Keeping Track of your Freon

[DodgeMan]

How many Parts Managers out there have a problem with their R134 inventory because of the 30lb canisters? How do you keep control of the inventory when you hand out 30lbs at a time?

For a long time I thought the only solution is to keep the AC machine or the AC hoses in the parts department but it really wastes the technicians productivity. Here is the solution that one of our technicians and I came up with. We lock the power cord of the AC machine and keep the key in the parts department. When the tech needs to use the machine we bill out 100lbs of Freon onto the repair order and give him the key which is attached to a clip board. On the clip board is a log sheet that the tech uses to write down the RO #, lbs of Freon used and the lbs of Freon left in the machine. When he returns the key we correct the amount of freon billed on the RO. This isnt a foolproof plan as the tech can just leave the machine unlocked but what we do is when we hand out the next 30lb bottle of Freon we inventory what is left and if there is any shortage it goes onto the shop tag.

I hope this helps a few managers out!

DodgeMan

PS You can find one of the locks here -- http://www.securityworld.com/child/stopower.html

[Jaybee]

This is one of those things that seems to drive all of us crazy. I gave up on this years ago.What I do is I buy in dollars. I am paying about 80 bucks for a 30lb.cannister. I buy in 13 units at $6.15 ea. This covers my cost. By constantly buying in 30 lbs. and running out when you are still showing 15 in inventory is just a good way to drive yourself nuts. I sell it at $14.50 a lb. and have never had a problem. Is it totally honest? Probably not,but lets face it,if you are buying 30 lbs. and only selling 15 of those. Is everybody else in your store being honest.......Just my 2 cents.....John

[Doug]

We sell the freon to service department 30 pounds at a time, charged out to the shop supply account.

The service advisors then charge it out as needed on the repair orders, the "miscellaneous charge" be set up to off-set the shop supply account.

Easy ! Now the problem shifts from parts to service !

Cheers
Doug

[newtonian21]

I'm set up similar to Doug. Although I have other shop supplies that are done the same way, so I set up a source that all supplies like that are kept in. Anything that sells from my supplies source automatically credits the service supplies account. You can do this in R&R in 2571 - General Ledger Accounts. I find this way tends to keep our service manager on the techs to make sure they inform us of any shop supplies are used. And parts will never lose

[scotstrong]

Here's my variation:

Charge the entire 30 lb. cylinder to the shop suppplies account when it is handed out. On the last day of the month, we look at sales history for the freon part number and credit the shop supplies account for that same number. Any lost, wasted, not accounted for stays on the shop ticket. Keeps the department that uses it responsible for control; which is where it belongs.

Scot Strong

[kcatdeejay]

DODGE MAN DOES IT PRETTY MUCH THE SAME WAY THAT I HAVE DONE IT OVER THE YEARS. THE SERVICE DEPTS THAT I DEALT WITH DIDN'T CARE FOR THE IDEA TOO MUCH BECAUSE IT PUT THE RESPONSIBILITY SQUARE ON THOSE WHO HAD ULTIMATE CONTROL BUT WE PERSEVERED. IT BROUGHT THEM TO A NEW REALIZATION AND MADE THEM JUST A LITTLE MORE FASTIDIOUS IN THEIR AC ENDEAVORS...I EVEN REMEMBER ONCE OR TWICE ISSUING SERVICE CREDITS FOR OVERAGES FOR A CHANGE !

[DodgeMan]

I tried to get the service manager to charge it out on his end and be responsible for any shortages but that didn't happen. You know how service managers are, me me me! HAHAHA

[MrDealer]

As a dealer principal, I like the key & Clipboard idea best. Why? It's a solution and it makes someone accountable! All of the other ideas are void of solution and simply shift the dealership problem from one department to the other. True Managers think outside of the box (department).

[Jon]

I can accept MrDealer's comment, however not all stores have the luxury of a principal that pays much attention to fixed ops, other than demanding a net profit. If the dealer isn't in the loop, keeping in touch with the department managers, the only solution that I see is shifting the cost to the department responsible for that cost. I have seen the results of doing otherwise, huge year-end inventory write downs that get charged against the Parts Department bottom line. The service manager laughs all the way to the bank.
Bottom line, MrDealer's solution requires Mr Dealer to care, be involved and foster an atmosphere where ALL the departments are rowing in the same direction. Congratulations if you are managing that.