Electronic diagnostic and repair decisions

April 13, 2015
Is it better to keep scan testing, diagnostics, sensor resets and sensor recalibrations in house, or should you sublet out the work?
We all frequently hear of and experience the complexity of new vehicles. As repairers, we all encounter the need to check for fault codes and reset warning lights. We all have our ways to address this work, at least to some degree, whether through in-house staff or by having a sublet source handle the issue. Many of us have concerns over whether or not we are being thorough enough. Some of us wonder if our approach is the best for our business. We wrestle with decisions over staffing, training, equipment purchases, information availability, profitability, cycle time and job control. Before discussing potential solutions, let’s better define the issue.

The issue
Most of us are woefully ignorant and negligent in terms of understanding current technology and factory repair methodology when it comes to vehicle electronics. Many of us think in terms of simply addressing warning lights. Yet there is an incredible complexity beyond that. Some fault codes will not set off a warning light. The issue of resetting lights and fault codes is just a portion of what we need to address. There are many recalibrations that need to be performed as part of a collision repair, even a minor one.

As the 2015 Toyota models arrive, they represent the eleventh consecutive year in which the manufacturer specifies that the right front seat occupant sensor be recalibrated after each and every collision. Anecdotally I know that most repairers have only recently, if at all, embraced this repair requirement. I know many insurance field representatives in my area that are unaware of this and question the validity of it. After being a manufacturer repair standard for more than 10 years, it is pathetic to think we are only recently paying more attention to it. This seat occupant sensor adjusts the way the air bag deploys based on the weight of the passenger in the right front seat. In talking to some technicians, they tell me that it is not uncommon that the calibration is significantly off. When you consider the potential liability exposure for repairers, and potentially insurers, we should all be concerned. Many other common models, such as many Hondas, have had a similar requirement for years.

While we all know that vehicles are electronically more complex, I doubt that most of us understand to what extent. Some vehicles can have as many as 80 modules. These modules interact with an incredible amount of sensors. A technician just told me of a Volvo that has four sensors looking through the back glass. He also said that some sensors that “look” through glass are calibrated to understand the angle of the glass, such as a windshield, so that it can take reflections into consideration. Some not only monitor objects in or around the vehicle, but some can tell if it is likely a person or other living creature. Some sense temperature. Volvo has a security sensor that detects a heartbeat. There are other blind-spot sensors. There are rain sensors. Some vehicles have sensors to perform anti-pinch functions, particularly from closing doors and windows. They sense an increased resistance from someone or something and can stop an automated door or window from closing to prevent potential injury. There are some sonar systems that may perform an operation like opening a trunk when you wave your foot under a rear bumper. There are Doppler radar systems. Many of these sensors and other systems require calibration when performing collision repair, especially when replacing panels.

As repairers, the primary responsibility for obtaining information for such repair requirements is ours. We have to assume a high level of expertise when repairing newer vehicles. Our customers expect it. While the insurers strive to acquire expertise for their claims staff, it is the repair shop that is performing the repairs and therefore assumes the most responsibility. While vehicle manufacturers aren’t perfect in this regard, they are sharing more and more technical information and are setting repair standards. They share this through entities like ALLDATA, estimating and management system providers, I-CAR training, the I-CAR web site, and their own OEM websites. It is up to us to utilize the tools and resources at our disposal to obtain the proper repair standard information.  Ignorance is not an excuse.

Reset verses recalibrate
As we discuss the topic of addressing new vehicle electronic needs, it is important that we offer clarity. I’ve seen examples where estimators or insurers use the phrase “light reset” or something similar. It can become a generic phrase that we as repairers use, similar to flex add, corrosion protection or car cover. Those phrases can mean different things based on different applications, shops or insurers. Yet we use them to describe the repair function relevant to the topic and apply some payment to it to compensate the shop for whatever it was they did to address it. “Reset light” would not be an applicable term for many electronic system repair functions and could be misleading for both understanding the repair and for the repair compensation. When an air restraint system deploys an air bag, the system knows it and turns on the light, often based on a fault code. After the system has been repaired, the system knows it is now whole and the fault code can be cleared. In that sense it has been reset. However, a sensor calibration is something very different. In that case there is probably not a fault code to be turned off or reset. While the sensor calibration may similarly require a scanner or other electronic equipment, as well as a trained electronics technician, the operation of calibrating the sensor is not the same and should not be described in the same way. In the interest of fairness, shops should charge based on the merits of the actual repair, not a generic one-size-fits-all electronic repair fee.

Sublet to a dealer or specialist
Because our industry does not have a uniform solution in terms of sublet verses in-house approaches to addressing the resets and recalibrations, I reached out to a number of repairers that are respected and are with businesses of good reputation to get their perspective. Their responses varied and each has merit, particularly in their business environments.

