Estimating with Purpose House Keeping Welcome Anti-Trust We Are Here First and Foremost To
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METROPOLITAN CAR-O-LINER ESTIMATING WITH PURPOSE HOUSE KEEPING WELCOME ANTI-TRUST WE ARE HERE FIRST AND FOREMOST TO MAKE THE COLLISION REPAIR BUSINESS BETTER! Therefore, even if we were allowed to, we will not talk about: ▸ Labor Rates ▸ Parts or Equipment Prices ▸ Repair Times ▸ Cost and Profit & Profit Margins ▸ Dividing up the Market ▸ Boycotts or Refusals to Deal with Anyone ▸ Judgment on a Specific Shop’s Work ▸ Judgment Practices of a Specific Insurance Company ▸ Policies and Guidelines for Claim Settlements ▸ How Repairers or Insurers Conduct their Business QUESTION: WHAT’S THE ONE THING THAT BRINGS MONEY IN? PURPOSE “EFFORTS AND COURAGE ARE NOT ENOUGH WITHOUT PURPOSE AND DIRECTION” John F. Kennedy ESTIMATING WITH PURPOSE WEBSTER DEFINITION? ▸Action in the course of execution ▸Intention ▸Determination PURPOSE OF THE ESTIMATE? INSURER “Intention” ▸ A “tool” for determining loss payment ▸ Documentation of vehicle condition and damage for rating and future loss adjustment ▸ “Tool” for determining group premium ▸ “Evidence” of business practices PURPOSE OF THE ESTIMATE? REPAIRER “Intention” “Determination” ▸ Detailed Repair Plan ▸ Accurate Repairs ▸ Decrease Liability With Documentation ▸ Decrease Cycle Time ▸ Drive Profit STOP RE-KEYING! = = Capital Expenditures Capital expenditures are the amounts that companies use to purchase major physical goods or services that will be used for more than one year. Operating Expenses Operating expenses are the costs for a company to run its business operations on a daily basis. = O Operational Expenses? You Can Fix A Vehicle Without An Estimate…. You Can’t Make A Profit Without An Estimate…. The ESTIMATE Recovers The Operational Expenses Of Your Facility! = Your Purpose is Operational Expenses! You Make Every Salary Possible! FINDING PURPOSE “Action In The Course Of Execution” ▸ Standard Operating Procedures (SOP) ▸ Access To Procedures ▸ Training Labor Time Survey = How Does A Vehicle Get To The Shop? = Drive-In: Tow-In: List the ‘work’ you do for each of these Does the required change if you are a DRP? STANDARD OPERATING PROCEDURES (INTENTION) ▸ Pre-Inspection Customer Interview OEM Procedure Initial Review Vehicle ID Check – in Report UPD Time = Money R/O Number Assigned Keys Tagged R/O Pouch Wash Vehicle * Windshield Sticker STANDARD OPERATING PROCEDURES (INTENTION) ▸ Pre-Inspection R/O Pouch ‣ Damage Report ‣ Pre-Measuring ‣ Pre-Scan ‣ Parts Order ‣ Materials Order ‣ OEM Procedures ‣ Departmental Checklist #SomethingGoesHere ‣ AC/Antifreeze/4-Wheel Align/Dealer/Sublet Flags ESTIMATING WITH PURPOSE STANDARD OPERATING PROCEDURES (INTENTION) ▸ Photos ESTIMATING WITH PURPOSE STANDARD OPERATING PROCEDURES (INTENTION) ▸ Photos ESTIMATING WITH PURPOSE STANDARD OPERATING PROCEDURES (INTENTION) ▸ Photos Point of Impact Establish your impact… now think like a fighter! ESTIMATING WITH PURPOSE STANDARD OPERATING PROCEDURES (INTENTION) ▸ Photos Showing what’s not damaged is equally as important as what is……. ESTIMATING WITH PURPOSE STANDARD OPERATING PROCEDURES (INTENTION) ▸ Pre-Scan MIL Misconception DTC’s Present/History System Operation SRS OWC/OWS Mechanical