Out of the Crisis.Org

[Louis Altazan]

Dr. W. Edwards Deming’s Fourteen points

In point four: End the practice of awarding business on the basis of price tag alone, the concept of total lowest cost was briefly touched on. Looked at over time [point one,] lowest cost is far more important than lowest price. A part that cost 30% less is not a bargain when the two-hour delay caused by it being unfit, is accounted for. The same logic flows to equipment, tools or even office supplies. Further, the same concept can be applied to our own services to lower the clients overall cost.

Point Five: Improve constantly and forever the system of production and service.

With point five I feel Dr. Deming introduces the concepts of systems thinking and continual improvement. Both are at the very heart of his philosophy. Seeing auto repair [or any business] as a system of processes may make it easier to improve. With continual improvement, things are no longer viewed as “good enough.” Rather they are viewed as an opportunity to improve.

Simply being better than the competition will never be adequate. With improvement comes lower cost. Each process should be looked at as an opportunity for improvement. Are there better, faster, less costly ways to do what we do now? Also are there services not now being offered, for which there is a market?

The auto repair process may start with the client interview [gathering specifications] and end with a delighted client [exceeding specifications.] Between there are a myriad of steps, each of which may be improved. For instance, how may I better communicate the specifications to my technician? Can I provide a better means to determine when they have been met? Is the information, tooling and environment the most conducive to accomplishing the task?

I have found understanding the steps in a process makes improvement easier. Viewing the parts graphically [as with a fishbone diagram] often makes opportunity for improvement stand out. Providing such tools and necessary resources to employees can help produce a climate of healthy change. This need not be revolutionary change, often it is more evolutionary.

For instance, watching my staff, many years ago, I noticed they had to stop, return to their box and bring out their florescent drop lights. Next they would plug them into the wall and string the cord across the floor. Sometimes they would need an extension cord. This appeared to be quite a waste of time and an interruption of concentration. Not a huge waste per occurrence, but it happened over and again.

First, ground fault receptacles were fitted at each lift. Next, lights on reels were attached to the lifts, this was much better. It eliminated searching for a light and cords lying on the floor. When the new shop was built, insulated skylights were employed. The floor was painted white and multiple rows of ceiling lights were placed with individual switches in the bays.

Now light levels could be varied from 40 to almost 80 candle power, with the flip of a switch. The effect was, drop lights were seldom needed, work flow increased and errors seemed to decrease. Later different bulbs were tried in the lights. Bulbs with a color temperature of 5,000' Kelvin were found best. This light is very similar to daylight and easy to work under. A side benefit was the shop appeared much more cheery and felt cooler. Today, in the rare case a drop light is needed, we provide rechargeable LED lights to all techs.

This example of small improvements evolved over a long period of time. A multitude of others were also being carried out at the same time. At times several clients would arrive to drop off vehicles at the same time. When this occurred, there was a delay as work orders could only be written so fast. Clients had to wait and technicians stood around waiting for work orders.

With a change of procedure, work orders were written when the appointment was made. Now the client needed only to drop their keys and leave. Check in time was slashed and the waiting ended. Having work order information in advanced also allowed checking client history and pre-ordering parts that were likely needed. An unexpected side benefit was clients failing to show for appointments dropped.

Small improvements combined with hundreds of other improvements result in better repairs, more satisfied clients and lower cost over time. Technician’s reluctance to take update training was greatly improved by removing the “penalty” of attending classes on their own time. Paying technicians at their full rate for training solved this problem. Now they freely ask for training they feel will help.

The result of increased training was increased production and reduction of mis-diagnosis and errors. This cost savings more than pays for the wages spent. Harder to quantify is the sense of satisfaction a person may feel from having the knowledge they need to better perform their job.

Looking at processes with an eye for improvement can reveal almost limitless opportunities. Required are a few simple tools, a bit of training and a culture that invites improvement. A culture in which time, material and resources are allocated for improvement. As with any proper investment, the cost is nil, rather it becomes a profit center.

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA