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LEAN Six Sigma Solutions within Automobile Dealerships

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Automobile manufacturers have transformed there business operations by implementing LEAN Six Sigma over the last 20 years yet automobile dealerships have remained virtually untouched by LEAN Six Sigma. Automobile dealerships and service and parts departments that have implemented LEAN Six Sigma Best Practices have experienced a doubling of throughput, an increase in productivity of 50% or more, and returns on sales several times the industry norm.

  •  ‘Customer fulfilment’ – getting the service right the first time and on time for customers has led to greater customer satisfaction review, word-of- mouth recommendation and increase operations effectiveness.
  •  The involvement and commitment of staff – has led to greater job satisfaction, higher staff retention and productivity and better customer service.
  •  The returns for shareholders – by progressively eliminating non-value-creating activity, without major investment in IT, staff numbers, machinery or facilities.


National Automobile Dealers Association (NADA) 

NADAData 2014 Report CoverThe National Automobile Dealers Association (NADA) 2014 Annual Financial Profile Report of America’s Franchise New-Car Dealerships —shows a robust and highly competitive industry with dealerships selling or leasing more than 15.5 million new cars and light trucks in 2013, up 7.5 percent from the year before, along with 351,737 new medium- and heavy-duty trucks, up 1.7 percent from the previous. Service and parts work accounted for 11.6 percent of dealerships revenue, up 4.8 percent from the previous.

Although profitability in service and parts were up from the previous year, service work, whether for warranty repairs or a quick oil change, is an integral part of dealership customer service, operations, profitability.  The question too many dealership owners and service department managers “What is the best strategy for increasing customer service expectations and operations excellence?

We propose the following to gain a baseline of operations effectiveness of your facility:

  • Value Stream As-Is Process
  • 6S – Visual Workplace
  • Kanban of RIP, WIP & FG
  • Scheduling based upon Takt time–including proper staffing
  • Value Stream Mapping–based upon common work groupings
  • Workplace Triage–based upon time based auto repair job content (time and effort based)
  • Poka Yoke–ensuring quality work and one touch resolution is achieved
  • Standardized work–continuous improvement baseline

By allowing iSigma Group to work with your team, we can help answer these and many other questions arising from Automobile Dealership Excellence.


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