service readiness

SERVICE READINESS
The Role it Plays in a Successful Auto Repair
Business Model – A Panel Discussion
Panelists:
Robert Beckmann, Beckmann Technologies
Bob Augustine, Christian Bros. Auto
Jeffrey Minter, Madison College
Rusty Savignac, Paxton Garage
Aaron Cherrington, Identifix
Mark Saxonberg, Toyota
James Von Ehr, Nissan
Robert Stewart, GM
Kelly Geist, Subaru
2
OEM Roundtable Panel
Dealership Service Readiness
Q 1: Dealership service readiness requirements; what
does the typical OEM require of dealerships to be
considered “service ready”? How do we measure SR?
Presenters:
Bob Stewart, GM
Kelly Geist, Subaru
Jim Von Ehr, Nissan
Mark Saxonberg, Toyota
3
Service Readiness
- What is It? The act of having received the service training,
and having access to the service information,
tools and parts necessary to perform any
diagnosis, repair and/or adjustment that might
be required to support a product, in advance of
product arrival for service…
Saxonberg
4
Key Elements of Service Readiness
o
360 Service Support
Service Readiness is not
achieved with service
information alone
Training & Product
Knowledge
Factory Service
Information
Commitment to grow
and learn
Vehicles are too complex
to attempt to diagnose &
repair without all
Service Parts
appropriate resources Factory
Options
Techs can’t succeed without a
commitment to 100% Service
Readiness for vehicles their
customers expect them to support
Saxonberg
Factory Diagnostic
Functions
Technical Assistance
Support
5
Service Readiness Overview
Independent techs
often lack scan tool
or
information/training
Dealership *
techs wait for
scan tool
%
n= 1694
Source: IDC Manufacturing Insights, 2012
Saxonberg
6
Overall, Service Readiness is Low,
but independent technicians are generally worse off
Do you have the tool you need (capable of performing required
diagnostic or repair function) when you need it?
Technicians that
responded “Always”
%
Saxonberg
n= 1694
Source: IDC Manufacturing Insights, 2012
Overview
Technician Development &
In-Service Training
Presented by:
Bob Stewart
7
Overview
Technician Capability is a Competitive Advantage for GM
• We leverage industry and in-house technician training
• The GM Technician Training Strategy is a three-tiered approach
allowing dealers to train technicians at every level
– High School (AYES)
– College (GM ASEP)
– World Class Certification (GM STC)
8
Technician Progression
Phase 3 – Continuous GM Training
GM Master Technician Certification (GM MTC)
GM World Class Technician (GM WCT)
Professional technician training/updates
ASE certification
Phase 2 – Post Secondary
GM ASEP
Basic and GM Specific Training available
at colleges across the country
Phase 1 – High School
AYES
Allowing students to job shadow
and work under a mentor for career
preparation
9
GM ASEP - Profile
• GM Automotive Service Educational Program (ASEP)
–
–
–
–
–
Founded in 1979
Partnership between community college, GM, and GM dealer(s)
60 schools, with 1,000 students participating currently
14 schools in Canada; 16 in China; 1 in Ecuador; Mexico exploring
Two year associate degree program
• GM ASEP teaches exclusively on current GM products to cover all
automotive content
• Based on NATEF standards
• Student cycles through 8 weeks of school, and 8 weeks of dealer co-op
• Student responsible for finding sponsor dealer (supported by school/GM)
• Student must complete Math, Science and English requirements
• Auto course content a subset of GM Dealer training required
– Upon graduation, student awarded about 85% of total STS
10
Vehicle Systems - Service Categories
13. Advanced
Technology
(Infotainment system)
* Body Structural training and Body Structural
certification is offered through I-CAR and NOT
STC.
** Paint training and paint certification is
offered through the GM approved paint
suppliers and NOT STC.
11
Fundamental courses are required by
all technicians prior to beginning any
category
Technician Certification Levels
World Class Technician
(~600 Hours of total training)
Includes a total of 8
categories
Master Technician Certification
Electrical (8 hours additional)
Includes Hands On
Assessment
Electrical Category
(46 hours additional)
Includes WBT, VCT,
ILT and ASE
Fundamentals
(22 hours of training)
Includes WBT and
VCT
12
Dealer Service Readiness Requirements
Equipment, Special Service Tools & Diagnostics
Presented by:
Kelly Geist, Subaru North America
13
13
Subaru Tools and Equipment
Requirements
Special Tools
– Subaru SDS System (1 required per dealer)
•
•
•
•
•
•
CF19 Panasonic Toughbook® laptop
Subaru Diagnostic Interface
Wireless color laser printer
Wireless access point in service department shop area.
