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Why is Mission Strategy Crucial in the Automotive Industry? [RR 872]

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carmcapriotto Grand Master

carmcapriotto

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"Do our technicians, when they close the hood, take the rag, you know, they rub the hood, make sure there's no fingerprints? Do they really think about the role that they had in that customer's life? Most of them don't."

Dan Taylor shares a personal experience where his technician played a crucial role in getting his wife to the hospital in a life-threatening situation. This incident made Dan realize the importance of our mission in ensuring the safety and reliability of vehicles. What is the 'why' behind someone's work and why is that important?

Dan Taylor, Senior Business Advisor, Transformers Institute. Dan’s previous episodes HERE

John Long, Total True Automotive, Shertz Auto Service, Schertz, TX.  John’s previous episodes HERE.

Show Notes

  • Watch Full Video Episode
  • The mission concept (00:01:53) The concept of mission and how it can be applied to the automotive industry, using examples from the construction industry.
  • The importance of knowing the mission (00:02:53) The importance of every team member knowing the mission and how it goes beyond the individual tasks they perform.
  • The role of automotive professionals (00:05:23) The passion and professionalism of automotive professionals and the impact they have on people's lives, guiding them through important moments.
  • The role of repetition in training (00:13:16) The significance of repetition in training and the need for constant reinforcement to ensure understanding and retention.
  • Mission accomplished never done (00:15:48) The concept of "mission accomplished never done" as a reminder to continuously strive for improvement and growth in leadership and training.
  • The importance of defining a win (00:18:02) Discussion on the need for organizations to define what winning looks like and the challenges of setting unattainable goals.
  • The impact of tough conversations (00:20:14) Exploration of the aftermath of a difficult conversation with a team member and how it led to improved performance.
  • The positive outcomes of peer reviews (00:22:40) Insights into the significant changes and improvements seen in businesses after undergoing peer reviews, with a focus on weaknesses and opportunities for growth.
  • Workflow Management (00:25:19) Discussion on the importance of workflow management in the automotive industry and its continuous improvement.

Thanks to our Partners, AAPEX and NAPA TRACS.

Set your sights on Las Vegas in 2023. Mark your calendar now … October 31 - Nov 2, 2023, AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR

NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/

Connect with the Podcast:

-Join our Insider List: https://remarkableresults.biz/insider

-All books mentioned on our podcasts: https://remarkableresults.biz/books

-Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom

-Buy Me a Coffee: https://www.buymeacoffee.com/carm

-The Aftermarket Radio Network: https://aftermarketradionetwork.com

-Special episode collections: https://remarkableresults.biz/collections

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      Technician Production is More Complicated than You Think
      By Joe Marconi in Joe's Blog
         0 comments
      Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
      As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
      But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
      Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
      Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
      Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
      The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.

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