Creating the Lean Car Dealer

David Brunt

ICDP Forum 1999

 Creating the Lean Car Dealer
A Value Stream Mapping Workshop
Purpose
) To introduce how lean can be applied in a
service organisation
Through applying 5 Lean Principles
) To share a road map for implementation
 Presentation Framework
Agenda
) Introduction & Industry Background
) Value & Waste applied to the dealer
) A Value Stream Map for servicing a car
) How manufacturers and dealers can
achieve the change
) Conclusion
 Presentation Framework
Agenda
) Introduction & Industry Background
) Value & Waste applied to the dealer
) A Value Stream Map for servicing a car
) How manufacturers and dealers can
achieve the change
) Conclusion
 Autos: The Industry of
Industries
) A hugely competitive industry
) A soap opera where its business
leaders are celebrities
) Where companies spend millions to
create and preserve their brands
) The industry where lean production
cant be questioned!
 Autos: The Industry of
Industries
) No such thing as a bad car
) Much wider choice basket for consumer
) Therefore customer interface (selling &
servicing) plays an increasingly vital role
) As does competitive pricing
which demands competitive cost How?

Better service at lower cost

 Lean Production
) Toyota has been using the Toyota Production
System to improve quality, service and
reduce cost for decades
Its competitors have tried to apply the tools &
techniques as well
) It has been applied systematically through
the supply base upstream and the Parts
system downstream of the assembly plant
Highest service level, fastest response, highest
productivity and lowest stock
 Lean Dealer
) Despite this success, Dealer Processes are still difficult to
manage
) Often run by individuals or anonymous groups
) Hampered by complex computer systems, staff skills
issues, staff turnover, etc. etc.
And Dealers have to deal with end customers & people from
head office!!
) In an industry where lean production cant be questioned
& the customer interface (selling & servicing) plays an
increasingly vital role . this is not good!
) So, do the Lean Principles apply to all the
dealer processes?
 Lean Thinking
A Refresher
) Specify what creates value from the
customers perspective
) Identify all steps across the whole
value stream
) Make those actions that create value
flow
) Only make what is pulled by the
customer just-in-time
) Strive for perfection by continually
removing successive layers of waste
 Presentation Framework
Agenda
) Introduction & Industry Background
) Value & Waste applied to the dealer
) A Value Stream Map for servicing a car
) How manufacturers and dealers can
achieve the change
) Conclusion
 What Consumers Want
) How the industry sees it

New Used Service Parts Body

 What Consumers Want
) How they see it

Mobility

Acquisition Maintenance
 Value
- in the Eyes of the Consumer
Acquisition Maintenance
) The right car in the ) Fixed right first
right place at the time on time
right time ) At the right price
) At the right price Customer
Fulfilment
Quality &
Delivery
Not Measured!
 Value:
Extending the Concept
Right First Ease of the
Time Event

Quality &
Convenience
On Time Delivery
Acceptable Distance,
Price Time,
Remembering,
etc.
Service

How Information,
customers Care,
are treated Consideration

Ref: J.S. Kiff, International Car Distribution Programme (ICDP)

 Value and Its Flipside:
) Value - what customer wants to pay for
) Wastes: The Flipside of Value:
Not needed at all
in doing the work
) Waiting
Net Work ) Transport
) Sorting
Waste ) Rework

Worker No added value

Movement
but must be done
Value Added ) Walking to
Work another location to
receive parts
Non-Value Added Work
) Removing
packaging
) Removing parts
from a pallet

Ref: Taiichi Ohno (1988): Toyota Production System

 Wastes
(Things that dont add value from the customers perspective)

How many of you

) Re-do cars or jobs ) Re-input data on DMS
) How much
or paperwork does enough space
) Havent
) it cost???
Search for tools, Parking workshop cars
parts or equipment Old equipment / tools
) Clean cars twice + ) Buy in batches, then

) Move carsLean is simply

on site about
) write off stock
)
eliminating
Wait for the next job )waste
Pay customers to take
to release resource
the wrong car
 Presentation Framework
Agenda
) Introduction & Industry Background
) Value & Waste applied to the dealer
) A Value Stream Map for servicing a car
) How manufacturers and dealers can
achieve the change
) Conclusion
 Helps us see flow

