SAE R-219-2000 BEYOND THE NUMBERS Managing the Assets of an Automobile Parts Business (To Purchase Call 1-800-854-7179 USA Canada or 303-397-7956 Worldwide).pdf

1、BEYOND THE NUMBERS Managing the Assets of an Automobile Parts Business Gary J. NaplesBEYOND THE NUMBERS Managing the Assets of an Automobile Parts BusinessAlso by Gary Naples: By the Numbers: Principles of Automotive Parts Management by Gary J. Naples (Order No. R-140) For more information or to ord

2、er this book, contact SAE at 400 Commonwealth Drive, Warrendale, PA 15096-0001; phone (724) 776-4970; fax (724) 776-0790; e-mail: publicationssae.org.BEYOND THE NUMBERS Managing the Assets of an Automobile Parts Business Gary J. Naples Society of Automotive Engineers, Inc. Warrendale, Pa. Copyright

3、2000 Society of Automotive Engineers, Inc. eISBN: 978-0-7680-6408-7Library of Congress Cataloging-in-Publication Data Naples, Gary J., 1953- Beyond the numbers : managing the assets of an automobile parts business / Gary J. Naples. p. cm. Includes bibliographical references and index. ISBN 0-7680-01

4、22-6 1. Automobile supplies industryManagement. I. Title: Automobile parts business. II. Title. HD9710.3.A2 N358 2000 629.2068dc21 99-053230 CIP Copyright 2000 Society of Automotive Engineers, Inc. 400 Commonwealth Drive Warrendale, PA 15096-0001 U.S.A. Phone: (724) 776-4841 Fax: (724) 776-5760 E-ma

5、il: publicationssae.org http:/www.sae.org ISBN 0-7680-0122-6 All rights reserved. Printed in the United States of America. Permission to photocopy for internal or personal use, or the internal or personal use of specific clients, is granted by SAE for libraries and other users registered with the Co

6、pyright Clearance Center (CCC), pro- vided that the base fee of $.50 per page is paid directly to CCC, 222 Rosewood Dr., Danvers, MA 01923. Special requests should be addressed to the SAE Publications Group. 0-7680-0122-6/00-$.50. SAE Order No. R-219To my wife Sharon, and my daughter Sabrina, withou

7、t whose inspiration and encouragement this book would not be possible.Contents Preface xi About This Book xv Acknowledgments xvii Part 1First Things First 1 Chapter 1 Create an Inspiring, Shared, Customer-Serving Vision 3 The Power of Vision 5 Bringing Vision into Your Organization 7 Making It Happe

8、n 9 Of Vision and Values 10 Chapter Review Checklist 12 Chapter 2 Learn from Others 15 Learning from Other Fields of Business 17 Creating a Learning Plan 18 Chapter Review Checklist 20 Chapter 3 Benchmarking 23 Making the Decision to Benchmark 26 Determining Your Benchmarks 28 Chapter Review Checkli

9、st 36 Chapter 4 Develop a Strategy 37 Develop a Strategy Around Your Niche. 38 Strategy Transforms and Guides 39 Developing Strategy: A Matter of Viewpoint 40 Developing Strategy: Laying the Foundation 41 Using SWOT for Planning a Strategy 43 Chapter Review Checklist 46 viiBeyond the Numbers Chapter

10、 5 Fix Small Problems Before They Become Big Problems 47 Problem Solving for Increased Customer Loyalty 50 Mastering the Fine Art of Problem Solving 52 Are Good Problem-Solving Skills Really Necessary? 54 Chapter Review Checklist 55 Chapter 6 Mind What You Measure 57 Measuring Beyond Dollars and Cen

11、ts 59 Focus Measurements on the Customer 60 Measure Only What Is Important 62 Allow the Customers Voice to Guide Your Measurements 63 Keep Your Measurements Simple 64 Communicate, Communicate, Communicate 66 Chapter Review Checklist 68 Part 2A Lesson in Financial Management 69 Chapter 7 Balancing th

12、e Balance Sheet 81 Format of a Balance Sheet 82 Constructing a Basic Balance Sheet 84 More on the Basic Balance Sheet 88 Chapter Review Checklist 93 Chapter 8 Understanding the Parts Income Statement 95 The Income Statement: The Nuts and Bolts 96 Analyzing the Income Statement 105 Chapter Review Che

13、cklist 107 Chapter 9 More Financial Basics 109 Inventory Costing Methods 109 Cash Versus Accrual 114 Profit Margin or MarkupThere Is a Difference 115 Determining Your Break-Even Point 117 Profiting from Trade Credits and Borrowing 121 Open Your Books to Your Employees 123 Chapter Review Checklist 12

