LATERAL SUPPORT--TEAMS

[GMFXDOPSMGR]

I have been running Lateral Support groups for several years. Started with true "team" in the 70's with Datsun (Nissan for the younger group) and converted to group when I went to a mature shop. Currently in the process of converting a "specialized" shop to Lateral Support. Two pieces of equipment usually is enough for 4 groups. Each group has a skilled member for the major skills. Trans & diesel are hard to fill for each group. Advisors dispatch to their members, although we are ReyRey and have scheduling, I can still assign techs to an advisor, and let them work the trans and diesel between 2 advisors (share) those techs. Takes a lot of monitoring and getting the old school thinking out of the techs is a challenge, but they are starting to come around. These techs were in a smaller shop and got all of their skills, but now they have competition and have to use the other skills they have to share the load, ie: front end tech is Master Certified, but only did front end. Now he does a/c, engine electrical, brakes, and other skills that will not tie him up (engine mechanical).There is a tech on the group that does that work for the advisor. More control of work flow for the advisor, better promise time. Proper set up,equal distribution of skilled techs, good for trainee techs, have a lof tech or seperate lof/quick service to a seperate advisor (works for me) and watch it work. Monitor the advisors work mix, tech productivity and you will see great results.

[jazdale]

Zeke
I don't see how making your total dept of 2 writers and 4 techs a team any smaller than that.

You must have a unique situation with your master techs. In a typical store, the ratio is closer to 1 writer for 4 techs.

[zekensted]

I am new to this store, but yes, we have a unique situation here. It seems very ineffecient to have 2 writers for 4 techs and to still have a dispatcher. But, since all techs are master techs, they each seem to require more time. Also, as high end import, not doing alot of one line oil changes.

Here is the really hard question...how many ro's a day should a good advisor handle? Experienced, good, but not alot of years of experience.

[TheOne]

12 is a magic number with the right pay plan. 15 is max.

If all of your techs are master, then you have a probable gross retention problem. Lateral support works best with 3 techs per team. If you are going to run with 4 techs you have no need for support gorups or a dispatcher. Control can be effective with a working manager and a central dispatch system. The intent of teams or support groups is to break the shop into more manageable units. At your current size it is already manageable...

[sokalhonda]

Plus one for true teams.
IMO easier to manage and more cost effective. With support most shops give an override to the team leader and there will always be the complaint of he gets all the gravy.
No override and less wining with true teams but can be difficult in a domestic shop with specialized techs.

[GENE WHITE]

DO THE MATH - WHAT CAN YOU AFFORD?
Watch your ratios. If you multiply the expected average number of repair orders per day per Advisor times your effective labor rate plus parts sales per repair order you will get the dollar sales per Advisor per day. The current profitable benchmark (2008) is to pay up to 5% of this as compensation, 6% in large metropolitan areas. Extrapolate this out to an annual salary and see if this generates a proper pay scale in your area.

The current profitable benchmarks (again 2008) for all but high line and HD truck Dealerships are 1 Advisor per 5 or more technicians, 21 to 25 repair orders per day per Advisor without using a Dispatcher.

If avaliable I use computer dispatching with any of the many group concepts, this cuts down favoritism in dispatching and enhances the communication system.

[john]

I ran lateral support groups for 15 years and installed them in 5 dealerships in our dealer group - You can generate 120% efficiency and high work quality because of the personal accountability (techs to advisors).

I agree with Gene's metrics.
*Shoot for about 20 r.o.s per day, 2.5 hrs per r.o. and +100% efficiency per tech per day - 5 techs per advisor with a skill mix across all levels of work (lube tech through master for each group in order to average your labor cost per hour down) (helps control labor gross at +72%).

The Service Manager must be an active agent in his environment - driving the shop toward profitability hour by hour - he is on the drive early and stays late to review R.O.s and compile the daily metrics. Without that discipline the process is doomed.

Advisors make reservations, write service , sell, dispatch, make customer follow-up calls and are responsible for the daily CSI and profitability metrics of their group. NO CASHIERING!!!! Selling skills do not necessarily translate into good clerical skills - just ask the office manager in a dealership with advisor/cashiers - after her daily journal entries to correct advisor mistakes.

Tech metrics are tracked daily also - Techs are responsible for up-selling 2 hours of their time daily.

Those are simple guides that can be used to DRIVE the shop toward profitability. But the question is really a total systems question. Without a good shop loading and scheduling system, running an efficient and productive shop is a crap shoot. The DMS systems are very expensive and are too complicated for most shops to use effectively(given advisor turn-over/training requirements). Turn it off if you have it and save $6000 a year. There are other PC based reservation systems that are easy to use, 1/10th the cost, allow advisors to schedule and load their groups daily - based on management objective metrics for total hours, work mix, and tech skill. That same system will also accommodate a first come /first serve system in tandem with reservations (hello quick lube!).

The other issue revolves around how you now handle that knowledge of your future customer flow. That means running service history on everyone and planning the service visit to maximize the selling opportunities in the drive (lane processes are key to good CSI and good sales)that are worth an extra .3 per hrs.R.O.

The next most critical piece of the pie - lets make the pie even bigger - is a very disciplined MPI process and a professional sales presentation when additional service is found (+.5hrs. per R.O.). Most advisors talk themselves out of the bulk of additional sales (too much information and too disorganized).

Good luck - managing service is a full time job and demands a strong leader that has a vision of what he wants. He is willing to constantly follow the "road signs" and remove "barriers" on the way to his destination.

John Conner
pika68@aol.com
Service Process Consultant
815-484-3619