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Obstacle Two; Expecting Short-Term Solutions, BOHICA

 
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Louis Altazan



Joined: 15 May 2007
Posts: 774
Location: Baton Rouge, LA

PostPosted: Sun Jan 13, 2008 9:20 pm    Post subject: Obstacle Two; Expecting Short-Term Solutions, BOHICA Reply with quote

There are very few professional managers in the auto repair trade. This is not to say there are not many people who have had management training. There is however a huge difference in management training and learning a management philosophy.

Most of the training available today is directed at specific issues. For instance how to increase car count, or pay methods that increase production. The problem with this training is it takes a single problem and offers a solution, with no regard for the business as a whole. Also, in order to make it appear effective, it is normally geared to short-term results.

This is understandable, when a manager attends a class, they hope to take what is learned and turn it into additional profit, the sooner the better. Also understandable is, the trainers realize this and their future sales often depend on delivering what is expected. Unfortunately, treating a symptom, without considering the impact to the entire system causes a great deal of problems. Any results are usually short lived and the company is often worse off in a year or so.

As things worsen, the cycle repeats and a new attempt is tried. There is no consistency, no working toward a common long-term aim and the normal result is chaos. Employees in such a company often coin the term BOHICA to describe the results. BOHICA means bend, over, here, it, comes, again. Each new program shares similar promises, all of which are not fulfilled. After a while apathy sets in and the net effect with employees is just go through the motions until this passes.

The Deming philosophy by contrast is all encompassing and can be consistently implemented in every part of the business. For instance leadership point seven. Purchasing of material point four. Removing fear point eight and removing barriers between departments point nine.

Deming taught that every function of management must be consistent with and support the other functions, point one. Marketing must be consistent with training and compensation of employees must be consistent with joy in work and depends on removal of fear. Trying to adopt parts of what Dr. Deming taught and mix it with conflicting practices will not work.

In the past most management in automotive shops has been a mis-mesh of differing approaches, picked up over the years. Without realizing it, this inconsistent approach causes a great deal of the problems in the trade today. A common problem, is the removal of incentive pay without leadership. When production falls rating and ranking of employees is brought in, if it ever ended. The net effect is employees still exhibit the behavior they did with incentives [ratings have the same effect] yet do not produce as well.

Dr. Deming’s philosophy is not just more management training. It is a way for a business to transform itself, an all encompassing, long-term solution. Trying to combine it with conflicting theory or an on-again, off-again approach will never work.

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA
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Bud
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PostPosted: Mon Jan 14, 2008 9:38 pm    Post subject: Re: Obstacle Two; Expecting Short-Term Solutions, BOHICA Reply with quote

The only aspect on this site I find dissapointing is the lack of interest in the Deming forum. But this is where the real knowledge is, the same knowledge that took Japan from a beaten country to a dominant player in the world economy. Surely Deming can earn a average repair shop an extra $100,000 per year.

louis wrote:



Marketing must be consistent with training and compensation of employees must be consistent with joy in work and depends on removal of fear. Trying to adopt parts of what Dr. Deming taught and mix it with conflicting practices will not work.


You obviously have seen a dealership in action. After all, their customers made you wealthy.

louis wrote:
In the past most management in automotive shops has been a mis-mesh of differing approaches, picked up over the years. Without realizing it, this inconsistent approach causes a great deal of the problems in the trade today.


Like comebacks too high, sloppy diagnoses, the blame game in full swing, cars not fixed on time, poor morale, high turnover and a shrinking customer base. Just find the right incentive and punishment plan, that should solve all those problems. Yeah, right.

louis wrote:
Dr. Deming’s philosophy is not just more management training. It is a way for a business to transform itself, an all encompassing, long-term solution. Trying to combine it with conflicting theory or an on-again, off-again approach will never work.

