Parts Department Efficiency Gains through Repair Options
Guest writer Ron Wilson talks about how the use of parts kits can benefit your business in, “Part Department Efficiency Gains Through Repair Options.”
Four-part series relating to Repair Options offerings:
- Expand Product Support Offerings with Repair Options
- Parts Department Efficiency Gains through Repair Options
- Service Department Efficiency Gains through Repair Options
- Who should Set Pricing for Repair Options Rebuilds?
This is the second in a four-part series relating to Expand Product Support Offerings with Repair Options.
In the first article we outlined the overall advantages Repair Options provides the customer and the dealership. Let’s talk a little more specifically about how Repair Options are a benefit to the Parts Department of a dealership.
There are two common types of lists used for component rebuilds:
- Paper Kit– is list of the 100% utilized parts needed for a specific component to be rebuilt. This list can be broken down into specific sections (components) of the rebuild. For example an engine rebuild paper kit could be divided into:
- Upper end- Cylinder head rebuild parts.
- Block- liners, pistons, rods, main and rod bearings
- Gasket kits
- Water pump, turbo, oil pump
The paper kit is utilized to process the part orders and delivered to the shop bay as needed. By entering one part number the kit number breaks down into the consist list of individual parts.
- Parts Kit– is the list of the various parts needed for the 100% replacement parts that are stored in a Vidmar type cabinet on wheels and a part number is assigned to Parts Kit.
- The Parts Kit includes all the parts needed for the rebuilding of the component.
- Parts are arranged in the Vidmar cabinet based on the section of the rebuild.
- Parts are not bagged and tagged. Instead, the Vidmar dividers are labeled with a part number and quantity needed for the rebuild.
One of the key advantages of utilizing parts kits is the reduction of parts being returned from the Service Department. The kit only contains 100% utilized parts that have been predetermined based on the level and type of Repair Option that is being completed. Very often in the traditional rebuild it is not uncommon for there to be 10-15% return percentage and several last-minute parts orders due not knowing what will be replaced until the component is disassembled and being re-assembled.
A few other points relating to Parts kits:
- Parts Kits do take up warehouse storage space
- Parts kits can be replenished during non-rush workload times
- Use of Parts Kit number reduces the number of line items that need to be entered on the parts document. The Parts Kit number breaks down to the detailed parts list.
- The use of Parts Kits can reduce emergency backorders and related fees and freight expenses
- Accuracy is critical. One excess o’ring left over after a rebuild can cause concern and additional cost only to determine that one extra o’ring was placed in the Vidmar.
The Parts and Service Departments working together to build Parts Kits can provide improved efficiencies in the warehouse operations and in the component rebuild bay. All of this contributes to adding value back to the customer in quicker turn times, higher quality of work, and turn time expectation being met or exceeded.