A project I sometimes take on as a consultant is auditing a shop's estimates and closed repair orders to review how complete and accurate they are.
Shops often complain about the added work and lower profits that result from use of recycled – or used – parts, so that's one aspect of the repair orders I look over during my review. I sometimes see, for example, a shop charging X hours to install a used deck lid, the same amount of labor time to overhaul the part. That sets off alarm bells.
Why? Because shops are correct when they say there are added procedures required when working with a used part. There is, first and foremost, what I call the R, R and I time. You aren't just removing and reinstalling (R&I) a part. There's often an added step.
Say that you're replacing a damaged door with a used door. You have to remove the door handle off the damaged door if you are going to reuse it. That's one remove (R). You have to remove the handle off the used replacement door. That's a second R. Then you have to reinstall the handle on the used door once it has been painted. That's the install (I). So it's not just R&I. There's two "removes" and one "install." It's R, R and I. That's additional labor.
I'm not a promoter of used quarter panels; in most cases, I don't think it's a proper or OEM-approved repair. But if you choose to use one, there are plenty of R, R and I requirements that you need to keep in mind. You may have to remove the striker off the damaged panel, and the one off the used replacement part, and then reinstall one on the used part once it has been painted. That's R, R and I.
The same could be said for door seals or gas doors or any number of parts. You make the business decision whether to charge for it or not, but you should be aware that you're doing R, R and I.
There are resources to help you understand and communicate the differences in the procedures and costs of installing used parts rather than new.
Click on the "Estimating Committee" link on the Collision Industry Conference website (www.CIClink.com) for example, for a great presentation entitled, "Preparation of the Recycled Quarter Panel with an Outer Wheelhouse." Here's a link directly to it: (http://www.searchautoparts.com/RecycledQP).
The Automotive Service Association (ASA) has a "Reference Chart of Not-Included Operations When Installing Recyclable Parts" that provides a quick summary of general not-included operations. You have to use a mil gauge, for example to check how much paint is on a used part, a step that isn't necessary when using a new part. ASA members can download the chart from the ASA Store http://www.asashop.org/ASA/ToolsResources/Store/Core/Orders/Default.aspx; non-members can order it by calling (800) 272-7467, ext. 295.
If you visit the Database Enhancement Gateway (DEG) website (www.DEGweb.org), you can find a number of inquiries that have been submitted about labor times and procedures related to used parts. If you're not aware of it, the DEG is an easy way to submit questions or concerns you have related to any of the "Big Three" estimating databases – and get a response from the information provider.
A shop, for example, in March 2011 submitted DEG Inquiry No. 3184 (http://www.searchautoparts.com/DEG3184), related to the R, R and I of handles, glass and other parts when using a used door. The insurer estimate (using the CCC Information Services estimating system) made it appear these items were "included," even though when the shop entered the estimate in its CCC system, they were not shown as included. CCC responded via the DEG that it could not duplicate the insurer's estimate, and that the shop estimate looked to be correct.
Lastly, although it focuses primarily on installation of new parts, the "Guide to Complete Repair Planning" offered on the Society of Collision Repair Specialists website (www.scrs.com) notes that R, R, and I are among the procedures shops should keep in mind when preparing estimates or repair plans.
Mike Anderson, a former shop owner, currently operates COLLISIONADVICE.COM, a training and consulting firm. He also acts as a facilitator for DuPont Performance Services' Business Council 20-groups.
If you have a business issue or question you'd like Mike to address, email him. [email protected]