Value Stream Mapping

) Follow a products production path from beginning to end

and draw a visual representation of every process in the
material & information flows
) Then draw (using icons) a future state map of how value
should flow
VALUE STREAM: All the steps, VA & NVA, required
to bring the product from raw material to customer
 VSM from Learning to See

Process Inventory
Box Push

Data
Box
 What are Your Value Streams?
Suppliers R&D Manufacture Assembly Distribution Customers

Secondary Primary
Support the Primary
What people pay for
Value Streams
Manufacture

Distribution

Develop Manufacture Assemble

Distribution

Marketing Sub Assemble HR

Using the Value Stream Mapping Tool

Product Family

Understanding how the

Current State Drawing value stream currently
operates

Future State Drawing Designing a lean flow

Work Plan
 Focus on One Product Family
We often think
) Determine product/service families via every job is
Similar downstream steps & equipment different
Process Steps & Equipment
Service Book in Cust. Order Work- Test Cust.
Valet Invoice
Letter Car Meetg Parts shop Car H-over

Service
X X X X X X X X X
Products/Services

(car dropped off)

Repair
(car dropped off) X X X X X X X
Service
(loan car) X X X X X X X X X
Repair
(loan car) X X X X X X X
Service
(collect / deliver) X X X X X X X
Repair
(collect / deliver) X X X X X
Breakdown
(service provider del.) X X X X X
 Distribution of Time Taken per Job
35

30

25
Time (Hours)

20

15

10

0
Jobs
Planned Taken
 Cumulative Time Taken per Job
400

350

300
Time (Hours)

250

200

150

100

50

0
Jobs
Cumulative Planned Time Cumulative Taken Time
 Cumulative Frequency
120.00%

100.00%

80.00%
Occurrences

60.00%

40.00%

20.00%

0.00%

Hours
Cumlative %age (Planned) Cumlative %age (Actual)
 Current State Drawing
Understanding how the process
Product Family currently operates
) Material & information flows
Current State Drawing
) Draw using icons
) Start with the door to door
flow
Future State Drawing ) Have to walk the flow & get
actuals
No standard times
Work Plan Draw by hand, in pencil
) Foundation for the
Future State
 1 Day 1 Day
5 Mins
Service Reminder
Service Reception
Manufacturer Appointment
Parts Warehouse 3SA, 1 Books

Booking C/T 5 Mins

Drop off C/T 10 Mins

Inform Parts
Cost & Inform
C/T
9 Mins Customer Requirements
A/W Cars 1-7 years old
Invoice 1,2,3,4 Class, 1500 hours
Cycle Min sold/month.
A/W Time
5
s Lead Time = 7 Days
50% Service, 20%
Parts Workshop Control Service & Repair, 20%
Warranty, (20% of all
jobs have MOT), 10%
Breakdowns
Reserve
C/T
5
Min
s Give Job C/T 5 Mins Time up Job
Min Cycle Min
A/W C/T 5 A/W Job C/T 3 Mins 10
s A/W Time s
A/W Inf C/T 1 Mins

Additional Work
(A/W)

Park Car Inspect Car Carry out Road Test Valet Handover
Work
s

Cars Cars Cars Cars Cars

Cycle Min Cycle Min Cycle Min Cycle Min Cycle Min Cycle Min
5 15 50 15 20 10
Time s Time s Time s Time s Time s Time s
95 Mins 34 Mins 32 Mins 32 Mins 15 Mins
Distance 30 m Distance 30 m 240 Distance 120 m 240 240 Distance 30 m 240

5 Mins 95 Mins 34 Mins 32 Mins 32 Mins 15 Mins

240 240 240 240
15 Mins 50 Mins 15 Mins 20 Mins 10 Mins
 Customer Requirements
Cars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days
50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
Current State
GO
CUSTOMER CUST.
AHEAD

