Fixed Ops Journal - December 2022 - F6

FIXED OPS JOURNAL
OTHER VOICES
MAXIMIZE YOUR ASSETS
Adding service bays isn't the only way to bolster capacity
M
JASON BECKETT
GUEST COLUMNIST
ost new-vehicle
service
departments are
slammed. It's a
perfect storm of
customers keeping older cars longer, in
part due to inventory shortages;
vehicles on the road outpacing the
number of service bays available; and
underutilized shop capacity.
As a result, lengthy wait times,
carryover tickets and frustrated
customers are more a norm than an
aberration. Increasing capacity is
key, but this doesn't have to mean
expanding facilities and hiring
more technicians (nearly
impossible in this market). Instead,
a few small steps can increase
effi ciency and drive capacity without a big outlay of cash.
Increasing capacity fi rst requires knowing a service facility's
maximum potential. Calculate your facility's potential with this formula
endorsed by NADA: number of bays x number of days x number of
hours x eff ective labor rate = facility potential. In this formula, the
number of bays excludes wash and undercoat bays. Th e fi gure for
" days " is the total number of days in a particular month that the service
department is open. " Hours " are hours per day a facility is open.
Eff ective labor rate is calculated by dividing the total labor sales for a
given month by the total hours billed. Facility utilization, optimally at
100 percent, should be at least 70 percent.
Th e single best way to increase capacity is to stop under scheduling.
Th is is a people issue and it happens when service advisers are
overwhelmed juggling ringing phones and belly-to-belly customers.
Th ey stop processing vehicles because they don't want the headache.
Th e fi rst line of defense is an online appointment scheduling tool that
allows customers to self-schedule. A word of caution: Always audit the
tool. A misconfi gured tool can show a shop closed on Mondays, for
example, when it is very much open.
I'd argue the second line of defense is a digital voice assistant
integrated with the online scheduling tool to handle and appoint
inbound phone calls. A digital voice assistant stops all those ringing
phones and frees up employees to work with customers in the shop. It
will also always book an appointment for fi ve on a Friday if the time slot
is open (digital voice assistants don't have weekend plans).
Next, tackle status calls. Th ese calls 100 percent aff ect CSI and drown
employees in busywork, aff ecting effi ciency. Part of an ironclad process
should be that every team member asks customers how they want to
communicate, sets a specifi c time to call or text with an update, and
follows-through with that promise.
PAGE 6 DECEMBER 2022
Expanding shop hours to the evenings and weekends is also an
eff ective way to increase capacity without adding bays. An added
benefi t is that more hours may enhance the ability to hire and retain
technicians. Many people prefer a workweek of longer but fewer days.
A 10-hour, four-day workweek, for example, is very attractive for
anyone wanting three-day weekends.
Finally, weed out ineffi cient processes that pull technicians away
from their bays. Hire fl oaters to retrieve parts, install computer
terminals in workstations to get the most current diagnosis information
and technical bulletins, and migrate to paperless dispatching and
repair orders. Advanced job-tracking technology can also keep
technicians on track and inspire friendly competition that drives
effi ciency.
Service will always be the best bet for steady and consistent
dealership revenue. Th ose who prioritize bay productivity and
maximum capacity will be rewarded with more sales and greater
customer loyalty.
Jason Beckett is the president of Proactive Dealer Solutions, which provides
training and software solutions for the automotive industry.
Fixed Ops Journal - December 2022

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