ESSENTIALS OF PARTS OPERATIONS
Monday January 1, 2018
The “Essentials of Parts Operations” course begins with a brief check of profitability in the Parts Department. Since national research shows that most Parts Departments are profitable, this course goes beyond the Financial Statement and considers the ROI created by Parts inventory turnover. Using their own system reports, each learner will be able to calculate obsolete inventory – a metric they wouldn’t even know using standard measurements. With this new information, the course builds to an explanation of “stocking parts correctly” based on their current inventory situation. Supporting the Service Operations is emphasized as learners create actionable plans to improve Service Department integration. The course also touches on technical subjects by defining variance and showing learners how they can eliminate variance by using specific “motion identifiers” that are checked daily, instead of using traditional annual audits. A final case study brings the entire course together by helping learners determine next steps for implementing best practices in their Parts Department.
- OEM Dealer Contact Personnel
- Parts management, including Parts Inventory Managers and Fixed Operations Managers
- Parts Counterpersons aspiring to be future Managers
- General Managers
- Sales, Gross, and Return on Investment (ROI)
- Stocking the “correct” inventory
- System setups: Phase-In, Phase-Out, Depth, and Breadth
- Lost sales analysis
- Reducing obsolete inventory
- Specific new ways to support the Service Department
- Market strategy for accessories and tire sales
- Defining consequences of Inventory Variance
- Daily “Motion Identifiers” to check for eliminating Variance
- Dealership Financial Statement, pre-class input sheet, or sample statement provided
- Parts month-end reports
- System inventory setups and/or Specifications Listing report
- Inventory Aging report
- Evaluate a Parts Department by utilizing numbers from the Financial Statement to discover profitability.
- Create a defined process for special ordering of parts for customers to reduce non-stock aging.
- Propose ways to incorporate Service Department best practices to better support departmental operations and profits.
- Establish a daily process to review reports to be proactive towards detecting inventory Variance.