CT=2 min
BOOK
ADMIN.
IN
1 A/W510
3 min
CT=5 min DROP
SERVICE COST & HAND
Dist.= 0 OFF CAR INFORM INVOICE
ADVISOR Q = N/A INFORM OVER
3 A/W510
CT=10 min
CT=5 min CT=2 min CT=5 min CT=10 min
Dist.=30m
ON SITE PARK Del.=N/A
Q = N/A
DRIVER CAR Q = N/A
1 A/W510
CT=5 min
2 min 1 min
WORKSHOP Dist.=30m GIVE TO TIME GIVE TO GIVE TO TIME
CONTROL INFORM
Q = N/A TECH JOB TEST VALET UP
1 A/W510
90 min CT=15 min CT=3 min CT=2 min CT=2 min CT=2 min CT=10 min
TECHS. INSPECT GET
DO JOB
+ A/W PARTS
10 A/W510 1 min
TECH
CT=15 min CT=1 min CT=60 min
TESTER Dist.=30m Dist.=120m Dist.=120m TEST
Q = N/A Q = N/A Q = N/A
1 A/W510
30 min CT=15 min
VALET Q = N/A VALET

2 A/W510 5 min
30 min CT=20 min
PARTS CT=5 min CHECK CT=5 min Dist.=30m
PARTS
RESERVED Dist.=30m STOCK Dist.=0m Q = N/A
2 A/W510 Q = N/A Q = N/A
 Customer Requirements
Cars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days
50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
Current State
VA NVA

GO
CUSTOMER CUST.
AHEAD

CT=2 min

ADMIN.
BOOK 0 5
IN
1 A/W510
3 min
DROP
20 12
CT=5 min
SERVICE COST & HAND
Dist.= 0 OFF CAR INFORM INVOICE
ADVISOR Q = N/A INFORM OVER
3 A/W510
CT=10 min
CT=5 min CT=2 min CT=5 min CT=10 min
Dist.=30m
ON SITE
DRIVER Q = N/A PARK 0 5
Del.=N/A
CAR Q = N/A
1 A/W510
2 min 1 min
0 34
CT=5 min
WORKSHOP Dist.=30m GIVE TO TIME GIVE TO GIVE TO TIME
CONTROL INFORM
Q = N/A TECH JOB TEST VALET UP
1 A/W510
90 min CT=15 min
65 16
CT=3 min CT=2 min CT=2 min CT=2 min CT=10 min
TECHS. INSPECT GET
DO JOB
+ A/W PARTS
10 A/W510 1 min
TECH
15 2
CT=15 min CT=1 min CT=60 min
TESTER Dist.=30m Dist.=120m Dist.=120m TEST
Q = N/A Q = N/A Q = N/A
1 A/W510
30 min
20 2
CT=15 min
VALET Q = N/A VALET

2 A/W510 5 min
30 min CT=20 min

PARTS
PARTS CT=5 min CHECK CT=5 min Dist.=30m 0 11
RESERVED Dist.=30m STOCK Dist.=0m Q = N/A
2 A/W510 Q = N/A Q = N/A 12087
5 min 15 min 15 + 3 + 5 + 5 + 2 + 2 + 1 7 min 7 min 15 min
10 min 15 min 50 min 15 min 20 min 10 min
 Customer Requirements
Cars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days
50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
Current State
VA NVA

GO
CUSTOMER CUST.
AHEAD

CT=2 min

ADMIN.
BOOK 0 5
IN
1 A/W510
3 min
DROP
20 12
CT=5 min
SERVICE COST & HAND
Dist.= 0 OFF CAR INFORM INVOICE
ADVISOR Q = N/A INFORM OVER
3 A/W510
CT=10 min
CT=5 min CT=2 min CT=5 min CT=10 min
Dist.=30m
ON SITE
DRIVER Q = N/A PARK 0 5
Del.=N/A
CAR Q = N/A
1 A/W510
2 min 1 min
0 34
CT=5 min
WORKSHOP Dist.=30m GIVE TO TIME GIVE TO GIVE TO TIME
CONTROL INFORM
Q = N/A TECH JOB TEST VALET UP
1 A/W510
90 min CT=15 min
65 16
CT=3 min CT=2 min CT=2 min CT=2 min CT=10 min
TECHS. INSPECT GET
DO JOB
+ A/W PARTS
10 A/W510 1 min
TECH
15 2
CT=15 min CT=1 min CT=60 min
TESTER Dist.=30m Dist.=120m Dist.=120m TEST
Q = N/A Q = N/A Q = N/A
1 A/W510
30 min
20 2
CT=15 min
VALET Q = N/A VALET

