Collision Repair Magazine
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Lean on him PDF Print E-mail
Friday, 17 December 2010 09:48

A conversation with Ken Friesen, one of Canadian collision repair’s most renowned lean practitioners.

Almost six years ago exactly, Ken Friesen changed everything at Concours Collision Centres. The way he puts it, he blew everything up and started reinventing. Since then he’s developed a continent-wide reputation for being creative and relentlessly persistent when it comes to reducing waste in his Calgary operations.

Collision Repair recently had a chance to sit down with Ken to pick his brain on his views regarding what’s effective and what isn’t when it comes to process improvement.

What can people do if they want to embrace lean concepts in their businesses today?

Everybody at this point is really caught up in the tools of lean—the reorganization, what’s become known as the 5S principles. People are starting to get that part put together and are starting to create some flow in their facilities.

Is any of this stuff bad? No, it’s great. The tools are important. But what’s happening is that these people are getting these tools into the facility, getting a semblance of organization, and they think they’re done.

Well, that’s just the very basic start of what lean is all about.

The whole principle of lean is that it’s something you do, not something that’s done.

Lean is about the process of ongoing improvement. So when we put the tools in place it’s just to give yourself some type of stable process to build on. Once you have that, you can start looking at where the variations are in the system and see a little more clearly where you need to go to improve.

Are lean seminars and conferences of value, in your opinion?

Any type of learning you can get is good. If you really want to be a lean practitioner, and you want to improve your business, anything you can possibly take in is going to be of value.

Are there any books on lean that you’d recommend collision repairers look into?

One of the best books to help somebody get an idea about process improvement and process change is not really about lean at all. It’s about something called TOC—the Theory of Constraints—written by a fellow by the name of Eliyahu M. Goldratt. He wrote The Goal, which is one of the best sources I’ve found for understanding what process improvement can do and about creating some flow in your facility.

One of the most recent books I’ve read is called Toyota Kata by Mike Rother. I just last week was in Detroit at Michigan University for three days. Rother had a one-day seminar there and a two-day workshop at a company called Detroit Diesel—an amazing, huge company. We went in there and we learned about Kata.

This concept is what he wrote about. It’s about creating a culture—and a whole structure of thinking—about continual improvement. The main thing about this Toyota Kata is that it helps you to think your way through a whole problem and how you do things.

Can you tell us a bit about your own journey through process improvement?

We began six years ago—November 15, 2004.

We spent the first week process mapping and understanding the current-state process, and then designing the future-state process.

It was all board room work—really understanding where we were and where we were going.

By the end of the first week we had mapped out what the future-state was going to look like and by Friday afternoon we were down on the floor creating a workflow process—in other words moving the shop around, reorganizing things and creating this whole new process that we had designed in the earlier part of the week.

Now I will say that these were the tools; we started by putting these in place.

Over the second week we actually tried to make these tools work.

It was a bumpy road, but we got a few things working and cars started to flow through the facility.

We had a couple of guys in who were helping us to do this. They left at the end of the second week, and it was up to us from that point on.

It was a struggle for quite a few months trying to understand how these tools actually work. We burned all the bridges behind us. We literally changed the end-to-end process—from the moment the customer walks in the doors to the moment he comes back and picks the car up, we changed that entire process.

I would not recommend that for most people, but I had the right people to help me.

We started out putting the tools together, and then trying to understand how those tools work and how they fit together, and that’s when we started to realize that this stuff was giving us information.

What else was important to moving beyond that beginning phase?

We had the consistency to what we did every day to just follow the process—to follow the rules just like a sports game. Now we could see: “the cars keep backing up in reassembly,” or “at the spray booth the cars aren’t able to flow through properly.”

So we could then go in and look at that specific area, make a specific improvement, and then watch it to see if it actually helped throughout the entire operation.

That’s where a lot of people get hung up. They’re running around in their facilities making improvements all over the place, not knowing if it actually helps get one more car a day through the facility.

When you get the lean tools in place, you’ve got that consistency. Now you can actually make those changes and see if it is allowing you to make more money or put more cars out of your facility. Because really at the end of the day, that’s what lean’s all about.

 
Quebec Today PDF Print E-mail
Written by Michel Caron Audatex, a Solera company   
Thursday, 09 December 2010 15:39

La belle province continues to be a unique market for the collision repair industry.

The last 12 months have been quite interesting in the province of Quebec, to say the least. Claims volume is down ten per cent as compared to the previous 12 month period. This can be attributed in large part to the mild winter experienced throughout the province and, to a lesser degree, the result of new driver practices in place.

