Continuous Improvement

Given today’s economic reality, the key to a collision centre’s future success lies in the ability to improve throughput and gain the competitive advantage of quality, speed and cost. It requires a well-planned re-engineering of the traditional repair process, from estimating, sales and repair planning through to production and delivery.

These new requirements can be seen as a benefit for not only the individual collision repair centre, but for the insurance industry as well. As these changes take hold, the improvements translate into quicker cycle-times and reduced wait times. Both the claims manager and the insured will notice positive changes in their dealings with today’s progressive collision repair centres.

CONTINUOUS IMPROVEMENT

Gone are the days of a successful collision repair centre having a disorganized paint room or dirty waiting area with old magazines. Successful collision repair centres are operated by sophisticated business people who are looking for methods to improve their business and increase their sales. Their difficulty lies in gaining access to proven programs that will help them achieve these objectives.

Fortunately, many suppliers and manufacturers recognize that many of their customers do not have the resources to obtain training. Consequently suppliers and manufacturers are providing collision repair centres with much-needed, established training programs.

One example is PPG’s Green Belt Training. This comprehensive, multi-day training program is based on the practical application of Lean Six Sigma, tailored for collision repair. The curriculum has been carefully developed to provide an effective balance between teaching the proven science behind process improvement and implementing practical solutions for driving best-in-class performance at the collision repair centre. Learning takes place in the classroom and on the shop floor, and is intended to give collision repair centres a competitive advantage based on the principles of quality, speed and cost.

“It’s not surprising that demand for Green Belt Training has grown significantly,” said Jim Berkey, director of MVP business solutions for PPG Industries. “To date, more than 750 owners and managers have completed Green Belt Training. With all the challenges our industry is facing — be they economic, environmental or technological challenges — as well as intense competition, shop owners want practical tools and support that can genuinely help them improve quality, speed and cost.”

Collision repair centres are eager for this type of training. They know that once they get over the hurdle of implementation, the benefits to their business will be amazing. “Initially there was a bit of resistance to all this change,” explains Don Strong, owner of CARSTAR Ottawa, a recent PPG Green Belt graduate. “But the results proved to my team that is was worth it. We reduced our cycle time by 25% within six months of attending PPG’s Green Belt Training program, a huge win. Other benefits we’re proud of include the cleanliness and organization of the shop as a result of the Green Belt 5S portion of the training. Now, 18 months later, we’ve achieved a huge buy-in from the staff and the program is beginning to be driven from the shop floor and has really become a continuous improvement cycle.” Collision repair centre owners and managers such as Don, people with insight, forethought and who continue to strive for continuous improvement, will undoubtedly succeed. Their success and their outlook will keep them ahead of the curve.

CONTINUOUS IMPROVEMENT: HELPING INSURERS

Continuous improvement benefits everyone. The insurance industry is already constantly monitoring and benchmarking collision centre performance. So it clearly stands to benefit from knowing which collision repair centres are committed to ongoing training and thereby ensuring operational excellence. “Canadian collision repair is following a global trend to improve processes in order to provide the most valuable, win-win scenario for all stakeholders,” says Nancy Ng, insurance services manager of PPG Canada. “When processes improve, each interested party benefits and can move to the next phase of improvements following the continuous improvement philosophy. Collision repair facilities interested in competing in the future and gaining access to insurance work will need to be best in class in order to capture that market.” Top collision repair centres will require this forward-thinking perspective to succeed in an environment in which insurance continues to be an important force.

Insurance claimants are also important people in this story. Insurance brokers are always looking to keep their customers happy. If brokers know they can recommend a progressive collision repair centre that is continuously improv-ing itself, they will feel some measure of comfort in knowing that their customers will be satisfied with the repair process. Claimants may not fully appreciate what’s behind the use of the terms “improved cycle-time” and “decreased keys-to-keys days,” but they will appreciate the outcomes. This makes for happier claimants and, for the insurance company, reduced associated costs.

Marty Reddick, owner of four Supreme Collision locations in the Toronto area says his insurance partners have commented on their highly satisfied claimants. Not coincidentally, they also noted an improvement in KPIs at the four locations as a result of completing the Green Belt training. “The reason is simple,” explains Reddick. “We are now continually measuring ourselves. ‘How good can we be? How can we improve moving forward?’ These questions encourage us to set and achieve greater accomplishments.”

Today’s progressive collision repair centres are taking the necessary steps needed to ensure they are meeting and exceeding today’s performance realities and positioned to capitalize on tomorrow’s opportunities. The goals and objectives of PPG’s training programs include providing valued customers with the tools, systems and processes to ensure they have the ability to accelerate their performance, enhance their leadership skills to implement change and maximize their overall business performance.

———

Initially there was a bit of resistance to all of this change. But the results proved to the team that it was worth it. We reduced our cycle time by 25% within six months of attending PPG’s Green Belt Training program.

———

The insurance industry is already constantly monitoring and benchmarking collision centre performance. So it clearly stands to benefit from knowing which collision repair centres are committed to ongoing training and thereby ensuring operational excellence.