2 A/W510 5 min
30 min CT=20 min

PARTS
PARTS CT=5 min CHECK CT=5 min NVA
Dist.=30m 0 11
82 min
RESERVED Dist.=30m STOCK Dist.=0m Q = N/A
Q = N/A Q = N/A VA 120 min12087
2 A/W510
5 min 15 min 15 + 3 + 5 + 5 + 2 + 2 + 1 7 min 7 min 15 min
10 min 15 min 50 min 15 min 20 min 10 min
 Customer Requirements
Cars 1-7 years old 1,2,3,4 Class, 1500 hours sold/month.
Lead Time = 3 Days
50% Service, 20% Service & Repair, 20% Warranty, (20% of all jobs have
MOT), 10% Breakdowns
Current State
VA NVA

le GO
CUSTOMER CUST.
Availabrs? AHEAD
a
Loan C for
Delay ation
is CT=2 min
BOOK ect
Incorr sis Author 0 5
ADMIN. o
IN Diagn
1 A/W510
ect
3 min Incorr g
CT=5 min DROP Bill in 20 12
SERVICE lt COST & HAND
ADVISOR
Dist.= 0 OFF CAR Difficuk INFORM
INFORM INVOICE
OVER
Q = N/A
to P ar
3 A/W510
CT=10 min
CT=5 min CT=2 min CT=5 min CT=10 min
king
No Par es
Dist.=30m
ON SITE PARK rd 0 5
Del.=N/A
DRIVER Q = N/A
C ar H a d or Spac
Wait frson
CAR Q = N/A
to Fin or
1 A/W510 Wait frson N e xt P
e
2 emin 1 min
N e xt P
0 34
CT=5 min
WORKSHOP Dist.=30m GIVE TO TIME GIVE TO GIVE TO TIME
CONTROL INFORM
Q = N/A TECH JOB TEST VALET UP
1 A/W510
90 min CT=15 min
65 16
CT=3 min CT=2 min CT=2 min CT=2 min CT=10 min
TECHS. INSPECT GET
DO JOB
for
+ A/W
Delay ation PARTS or
Wait f r
is 1 min
Author
10 A/W510
TECH Tes te
15 2
CT=15 min CT=1 min CT=60 min
TESTER Dist.=30m Dist.=120m Dist.=120m TEST
Q = N/A Q = N/A Q = N/A
or
1 A/W510 Wait f for
Parts Searchls 30 min
Too 20 2
CT=15 min
VALET Q = N/A VALET
ot
Parts n le
2 A/W510 Availab Parts
g
5 min
Waitin 30ormin
Wait f
CT=20 min

PARTS
PARTS CT=5 min CHECK CT=5 min
Valet
NVA
Dist.=30m 0 11
82 min
RESERVED Dist.=30m STOCK Dist.=0m Q = N/A
Q = N/A Q = N/A VA 120 min12087
2 A/W510
5 min 15 min 15 + 3 + 5 + 5 + 2 + 2 + 1 7 min 7 min 15 min
10 min 15 min 50 min 15 min 20 min 10 min
 Future State Questions
) What is the Takt Time?
) Where can we use continuous flow
) Where do we have to use supermarket pull systems?
) At what single point in the production chain do we
trigger production?
) How do we level the production mix at the
pacemaker process?
) What increment of work will we release and take
away at the pacemaker process? (levelling the
volume)
Supporting Improvements
) What process improvements will be necessary?
(e.g. uptime, changeover & training)
 TAKT Time
1st 2nd 3rd 4th
Totals
Year Year Year Year
Available Time
Work Time
480 min
Required
60 90 120 240
No. of Jobs
Demand 30 cars
Booked in
4 3 2 2
34% of Total Time
Demand
10 cars
Booked in
240 270 240 480 1230
Standard No. of
Time Slot
30 min
Work Cycles
8 9 8 16 41

TAKT Time 60.0 53.3 60.0 30.0 11.7

Manpower 0.5 0.6 0.5 1.0 2.6
 Physical Flow After Sales Future State Value Stream
Information Flow
CUSTOMER

SERVICE
ADVISOR

P/D
TECHN.

