How do you determine cycle time? If you asked five different people you would get five different answers. Does cycle time start when your write the estimate, when the vehicle is left for repairs, when the parts are received, when the job enters production, or when you receive an insurance assignment? Once you have that answer, here is the next question: When is the vehicle completed? Some say when the repairs are done and the customer is notified, while others believe it’s once the customer picks up the vehicle. Maybe we should be measuring the cycle time it takes to determine exactly how to measure cycle time!Nonetheless, measuring cycle time is important and is a key performance indicator (KPI) that every shop should track. The difficulty comes when you look at how you track cycle time and how an insurance company tracks it. Regardless of how you measure it and how an insurer would like you to track it, it is still an important number to know for several reasons. However, it is important that you discuss with your insurance partners how they measure cycle time so you know their expectations.For argument’s sake, let’s say we all agree on how to measure cycle time. Now we need to understand the “why.” Are you measuring cycle time only because the insurance companies request that you do? Or is there a benefit to your business? I hope your answer was the latter. Of course the insurance companies want shops to measure cycle time. The quicker vehicles are repaired, the happier their customers are and the less they are paying in rental car costs. This equates to customer retention and controlling severities, which ultimately makes the insurance companies happy.Why should you track cycle time?
Bruce Keller, collision shop manager for Keffer Dodge in Charlotte, N.C., says he does not track cycle time, but plans to start. Keller says he knows he should because poor cycle time causes bottlenecks in the production flow, inefficiencies, rental cost, not to mention unhappy customers.You can increase your throughput when vehicles are completed in a minimum number of days. The sooner you get one job done, the sooner another can enter production. Remember your productivity! Your goal is to reduce the time a vehicle is in production and at your facility. Cycle time affects quality, material usage, parts (damage), capital utilization, morale, number of vehicles repaired and ultimately profitability. Tracking and planning
To measure cycle time, it’s necessary to understand your current cycle time and determine your average number of repair days on a given range of jobs. Once you know this average, determine where the cycle time should be on these jobs. You now know your current cycle time and your desired cycle time, and can create and implement a plan to reach that desired cycle time. However, keep in mind that total repair cost is not a consistent means of measurement. You must also be aware of the hours. For example, a $2,500 repair may consist of mostly parts replacement and minimal labor hours, or a repair that costs the same may have no parts replacement and high labor hours. So how do you control cycle time? Plan, plan, and then plan some more. Many repair facilities plan when a vehicle is coming in for repairs, yet most collision repair centers do not plan when the vehicle will leave the shop. To control cycle time, you must plan all repairs through each step of the repair process. When one vehicle is delayed, it can affect the cycle time of other vehicles. Controlling cycle time
Controlling your cycle time begins with the estimating process. Think about what happens when you begin repairs on a drivable vehicle with front-end damage. Because of the damage, the hood would not easily open, the customer did not want to risk opening the hood in case it would not close. They also do not have rental coverage. The estimate is written, parts are ordered and the repairs are scheduled once the parts are received. Now the vehicle enters production and is torn down.During teardown you notice there is extensive damage to the core support and additional parts are needed. When did you plan for this vehicle to be completed? With the additional damage, when will the vehicle be completed? This vehicle must now be pulled out of production, a supplement must be written, you must wait for authorization on additional damage and parts ordered. The vehicle re-enters production and the repairs process starts…again. Of course another vehicle that was scheduled will now be pushed back to fit the front-end job back into production. The cycle time just increased!There are many shops that advise customers to fax in the estimate they received from an insurance company so they can order the parts and schedule the repairs. Why would you want to order parts and schedule repairs without seeing the damaged vehicle? It doesn’t matter how long you have been in the business—no one is able to plan a job without seeing the damage first. This practice affects your production flow, thus your cycle time.Life in a collision repair center will never be perfect, but we can work toward getting closer to our goals by planning what we can control—and that will affect cycle time.Begin your planning by scheduling all repairs—including those towed in to your facility—based on the hours available, technician skill levels and parts availability. Tow-ins will be scheduled based on parts availability and available hours, but they also must be on the repair schedule so a designated time is slated to repair the vehicle. This will allow you to plan when a vehicle will move from one department to the next and when the job will be completed. Sounds impossible, but what if you are closer to running your shop like this then you are now? To get started on this type of planning you must know your shop and technician efficiencies. This is why it is necessary to track your KPIs, which are measurable indicators based on recorded performance. The art of tracking
By scheduling jobs based on the hours the facility is able to produce each day, you can plan based on the technician who will be assigned to the job. Based on each technician’s efficiency, you will know when the vehicle will be completed and ready for the next department. To make this work, you must have a good tracking system—whether it is a sophisticated management system with scheduling capabilities or as basic as a file rack system. Tracking is important to keep the production flow moving. If one job is delayed, you can move another job into the flow. Knowing that your technicians are working five days a week, you must schedule repairs five days a week. Not everything can come in on Monday and Tuesday and leave on Friday.You have those jobs that will take more than five days. Even if you bring these jobs in on Monday, they will be at your facility over a weekend. Bring these jobs in on a Wednesday or Thursday. This will keep your paint department productive on Mondays. Why not bring some of those two-to-three-day repairs in on a Wednesday? If you are writing your estimates and order the correct parts, these vehicles will be completed before the weekend. All this is part of planning, which allows you to control cycle time.When Jim Keller, president, of Motorcar Collision in Milwaukee, was asked if he tracks cycle time, he replied, “It is in our minds, but not a main focus.” Keller says Motorcar Collision uses a management system, which also tracks cycle time. His concerns involve all the different ways you can track cycle time.
