Main stream perceptions of the lean philosophy are that its concepts can only be applied to the manufacturing industry and that the best candidates for its implementation are company’s producing only one type of product. My experience with the auto collision repair industry is similar, in that regard. Often, the argument is that body shops do not have repetitive work. The diversity which exists in the type and quantity of automobiles, as well as the complexity of the damage, makes it nearly impossible, some believe, to successfully apply lean manufacturing techniques. However, it is quite the opposite. Think about your own shop. The level of repairs needed from one automobile to another is not infinite. If it were, repairs would never be complete. Whenever a process is complex and varied, lean principles should be applied. Also, most auto body shops have common processes such as estimating, teardown, prep, painting, drying/curing, re-assembly, and possibly detailing or cleaning. Of course, the amount of time spent in each process is contingent on the level of damage and part lead time from dealers and auto parts supply vendor.

Lean is about waste reduction, where waste is defined as any non-value added work within each operational process. This includes any unnecessary administrative procedures, which can cause a multitude of problems that ultimately, increase costs. For now take this self lean test.
Do technicians spend time sifting through tool chests looking for tools? When a technician cannot locate a necessary tool, do they leave their work area and borrow or “steal” the tool from a co-worker? Is the estimate 100% error-free or does the vital information forwarded to the shops by the insurance companies contain administrative mistakes, which cause issues for the technicians? Do automobiles sit idle for hours waiting on parts? Do those same automobiles sit outside waiting to get into the shop? Are shop supplies unorganized or hidden behind cabinets, causing workers to spend time looking for the appropriate item to perform the work? Does it take longer than necessary to set up the paint operation? Are there excessive amounts of supplies and parts in the parts room taking up space and tying up money? Are people walking around looking for things? Do technicians receive the wrong parts after waiting days for the correct one to arrive? Do people walk around asking questions about pick up dates, what to do next, and when to sart? If you answered yes to any of the questions, your shop is a great candidate for lean auto body.

The most important question you must ask yourself is how often do these non-productive and waste producing actions occur?

The auto body repair industry is “ripe” for lean, and the industry, as a whole, is one of the most competitive I have ever seen. Auto body repair cannot be outsourced to countries like China or India, which allows for a lot of local competition. There are more than 40 shops in the county I reside in, and every time an accident occurs, those shops compete for the repair work. Drivers and insurance companies can select from numerous vendors, creating a highly competitive market. If you want some or all of that business, you need to make sure that your shop performs to the best of its ability, at all times.

A body shop is a production factory for repairs and you have to start thinking that way. Lean helps eliminate hidden costs that often go un-noticed; hidden costs are wastes that drive down productivity and ultimately, squander profit. The auto body industry also operates under numerous fixed costs outside of its control, due to the insurance and estimating process. Wouldn’t it be nice to increase the number of repairs you can perform, without raising those fixed costs? Or, be able to reduce the variable costs you can control and repair the same or more automobiles? If your answer is yes, then you are a perfect fit for lean auto body.

About the Author
Chris Ortiz is the president and executive consultant of Kaizen Assembly, Inc, a lean manufacturing training and implementation company. Chris has been practicing and teaching lean for nearly 12 years. He is the author of four books (listed below), and has written dozens of training manuals, industry articles for national magazines and publications. His work has been featured in Industrial Engineer, Assembly Magazine, Seattle Times, Industrial Management, and various news journals and newspapers.
Chris and Kaizen Assembly were featured on the national television show Inside Business Reportaired on CNBC and Headline News, and he travels around the country speaking at engineering and manufacturing trade shows. Along with Kaizen Assembly’s growing manufacturing client list, it has been helping many auto body and auto repair shops implement lean and see the amazing results that can be achieved from it.
Chris is one of a very small list of lean practitioners that understands the auto body industry and how lean is applied into its unique industry.
Chris and his company can be contacted by going to www.kaizenassembly.com or emailing him directly at chrisortiz@kaizenassembly.com