TIME KEYS
PLANNING 1
2
3

TECHS. TECHNICIAN TECH

CT=60 min
Dist.=60m
VALET Q = 99%

PARTS
 Physical Flow After Sales Future State Value Stream
Information Flow
CUSTOMER

SERVICE
ADVISOR

P/D
TECHN.

TIME KEYS
PLANNING 1
2
3

TECHS. TECHNICIAN TECH

CT=60 min
Dist.=60m
VALET Q = 99%

PARTS PARTS

PARTS
 Physical Flow After Sales Future State Value Stream
Information Flow
CUSTOMER CUSTOMER

SERVICE
BOOKING
ADVISOR
PDT
CT=5 min
P/D Dist.= 0 PRE-
TECHN. Q = 100% DIAGNOSIS

CT=30 min TIME KEYS

PLANNING Dist.= 0 1
Q = 100% 2
3

TECHS. TECHNICIAN TECH

CT=60 min
Dist.=60m
VALET Q = 99%

PARTS PARTS

PARTS
 Physical Flow After Sales Future State Value Stream
Information Flow
CUSTOMER CUSTOMER

SERVICE
BOOKING
ADVISOR
PDT
CT=5 min
P/D Dist.= 0 PRE-
TECHN. Q = 100% DIAGNOSIS

CT=30 min TIME KEYS

PLANNING Dist.= 0 1
Q = 100% 2
3

TECHS. TECHNICIAN TECH

VALET

CT=60 min
Dist.=60m
VALET VALET
Q = 99%

CT=20 min
Dist.=60m
PARTS PARTS
Q = 100%

PARTS
 Physical Flow After Sales Future State Value Stream
Information Flow
CUSTOMER CUSTOMER

SERVICE
BOOKING INVOICE HANDOVER
ADVISOR
PDT
CT=5 min CT=5 min CT=10 min
P/D Dist.= 0 PRE-
Del.=N/A
TECHN. Q = 100% DIAGNOSIS
Q = N/A

CT=30 min TIME KEYS

PLANNING Dist.= 0 1
Q = 100% 2
3

TECHS. TECHNICIAN TECH

VALET

CT=60 min
Dist.=60m
VALET VALET
Q = 99%

CT=20 min
Dist.=60m
PARTS PARTS
Q = 100%

PARTS
 Physical Flow After Sales Future State Value Stream
Information Flow VA NVA

CUSTOMER CUSTOMER

SERVICE 10 10
BOOKING INVOICE HANDOVER
ADVISOR
PDT
CT=5 min
P/D Dist.= 0 PRE-
CT=5 min CT=10 min
30 0
Del.=N/A
TECHN. Q = 100% DIAGNOSIS
Q = N/A

CT=30 min TIME KEYS 0 0

PLANNING Dist.= 0 1
Q = 100% 2
3

60 0
TECHS. TECHNICIAN TECH
VALET

CT=60 min
Dist.=60m 20 0
VALET VALET
Q = 99%

CT=20 min
Dist.=60m
PARTS PARTS
Q = 100% NVA 145 min

PARTS VA 120 min120 10

5 min
5 min 6060
min
min 6060
min
min 2020
min
min
3030
min
min 6060
min
min 2020
min
min 1010
min
min
 1 Day 1 Day 5 Days
5 Mins
Service Reminder

Service Reception
Manufacturer Appointment
Parts Warehouse 3SA, 1 Books Arrival
Booking C/T 5 Mins

Drop off C/T 10 Mins

Customer Requirements
Cars 1-7 years old
Inform Parts 1,2,3,4 Class, 1500 hours
sold/month.
Lead Time = 7 Days
50% Service, 20%
Service & Repair, 20%
Warranty, (20% of all
Parts Appointment jobs have MOT), 10%
Slots Breakdowns

Reserve
C/T
5
Min
s Time up &
A/W C/T 5
Min OXOX Invoice
s

Cycle Min
15
Time s

Additional Work
(A/W)
0-4

Pre Carry out Valet Handover

Diagnose 4-8 Work FIFO x3 FIFO
+ Road Test
Cycle Min Cycle Min Cycle Min Cycle Min
15
30 8+ 60 20 10
Time s Time s Time s Time s
Distance 30 m Distance 120 m Distance 30 m