Bob Pearson of Pearson Auto Body in Shakopee, Min., said that while a consolidator may be able to support an investment in this area, the need for subletting to either a dealer or specialist will remain because of the constant technology evolution of today’s vehicles. “I liken it to going to the doctor for a bypass operation. I want the guy who does these 8 hours a day, and only this, as he is now the specialist. While there is room for some of the larger shops to invest $5,000 in a scanner that can do quite a few re-sets and re-calibrations. It takes much more than this to do all models. The dealers are forced, some probably more reluctant than others, by the manufacturer to invest in this expensive equipment as part of their franchise agreement with that particular manufacturer.  Maybe if the collision repairers start struggling to get a mobile expert, the dealers may mobilize this profit center.  Because the dealer has this expertise, it should give them some leverage in the marketing of their in house collision shop. There is just so much liability engrained in this specialty, I don’t see the wisdom of doing this in house.  The dealers can afford this equipment as they can charge three times what the collision shops can charge too, another point.”

Dan Stander of Fix Auto Highlands Ranch, also ASA Collision Division Director, states, “For our location, we have a basic scan tool (under $300.00) that will read basic codes and get us in many basic systems. It does allow us to help solve many issues upfront. But it will not get us information on all cars and all problems. Our next option is using a mobile wholesale mechanic specific to our area; this company specializes in supporting mechanical collision repairs at our auto body shop location. They have multiple scan tools that reach many makes and models. However, they are lite on the European models. Our next option is using several local mechanical shops that are within a couple of blocks of our location. One location specializes in European cars; another is more specific to American models.  A final option we use depending on how deep the issue goes, are the local dealerships. For us it is a must to scan the vehicle prior or during the disassembly / tear down / blueprint process. In the past, we have found when we wait until the end of the repairs to scan an issue, it typically takes a special order part that takes several days to get or the sublet vendor cannot get to it right away.”

Keep it in-house
Dave Brown, former shop operator now with BASF Automotive Refinish Solutions said, “I am a believer that they should be completed in house as a part of the total service offered.....In our efforts to provide both vehicle owners and our insurance partners a high level of service, it is imperative to include as many operations as possible in our process for blueprinting.....when the vehicle leaves our confines, we become subject to the processes of others, not to mention the added liability of relocating the vehicle and cost controls we can provide our customers.

The issue as I see it is not completing diagnostic scanning and resets in house but developing the understanding with our insurance partners that we are completing the same work a dealer or specialty shop is, often at a greatly reduced charge. I like the idea of a competitive flat charge for all resets and diagnostics, similar to a set up or measurement charge.”

Interesting that Dave likes the flat charge concept. One advantage is that a generic fee minimizes friction points. In other words, it takes a lot of the potential negotiation with insurers out of the picture. Perhaps that would work well for an initial scan to obtain fault codes, especially in a blueprint scenario. But I question that it would be fair and reasonable for many operations, especially when you get into recalibration operations. Another variable is the equipment costs for different operations. Not only is there a purchase price for scanners, but many require periodic subscriptions and/or updates that can be very expensive. Another consideration is the cost of obtaining factory repair information.

Regarding in-house costs, Stephen Furman, a shop operator, states, “In recent years the market has exploded with devices that center around accessing data by a vehicle’s on-board diagnostic “OBD”.  I want to clearly state that I said access not repair, reprogram, diagnose, flash, or calibrate.  To perform these latter functions is where the costs come in.  For a shop to repair a majority of issues they would need to have multi line scan tools to work on all vehicles, diagnostic capabilities, bi – directional communication so you could read and transmit information back into the vehicle, updateable so information was available on the latest vehicles, and so on.  I have spoken with specialists in this area who say it is common to have multiple OBD scanners that also have annual subscriptions above the price of the machines themselves to work on all the vehicles one may encounter performing these types of repairs.”

John Sweigart of True Collision Centers was thinking in terms of shop flow and profitability when he responded, “We look to reduce costs by improving speed. Anything that slows the rate of finished work adds inventory (waiting)… inventory adds cost. I.e. the more inventory we keep, the larger the building, the greater the WIP expense, the more administrative work … and so on. Simply put, a business carrying 50 cars is 5 times more expensive to run than one carrying 10. (not exactly 1 to1, but you get it) The less visible expense is the cost associated with weaker customer satisfaction due to longer service times. For example, a business with 50 cars in inventory, delivering 5 cars a day would yield an average process time of 10 (business days). The same 3 car a day business with 10 in inventory (work in process or WIP) would yield a 3.3 (business) day process time (cycle time). Longer process times in a service industry = less satisfied customer = less customers (eventually) and that cost is massive.  So… anything we can do to eliminate down time drops to the bottom line (after all time is actually money). "In house" diagnostic, up front, is one good example of a simple strategic improvement in "through put" (rate of cash generation). Any idea like this will create improvements in cost, speed and quality.” 

