companies from just the previous month,
in which all had opened or acquired new
locations. Combined, he said, those four
alone have more than 412 shops, 7,200
employees, and $1.26 billion in sales (in
what is estimated to be about a $30 billion
industry).
A lunchtime speaker focused on the
investor view of MSOs, and a second
panel examined the changing relationship
among MSOs, insurers, and vendors.
Another panel discussed issues related to
acquiring and developing new locations.
Ron Pyle, executive director of the
Automotive Service Association (ASA),
which hosts NACE, said participation in
the MSO symposium had exceeded
expectations, that it will be a continued
part of NACE, and will remain a session
open only to MSO operators.
Pyle said NACE will continue to offer
sessions for single-location owners
looking to expand into multiple
operations. n
Continuous improvement means implementing problem-solving teamwork
Continued from page C-2
Anderson also noted that 785 collision
repair shops closed in 2011, bringing the
total number of shops nationwide to
31,000. Reasons for those closings include
Our regional
editions serve:
NORTHERN
CALIFORNIA
SOUTHERN
CALIFORNIA
NORTHWEST
• Washington
• Oregon
• Idaho
• Montana
• Alaska
MOUNTAIN
• Colorado
• Wyoming
• W. Kansas
• W. Nebraska
• New Mexico
MIDWEST
• Missouri
• Kansas
• Nebraska
• Iowa
RIVER VALLEY
• Missouri
• Illinois
• S. Indiana
• W. Kentucky
buying the equipment necessary to keep
up with changing automotive technology,
cash flow problems, complying with the
EPA 6H Rule, and the need for new techs
and the training required to operate, he
said.
More than just
print…
Digital
Turnpage
Online
eNewsletter
Our six regional editions are viewable in three digital formats.
Whatever your flavor is, weve got you covered.
www.partsandpeople.com
Anderson said thinking outside the box
could include such simple ideas as keeping
a collision shop open on Saturdays and
Sundays, adding that the collision industry
is one of the last types of businesses not to
be open on weekends.
Becoming a thriving shop and not just a
surviving shop requires many factors,
including changing or improving a shop's
processes by involving the shop’s techs,
painters, and body men as a team to
become a “problem-solving organization”
and putting a solid management system in
place, he said.
“The really
successful body shops
are returning back to
double-digit net
profits,” he said.
“They’re problemsolving
organizations.”
Anderson suggested
using a cycle time tracker system, which
can show where the repair process is
slowing down, help spur ideas to reduce
those times, and solve continuing
problems.
“If you don't measure it, you can't
manage it,” he said. “The better chance for
success is if you truly measure it. Measure
where you’re at, implement an
improvement strategy, and then see if it
made a difference. Shops that really
improve are constantly measuring
everything all the time. That is the key to
success.”
Anderson said becoming a problemsolving
organization requires several tools,
including “patience and dedication,” and a
“The really successful
body shops are returning
to double-digit profits.
They’re problem-solving
organizations.”
willingness to consider all shop employees
a “team.”
Shops should then adopt a five-phase
system he called DMAIC (define,
measure, analyze, improve, control),
something any shop can adopt, he added.
DMAIC means the shop’s team must
first define a problem in concrete,
measurable terms, Anderson said.
In the measure phase, critical measures
necessary to evaluate the success of a
project need to be identified and
determined, he said. In the analyze phase,
the team can ensure that their
measurements are
accurate and the system
or process is
dependable and
provides accurate and
timely date, he said.
Anderson said the
improvement phase is
entered once problem
causes are identified and the team finds
“creative new solutions.” In the control
phase, the team can document the project
so that new procedures are maintained
throughout the organization, he said.
“Attack the process, not the person,” he
said. “Your job as a manager is to fix the
process. If you decide to have standard
operating procedures in your shop, there is
four steps. Develop how you want things
done, train your staff, test them to ensure
they retain it, and audit for full
compliance.
“You have to ensure that people retain
what they are doing, but you have to audit
to ensure people are doing things the way
you want them done.” n
Page C-4 November 2011 Parts & People www.partsandpeople.com