5 Mins 95 Mins 60 Mins 20 Mins 60 Mins

30 Mins 60 Mins 20 Mins 10 Mins

 Presentation Framework
Agenda
) Introduction & Industry Background
) Value & Waste applied to the dealer
) A Value Stream Map for servicing a car
) How manufacturers and dealers can
achieve the change
) Conclusion
 Work Plan & Implementation
Detailed plan of how to get there
Product Family
) Step by step - when, what, who
) Clear review points
Current State Drawing Real deadlines
Named reviewers (clear responsibility)
Reviewable deliverables
Future State Drawing
) Able to see if we are behind or ahead
) Contract - a commitment to
Work Plan
accomplish something by a specific
time
 Value Stream Loops
Physical Flow
Information Flow VA NVA

CUSTOMER CUSTOMER

SERVICE
BOOKING INVOICE HANDOVER 10 10
ADVISOR

Booking & PDT Invoice &

P/D Pre-Diagnosis
CT=5 min
Dist.= 0 PRE- Loop Handover Loop
CT=5 min CT=10 min
Del.=N/A
30 0
TECHN. Q = 100% DIAGNOSIS
Q = N/A

CT=30 min TIME KEYS

PLANNING Dist.= 0 1 0 0
Q = 100% 2
3
Technician Loop
TECHS. TECHNICIAN TECH 60 0
VALET

CT=60 min
Valet Loop
VALET
Dist.=60m
VALET 20 0
Parts Loop Q = 99%

CT=20 min
Dist.=60m
PARTS PARTS NVA 145 min
Q = 100%

PARTS VA 120 min12010

5 min
5 min 6060
min
min 6060
min
min 2020
min
min
3030
min
min 6060
min
min 2020
min
min 1010
min
min
 Date: 20/12/02 Signatures
Site Manager Dave Johnson Yearly Value Stream Plan: After Sales
Site Manager Sales After Sales Parts
Value Stream
Manager Harry Bamford D. Johnson T. Plant H. Bamford A. Harvey

Monthly Schedule Review Schedule

Value Related
Person
Site Level Objective Stream No Value Stream Objective Goal (Measurable) Individuals/
Responsible Reviewer DJ Reviewer DJ
Loop
1 2 3 4 5 6 7 8 9 10 11 12 Departments
Date Date

Develop flow in after TAKT = 39 Mins

1.1 sales to TAKT & 30
minute slots 2 Technicians H. Bamford
Adm Parts
SA Tch Wco 31.3 31.5
Develop pull system 1 car WIP
31.3
Sales, Parts
1.2 from car park T. Kent
SA, Val 31.5
Eliminate searching 100%
1
1.3 for tools Productivity H. Whittle Tch Wco
28.2 31.5
Technician
Eliminate waiting for 100%
1.4 workshop control
30.4
Productivity S. Wilson Tch, Wco
31.5
Eliminate waiting for Reduce additional
30.4
Wco, Tch,
1.5 authority work sheets by S. Wilson
50%
SA, Parts 31.7
Develop pull for parts 100%
30.4
Parts, Tch,
1.6 Productivity A. Harvey
Wco 31.5
Develop a proactive 100% of jobs
2.1 booking process
31.3
T. Kent SA, Adm
30.4
right first time, on 2 Pre diagnose to a 50% of cars
time, at the right Booking 2.2 standard cycle time with
& the customer
30 Mins C/T S. Wilson Tch, Wco
31.3 31.5
price.
Pre-
Quality = 99% 100% of jobs
28.2
Pre-diagnose on Tch, Wco,
Dia- 2.3 collection & delivery cars H. Whittle
Delivery gnosis
SA 31.5
on Time = 91%
Develop planning 100%
30.4
Productivity = 100% 2.4 board Productivity S. Wilson Tch, Wco
Lead Time = 3 days
31.5
Pre-pick parts for TAKT = 39 Mins
3
3.1 each job to TAKT 1 parts person A. Harvey Parts
30.4 31.5
Parts Deliver parts to 99% parts Parts, Wco,
3.2 technician availability A. Harvey
Tch 31.5 30.6
100% of cars
4.1 Valet to a standard 20 Mins C/T B. Cox Val, Wco 31.7
4 cycle time 30.9
Valet Develop handover parking 100% of cars Sales, Parts
4.2 area for finished cars T. Kent
SA, Val 31.7 30.9
Eliminate billing 100% accurate Wco, Tch,
5.1
errors
T. Kent
SA, Parts, Fi 31.10 31.11
5 C/T = 15 Mins
Invoice & 5.2 Allocate handover T. Kent SA 31.10
Handover slots 100% of customers 31.11
C/T = 15 Mins
5.2 Minimise debtors list 100% of customers H. Bamford SA, Fi 31.11