John makes a great argument for keeping this work in-house. His approach to the issue is one that no only helps in his terms of cost, speed, and quality, but takes the shop closer to the utopian goal of completely predictable repairs. In other words, if we as repairers can completely identify all aspects and costs necessary to repair the vehicle and if we have very a very proficient process of scheduling and repairing cars in a controlled fast flowing environment we can more accurately predict the time of completion and final cost. That offers advantages and efficiencies for the shop, the insurer, and customer as John describes.

Equipment and other costs
Obviously a great deal of the debate comes down to costs, including equipment and labor and training. Because technology is advancing so quickly, as business operators we most likely don’t understand the extent of the needs. So many systems with so many components with so many needs for understanding, including how we can be certain they are functioning as intended before the repaired vehicle leaves our shop. Whether we sublet the vehicle or repair it in-house, we have the same responsibility towards the outcome. Either we or our sublet vendor must have the equipment and knowledge to perform the necessary repairs.

To gain some insight regarding what it takes, I reached out to a local expert who has an independent mobile business and has been doing this type of work for years. His name is Rick Zirby and his company is Dick and Rick’s Auto Upholstery. (They still perform upholstery repairs but some years ago added a technology arm of the business in reaction to changing market conditions.) They are a well known and respected vendor on the Minneapolis/St. Paul market.

Rick says,“Running a successful shop, it is always a balance between, investment, cycle times and the best use of employee time which all equals to what is left on the bottom line. All thought there are many different types of companies that can provide you with a scan tool. And for those who choose to get it right the first time, ultimately the factory scan tool is the only piece of equipment that will perform the job at the higher levels of repairs. And just like the aftermarket scan tools, the factory tool requires you to pay for a subscription to keep the tool current and in some cases usable for the purpose it was intended. When a scan tool is not updated on a regular basis it becomes outdated and useless no matter the original cost of the hardware. Another thing to consider is the factory will only work with the manufacture it is designed to be used with and will not work with other brands. Simply put don't expect a factory Chrysler scanner to work on a Toyota. In order to be successful, education is necessary to fully understand the process of how the tools function / works with the vehicle. Meaning, don't assume a General Motors tool will work the same as would the BMW tool. The formats are completely different and so are the steps needed to reach your desired goal. The best way I can put is it is like using many different versions of windows and expecting it to perform the same, and occasionally throw in the Mac or IOS version. And then there are the costs of buying the computer, maintaining it and having the correct or most current interface. Professionally speaking, using technology that has been moving so fast forward, it is realistic to follow that the equipment has been changing just as fast. The interface needed to communicate to the computer and then to car has been changing every 3-4 years. And at $4000 or more per interface, this gets expensive (the price of the computer subscription not included).Because one of the biggest concerns in this industry is safety for driver and the passengers, it is even more important that all procedures and rules get followed which may also require the use of a scan tool. This is one area that should not be short cut or compromised. Some quick examples may be occupant sensors for the airbag system or Adaptive Cruise Control. Both requiring not only the use of a scan tool but in many cases target boards or a sophisticated calibration procedure. This always comes down to being a business decision if you want to maintain the ongoing tool investment and fine tune your employee’s time where they can be most productive.”

Conclusion
As illustrated by the testimony of repairers, there is good logic in both the perspective of sublet as well as in-house. Because of the lack of return on investment (ROI) on some unique equipment necessary for small numbers of models we encounter, as well as constantly emerging technologies, it is probably reasonable to say that virtually all collision repairers will have to sublet at least an occasional reset or recalibration or diagnosis to a known expert. The only question remaining is how many of the rest do we wish to address in-house.

We can all agree that there is efficiency in scanning for fault codes early in the process, preferably as part of the blueprint. It can be very helpful in identifying the extent of damage and repairs required.

Then it boils down to the question, are we willing to invest the money, time, and effort to become proficient to handle some or many of these situations or do we prefer to leave it to known experts? Are we willing to pay the price for the gains in cycle time, cost control, profitability, and in-house expertise? Can we obtain the level of expertise in our own business model to have confidence in our ability to accurately and completely address the manufacturer repair standards? If so, can we use it as a differentiator from our competition? At this point it appears that we each will have to answer these questions based on the needs and abilities of our businesses. Perhaps a more universal approach will emerge at some time. However, the key for each of us to consider immediately, is that we are completely addressing the electronic repair requirements for each and every vehicle based on factory standards.

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