The sharpest decrease in claims activity was felt during Q1 2010 (-15.24 per cent). Again, the absence of winter weather was the driving factor. Claims volume rose during Q2 2010 (though still down by 4.23 per cent), which indicates the industry is gradually returning to normal activity.

Interestingly, we have seen average gross appraisal values drop by nearly one per cent while the average typical vehicle age has increased by one year. Average parts count is down slightly and correspondingly; repair vs. replace practices are up. Total loss volume is up one per cent versus the prior 12 month period, which is the result of lower used vehicle values.

On a more positive note, average used car values are up more than five per cent over the last quarter and this will likely result in more opportunity to repair versus total.

The collision repair community faced many different challenges over the past year. The North American Big Three downturn, insurer’s ability to measure like never before, record low claims and new low-VOC requirements hit all facilities. Despite consolidation and facility/dealership closures, the Quebec market remains relatively strong. Interestingly, facility owners took this slow time to reflect on the state of the industry and as a result many have embraced new technologies and invested in new workflow methodologies to increase efficiencies. Specialization will continue to be the driving force for increased efficiencies.

What’s surprising to note is the vehicle mix for Quebec: Asian (59 per cent), domestic (33 per cent) and European (eight per cent). The average age of repairable vehicle is 4.6 year old with an ACV of $12,723 and a gross appraisal value (less taxes, storage and towing) of $2109.88. The parts mix as a percentage of total parts dollars tells us the facilities are doing what needs to be done to repair the vehicle. If we compare year over year numbers, OE parts utilization dropped to 62.9 per cent, aftermarket parts remained the same at 13.1 per cent, but the staggering number is the recycled parts, this number increased to 18.2 per cent (Canadian average of 9.4%).

It goes without saying that while we see the total loss percentage for the province sitting at 13.2 per cent of all claims, this is a far cry from the Canadian average of 20.3 per cent that was experienced last year. The average vehicle age for total losses in Quebec is 8.4 years with an ACV of $6615.68 compared to a Canadian average of 8.7 years and an ACV of $7361.90.

Last Updated on Wednesday, 15 December 2010 20:52
 
Look who’s 40 PDF Print E-mail
Written by Tom Bissonnette   
Monday, 06 December 2010 11:38

Midtown Auto Body: a generation’s worth of excellence.

Forty years. That’s a long time. Probably most of you reading this have not been alive that long!

Can you imagine being in the collision repair business for 40 years? Lloyd and Sandy Giles from Midtown Auto Body in Elrose, Saskatchewan can. and they have been there--together--for 40 years! Together they have dealt with four generations of families from their town in that time.

I first met Lloyd 30 years ago when I was a young salesman for a national auto supply company. He gave me a hard time when then and he has not let up yet! I later went to work in the collision industry and came to see Lloyd as an outspoken and passionate leader for the auto body trade.

He was an advocate for training, becoming one of the first facilities to utilize young workers from the local work-ed programs.

Over the last 40 years Lloyd and Sandy have supported 40 different employees, some which have gone on to start successful businesses of their own.

Together the Giles’s have started several businesses in their community, including a car wash and an auto wrecking yard. They have raised two great children who have given them four beautiful grandchildren.

Sounds like a full life winding down to a happy and serene retirement right?

Not a chance, says Lloyd. They just finished their second major addition to the shop in the last six years and added a down-draft bake booth to bring their facility up to world class standards!

All this exists in a town of 500 (if you count women, children and small animals) and a trading area of about 100 kilometres. The normal work day consist of repairing deer hits and hail damage, but I’ve been there to see the odd grain auger or some other type of farm equipment being worked on. If it needs fixing, Lloyd and his crew will figure it out and make it work!

I think he is already planning their 50th anniversary in business!

In addition to running their businesses, Lloyd and Sandy take time to be involved in their community serving in the Lions Club, town council and visiting the seniors at the local care home (okay, maybe just Sandy does that, but the way Lloyd is playing golf lately I think he has been hanging around the seniors just a little too much).

Lloyd also serves on the provincial safety association for the collision industry and was president of the provincial auto body association (SAAR) for two years.

Recently Lloyd’s facility got an honourable mention in a contest to name the Canadian body shop of the year.

If you ask the fine folks at Elrose and area they, will tell you that Lloyd and Sandy are “Shop of the Year” in their eyes.

Drop them a line at This e-mail address is being protected from spambots. You need JavaScript enabled to view it to give them your regards!

 
Proper Pay PDF Print E-mail
Written by Sam Piercey   
Friday, 26 November 2010 09:51

It’s worth an argument to get what you’re due.

I wasn’t entirely shocked when I read the results of Tom Bissonnette’s estimating survey--a lot of facilities leave things off their estimates. It’s sloppy, but it’s an easy enough mistake to make. I hope that no one’s doing it intentionally to lower the bill—we have enough problems in this industry.

