Establishing controls in automotive repair shop processes can be a significant factor in business success. Any business has the potential for losses to be incurred where there are openings in established practices. Making controls an integral part of business process design will have a significant impact on avoiding this kind of problem. Following are areas in which controls can be applied for this purpose:
- Separation of Responsibility – Assigning responsibility for functions that can leave a shop open to problems can be a very effective management practice. Of course – shops often don’t have the personnel to do this – but these are good practices where they can be applied … Read More >>
- Inventory Controls – For shops that carry inventory this can be an area where losses can easily occur. If replacement parts are carried in inventory or tires are bought in bulk then sold off the shelf – this is an area where shrinkage can occur … Read More >>
- Labor Sales and Cost Controls – Labor is an area where losses can be incurred when invoices are paid in cash by the customer. Some methods of paying technicians have built in controls while there are some circumstances where shops are open to loss … Read More >>
- Part Sales and Cost Controls – Controls on repair order parts can go a long way toward reducing shrinkage. Purchase and return transactions as well as issues to repair orders should be tracked and controlled by recording them in the repair shop software in use … Read More >>
