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Software Solutions For The Shop: Job Tracking Programs and More

By Ed Sunkin

Although computers began to make their way into the automotive aftermarket in the early to mid-1970s, only recently are rebuilders beginning to realize the benefits of shop management software for their businesses.

One example of how shop software improves shop productivity can be found with job tracking programs. Job tracking allows managers to see the progress of jobs from start to finish without having to continuously watch over their employees. Steve Hekman, manager of Burlingame Engines, Grand Rapids, MI, said he created his own job tracking software program called The Work Planner to aid in his shop's production efficiency. "This program takes shops from the lengthy process of writing job tickets on a legal pad everyday to the next level," Hekman said.

Hekman explained what happens in a lot of shops is a machinist is ready to assemble some engines and finds the heads for one engine aren't finished, the rods aren't done for another one, and a crank is missing for the third. "In order to keep everybody busy, another engine is torn down and the problems just compound," Hekman said. "Pretty soon you have iron all over the place."

Hekman said The Work Planner, which schedules jobs in four-day cycle completion times, was developed out of experience ñ and necessity. Hekman said his program, designed for the three- to 10-man shops, is considered a narrow niche software that isn't designed to archive information or store data beyond the completion of the engine work. "It's purely a manager and supervisor tool to make the work on jobs more effective," Hekman said, adding the program updates the data for engines in the system as each job is completed.

Hekman said The Work Planner for Windows®, developed about four years ago, is available for sale through Automotive Management Solutions, Grand Rapids, MI. "Keeping track of what jobs are going on is a process exerted by thousands of rebuilders everyday," Hekman said. "The Work Planner has shortened our production cycle time from five to six days to build a motor to three to four days. There's plenty of other shops out there that could benefit from this program."

Hekman said before buying The Work Planner, which is now offered in version 3.0, one shop owner in Texas would arrive at work at 5 a.m. and spend two hours each morning writing up job tickets for his employees. "Since buying The Work Planner, it now only takes him minutes to do what used to take him two hours," Hekman said.

In recent years, the increase of computerization in shops has had an impact on many rebuilders ñ just ask Darrel Akins of San Leandro, CA. When we last spoke with Akins in October of 1992, he was owner of Miller & Hodges Machine, a one-man engine rebuilding operation that had purchased a computer for his shop in the mid-1980s. Akins said adding the computer had changed his shop life, allowing him to write job estimates in just seconds as compared to the 20 to 30 minutes it took before computerization.

In fact, computerization changed his life even more. Akins left the machine shop business about two years ago and now provides a computerized manufacturer inventory service to rebuilders. Akins said the idea of his service came while working as a rebuilder, receiving parts catalogs and pricing disks from manufacturers. Akins said with each update, there seemed to be computer data inconsistencies. "You might have one bearing manufacturer designate an undersize on one disk as .001," Akins explained. "The next disk update may show this part with a -010 suffix and another update will show -01. Even though it's the same part, the computer system reads this as a new part number."

Akins explained rebuilders who utilize computerized parts pricing in their shops have four choices. First, they could enter the data by hand, which can take a lot of time. Second, they could write programs to handle all of the manufacturers' diskettes. Third, they could rely on software program manufacturers to provide the data. Or they could use a data service.

Akins, working with his wife Linda, decided they could provide consistent format of this data from manufacturers and make it available to other rebuilders in the industry. "All of our disks provide information in the same format, whether it's pricing from Federal-Mogul, Melling, AE Clevite, whatever," Akins said. "That's what makes it so easy for rebuilders to use. They don't have to spend the time cross referencing or entering manufacturers' disks into their own system.

Akins said his clients tell him which manufacturer's lines they need price updates for and the data is available in a customized parts pricing format. "We provide the cost of the product as well as whatever markup they want above the jobber price," Akins said. "Usually they'll request customized pricing of jobber cost plus 15%."