The last thing we need is to get into a situation where no one can afford to pay their techs what they’re worth because we have to compete with some guy down the road who’s only billing for half of his labour.

But now that this issue is front and centre, pay attention. Bill accurately, or you’ll screw it up for yourself and make it harder for the rest of us in the process.

Make sure you and your estimators are on top of what your insurance companies will and will not accept.

There’s a lot you can miss, and it’s changing all the time.

The difference between a well-informed estimator and one who’s fallen behind is vast. It’s like having a good accountant: they know all the available write-offs and where they apply.

But don’t expect the insurance companies to go out of their ways to point out that you’ve under billed any more than you expect the government to tell you that you could get a bigger refund—you need to ask.

If you already bill accurately, take a note from Tom and do us all a favour: share.

Tell that guy down the road who’s billing for 20 minutes out of every hour he puts in—he could be making more money. You could keep it to yourself, sure, but I honestly don’t think it would help your situation.

I make money when an insurer pays me, not when they pay someone else less.

We spend so much time worrying about compensation and how to pay for things. Here’s one way to help.

It’s a matter of being up front and not cowering at the thought of turning in an accurate estimate. It’s not high—it’s fair. And they know that. It accounts for the full labour we put into these jobs, and it’s what we should be paid.

A lot of these items are already on the books--the various insurers have said they’re willing to pay them.

All you need to do is read up, be diligent, and assert yourself.

If they give you trouble, you can show them the agreements, the recommended procedures and the associated costs.

And show them Tom’s column. Maybe they’ll get the idea that this is serious business.

It’s our livelihoods and the pay cheques of all the people at our facilities.

If we’re under billing here or there, we risk insurers getting used to unrealistic rates, and then everybody suffers.

What I’m saying is it’s worth an argument. People won’t always be fair to you—that’s life. But they’ll never be fair to you if you don’t ask.

Stand up, make your point, and demand the money you’re due. Tell them Sam sent you.

Sam Piercey is the co-owner of Budds' Collision Services in Oakville, ON. Sam is a long-time Coyote member and sits on many boards and committees. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 
Central Control PDF Print E-mail
Tuesday, 16 November 2010 13:46

Larry Doherty

Larry Doherty has made a lot progress streamlining the Brampton Auto Mall’s collision repair operation.

When Larry Doherty sold his collision repair business in 2008, he retired. Which lasted about a month.

While he was at that year’s NACE, Steven Alizadeh, one of the owners of Brampton Auto Mall, called to asked about managing their operation’s collision repair business. The offer, as it turned out, was good enough to leave retirement for.

The auto mall is a sprawling complex of dealerships in Brampton, Ontario owned by the Alizadeh family. There are currently ten dealerships in the group and two more on the way. This year, they expect to sell 9,500 new vehicles and more than 2,000 used (which doesn’t include wholesale). So say they have a large pool of customers is an understatement.

The whole group is serviced by a highly streamlined collision repair centre, which is under Larry’s watch. Since he joined the operation in late 2008 they’ve doubled the size of the facility.

“My main role is to work with all managers and employees so that they understand how important the collision centre is to the group and its customers,” Larry said.

From a business perspective, it just makes sense to bolster the collision operation. It helps move OEM parts, it brings labour to the dealerships for a variety of mechanical jobs, and it maintains the relationship with customers for years to come—hopefully right up until they’re considering buying a new car.

“This collision centre became a must for the group,” Larry said.

Just maintaining a relationship with the customers is only half the battle though—it has to be a positive relationship.

The collision facility itself is relatively invisible in the complex—it’s a little down the road from the dealerships, which can help maintain the curated experience for customers.

When a customer comes in to get a dent fixed, they bring it to their applicable dealership. If the dealership in question was Classic Honda—the largest Honda dealership by volume in Canada and where Larry is based—the first thing the customer would notice, besides the cars, is the coffee bar.

They’d talk to a customer service representative, leave the vehicle in Classic Honda’s parking lot, and catch a shuttle home (they have three full-time drivers).

From there, staff would take the vehicle down the road to the collision centre where they would do the tear-down, estimate and repair. And then they would send the repaired vehicle back to the dealership for the handoff.

As that’s going on, Larry keeps the lines of communication open to make sure the customer is happy. “I call them just to make sure everything is okay, and if there’s anything more we can do,” Larry said. “CSI is one of our highest goals.”

Larry, for his part, has maintained the same passion for the business as he did when he ran his own facility. And he’s kept his sense of ambition. “I can see this collision centre being one of the biggest and best in months and years to come in Brampton and surrounding areas.” 

Last Updated on Tuesday, 16 November 2010 13:53
 
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