Improved Processing with Less Paperwork

Operating LEAN used to be about cutting overhead to increase profits, but for many it’s now about cutting overhead just to remain profitable. In a series developed for Yard & Garden, six components of LEAN operation were covered—areas that can be revisited and reworked to create LEAN operation in your dealership. The series covered stock levels, overproduction, transportation, processing, defective product, waiting and motion. Read on to learn how paperless processing can get you on your way to operating LEAN.

Processing in a LEAN manner means delivering the right work to the right people at the right time, all while reducing—and sometimes eliminating—the need for paperwork. When done right, LEAN processing can improve productivity, as well as reduce operating costs and errors. Every small reduction in wasted time and money can help increase dealership profits.

The act of processing is done throughout the dealership. It encompasses shop service orders, equipment registrations and warranties, as well as parts and wholegoods purchase orders. Basically, anything done on paper needs processing.

DELEGATING TASKS

In processing, there needs to be assigned tasks and accountability. This ensures the work is done, and with accountability comes reduced error. Dealers typically assign specific employees to certain tasks. Jerry Clay of Clay’s Outdoor Power Equipment in Raleigh, NC, has done just that with product line management. “Each salesperson is assigned a product line,” explains Clay. “They are each in charge of making sure things are priced right and properly displayed, all while keeping an eye on equipment levels and suggesting orders.” Employees write up equipment purchase orders for Clay to approve.

With the individual assignments, lines are well managed and employees are invested. “They appreciate the responsibility because it makes them feel good to be in charge of it,” says Clay. “It helps me as I try to delegate as much as I can.”

Clay has also improved equipment registration with the creation of his own warranty form that gathers information and assigns tasks throughout the sale. “I created a generic warranty form that we fill out with each equipment sale,” explains Clay. “I took elements from all the different manufacturer forms we deal with and put them all in one form.” This eliminates the need for multiple warranty forms, further reducing error.

“The form also has space for the salesperson to put their initials at the sale. I add mine when I pay off the floor plan, and the person who registers it also initials,” explains Clay. “By having everyone put their initials on it we know exactly what stages we are in.”

The customer fills out their personal information on the form, which is also attached to a brief customer service survey. Once the custom-made form is filled out, it goes into the salesperson’s folder. Each has their own folder.

BMS TOOLS

A great tool for improving processing is a business management system. “A well-tuned BMS provides the business manager with the necessary information to delegate to his employees things that are critical and should take priority,” says Jim Archut of c-Systems Software. “In the grand scheme of things, each of these employees should know their jobs well enough and have enough access to the relevant BMS data that will guide them through what needs to be done.” They can also decide which employees have access to certain features within the BMS.

A properly utilized BMS helps improve processing and overall customer service. “Having all information about customers, purchases, and work orders in one system greatly saves time and improves customer service,” ensures Jeff Haefner of Ideal Computer Systems. “This enables any of your employees to answer customer questions instead of having to pull techs or managers, who worked on previous projects, away from their current tasks.”