How to Plan for Parts Department Success in 2013

Transcription

1 How to Plan for Parts Department Success in 2013 with Mike Nicholes, President Nicholes Capital Management Moderated by Mike Bowers, Executive Editor at DealersEdge Thursday, December 13, :30pm ET Mike Nicholes, President of Nicholes Capital Management Mike Nicholes, was the founder of Mike Nicholes, Inc., has earned international recognition as a consultant and seminar speaker. He has conducted hundreds of seminars during the past 35 years for more than 42 major vehicle manufacturers. In addition, Mike has functioned as an in-dealership consultant/trainer (in a seminar mode) to over 10,000 automobile, truck, agricultural, and construction equipment dealerships and distributorships. He has been directly involved in fixed operations consulting and training for over 35 years. During his career as a consultant, Mike worked with many dealers, and manufacturers, specifically Saturn Corporation during the design phase of the company, to implement the parts management concept "Beyond EOQ", or source by movement, resulting in greatly improved fill-off-the-shelf to the technicians without a significant increase in inventory investment. In addition, he has researched and assisted many manufacturers as a subject matter expert in the area of daily stock order implementation. He has hosted a television show called Parts and Profits for the cable network Automotive Satellite Television Network (ASTN), and is in demand as a '20 Group' speaker. He is also has been a frequent workshop speaker at the National Automobile Dealers Association (NADA) and American Truck Dealers Association (ATD) annual conventions. Mike is the author of several publications and articles on inventory management including 8th Edition Inventory Management, Inventory Management for Daily Stock Orders, and 3rd Edition Advanced Inventory Management used in his past seminars. In 1994 Mike Nicholes Inc was acquired by a major DMS system. That relationship dissolved in 2004 with Mike starting Nicholes Capital Management LLC to pursue a course on non-endorsing, neutral inventory management training and consulting. Mike has been an active guest lecturer for the Entrepreneurial Lecture Series at Brigham Young University in Provo, UT. Mike and his wife Lynne reside in Portland, OR.

2 Parts Department Business Planning for 2013 ARE YOU READY? DealersEdge Webinar December 13, 2012 The Parts Department a Business within a Business

3 The Parts Department a Business within a Business What are the main goals for my business? He who fails to plan, plans to fail Bad Planning on your part does not constitute an Emergency on my Part Don t stomp out fires; prevent Fires Planning is bringing the future into the present so that you can do Something about it now.

4 3 Problems to Overcome: 1. There is no Time to write or design a plan 2. I don t know what to put down on paper 3. I am not sure what measurements should apply to my plan and it s execution; getting it done and done right. Biggest Problem with Future Planning? too many good ideas sit stagnant; never happen.

5 What should I include in a good Business Plan? What should I exclude in a good Business Plan? Plan the Future by Knowing the Past 1. Where have I been (measurements) for the past year? 2. Where am I now at the beginning of the new year? 3. Where do I want to be at the ending of this new year? 4. Don t add things that cannot be measured.

6 The Mission Statement: Overall, when the Year is done what do I want to have Accomplished in the Parts Department? 4 Critical Steps: 1. A one line description of the overall objective. 2. How do/did I build the model; past performance to Future Goals 3. What conditions could prevent accomplishing the goals; market, people, etc. 4. Why am I, the parts manager, the best qualified to direct the parts department?

7 Measurements: When we deal in generalities we will never succeed. When we deal in specifics we will seldom fail. Where performance is measured performance improves; and where performance is measured and reported, the rate of improvement accelerates! Thomas Monson Checklist and key are free; at

8 Benchmark Measurements Items shown in Red Circles on the Checklist tell the Dealer what is really going on in the Parts Department. Too many rely on a couple of nebulous measurements on the financial statement. along the Way towards the Goal; If there are problems: Fix Them!

9 Fixing Problems: A Time Line Existing Problems Not Qualified nor Quantified Fixing Problems: A Time Line

10 Existing Problems Not Qualified nor Quantified Fixing Problems: A Time Line Base Correction Point Existing Problems Not Qualified nor Quantified Fixing Problems: A Time Line Identify Measurement Parameters: How much & How Well Base Correction Point

11 Existing Problems Not Qualified nor Quantified Fixing Problems: A Time Line Identify Measurement Parameters: How much & How Well Repetition Base Correction Point Fix Programs Fix Procedures Fix Policies Existing Problems Not Qualified nor Quantified Fixing Problems: A Time Line Identify Measurement Parameters: How much & How Well Repetition Maintain corrected Policies & Procedures Base Correction Point Fix Programs Fix Procedures Fix Policies

12 Existing Problems Not Qualified nor Quantified Fixing Problems: A Time Line Identify Measurement Parameters: How much & How Well Repetition Maintain corrected Policies & Procedures Base Correction Point Fix Programs Fix Procedures Fix Policies Problem or situation Is now fixed or repaired Continual Analysis Management of the Asset: Moving the needle Guidelines and goals; real and unreal Monthly Checklists Trend Analysis

13 Remember in Parts It s not the MONTH that is most important It s the TREND that is most important Remember in Parts It s not the MONTH that is most important It s the TREND that is most important Some Trends should be going UP!

14 Remember in Parts It s not the MONTH that is most important It s the TREND that is most important Some Trends Should be Going Down! Remember in Parts It s not the MONTH that is most important It s the TREND that is most important Some Trends Should be Flat!

15 Dealer and Parts Manager should meet together monthly to review progress toward the goals. The Parts Manager can solicit help and assistance from the Dealer to reach the goals. Help is usually only a question posted on the Forums, or assistance from Professionals who are trained and skilled in assisting Managers attain their goals. Many of these can be found within the Dealerships themselves

16 Questions? Now s The Time Contact Information Mike Nicholes Capital Management Inc SE Clatsop St, Portland, OR Phone: Fax: Mike.Nicholes@gmail.com

17 Thanks for Coming - Watch Out For the Crazies!