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Louis Altazan



Joined: 15 May 2007
Posts: 774
Location: Baton Rouge, LA

PostPosted: Tue Jan 15, 2008 9:05 am    Post subject: Re: Obstacle Two; Expecting Short-Term Solutions, BOHICA Reply with quote

Bud wrote:
The only aspect on this site I find dissapointing is the lack of interest in the Deming forum. But this is where the real knowledge is, the same knowledge that took Japan from a beaten country to a dominant player in the world economy. Surely Deming can earn a average repair shop an extra $100,000 per year.


This series of post list some of the obstacles to employing the Deming philosophy in a business. An extra $100,000 a year is well within expectation with the transformation that can result. Not only that, but the drudgery of running a business can be turned into something enjoyable. In ten years my company went from $500,000 in annual sales to just over $1,500,000 this year. Strangely I do not work any harder now than I did then and I find the work much more rewarding.

The biggest obstacle, that I did not list, is it takes a lot of work. There is no free lunch. Becoming a great manager is hard, just like becoming a great technician.

Bud wrote:
louis wrote:
Marketing must be consistent with training and compensation of employees must be consistent with joy in work and depends on removal of fear. Trying to adopt parts of what Dr. Deming taught and mix it with conflicting practices will not work.


You obviously have seen a dealership in action. After all, their customers made you wealthy.


Tripling the size of my business in a market that is not growing substantially means the clients came from other businesses. That is the nature of competition. I have done far better than I ever envisioned, when I began.

Bud wrote:
louis wrote:
In the past most management in automotive shops has been a mis-mesh of differing approaches, picked up over the years. Without realizing it, this inconsistent approach causes a great deal of the problems in the trade today.


Like comebacks too high, sloppy diagnoses, the blame game in full swing, cars not fixed on time, poor morale, high turnover and a shrinking customer base. Just find the right incentive and punishment plan, that should solve all those problems. Yeah, right.


Learning to improve is hard, but doing nothing or something ineffective is much harder. The true test of any management philosophy is how it performs over time and how it seamlessly applies to all aspects of the business. For me, Deming has performed well for twenty year and extremely well in the last ten. The nature of the theory is that the results are cumulative. That is each improvement builds on the next and the longer it is used the better the result. Contrast this with competing theory that appears to help for a while and then gets worse.

louis wrote:
Dr. Deming’s philosophy is not just more management training. It is a way for a business to transform itself, an all encompassing, long-term solution. Trying to combine it with conflicting theory or an on-again, off-again approach will never work.


Thanks Bud, I appreciate your comments.

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA
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Dave



Joined: 19 May 2007
Posts: 206
Location: Camp Verde, AZ

PostPosted: Thu Jan 17, 2008 10:22 am    Post subject: Re: Obstacle Two; Expecting Short-Term Solutions, BOHICA Reply with quote

louis wrote:
There are very few professional managers in the auto repair trade. This is not to say there are not many people who have had management training. There is however a huge difference in management training and learning a management philosophy.

I am starting to learn there is a difference. This difference is probably the biggest reason our industry is in the state that it is.

louis wrote:
Most of the training available today is directed at specific issues. For instance how to increase car count, or pay methods that increase production. The problem with this training is it takes a single problem and offers a solution, with no regard for the business as a whole. Also, in order to make it appear effective, it is normally geared to short-term results.

This is understandable, when a manager attends a class, they hope to take what is learned and turn it into additional profit, the sooner the better. Also understandable is, the trainers realize this and their future sales often depend on delivering what is expected. Unfortunately, treating a symptom, without considering the impact to the entire system causes a great deal of problems. Any results are usually short lived and the company is often worse off in a year or so.

Car sales are slow so one of the local dealers in bringing in a team of "expert salespeople" (cutthroats). The normal salespeople are forced to take time off. The cutthroats will promise anything to sell a car. They will be long gone when the customer is back at the dealership complaining that what they were told is not true.

This article has made a lot of sense to me. I can see what you are saying. Through this website I am starting to see where others are making mistakes. Next I need to find the mistakes I am making and change them. Now the toughest part comes, actually doing the work, implementing what is learned, and changing.

Thanks Louis !!!

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David Wittmayer
Owner / Manager
Hansen Enterprises Fleet Repair, LLC
Camp Verde, AZ
www.hefrshop.com
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