I-CAR training has measurable KPI impact; OEMs adopt I-CAR for programs by Daniel Buxbaum Las Vegas—I-CAR CEO and President John Van Alstyne announced the organization’s commitment to improved training programs and strengthened OEM relationships at a press conference, Nov. 1, at the SEMA show. The effects of participating in I-CAR training, Van Alstyne said, have displayed proven results in collision centers’ KPIs and day-to-day operating metrics. In 2010, I-CAR introduced the Professional Development Program (PDP), which offers collision repair and welding training for key roles in the collision repair process, he said. “Training is very critical to stay abreast of the newest technologies.” Van Alstyne noted that hybrid powertrains, new-age structural and body materials and a rapid influx of new models coming to market have all presented especially great challenges to the industry. “Between now and 2015 there are 242 vehicles that are listed as debut, reengineered, or redesigned,” he said. “When you combine that with new CAFE technology standards and various vehicle Study shows training results in revenue increases, other KPI improvements by Jay Sicht New Orleans—Teaching complete and safe repairs has been the goal of I-CAR training since the organization’s inception in 1979. But, rather than seeing it as a modest investment that can aid in productivity and profitability, many collision-repair shop owners and managers have viewed it simply as fulfilling points requirements for agreements with a DRP or an OEMcollision-repair network, said Jeff Peevy, I-CAR senior director of field operations and segment development. “We as an industry have often seen training only as a requirement and not a business solution,” Peevy said. Peevy noted that I-CAR’s 2011 study showed that 69 percent of the country’s collision-repair shops failed to have consistent training, and out of that number, 7 percent of them went out of business within a two-year span. <strong>Parts</strong> & <strong>People</strong> sat down with Peevy at NACE to discuss some of I-CAR’s new initiatives, including a recent study it conducted showing some significant improvements suggesting that consistent, planned-out training can be an investment in a collision-repair shop’s future. A six-month study of eight participating single-<strong>location</strong> collision-repair shops wrapped up in March, Peevy said. That study showed marked improvements in several key performance indicator (KPI) areas, he said. enhancements, it’s an awful lot for the industry to keep abreast of.” To keep track of the return investment on training, Van Alstyne said that I- CAR examined the direct impact of their training program on shop performance by way of reported KPI measurements. Over the course of their study, measurable improvements in I-CAR CEO and President John Van Alstyne says that over the past year, OEMs such as Nissan/Infiniti, Chrysler, and Honda have integrated the organization’s Gold Class training program within their own manufacturercertified collision repair courses. KPIs were found in touch time (up 45 percent), CSI scores (up 5 percent), cycle time (up 14 percent), and revenue (5-10 percent), he said. “For all of these reasons, the industry now looks at I-CAR’s PDP and Gold Class certification programs as the standard for knowledge.” I-CAR held a welding seminar at NACE for managers of DRPs and OEM networks. At the seminar, I-CAR managers — including Performance Training Coordinator Johnny Dickerson (l.) and Senior Director of Field Operations and Segment Development Jeff Peevy — stressed the importance of welding qualification tests by showing attendees welds that are obviously deficient and others that appeared to have good penetration but easily failed a destructive test. “Half of them saw a 5-percent increase in revenue over the same period <strong>from</strong> previous years,” Peevy said. “The other half saw a 10-percent increase.” Although Peevy cautioned that it is nearly impossible to get a “laboratory-perfect” controlled environment to eliminate all variables in the study, Peevy pointed out that during the study, each shop was asked to make no drastic changes such as changing management systems, paint booths, or paint systems, and the revenue increases were achieved not through square-footageexpansions or large capital-equipment additions. James Roach, Honda’s senior vice president of its parts and service division, says that more than 456 eligible body shops have signed up for the OEM’s ProFirst certification program since its launch in mid- October. Van Alstyne said that over the past year, several OEMs have recognized I- CAR’s Gold Class certification program as a part of their manufacturercertified collision repair programs. These OEMs, he said, include Nissan/Infiniti, Chrysler and Honda. Honda launches ProFirst “Those shops were able to turn that into revenue,” Peevy said. “And they were able to market the CSI improvements to insurance companies.” On average, CSI scores improved a little more than 5 percent, he said, while cycle time decreased by a day, a 14- percent improvement. “But the one I was most interested in was “touch time” in which we saw a 45- percent improvement, which is about an hour,” Peevy said. “Could other things have influenced that? Absolutely. But did training influence that? Absolutely. We saw an overall appreciation for training. The transformation happened so gradually, but in the end, when you look back, they’re in a different place.” Multi-shop organizations (MSOs) have historically embraced the value of training and have used it to their advantage, Peevy said, while single-<strong>location</strong> shops have not. Peevy said the organization has moved away <strong>from</strong> the previous Training Path, which outlined courses suggested for each role in the shop, in favor of its new Professional Development Program (PDP.) “The Training Path wasn’t really enforced and was little more than a suggestion,” Peevy said. “We would say a refinish technician needed a certain series of classes, but if he took ‘Steering & Suspension,’ we’d give him a point.” In talking with professionals <strong>from</strong> several James Roach, Honda’s senior vice president of its parts and service division, joined Van Alstyne in discussing the recently launched Honda ProFirst program’s correlation with I-CAR’s Gold Class certification. The program, launched in October, seeks to recognize and certify eligible Hondacertified body shops, Roach said. It was enacted largely in collaboration with I- CAR and the CollisionLink network. “ProFirst seeks to give every customer the chance to have the same replacement OE sheet metal and components that came with their car,” he said. “We also want to make sure that the technician repairing these cars has been trained properly.” “In evaluating our collision repair process, we found that we needed to provide some high-quality body shop technician training,” Roach said. “With recent changes in vehicle technology, it’s very important that changes in factory manuals are converted in some way to hands-on or visual training. This is the kind of training that I-CAR conducts regularly, and does a very good job with.” Roach said that more than 456 eligible body shops have signed up for the ProFirst program. Already, he said, 50 of those shops have been recognized as being fully ProFirst certified, which requires a shop maintaining an up-to-date I-CAR Gold Class certification, as well as employing a Honda-certified body technician. n segments of the industry, namely trainers, coaches, and other consultants, Peevy said I-CAR identified knowledge areas and competencies needed in each role. A structural-repair technician, for example, is now required to pass the “Threedimensional Measuring” class, he said. “There are multiple ways we will recognize that a technician can achieve the formal training in that knowledge area,” Peevy said, including training <strong>from</strong> an I- CAR Alliance member (such as a frame-machine manufacturer.) In the study with the eight shops, Peevy said I-CAR identified “training gaps” in each role performed in the shop and got each employee up to speed using the new PDP on what had been lacking, although equivalency testing allowed proficient technicians lacking formal training to pass the tests. I-CAR will do more studies to enable the industry to gain proficiency and efficiency, Peevy said. “We are open to all coaching, suggestions, and feedback about how we can improve our methodology and approach,” he said. “But here’s the big takeaway. We need to assist the industry and change its perspective of what training is. We need to see it as a way to improve consistency and overall performance. <strong>Repair</strong>ing mistakes and comebacks is not just a part of doing business, but we tend to think of it that way.” n Page C-6 December 2012 <strong>Parts</strong> & <strong>People</strong> www.partsandpeople.com
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