Proposed Start Actual Start Review On Target

Proposed Completion Actual Completion Review Complete Behind Target
X Trouble
Implementation via Point Kaizen
Eraser

Future State Map

Process

Point
Kaizen
 But How do we Really Implement
& Sustain a Change?
) Develop a cadre of dealers from a network
Six dealers per club
Drive improvement through competition within the
group
) Teach these pioneers to see their business as
a series of processes
Measure how well these processes deliver what
customers want
Look at the costs and time spent fixing processes
that dont work
) And recognise that the answer is to redesign
each process not push people harder!
 Progress Measure
) Time will tell
) Progress will be evident from
Dealers attitudes and efforts, and
Level of change achieved
) whether theyll become self-sustaining
) i.e. motivated to continuously improve:
Processes
Knowledge of Lean tools & techniques
) Once there are some examples it will be
easier for others to follow
 Presentation Framework
Agenda
) Introduction & Industry Background
) Value & Waste applied to the dealer
) A Value Stream Map for servicing a car
) How manufacturers and dealers can
achieve the change
) Conclusion
 Creating the Lean Car Dealer
A Value Stream Mapping Workshop
Purpose
) To introduce how lean can be applied in a
service organisation
Through applying 5 Lean Principles
) To share a road map for implementation
 Conclusion
) Always start with the principles
Teach your own people how to add value &
eliminate waste
) Design the system so that value flows & so
that problems can be flushed out
People need to be able to solve rather than be
blamed for problems
) Today nobody has to do this.unless one
of your competitors starts.then the
agenda will change from if to how as
it did in manufacturing over 10 years ago
Creating the Lean Car Dealer

David Brunt

ICDP Forum 1999

 Biography
Davids journey down the lean path started in the automotive industry at Rolls-Royce Motor Cars
where he held a number of roles in the fields of Purchasing, Supplier Development, Quality and
Customer Service. In 1993, his interest in Lean Thinking led to studying for the part-time MBA in
Supply Chain Management at Cardiff Business School under the guidance of Professor Daniel T.
Jones.
He joined the Lean Enterprise Research Centre at Cardiff Business School as a Senior Research
Associate in February 1997 to further research, develop and implement lean principles. There he
was involved in a number of research projects:
The Lean Processing Programme (LEAP), a three-year initiative focused on mapping steel to component value streams to
identify significant gains in competitive advantage for the UK upstream automotive industry.
Projects with individual firms to research and apply Lean Thinking outside the automotive industry in areas such as FMCG
and non-automotive based manufacturing.
The International Car Distribution Programme (ICDP), the world leading co-operative research programme into the future
of car distribution and retailing. Research focussed on the application of Lean Thinking to car distribution and car
dealerships.
In addition, David has written a number of reports and publications including Supply Chain Management And The British
Metals Industry for The Metals Industry Competitive Enterprise (MICE) and the book Manufacturing Operations and
Supply Chain Management The Lean Approach with David Taylor.
In 2001 he took up the part-time role of PVP (Porsche Improvement Process) Manager at
Porsche Cars Great Britain. At Porsche, David has carried out work to develop lean in after sales,
used car processing and the parts operation as well as conducting a number of other business
process improvement projects.
David has helped Dan Jones set up the Lean Enterprise Academy (LEA) a non-profit Academy
established to develop knowledge of Lean Thinking and its implementation and to disseminate
this knowledge through publications and workshops. He currently divides his time between work
for LEA, ongoing research with ICDP and helping firms make a lean transformation.
David can be contacted at:
The Lean Enterprise Academy, 17, Church Street, Ross-on-Wye, Herefordshire. HR9 5HN
+44 1989 764440, +44 7703 538083 (M), or by e mailing dave@leanuk.org www.leanuk.org