This may sound great, but things don’t always go according to plan. There will, at any time, be additional damage or parts needed. Or there may be damaged parts or missing parts. But if we plan the complete repair, not just when it will enter the shop, we can get closer to our goals than if we just wait for vehicle to leave the shop.
Bruce Keller, collision shop manager for Keffer Dodge in Charlotte, N.C., says he does not track cycle time, but plans to start. Keller says he knows he should because poor cycle time causes bottlenecks in the production flow, inefficiencies, rental cost, not to mention unhappy customers.You can increase your throughput when vehicles are completed in a minimum number of days. The sooner you get one job done, the sooner another can enter production. Remember your productivity! Your goal is to reduce the time a vehicle is in production and at your facility. Cycle time affects quality, material usage, parts (damage), capital utilization, morale, number of vehicles repaired and ultimately profitability. Tracking and planning
To measure cycle time, it’s necessary to understand your current cycle time and determine your average number of repair days on a given range of jobs. Once you know this average, determine where the cycle time should be on these jobs. You now know your current cycle time and your desired cycle time, and can create and implement a plan to reach that desired cycle time. However, keep in mind that total repair cost is not a consistent means of measurement. You must also be aware of the hours. For example, a $2,500 repair may consist of mostly parts replacement and minimal labor hours, or a repair that costs the same may have no parts replacement and high labor hours. So how do you control cycle time? Plan, plan, and then plan some more. Many repair facilities plan when a vehicle is coming in for repairs, yet most collision repair centers do not plan when the vehicle will leave the shop. To control cycle time, you must plan all repairs through each step of the repair process. When one vehicle is delayed, it can affect the cycle time of other vehicles. Controlling cycle time
Controlling your cycle time begins with the estimating process. Think about what happens when you begin repairs on a drivable vehicle with front-end damage. Because of the damage, the hood would not easily open, the customer did not want to risk opening the hood in case it would not close. They also do not have rental coverage. The estimate is written, parts are ordered and the repairs are scheduled once the parts are received. Now the vehicle enters production and is torn down.During teardown you notice there is extensive damage to the core support and additional parts are needed. When did you plan for this vehicle to be completed? With the additional damage, when will the vehicle be completed? This vehicle must now be pulled out of production, a supplement must be written, you must wait for authorization on additional damage and parts ordered. The vehicle re-enters production and the repairs process starts…again. Of course another vehicle that was scheduled will now be pushed back to fit the front-end job back into production. The cycle time just increased!There are many shops that advise customers to fax in the estimate they received from an insurance company so they can order the parts and schedule the repairs. Why would you want to order parts and schedule repairs without seeing the damaged vehicle? It doesn’t matter how long you have been in the business—no one is able to plan a job without seeing the damage first. This practice affects your production flow, thus your cycle time.Life in a collision repair center will never be perfect, but we can work toward getting closer to our goals by planning what we can control—and that will affect cycle time.Begin your planning by scheduling all repairs—including those towed in to your facility—based on the hours available, technician skill levels and parts availability. Tow-ins will be scheduled based on parts availability and available hours, but they also must be on the repair schedule so a designated time is slated to repair the vehicle. This will allow you to plan when a vehicle will move from one department to the next and when the job will be completed. Sounds impossible, but what if you are closer to running your shop like this then you are now? To get started on this type of planning you must know your shop and technician efficiencies. This is why it is necessary to track your KPIs, which are measurable indicators based on recorded performance. The art of tracking
By scheduling jobs based on the hours the facility is able to produce each day, you can plan based on the technician who will be assigned to the job. Based on each technician’s efficiency, you will know when the vehicle will be completed and ready for the next department. To make this work, you must have a good tracking system—whether it is a sophisticated management system with scheduling capabilities or as basic as a file rack system. Tracking is important to keep the production flow moving. If one job is delayed, you can move another job into the flow. Knowing that your technicians are working five days a week, you must schedule repairs five days a week. Not everything can come in on Monday and Tuesday and leave on Friday.You have those jobs that will take more than five days. Even if you bring these jobs in on Monday, they will be at your facility over a weekend. Bring these jobs in on a Wednesday or Thursday. This will keep your paint department productive on Mondays. Why not bring some of those two-to-three-day repairs in on a Wednesday? If you are writing your estimates and order the correct parts, these vehicles will be completed before the weekend. All this is part of planning, which allows you to control cycle time.When Jim Keller, president, of Motorcar Collision in Milwaukee, was asked if he tracks cycle time, he replied, “It is in our minds, but not a main focus.” Keller says Motorcar Collision uses a management system, which also tracks cycle time. His concerns involve all the different ways you can track cycle time.
This may sound great, but things don’t always go according to plan. There will, at any time, be additional damage or parts needed. Or there may be damaged parts or missing parts. But if we plan the complete repair, not just when it will enter the shop, we can get closer to our goals than if we just wait for vehicle to leave the shop.