Diagnosis ESTIMATING WITH PURPOSE STANDARD OPERATING PROCEDURES (INTENTION) ▸ Pre-Measure Understanding of Applied Forces Wheel Position Structure Wheel Base Suspension Closure Panel Operation Tram or Tape Measurements Gap Measurements THE PROCESS Time = Money ESTIMATING WITH PURPOSE WRITING THE ESTIMATE ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: Replace: Emblem $33.04 CAMRY $29.36 XLE $26.41 ESTIMATING WITH PURPOSE What Are My Steps? How Are They Included? Operational Expenses? Pre Wash Cover Seats Guide To Estimating / P-Pages Parts Measure Mark Align Does It Overlap Another Operation Labor Remove Emblems Materials Clean-Up Adhesive Measure Mark Align Masking R&I Car Cover Buff Glaze Final Detail ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: Emblem/Nameplate Replacement ✓ Pre-Wash $5.00 0.5 ✓ Cover, STG Wheel, Seat, Floor $5.00 0.3 ✓ Replace Emblem $33.04 0.1 ✓ Measure, Mark and Align 0.3 ✓ Remove Adhesive Residue $1.00 0.2 ✓ Replace “Camry” $29.36 0.1 ✓ Measure, Mark and Align 0.3 ✓ Remove Adhesive Residue $1.00 0.2 ✓ Replace “XLE” $26.41 0.1 ✓ Measure, Mark and Align 0.3 ✓ Remove Adhesive Residue $1.00 0.1 ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: Emblem/Nameplate Replacement ✓ Mask Back Up Lamp, RT $2.00 0.2 ✓ Mask Back Up Lamp, LT $2.00 0.2 ✓ Mask License Molding $2.00 0.2 ✓ R&I License Plate 0.2 ✓ Cover Bag Car for Buff $5.00 0.2 ✓ Buff/Glaze/Swirl Mark Remove $5.25 0.5 ✓ Hand Glaze Deck Lid $5.25 0.5 ✓ Partial Polish LT/RT ¼ Panels $10.50 1.0 ✓ Partial Glaze LT/RT ¼ Panels $5.25 0.5 ✓ Detail for Delivery $12.00 1.0 ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: Emblem/Nameplate Replacement ✓ Parts $151.06 ✓ Body Labor 7.1hrs @ $50.00/hr $355.00 ✓ Subtotal $506.06 ✓ Sales Tax $506.06 x 8.6250% $ 43.65 ✓ Grand Total $549.71 INTERESTING? Know the Procedures, P-Pages and Follow SOP’s ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: Procedural Pages THE BIG 3 BY NUMBERS Mitchell 24 pages Motor CCC/Pathways 38 pages Audatex 100 pages Total 162 pages COMPARISON TO OTHER PROFESSIONS Pharmacists Reference 800 pages Law Desk Reference 1328 pages Physicians Desk Reference 3315 pages ALL YOU NEED TO LEARN IS JUST 162 PAGES ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: General P – Page Info General Information: Additions to Labor Times: 1. Parts Illustrations 1. Access Time 2. Part Numbers/Prices 2. Anti-Corrosion Materials 3. Remanufactured Parts 3. Rust Proofing Materials 4. Aftermarket/Knock Off Parts 4. Broken Glass Clean Up 5. Metal Material Types 5. Detail 6. OEM/NAGS Glass Information 6. Drain & Refill 7. Symbol Key/Legend 7. Electronic Components 8. Guide Layout Sequence 8. Fabrication 9. Definitions of Parts & Notes 9. Frame Set-Up 10.Labor Time Calculations 10.Free Up Rusted Parts 11.Wheel Alignments 11.Measure and Identify 12.Test Drive 12.Transfer Time ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: Procedural Pages INCLUDED OPERATIONS Are operations that are performed in conjunction with another operation. Ex: R&I of Radiator and Condenser is generally an included item when replacing the Radiator Support. NON-INCLUDED OPERATIONS Are operations that may or may not be required depending upon the vehicle or repair process used. Ex: Aiming of the Headlamps of Foglamps is Not-Included in the Labor Time for Replacement of the Radiator Support. ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: TRIAL FIT PARTS ▸ Anytime a structural or non-structural component is repaired or replaced there will generally be multiple test fits of the Bolt-On components to ensure the Weld-On components are in the proper alignment, regardless of the type of structural repair equipment used. ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: TRIAL FIT PARTS ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: TRIAL FIT PARTS ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: TRIAL FIT PARTS ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: Feather Edge, Prime, Block Sand Replacement of panels include labor to sand the panel to 150 grit Refinish labor starts at 400 grit (to that of a “New Undamaged Panel”) Preparation of the area: 1. Sand 180 grit, 220 grit, 320 grit 2. Mask and Prime 3. Sand 220 grit, 320 grit ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: How to Calculate F/P/B Body Filler Applications Body Filler Sanded with 150 grit ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: How to Calculate F/P/Ba ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: How to Calculate F/P/Ba Example Calculations Repair to Damage 5.0 hrs 5.0hrs x 40% = 2.0hrs This would be the time to sand with 180, 220 & 320/220WD & 320WD 2.0hrs x 20% = 0.4hrs This would be the time to mix, prime with 3 coats and clean equipment ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: How to Calculate F/P/Ba Example Calculations Feather/Block 2.0hrs (B) Shop Materials 2.0 x Rate/Cal Prime 0.4hrs (R) Acid Etch Primer 0.1hrs (R) Epoxy Primer 0.1hrs (R) Paint Materials 0.6 x Rate/Cal Mask for Primer 0.2hrs (B) Masking Materials $5.50 Car Cover $3.50/0.2hrs (B) ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: How to Calculate F/P/Ba Masked and Ready for Refinishing Example Calculations Body Labor (2.4 x $50) $120.00 Body Materials (2.0 x $3.50) $ 7.00 Refinish Labor (0.6 x $50) $ 30.00 Paint Materials (0.6 x $25) $ 15.00 Car Cover $ 3.50 Masking Materials $ 5.50 Total Cost $181.00 Fender Repair 5.0 x $50 $250.00 Total (w/o extras) $431.00 Parts Changer? ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: Example Calculations Comparison Others: All under Refinish Body Labor (2.4 x $50) $120.00 5.0hrs total labor/30% = 1.5 Body Materials (2.0 x $3.50) $ 7.00 1.5hrs x $50 = $75.00 Refinish Labor (0.6 x $50) $ 30.00 1.5hrs x $25 = $37.50 Paint Materials (0.6 x $25) $ 15.00 Car Cover $ 3.50 $112.50 Masking Materials $ 5.50 Refinish $30.00 Total Cost $181.00 Refinish Mats $15.00 Car Cover $3.50 Masking Mats $5.50 Fender Repair 5.0 x $50 $250.00 $166.50 Total (w/o add’l) $431.00 ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: Not-Inc’d SRS Precautions Repair and Welding Safety Follow OEM Recommendations 1. Unplug RCM (R&I Console) 2. R&I/R&R Air Bag 3. R&I/R&R Sensors 4. R&I Wire Harness 5. Recalibrate System 6. Clear Codes 7. Trouble Shoot/Load Tool 8. Recalibrate OWS ESTIMATING WITH PURPOSE FRAME SET-UP 2.0 HOURS? ESTIMATING WITH PURPOSE WRITING AN ESTIMATE: Frame Set Up INCLUDED OPERATIONS ? NOT-INCLUDED OPERATIONS 1. Install Vehicle 2. D&R Battery or Remove 3. R&I Wheels 4. Attach Clamps/Jigs 5. R&I/Move Lines/Parts 6.