positioning yourself in the collision repair industry for ... · i recently attended a conference...

Collision Advice Estimating Best Practices

May 2015

CCIF 2016 Presented by Mike Anderson

CCIF 2016

In order for a Business to THRIVE not just SURVIVE They will need to focus on Three Major Areas -

The Three Legged Stool!

Let’s talk about what will impact shops in each of those areas…

Sales & Marketing Production

Finance & HR

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The Three Legged Stool

Sales & Marketing

Production

Finance & HR

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Sales & Marketing…Virtual Steering I recently attended a Conference where there were several

OEMs present. They said that within two to three years vehicles would notify the OEM when a vehicle was in an

accident as well as to if it were Non Drivable ! The Scenario:…….A consumer is in an accident…

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The Future of Automotive Collision Claims

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WHY are the OEM’s so interested in Body shops

60% of all consumers who have to return their vehicle to a body shop for a problem will sell or trade their vehicle within one year.

Of that 60%, – 63% will change vehicle brands when they sell

or trade in their vehicle.

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Sales & Marketing… Virtual Steering Virtual Steering thru the vehicle ... think OnStar on Steroids Several OEM's said they already have that built into their

vehicles but have to build their vehicle networks first... One of the major insurers was there, and laughed and said good

luck building your network and managing the claims process.. A Major European OEM said , We have been doing it for 3 years

in Europe... Some Major Insurers are already in talks with OEM's to be the "

Certified Carrier for that OEM brand..." … DRP's are NOT going away however, I do believe that we need

to set our customers up to win and this OEM Trend needs to be clearly Considered”

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Sales & Marketing…The 3 C’s

CSI

Closing Ratio

Cycle Time

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CSI – Kept Informed – Assignment Received to Estimate Upload – On Time Delivery – Vehicle Fixed Right the First Time

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Closing Ratio – Sales Scripts – Sales Training – Estimate Follow-up – Corporate Espionage

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Cycle Time

– Length of Rental Reporting – Utilizing Enterprise ARMS Report – Focus Needs to be 2 Days better than Market Avg. – It’s all about the DATA and being … Pro Active – Enterprise Forecast Report

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The Three Legged Stool

Sales & Marketing

Production Finance & HR

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Getting More Production

Labor Gross Profit – Shops will need to retain more GP to offset the cost of Training

and OEM Certification Equipment Requirements 65-70% Labor GP will be required

– This will be accomplished thru bonus based pay plans, team systems, tiered approach, labor rate increases, etc.

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Getting More Production Thru Repair vs. Replace… Repair vs. Replace – Opportunities Front and Rear Bumpers & Headlights Nitrogen Welders, Hot Staplers, etc. More training clinics needed…specific roles in shops.

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Production Aluminum Help your shops make educated decisions… What OEM certifications to strive for… How many of a specific type of vehicle are in those Market Areas ?

‒ Demographic Studies: i.e. G-MAPS ‒ At a Minimum Shops will need Repair Equipment for straightening

Steel manufacturers are not going to sit around and lose market share… Shops need to stay Educated in Real Time! As a Jobber, EDUCATE YOUR CUSTOMERS Be a CONDUIT of Information!

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Ultra-high-strength steel - Boron

3-13

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New Materials - Aluminum

3-14 http://www.drivealuminum.org/

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International Magnesium

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The Three Legged Stool

Sales & Marketing

Production Finance & HR

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Finance & HR

Data is and WILL remain key! Shops need to be on Accrual Accounting,

NOT Cash Shops need to know how to manage cash

flow and determine ROI on investments such as equipment Parts GP will decline or even disappear

– GM no list price will be of interest to watch. If this disappears or shrinks (i.e. price matching) then the GP will need to be made up thru labor GP capturing more not included operations

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Finance & HR Shops will need to get people from ZERO to HERO in a shorter

amount of time Training matrix will be important After-hours training clinics The jobber or equipment company will be needed GREATLY!

– Practice during practice and play during the GAME!

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Recent Visit with a Major Insurer can

Speed

Accuracy Service

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Service Extraordinary Customer Service – Kept Informed

– Updating customers – phone updates, text updates, email updates

– 63% preferred text updates but that is demographic driven Using Technology to communicate Greeting the Customer Delivering the Vehicle How about After Hours Emergency Answering machine “Good Nuff” is not acceptable!!! Uniforms, Office appearance IT is CRITICAL

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Speed

LOR – Length of Rental 9 Days or less Goal 2 days below Market Average

Assignment Received to Estimate Upload – New KPI Heavily Weighted.. ….

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Top MSO-LOR Comparison

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Accuracy

On Time Delivery Minimal Supplements

No Comebacks

Collision Advice Estimating Best Practices

You Don’t Know, What You Don’t Know

February 2, 2016

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Did You Know…

You need to perform a zero-point calibration on a Toyota after completing collision repairs?