Computer software also calculates the cost of doing business in the shop. Ron Silver, president of the Silver System, an industry software specialist in Greensboro, NC, said shops using computers now have the capability to account for what jobs the labor hours go to, how much labor is spent on each job, how much each job is costing the shop, which employees are productive and which are not, and the most important, how much profit does each job generate. Silver said measuring productivity and its relation to profits could be one of the biggest reasons a shop needs to acquire management software. Silver, a former rebuilder himself, said there continues to be a "20/60/20" rule in this industry, where 20% of a shop's work doesn't make any money; 60% of the jobs do make money; and 20% of the jobs make a lot of money.

"With shop management systems, you can determine which jobs are profitable and which ones aren't," Silver said.

Part of the shop management software technology available from The Silver System are electronic touchpads setup throughout the shop that are linked to the shop's main computer to measure "real" work time. Employee identification codes and the type of machine being operated is entered into the touchpad, which keeps up-to-the-minute track of how long each job takes. Silver said this approach is much quicker and more accurate than having employees fill out job cards and supervisors enter the information into a computer or add it up by hand later.

"Shop management through computerization can not only provide exact labor cost for every job, but it helps you determine which employees are profitable and which ones aren't," Silver said. Silver also said this type of information is helpful during employee reviews or when determining bonuses.

Silver said today's computer software allows for all the work information and data to be entered into the system at the end of the day. New progress and work reports can be sent to the printer that evening, and be made available to employees the first thing in the morning. Silver said his research of shops found many shop employees spend nearly the first half-hour of the day idle, waiting for work reports and tickets from their supervisor. And in one 12-man rebuilding shop, Silver said management found it was paying about 47 hours in overtime to its employees, yet the progress reports were showing there was more than 80 hours of idle time from the workers. "This isn't an employee problem, it's a management issue," Silver explained. "Employees are just waiting for the jobs they'll be working on that day." Silver said by using the touchpad technology, both idle time and overtime was reduced.

As more technical information, electronic parts cataloging, business management software programs and new ways of using computers for shops grows, rebuilders are faced with difficult decisions as to what to purchase. And like many tools for the shop, software programs aren't cheap. Basic business management software programs today can cost anywhere from hundreds of dollars up to $3,000. And depending on which program elements are included or the number of workstations needed, this price can climb between $7,000 and $10,000.

So where does one go to acquire all the necessary information to stay competitive? Dave Tower of PTM, Inc., Columbia Falls, MT, said he sees a trend forming within the shop management software industry which will integrate software programs with parts manufacturers and rebuilder associations. "Finding a one-stop solution for business management systems (BMS) is becoming obsolete because of the massive surge of information," Tower said. "It's getting to be impossible for one company to completely compile or deliver that much information with the accuracy needed for a shop to stay competitive."

Tower said today's challenge for software businesses is to learn how to be united through Systems Management Integration (SMI), adding business management systems software users will soon have limitless access to technical and parts information in the industry.

"We're trying to education rebuilders who are looking to purchase software to be aware of systems management integration," Tower said. "In fact, we already see it working today. There's job estimating programs like QUICK QUOTE and parts price updating programs like Rebuilders Data Service already interfacing with a number of popular business management systems."

Tower said many parts manufacturers are joining the software integration trend. "Shops are having to deal with the complexities of taking and filling orders which increase every day," explains Tower. (Ask any rebuilder and they'll tell you the number of passenger cars and light truck applications, as well as heavy-duty, agricultural and industrial applications, has increased dramatically over the past 15 years). Tower said this proliferation of parts means an obvious increase in parts, more part numbers, more paper catalogs and more time being spent matching the right parts as a package and creating estimates for parts. "Electronic catalog systems from manufactures are a quick and easy way to access accurate parts information needed during preparation of estimates and orders."

Tower said for the past few years, associations including the Automotive Engine Rebuilders Association (AERA) has been active in promoting software integration to its members through its Professional Rebuilders On-Line Shop Information Systems (PROSIS). "Using PTM's software, rebuilders can access PROSIS technical bulletins and engine spec sheets," Tower said.

Rebuilder Russell Duffin, co-owner of Duffin Engine Service, San Antonio, TX, and current AERA chairman, said he has found PROSIS a helpful tool when it comes to rebuilding unfamiliar engines. "When your building an engine that you haven't seen for a long time, the technical information from PROSIS can be a lifesaver," Duffin said.

