Problem Statement
- The client is a multi-location dealer for luxury vehicles with one of his workshops in Gurugram.
- Despite getting a reasonable load (76% retention), revenue per throughput was lower than other locations and much below the All-India average.
- Client engaged Ambit Collective to carry out a focussed review of the entire workshop operations and identify the root cause.
What did we do
We carried out a detailed review with the help of a techno-commercial team which helped identify the following:
- No process for how returns would be handled by the gate; Vehicles exited on unauthorised manual gate passes; no SR had been opened
- No process for review of estimates for exits without any work done
- Cashier did not have access to DMS, thus precluding him from verifying if there were any open SRs on the vehicle
- Performa invoices could be edited multiple times without changing serial number of the pre invoice and edit logs were not maintained.
No checks in place to identify breaches such as (but not limited to):
- Vehicles in premises without an SR or closed SR
- Parts / labour not charged for work agreed with customer
- Vehicles exiting on unapproved cancelled SRs /Gate Passes
Outcome
- Developed a process rule book and monitored compliance for a period of 9 months.
- Disclaimer sought from customers for refusal of critical repairs resulting in 37% improvement in revenue per Throughput
- Vehicle returning without work done reduced from 21% to 4% (of Gate-IN)
- Gate register for entry and exits combined resulting in no unrecorded entries