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[Podcast] RR 489: Louis Altazan – Total Quality Management Comes From Great Processes-Systems


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Louis Altazan, President of AGCO Automotive Corporation. He studied under Dr. W. Edwards Demming the father of Quality Management. Louis’s approach to handling clients, leadership and auto repair is worthy of a series of interviews.  He is a regular contributor on the Shop Management forum on iATN.

Key Talking Points

  • Studied under Dr. Edwards Deming the father of Quality Revolution
  • Technicians understand over owners when you talk processes
  • Most managers in the US want a cafeteria plan for Quality Mangement. 
    • They want to pick and choose what they want to implement
  • To get it right you’ve got to implement all 14 principles of Total Quality Management
  • The aftermarket has been slow to accept the principles of Quality Mangement
  • When times are good Deming’s plan works. When times are bad it works even better
    • You can survive the lean times even better
    • In spite of itself,  the aftermarket does well
  • Louis does not make a large margin on parts but makes it up on his labor charge.
    • Anyone can find out the price of parts whenever they want
  • Everyone in the shop contributes to improving processes and systems
    • He assigns a project and pays for the time his people invest.
    • Plan – Do – Study – Act. is the process for evaluating a project
  •  Some people are unwilling to implement and can use the Plan/Do/Study/Act discipline to start the project on a small scale without hurting the company
    • Don’t overanalyze
    • You’ll never know if it will work unless you try it
  • White Shirts on the techs
  • White Floors in the shop
  • To become a continuous improvement leader:
    • Have the theory of a system
    • Understand numbers or statistics
    • Knowledge of physiology. How people think
    • Theory of knowledge. How do we know the things we know

Resources:

  • Thanks to Louis Altazan for his contribution to the aftermarket’s premier podcast.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
  • Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.
  • Love what we do, buy a cup of coffee HERE.

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The NAPA Smart Sign, previously known as Digital Menu Board, gives your shop a professional, state-of-the-art look and feel. It’s a great way toNAPA-AutoCare-Logo-Vert-A.gif educate and inform your customers about needed repairs and service, plus increase awareness of your current promotions. NAPA AutoCare Center that have installed a Digital Menu Board found one out of five consumers ask for a repair or service they’ve seen on the board. Targeted promotions resulted in double-digit increases. You choose the content from a library of auto care service and repair topics. The latest NAPA national promotions are downloaded to you automatically. And with the Digital Menu Board it’s easy to change your services, prices, and video content anytime you’d like. Talk to your servicing NAPA store to find out more.

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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      It's time to shift your mindset on comebacks! Consider comebacks as a second opportunity to learn, make it right with the customer, have a training moment with your employees, and document and discover ways to improve your quality control. Aaron Woods, X-tra Mile Auto Care, Stillwater, OK. Listen to Aaron’s previous episodes HERE
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