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Did You Know…

You need to perform an ODS unit operation check on a Honda after completing collision repairs?

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Did You Know…

You have to perform an ODS unit operation check on a Hyundai after completing collision repairs?

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Did You Know…

You have to perform an ODS unit operation check on a Kia after completing collision repairs?

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Did You Know… You can have problems with the Mazda CX7 Blind Spot

Monitoring (BSM) control module if the rear bumper is repaired with putty applications?

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Did You Know… On the 2012 Chrysler 300, the BSM/Lane Departure sensors may

become misaligned in a collision even if the bumper fascia is not damaged?

NOTE: If the vehicle has experienced any trauma in the outboard area at each end of the rear fascia behind the rear wheel openings where the sensors are located, even if the fascia is not

damaged, the radar sensor may have become misaligned. A misaligned radar sensor will result in the BSM system not operating properly.

2012 Chrysler 300 BSM Statement Blind Spot Monitoring/Lane Departure

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Did You Know…

If alignment work is performed or there is front end damage, the 2012 BMW 328i Adaptive Cruise control will need adjustment?

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Did You Know… 2014 Jeep Grand Cherokee Blind Spot Monitor

If the vehicle has experienced any trauma in the outboard area at each end of the rear fascia

behind the rear wheel openings where the sensors are located, even if the fascia is not damaged, the

radar sensor may have become misaligned. A misaligned radar sensor will result in the BSM

system not operating properly. The blind spot sensors and control circuitry

cannot be adjusted or repaired. If a sensor is damaged or ineffective, it must be replaced

with a new unit. The sensor module software is flash programmable. The mounting

bracket for each sensor is serviced only as a unit with the rear bumper fascia.

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Did You Know… 2014 Ford Fusion Blind Spot Monitor and Cross Traffic Alert

NOTE: There should be no bumper stickers or body filler material used on the rear side bumper cover in the vicinity of

the SODL (side obstacle detection control module LH)

or SODR (side obstacle detection control module RH).

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Did You Know… 2016 Honda Pilot Blind Spot Monitor

BLIND SPOT INFORMATION (BSI) SYSTEM Models equipped with this system can be identified by

this BSI Alert indicator, located on both front doors near the outside rearview mirror.

• The system uses two radar units, one mounted on each side of the vehicle under the rear bumper.

• The system may malfunction and set DTCs because of damage, improper repairs, or excessive foreign material

on any of the following: − Rear bumper

− Outer side panels − Radar unit mounting locations

SYSTEMS THAT MAY REQUIRE DEALER ASSISTANCE WITH AIMING

Some models may be equipped with one or more of the following systems that require aiming after

collision repairs. Special tools are required to complete the aiming procedures.

Blind Spot Information (BSI) System with Cross-Traffic Alert: The BSI radar units must be re-aimed in these instances: • After replacing or removing and installing one

or both BSI radar units. • After replacing/repairing the body rear outer

side panel(s). • Stored DTCs B18B8 or B1E68 - left or right

side BSI radar unit azimuth off alignment.

If a problem occurs in the BSI system, the amber BSI indicator will light up. A warning message

may also appear

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Did You Know…

You have to research to determine what suspension bolts and components are torque to yield fasteners?

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Did You Know…

Did you know Nissan’s have single-use parts?

2008 Nissan Versa – Center Pillar Upper Garnish

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Did You Know…

How many of you know that you need a factory scan tool to resynchronize the A/C ducts on a Mercedes Benz?

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Researching OEM Position Statements / Repair Methods Several ways to research OEM position statements and repair

procedures: – Audatex TechFocus™ – CCC ONE™ Repair Method – Mitchell RepairCenter™ TechAdvisor – OEM websites

Manually Research • Go directly to the manufacturer’s

websites OEMonestop.com • Most are pay-to-use with exception of

domestic manufacturers

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ALLDATA – Repairs and Inspections After a Collision

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Ford Explorer – Repairs and Inspections

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Toyota Tundra – Repairs and Inspections

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Vehicle Estimate Lookup Screen

Select The Vehicle That You Are Going To

Review

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Service And Repair Information

Estimate Analysis Results

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Select Information

Article Is Displayed

View Full Size Images

OEM Articles

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Article Is Displayed

Materials Information

Select Information

View Full Size Images

OEM Articles

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R&I Front Door Panel

Estimate Analysis Reports

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Navigate To Procedures Not On The

Initial Estimate

OEM Articles – Direct Navigation

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OEM Articles – Direct Navigation

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ALLDATA Estimate Integration

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Need the Component on the Estimate

The component has to be on the estimate (even if it is included)

for any system to research it!

Insurers rate based on the number of lines on the estimate.

This is an old-school philosophy!