Subaru managed Firewall
Customized graphical user interface with restricted user access.
– Required special tool kit
• Approximately 400 tools (reviewed every 5 years)
• Estimated cost $50,000
• Shipped automatically to dealers; annual additions ~20 tools/year
14
14
Subaru Tools and Equipment
Requirements
Required Shop Equipment
– Subaru approved On-car brake Lathe
• Pro-Cut 9.0 or higher
• Hunter OCL400 or later
– Hunter GSP9700 class tire balancer
• Only dealers with 5 year units in operation greater than 1000 vehicles
• Multi franchise dealer must have unit on premises or within 1 mile.
– Midtronics Battery test equipment
• Subaru specific GR-1 battery charger
• Subaru specific EXP1000 handheld battery tester
– General shop equipment
• Lifts, 10 ton press, engine hoist, etc.
15
15
Subaru Tools and Equipment
Requirements
Next Generation Diagnostic Tool
– Currently in development
•
•
•
•
Will be released for 2016 Model year
New interface box with multi channel oscilloscope
Cloud based versus pc based software being evaluated
Wireless communication between PC and interface box
planned
• Protocol for interface TBD.
16
16
Nissan North America, Inc
Dealership Service Readiness
March 8, 2013
Presented by
Jim Von Ehr
Dealership Service Readiness
Agenda
• How service ready are Nissan and Infiniti dealerships?
• What are Minimum Service Training Requirements (MSTR)?
• Do Training standards/requirements effect Fixed Right
Scores?
• Additional requirements before dealership technicians can
contact our Tech support for assistance.
• Help Wanted!!!!!!!! Technicians Needed!!!!!!
18
Dealership Service Readiness
Are we service ready?
Only about 65% of our Nissan and Infiniti dealers currently
satisfy our Minimum Service Technician Requirement standards.
19
Never-ending Readiness Challenge
Annually, we lose an average of 29 highly trained specialists.
20
Technical Training MSTR
Minimum Service Training Requirements (MSTR)
Ongoing 2 part process provides a balanced mix of technical capabilities in the Service department
 Technician Orientation Program
Required within the first 45 days of
employment.
Includes 2 online courses, and 7 SIR
videos. Focuses on Brand, Warranty policy &
procedure, Repair order documentation, PDI etc…
 Shop Competency - provides balanced
technician population in dealership and improves
competency of service department as a group.
 Mix of online and Instructor led courses to
achieve each specialty
All training is online available through VA
SHOP COMPETENCY
# of
Techs
Per
Dealer
# of
Electrical
Specialist
Required
# of
Engine
Specialists
Required
# of
Chassis
Specialists
Required
# of
Driveline
Specialist
Required
1- 2
1
1
1
1
3-4
2
1
1
1
5–7
3
2
2
1
8 – 10
4
3
3
2
11 – 13
5
4
4
2
>14
6
5
5
3
Shop Competency matrix does not
include Express Service Technicians
21
Technical Training MSTR
The “Technician Orientation Program Certification” specialty area consists of 2 webbased E-learning courses and 7 web-based Service Information Resource (SIR)
videos and web-based post tests. All training elements are online and can be
completed in 4 – 6 hours. They are:
E-learning Courses
Nissan and Infiniti Service Technician Orientation (GITC2009A-OLT)
Signal Tech II Operational Perspective (GITC2010A-MOLT)
SIR Videos
#138 – Pre-Delivery Inspection: Overview and Changes
#139 – Diagnosing Electrical Systems
#148 – Improving F1 Scores
#155 – Regular Service & Maintenance Issues
#160 – Tire Pressure Monitoring Updates
#161 – Warranty Claims and the Work Order
#162 – CONSULT-III plus
The Technician Orientation Program Certification specialty area covers topics such
as: Brand orientation, F1, Vehicle Repair Process, repair order documentation, ASIST,
CONSULT-III plus, service manual familiarization, vehicle maintenance requirements,
electrical fundamentals, Essential Tools, Pre-Delivery Inspection, & more.
