Lean Thinking saves £4m Cap-ex - Lean-Auto-Retail
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Lean Thinking saves £4m Cap-ex

Lean Thinking saves £4m Cap-ex

What was the Problem?

  • The manufacturer was requiring a £4m redevelopment to substantially increase workshops at two large sites and to create more car parking to meet growing demand.
  • There were major parking problems on site.  The workshop was full and there was an unacceptable booking lead time

 

Countermeasures:

  • Eliminate waste to improve existing ‘Express Service’ to enable all services (with some additional work) to be completed in 45 mins
  • Market and encourage more customers to wait for 45 mins instead of leaving car all day
  • Adapt existing buildings for Express Bays
  • 5 bays at main site and 2 bays at second site

Dealer site showing Express Bays and plenty of parking

 

Outcomes:

  • 30% improvement in After-Sales revenue after 3 months
  • ‘Right first time on time’ improved from 50% to over 90% in same period
  • 180% productivity on service jobs
  • 25% Fewer courtesy cars needed
  • Customers strongly appreciated the convenience of real ‘while you wait 45 min appointment slots.
  • While you wait services quickly grew to around 50% of all jobs which meant parking problems were eliminated.

£4,000,000 capital expenditure not needed.  

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