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The Dash Light Myth

If there are no warning lights on the dash, does that mean that there are no problems

with the vehicle?

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The Dash Light Myth

Remember what dash lights can and cannot tell you: – Dash lights are not diagnostics – Only alert drivers to current emissions,

safety systems or maintenance intervals – May not illuminate until the vehicle is driven

a specified distance – Some self-tests need to fail multiple times before a warning

lamp or driver message is displayed – Some systems and options will be disabled due to a stored

code – Some vehicle systems retain failure records to help you

determine if a condition is accident related

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The Dash Light Myth

Here are some examples of problems that DO NOT illuminate a warning light: – Auto / Express Windows – Window Indexing – Mirror Functions – Satellite Radio Reception – Passive Entry – Hands Free Calling – Parking Assist – Object Detection – Auto A/C Blower Functions – Passenger Presence

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Pedestrian Detection Uses camera-based technology to detect and

classify pedestrians Predicts potential pedestrian impact Activates countermeasures to help

mitigate injury

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Driver State Assessment Systems (Drowsy Driver Systems) Uses camera-based technology to monitor

eye closures and head position Automatically apply stimuli commensurate

with drowsiness/distraction level using a combination of alerts:

‒ Visual ‒ Audible ‒ Haptic

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We recommend any vehicle that is in a collision – no matter how minor –

should be scanned before and after repairs.

Scan EVERY Vehicle Before and After Repairs

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Why Scan EVERY Vehicle Before Repairs? Performing a vehicle scan before repairs begin will

answer these questions: ‒ What areas need to be inspected? ‒ When (date/time/mileage/key cycles) did the fault occur?

Benefits:

‒ Know what is accident-related damage and what is not related ‒ Discover 100% of the damage before the repair process begins ‒ Improved cycle time ‒ Improved profitability ‒ Better customer and insurer relationships

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Example: Before Scan BMW E90

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Example: Before Scan Ford Fusion

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Example: Before Scan Honda Civic

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Example:

Before Scan Mercedes Benz

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Example:

Before Scan Toyota Matrix

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2007 Audi Q7 122,204 Miles No lights on dashboard Navigation unit not working. Impact to right rear of car. WITHOUT Scan Tool: ‒ Shop is a unable to handle customer’s concern on Navigation error. ‒ Vehicle would have to go to the dealer for diagnostic inspection. ‒ Dealer found navigation MMI (Multi-Media Interface) unit located in right rear of vehicle had no

communication. ‒ Dealership would have likely replaced the module for no communication error and would have no

reason to analyze freeze frame data. ‒ High probability insurance carrier pays for unknown electrical failure in control module, because of

close proximity to vehicle impact zone.

Scan results found lost communication with Navigation MMI unit. Further inspection found open TSB for sunroof leak.

WITH Scan Tool: ‒ Scan identifies the navigation faults on the first day of the repair. ‒ Scan found in the freeze frame data that navigation faults were recorded 8,954 miles and 7 months

prior to date of loss. ‒ Scan also found Audi has an open TSB for this exact problem on the Q7 model range. ‒ Savings to insurance carrier over $1500.00

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Why Scan EVERY Vehicle After Repairs? Performing a vehicle scan after repairs are performed

will answer these questions: ‒ Were any fault codes created due to the repair process? ‒ Are all systems working correctly?

Benefits: ‒ Limit comebacks ‒ Improved cycle time ‒ Improved profitability ‒ Better customer and insurer relationships

LIABILITY!

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Toyota Camry In a minor accident Replaced:

‒ Front Bumper Cover ‒ Grille ‒ Grille Emblem

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Example:

Before Scan Dodge Nitro

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Example:

After Scan Dodge Nitro

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DLC Port

The DLC port will always be located within 18” of the

ignition switch below the dash!

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Two Main Reasons to SCAN POST REPAIR Accident – Collision Avoidance Systems - Autonomous Brakes - Adaptive Cruise Control - Lane Departure Warning Systems - Adaptive Headlights Comfort Features - Blue Tooth for Phones - Air Scarf System - Heated Steering Wheels - Interior LED’s

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WHY DID THE SPACE SHUTTLE CRASH?

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SPACE SHUTTLE

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They focused on ….

SAFETY should always trump these!!!

ARE YOU CONNECTED?

What is YOUR CULTURE?

Launch date

Cycle Time

Budget Severity

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To accept personal responsibility!

What is your role?

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Questions & Answers

Thank you for your time and attention!

You Don’t Know What You Don’t Know

For more information on Collision Advice consulting services or speaking engagements, please contact:

Mike Anderson

mike@collisionadvice.com Cell 301-535-3333

Tiffany Driggers

tiffany@collisionadvice.com Cell 703-898-0715

Check out Mike’s New Consulting Calendar on our website!

www.collisionadvice.com

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