Introduced to rebuilders at the association's Tech Show '92 in Cincinnati, OH, PROSIS has grown to about 760 users. Dave Hagen, technical specialist for AERA, said using the PROSIS computer system in the shop can save rebuilders a tremendous amount of time. "We have more than 1,800 technical bulletins stored in the PROSIS system," Hagen said. "These can be accessed in about a minute. On the other hand, if you're using the hard copies, the amount of time it takes you to find one for a particular engine really depends on your shop's filing system."

Hagen also said unless a shop has been a member of AERA since 1968, they wouldn't have all of the technical bulletins that are available on the PROSIS system.

Although Duffin said he uses PROSIS for the technical side of his business, he uses another software program for office management such as payroll, scheduling, work orders, etc. But he's considering purchasing PTM's Part Time Manager, which is integrated with the PROSIS Time-labor Guide and other engine kit catalogs and parts reference guides.

"The integration availability is really changing this industry," Duffin said. "But I am still amazed at how very few rebuilders are computer functional in their shops."

Duffin said he believes many rebuilders are still intimidated by computers. "I see a lot of these guys that have been in the business for 30 years who are afraid of having to learn to use computers" Duffin said. "It's a big contrast compared to kids today who are introduced to computers on their first day of school."

Duffin said as software programs become more user-friendly, he expects more rebuilders to use computers in their shops. "We're even planning to upgrade our computers to the Windows® version of PROSIS so the guys in my shop will be more apt to use the system rather than come to me to make printouts of the engine information," Duffin said.

According to MarketScope, a division of Babcox Publications, a 1997 engine rebuilding survey showed that 43.8% of respondents from 1996 said they use a computer in their shop to manage labor costs and job tracking. That number is up from the 38.7% of respondents in 1992 who said they used a computer for shop management. Although about 44.6% of the respondents from 1996 said they do not use a computer for shop management, 11.6% said they are in the process of acquiring one.

Joe Polich, executive vice president of the Production Engine Remanufacturers Association (PERA) said nearly 100% of all PERs have some type of a computer system in their office to handle point of sale, accounting and inventory processes. And Polich estimates more than half of the PERs are using computers on the shop floor for production management.

Polich said a program that's helping PERs with their production is PERA's Core ID software, a databank of invaluable information on domestic engine cores including blocks, heads, crankshafts, camshafts and rods.

Polich said the Core ID is helpful due to its engine problem search capabilities. When a domestic engine model is entered into the program, all PERA and AERA technical bulletins regarding that engine are listed.

"Rebuilders can go directly to the hard copies of those tech bulletins to see what problems these engines have had in the past," Polich said. "It's a great way to stay informed about the possible problems and to avoid a warranty comeback, as well as saving the rebuilder's time."

Polich said the Core ID program, which traces all domestic and some common import engines from 1985 to 1994, is available for sale to PERA members only.

Silver said another benefit of computerization in the shops is memory storage. "With management software like ours, information attributing which equipment was used and which employee completed the work can be stored for more than 10 years," Silver said. "This type of information is useful when something comes back as a warranty return. You can pinpoint exactly when the work was done and by whom."

PTM's Tower believes the rebuilding industry is finally aware of the need to computerize to stay competitive.

"Five years ago, the rebuilding industry was 10 years behind the commercialized world," Tower said. Three years ago, we grew to be about five years behind everyone else. In three years, we should be caught up with the rest of the industries."

Tower also believes the internet will be profitable for rebuilders and others in the automotive aftermarket. Although Tower estimates only about 2% to 7% of the rebuilding industry is actually doing business through the internet, that number is excepted to increase dramatically over the next five years, especially overseas. Tower said he knows of one engine rebuilder who's had a website about 11 months. "Since that time, he's added about $20,000 in new engine sales to countries including Saudi Arabia and British Columbia. That says a lot for these buyers who are willing to purchase these engines from someone sight unseen," Tower said.

Tower also said in the future, more and more technical information will be available for rebuilders on the internet, and shops will be able to download parts and catalog information.