Friday, May 25, 2012

Process Evaporation

No matter what business your in you have Processes that you use Daily, Weekly or Monthly.

When is the last time you reviewed to see what processes are out of date, or where you were cutting corners?

See below for a list of Automotive Related Processes to get your thoughts started:
Process Evaporation Exercise

Job Title (No Names)________________________________________

The following is a checklist of processes that you may or may not have in your operation.  The purpose of this exercise is to review your operation to see what processes you have implemented in your operation that are no longer being utilized or has been modified from your original process
(Reply for each Y for Yes and N for No, and last modified date):
                   
New Vehicle Department:

1.  100% T.O. to Management                                                 
2.  Listing of 90+ day old units                                              
3.  Aged vehicles on the front line
4.  All customers logged and follow up                                         
5.  Managers have desk log up on computer             
6.  Daily one-on-ones with all sales staff                   
7.  No short cuts in sales process                               
8.  Referral program is being utilized                                  
9.  GM/Dealer approves all units ordered                
10. Sources of customers are accurate                                 
11. Damages to new vehicles disclosed                                  
12. Introduction to new customers to service                       
13. RDR and rebates confirmed at delivery             
14. Ongoing scheduled training session’s                  
15. Lease renewal process                                         
16. Lease returns process                                          
17. Accessory sales process                                       
18. Damaged properly disclosed                                
19. Delivery Process                                                  

Used Vehicle Department:

1.   CarFax run on every unit in inventory              
2.   Two managers appraising trades                                    
3.   Used vehicles ranked A, B, C, & D                                  
4.   Used Units front line ready in 3 days                   
5.   Daily walk around trades by variable managers            
6.   Re pricing units at 30 and 45 days                                  
7.   Recon and appraisal dollars per unit are close   
8.   All vehicles to auction or sold seal bid process    
9.   Inventory rotated weekly                                              
10. Hoods and trunks up every 15 days  
                
Internet department:

1.   All leads are responded to within 4 hours                        
2.   All leads called within 24 hours                            
3.  Sources of leads are analyzed monthly                  
4.   Website has current programs, specials, etc         
5.   Used vehicles identified as certified 

F&I Department

1.   Managers doing interview with customer’s         
2.   Managers presenting menu 100% of time                    
3.   Missing menu log maintained                               
4.   Finance revenue less than 50% of F&I income        
5.   Deals out of F&I within 24 hours                          
6.   Deals funded within 4 days                                                
7.   Titles and Power of attorney signed                    
8.   Managers at desk when not with customer’s        
9.   Arbitration agreement signed in F&I                    
10. Deals completed outside of dealership-notarized ­­             

Service Department

1.  Service walk around every customer                   
2.  Previous history/preprinted on appointments      
3.  Menu presentation every customer                                  
4.  Inspect all vehicles with multi-point inspection   
5.  Active delivery to customer                                              
6.  Labor grid pricing                                                
7.  Loaner vehicles being tracked                              
8.  No loaner out more then 3 days                           
9.  No repair orders more than 5 days old               
10. Work in process checked weekly                          
11. OSHA records, training, and documentation      
12. Shuttle and rental reimbursement from factory
13. Service advisors selling extended contracts on drive

Parts Department

1.  Cash on all special orders                                                 
2.  All special orders returned within 30 days                      
3.  Daily bin spot check of part numbers                   
4.  Lost sales are tracked accurately                        
5.  Parts department is secure at all locations                      
6.  Work in process is checked weekly                                 

Body shop

1.  All supplements are accounted for                                   
2.  Vehicles are not released without money or approval
3.  Work paid to techs equal work completed                       
4.  No repair order older than 30 days                                 
5.  Paint is properly disposed                                                 
6.  Work in process checked weekly                         

Administrative

1.  Walk dealership for privacy issues                                   
2.  Weekly manager’s receivables meeting               
3.  Weekly manager review of Rebate receivables   
4.  All vendors on the approved list at agreed pricing          
5.  Zero employee receivables                                              
6.  Employee review/issues signed by employee       
7.  Employee purchase policy for all departments   
8.  Financial statement completed by 5th working day         
9.  NCM reports submitted promptly and accurately          

Other Areas

1.  100% collection of email addresses of all customers
2.  Customer complaint resolution process               
3.  Phone UPS handled professionally using word tracks
4.  Designated NON-Smoking areas utilized

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