22
Technical Training MSTR & F1
Technician MSTR Compliance Effects on F1 Scores (Volume Weighted)
94.8
94.6
F1 Scores
94.4
94.2
y = 1.068x + 93.56
R² = 0.9064
94
93.8
93.6
93.4
93.2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MSTR Completion %
 Correlation data shows as level of MSTR Shop Competency
increases, so does F1 score.
23
Vehicle Repair Process
Technician must search publications and incident
DB before access to Tech Line is available
24
Help wanted!!!Technicians
An analysis of Technician needs was completed in early FY
2009 and determined that in CY 11:
Nissan Dealers will need 534
(Note: This does not
included Express
Service Needs)
Infiniti Retailers 80.
Nissan and Infinti FY00 - FY12 Technician Growth Analysis Based on 5 Year UIO
Black = Actuals
Red=Assumption
Nissan
Sales
5 Yr UIO
Sales Adjusted 10-12-08
5 yr UIO Adjusted 10-12-08
Technicians Enrolled
UIO per Tech
Tech Growth
Tech Enrolled Adjusted 10-12-08
Tech Growth Adjusted 10-12-08
5% Attrition
Adusted 10-12-08 5% Attrition
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
673,937 625,683 623,381 724,308
878,833
941,592
910,499
931,976
818,784
3,002,555 2,956,806 2,888,766 2,918,544 3,077,309 3,317,238 3,588,557 3,838,939 4,120,889
791,927
4,120,889
6,688
6,585
6,434
6,500
6,223
6,792
7,389
7,752
7,984
449
449
449
449
495
488
488
495
516
-103
-152
66
-277
569
597
363
232
7,984
232
329
322
325
311
340
369
388
399
Recuitment Required
10-12-08 Adjusted Recuritment
Infiniti
Sales
5 Yr UIO
Sales Adjusted 10-12-08
5 yr UIO Adjusted 10-12-08
Technicians Enrolled
UIO per Tech
Tech Growth
Tech Enrolled Adjusted 10-12-08
Tech Growth Adjusted 10-12-08
5% Attrition
Adusted 10-12-08 5% Attrition
Recuitment Required
10-12-08 Adjusted Recuritment
FY09
FY10
FY11
FY12
889,985
991,811 1,073,510 1,127,873
4,197,356 4,206,501 4,260,290 4,420,140
773,119 954,705 978,974 1,029,254
4,171,047 4,066,283 4,086,810 4,157,933
8,395
8,413
8,521
8,840
500
500
500
500
411
18
108
320
8,342
8,133
8,174
8,316
358
-210
-168
142
420
421
426
442
417
407
409
416
227
170
391
34
909
966
751
631
830
775
439
197
534
240
762
558
FY00
0
0
FY01
0
0
FY02
95,069
330,896
FY03
122,920
362,060
FY04
131,502
415,827
FY05
133,504
469,577
FY06
124,500
522,062
0
0
0
0
0
813
425
0
890
425
77
986
422
96
1,081
434
95
1,283
434
202
FY07
127,026
570,770
127,026
570,770
1,374
415
91
0
41
45
49
54
64
69
FY08
106,851
599,299
102,413
599,299
1,390
431
16
1,390
16
70
70
FY09
105,248
583,045
94,033
578,698
1,353
431
-37
1,343
-47
68
67
FY10
138,181
558,056
134,406
542,816
1,295
431
-58
1,259
-83
65
63
FY11
179,625
564,136
156,043
545,535
1,309
431
14
1,266
6
65
63
FY12
213,800
618,573
160,384
577,288
1,435
431
126
1,339
74
72
67
0
41
122
145
149
266
160
86
86
30
20
7
-20
80
70
198
141
FY09-12
Totals
856
122
1,708
1,648
2,565
1,771
FY09-12
Totals
45
-51
270
260
315
210
25
26
OEM Service Readiness Roundtable
Q&A
27
Aftermarket Service Readiness Panel
Q 2: State of aftermarket shop service readiness today; if service
readiness requirements existed for a full service independent
shop, what would they be?
Q 3: OEM service support resources in the aftermarket; are they
utilized sufficiently?
Q 4: Aftermarket shops that are already service ready for their
customers; how pervasive are these shops and are there enough
to meet consumer demand?
