There are many factors that are driving the collision industry to achieve improvements in core KPIs. The customer is demanding shorter repair times and greater service. The insurer has similar needs but also needs to keep repair costs as low as possible. As a repairer, we need to meet these goals along with performing high-quality repairs that meets OEM standards and make a profit!
One of the many methods that we can use to meet these demands and objectives is the development and implementation of SOPs in the collision repair center. So before we get into the meat and potatoes of this subject, let’s get a better understanding of the term.
| FREE WHITEPAPER on Standard Operating Procedures (SOPs) | |
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Meeting your Key Performance Indicators (KPIs) obviously is important to you as a repair or collision shop owner or manager. But do your employees recognize the importance? Download our free whitepaper on Standard Operating Procedures. |
Wikipedia defines SOPs as: “The term standard operating procedure, or SOP, is used in a variety of different contexts, including healthcare, aviation, engineering, education, industry, military and civil servants. Such procedures are a set of step-by-step instructions to achieve a predictable, standardized, desired result often within the context of a longer overall process.”
For consistency of operation, SOPs should be created or sourced around all key tasks in the collision repair shop. This would include administrative processes (vehicle drop off procedures, file makeup and handling, vehicle delivery procedures) along with production processes (how to blueprint vehicles, parts cart management, etc.). We also need SOPs that focus on specific repair procedures such as plastic repairs, refinish processes, detailing procedures, etc. Another area of focus would be around building and equipment maintenance. Mike Anderson of Collision Advice even had an SOP on how to clean the toilet!
In most cases, you may need to develop your own administrative processes. At CARSTAR we have SOPs that align with our proprietary EDGE operating systems. These SOPs outline all procedures relating to administration and production. Here is an example of a CARSTAR SOP on managing Accounts Receivable:
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Accounts Receivable Purpose: Accounts Receivable is the money owed to the company by its debtors (i.e. insurance companies, fleet companies, customers, etc.). Description:Tracking Accounts Receivable is necessary to the CARSTAR facility as the nature of our business requires third party payment systems. Information: How:
Validation Points:
Reference Tools:
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All of our materials vendors also have SOPs around how to use their products. You can see an example of a 3M car cleanup procedure at ABRN.com/3Mcarprocedure. These are all available on the 3M website for download at www.3MCollision.com.
Now that we have an understanding of SOPs and some examples of content and structure lets discuss the value proposition. The core value points of SOPs are to:
- Create consistent outcomes on standard tasks
- Provide training for new staff around core tasks
- Provide training for staff when roles and responsibilities change
- Serve as a resource for materials and or equipment that may be needed for that task
- Provide a diagnostic tool when there are failures
For example, let’s take a look at the A/R SOP; this is a critical task that relates to the financial health of the repair facility. We need to make sure that A/R is monitored and collected on a consistent basis. If your shop were to adopt this process, then we would use the SOP to train the staffer that has taken on this role. If they were new at this role I would want them to reference this SOP on a consistent basis. I would also meet with them on a regular basis to see if they have questions or concerns around the process. As time went on and they became comfortable with the process, then there would be no need to reference the SOP unless an issue arose around the task. I would then meet with the individual and use the SOP as a diagnostic tool to determine the cause of the issue. If the issue was caused by a change in the process or new technology then we would work together to make the necessary updates to the SOP’s to align with the change in the process.
In the case of a new detailer, I would use the 3M SOP in the same manner. In many shops you will see critical SOPs that have been enlarged, laminated and posted around the shop. This provides a ready reference for new and seasoned staffers around shop repair procedures. When there is a failure and you have determined the cause by reviewing the SOP with the tech that was involved with the repair. Then review the SOP with all of the technicians involved in that repair process to learn from each other’s mistakes. You would also want to meet to review the SOP when new products and procedures are placed in the mix.
As far as implementing SOPs in your store, it is always best “done WITH staff not TO them.” Make sure that you explain why you are making this change and what value it brings to them. When creating your own SOPs make sure that you involve them in the process. That way they have “ownership” of the end product. Also consider holding regular SOP review meetings to assure that when a process step changes it is documented and then communicate that change to all that are involved in that process.
Here is a blank SOP template that you can use to create your own internal SOPs.
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SOP Title Purpose: One-sentence explanation of when to use this SOP and purpose. Description: Brief overall description of SOP content – what it is Information: Clearly define each step-by-step process to a degree where someone who has no understanding of how to implement it can do so proficiently. Include images and screen shots when possible. Validation Points: Reference Tools:
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When looking at repair products and materials always consider aligning with a single manufacturer’s product line. When you mix and match product lines you lose the expertise of the manufacturer around their product and how the stages interact in a seamless process. As a result, any SOP that the manufacturer supplies for you to use will be invalid.
Also, when we are operating in a culture of Kaizen (continuous improvement), we need to remember that none of our SOPs are carved in stone. We have to be always looking at ways to improve the process by looking for waste in the process and the best resource for those recommendations is the person doing the task!
