Page 35 - Australian Paint & Panel Magazine May-June 2019
P. 35

O’Brien and his team visit a huge number of shops and here are the top 10 office inefficiencies they see on a regular basis.
1Over-staffed offices compared to turnover
2Stressed out/time poor office staff
3Boss chained to the office – can’t go home or on holidays
4One person with all the answers knowledge needs to be shared around
5Cameras with cables
(wasted time spent uploading photos and matching them to the right job)
6 Post-it notes and paperwork everywhere 7 and way behind with Invoicing
Typing estimates manually &/or writing out longhand
8Slow old software that takes forever to respond with features that “don’t work”
9 Workstations with single screens – so much faster with two
Outdated old computers with faded keyboard letters and mouse on a cable
and COGS (cost of goods sold). A body shop can’t budget, for example, purchasing $10,000 worth of paint per month. It’s a meaningless exercise because paint usage varies based on estimate content.
The ratio between paint purchases and paint sales and their trend over 12 months indicates whether the shop uses too much paint compared to sales. Let’s say your benchmark was 22 per cent but constantly trends higher. This means either the esti- mate is too low or paint is being wasted. Another example is panel wages divided by panel sales. Let’s say your benchmark is 33 per cent, but in reality the costs are con- stantly trending higher. Either the estimate is too low, too much overtime is paid or productivity and efficiency are down.
It’s too late to wait until the end of the financial year to discover disappointing profit levels because the horse has bolted. By constantly analysing your numbers there is opportunity to remedy issues be- fore they become real problems. If your ac- counting software can’t present ratios – look around and change your system ASAP.
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