Presenters:
•
Robert Beckmann, Beckmann Technologies
• Bob Augustine, Christian Brothers Auto
• Rusty Savignac, Paxton Garage
• Jeffrey Minter, Madison College
• Aaron Cherrington, Identifix
28
Technician Development
• Getting harder to fit everything into a two year program
• Rate of technology change is requiring additional information
added in every year
• “Old” technologies aren’t going away as fast as new are
added
• Results in more curriculum to cover every year
• Difficult for educators to keep up to date in all areas
Minter
29
In Service Training
• Technicians need a foundation of knowledge
• Are they getting enough ACTUAL theory and operation
explaining how the new technologies work?
• Many training companies seem to simply offer system
overviews and pattern failures
• This can even include OEM training!
• How do shops/technicians know which trainers
are teaching technically accurate material?
Minter
30
Aaron Cherrington
Cherrington
Identifix Interaction with the Industry
• Repair Hotline: Up to 20,000 calls per month
from shops all across the country who have
encountered a problem either diagnosing or
repairing a vehicle
• Direct-Hit Online Subscription: Over 1.5
million vehicle look-ups a month by over
38,000 subscribers
Provides Insight On What Information Is
Needed and What is Being Found
31
The Future Arrived Yesterday… And, Its Complicated
Boeing’s new 787 Dreamliner requires
about 6.5 million lines of software
code to operate its avionics and
onboard support systems ….
That's an impressive amount of
software, but the average 2010 Ford
relies on close to 11 million lines of
software code and it never leaves the
ground ….
Shops Need Information To Get A Vehicle Fixed …
•
Everyone Now is a Generalist
•
•
•
With improvement in vehicle quality fewer shops can specialize
Customers expect Shops to be able to do it all
Need repair information on every type of repair
• Repairing Broadest Age of Vehicles in History
•
•
Record average age of vehicles
Working on a 1990’s vehicle much different than an 2010 just coming
Out of Warranty
• It is Not the Same Vehicle it Was Last Model Year
•
•
•
New automotive technology release pace is accelerating
About 24% of the automotive industries' new vehicle sales volume was
replaced by new models in 2007 ‐ an all‐time high
Electronic content on those vehicles is double the preceding generation
Aftermarket Shop Reality
• 72% of shops generate annual sales $500,000 or less
• Out of that comes:
• parts purchases
• labor
• rent
• equipment
• insurances
• and hopefully a little left over in profit
• As a result shops can’t afford to spend a lot to get
this information
What Repair Information Do Shops Need?
• Complete:
• Broad Model Years and Model Coverage
• Easy to Use/Find:
• They have a big enough challenge figuring out the
vehicle problem
• Fast:
• Remember they are on the clock working against a
quote they have given the car owner based on the
flat rate hours
• Affordable:
• Can’t spend a lot for it
Aftermarket Shop Reality
• Complete:
• No, not all service information from OEM
• Easy:
• No, requires time to learn Table of Contents and
Search
• Fast:
• Yes, familiarity overcomes usability issues
• Affordable:
• Yes, for most at $150 ‐ $200 per month
What about OEM Websites?
• Complete:
•
Yes, for Model Years Covered
•
No, each has its own UI, Terminology and Table of
Contents/Search
•
No, not used enough by most shops so that familiarity
overcomes usability issues
• Easy:
• Fast:
• Affordable:
•
Yes, short term subscriptions are available… but, the perception
is that OEM websites are not affordable. Affordability depends
on a shop’s business model, pricing policy & specific shop needs
An Increasing Source of Frustration - The Need for OEM Scan Tools
Not Just a Problem on Newer Vehicles
38
Conclusion
• The user of Repair Information is a Shop that just wants
to get the vehicle fixed and make a little money
• There is no single source for Repair Information that is
available to the “See All – Be All” Shop that is complete,
easy, fast and affordable
• The need for OE Scan Tools to fix vehicles is becoming
more frequent and is another cost
• Until these issues get addressed this is going to continue
to be a difficult issue for our Industry
40
Service Readiness for IAM (Q2)
Requirements
• Familiarity with Scan Tool(s) used by major OEMs
• PC or Embedded?
• Subscription-based or stand-alone?
• Does it connect with J2534 device?
• Familiarity with OEM service website(s)
• Do they have log-ins already established?
• Do they have basic website navigation skills?
• Familiarity with OEM training modules
• Is there a roadmap to take courses they are not yet trained on?
• Do they know where to find the courses?
Augustine
41
Service Support Resources (Q3)
Most IAM shops are not service ready because
they lack one or more of the following:
• Correct tool to always complete the repair (most
shops are 70%ers)
• Scan tool
• J2534 device
• System-level knowledge to:
• accurately diagnose the root cause
• complete the repair. (i.e. Immobilizer, module coding,
initialization, etc.)
Augustine
42
Service Support Resources (Q3)
Practice vs. Playing on Game Day
Augustine
43
Service Support Resources (Q3)
Labor pool is our biggest challenge
• Most technicians that apply are good general
mechanics, but lack expertise in the following
areas:
• PC skills (Windows, software management, etc.)
• FLASH programming
• Network diagnostics
• Proper use of service information
Augustine
44
IAM Service Readiness (Q4)
Small percentage of shops are SR
• Shop needs to clearly define what are shop tools
• Who purchases scan tools?
• Who purchases programming subscriptions?
• Who is responsible to keep tools updated?
• Shop needs to have training roadmap
• Identify areas of training needs and proactively seek them out
• Utilize downtime to be learning, not surfing
• Compensation based on additional skill areas learned
Augustine
45
Indy Shop Perspective – Paxton Garage
• Indy shop makes a business decision on makes/models/systems they
want to be prepared to service; we can be 3+ M/Y behind dealers
• Indy has an advantage over a dealer as we need not be completely
“Service Ready” as described in the OEM Roundtable panel
• We buy/subscribe to tools & S/I based on brands we see most, vehicles
we specialize in AND brands that offer more affordable resources
• We investigate training opportunities on unfamiliar systems (common
rail diesel, VVT, GDI, etc)
• We may consult with a mobile tech for brands/systems that we aren’t
completely ready for
• Smart money exercises the “20 Minute rule”
• Bag o Tricks……..OEM website publications, Identifix Direct Hit, iATN,
Google, network of friends with specialized knowledge
Savignac
46
Where Did My Good Techs Go?
• A tiny percentage of aftermarket shops utilize OEM tooling &
service info; most depend on the scan tool software and perform
“code-based” or “symptom-based” $waptronics
• Qualified tech?? Trade school grads who arrive with some tools,
love of cars, and mechanical skills aren’t enough anymore. We
need entry techs with analytical minds and all the rest
• My 2 best techs came from post-secondary specialty schools and
got OTJ “refined”
• Better career opportunities in other industries, higher pay, no
expensive tool requirements, better hours and working conditions,
far less “body damage”
• The aftermarket can always steal techs from dealers as the really
smart dealer techs get fed up with flat rate diagnostic pay 
Savignac
47
Culling the Herd or Growing It?
• Most aftermarket shops are no longer flooded with work
and are using new strategies to keep techs busy
• Too many shops competing for the ever decreasing
number of “broken” cars.
• Too few skilled techs and fewer entering the trade
• We need to pay more and be able to offer a job that
attracts the right type of people
• Higher door rates would require an educated customer
• Train the public? How can they differentiate? Sell value?
• Press for meaningful licensing and industry standards
• Network of OEM “Recommended Facilities”?
Savignac
48
European Shops Introduction
Bob Beckmann
• Component level repair on ECUs
• Tier 2 diagnostic support and programming
• Some customers have failed over the past
decade
• Loyal supporters of their brands
• Why?
Beckmann
49
My take on service readiness?
• Being prepared with basic skills
• Know where to find the answers quickly
• Today’s cars are complex
• Build a disciplined diagnostic process
• Use modern communications tools
Beckmann
50
Troubled Customers?
• Buried in information and tools
• Too proud to reach out
• Rely exclusively on guided fault finding
• Expect tool to fix the car
• No personal development or training
Beckmann
51
Successful Customers
• Reach out for help
• Don’t get mired down in problems
• Use OE website
• Use Hotline
• Use Mobile guy
• Remote connectivity
• Pay for resources
Beckmann
52
Should we all specialize?
• Training alone
• Have the one right tool
• Works in some markets
• How will smaller markets be served?
• Isn’t total access better for a manufacturer?
Beckmann
53
Not limited to Europeans
• Forcibly locking a vehicle’s serviceability
• High barriers to entry for vehicle service
• Hurting the brand
Beckmann
54
Aftermarket Service Readiness Panel
Q 5: If there are not enough service ready shops and
technicians in the aftermarket today, what is the
strategy to close the gap?
Q&A