14、4 Chapter 10 Ratio Analysis: Three Points of View 127 About Point of View 128 From the Parts Managers Point of View 128 From the Owners Point of View 136 From the Creditors Point of View 143 Chapter Review Checklist 146 viiiContents Chapter 11 Inventory Performance: The Road to Profitability 147 Pur

15、chasing Habits 148 Inventory Obsolescence 165 Lost Sales 168 Inventory Management 170 Chapter Review Checklist. 175 Part 3Customer Management: From Satisfaction to Loyalty 177 Chapter 12 Correlating Service to Customer Wants and Needs 181 Why Customers Buy 182 Ask Yourself How You Are Doing 185 Chap

16、ter Review Checklist 187 Chapter 13 How to Deliver World-Class Parts Service 189 World-Class Parts Service Is Reliability 191 World-Class Parts Service Is Responsiveness 196 World-Class Parts Service Is Assurance 199 World-Class Parts Service Is Empathy 200 World-Class Parts Service Is Tangibles 201

17、 Chapter Review Checklist 202 Chapter 14 Managing Customer Perception 205 Yellow Chickens Are Better 208 Strategy for Shaping Customer Perception 209 Chapter Review Checklist 224 Chapter 15 Making Your Good Better: Taking Customer Service to the Next Level 225 Make Word of Mouth Your Best Means of A

18、dvertising 227 Embrace Technology 228 Use the Internet as a Marketing Tool 230 Give Customers a Voice 232 Concentrate on the Twenty, But Do Not Forget the Eighty 233 Chapter Review Checklist 234 Part 4Personnel Management: Who Is More ImportantCustomers or Employees? 235 Chapter 16 You Cant Give Qua

19、lity Parts Service Without Quality People 239 Finding the Best 240 Putting It All Together 247 The Problem Side of Surrounding Yourself with the Best 251 Chapter Review Checklist 253 ixBeyond the Numbers Chapter 17 Train, Train, Train 255 The Training Process 258 Developing a Training Program 260 Wh

20、at Every Trainer Should Know About Learning 265 One Final Comment About Training 266 Chapter Review Checklist 267 Chapter 18 Liberate Your Parts Organization Champions 269 Motivate 270 Delegate to Empower 277 Engage Employees Minds 280 Reward 282 Chapter Review Checklist 289 Part 5“Part-ing“ Words 2

21、91 Bibliography 295 Index 301 About the Author 311 xPreface I first conceived the idea for this book soon after publication of another book I had written, By the Numbers: Principles of Automotive Parts Management. Although By the Numbers proved to be an excellent introduction to the world of the aut

22、omotive parts business, my research indicated more was needed. However, I was unsure of how to proceed. I wanted the next book to be not only a unique effort, but also a continuation. The present book is the result. Is this book something needed now to improve parts management and parts organization

23、al perfor- mance? Definitely! If you have any doubts, I propose this self-assessment: Do you consistently supply the right parts, in the right quantity, for the right price, and at the right time? Do you have an operating strategy that is flexible enough to meet changing needs, but sound enough to g

24、uide present and future performance? Do you regularly measure performance and use analysis as a tool for planning? Do your customers prefer your service to the service of your competitors? Do you make personnel selections based on job fit? Do your staff members receive the training and support neces

25、sary to advance their skills, improve their performance, and provide consistent quality service to your customers? Do you continuously strive to improve your service performance? Is commitment to quality service and customer satisfaction a permanent part of your culture? Years ago, but not that long

26、 ago, the formula for operating a parts organization (and, to some extent, even being quite successful at it) was simple: Customers plus parts inventory equaled xiBeyond the Numbers profits. As long as a part was available for sale from stock most of the time, and assuming you bought it right and so

27、ld it at a reasonable margin, you could make a decent profit. If the occasional customer left upset, for whatever reason, so what? Furthermore, the attitude toward staffing was, “We could get anyone off the street to work the parts counter.“ However, that was then, and this is now. The basic rules o

28、f the business remain the same today, but technological advancements, customer savvy, a shrinking labor pool, and more fierce competition have all added a new twist. Conse- quently, survival today boils down to this guideline: Supply quality products, provide superior service, and employ competent,

29、knowledgeable, and customer-oriented people. Todays customers demand greater value for the money they spend, and quality is no longer found only in the product and price. Value means quality service, and success is measured by how well and consistently you can deliver value without distorting expens

30、es. A balance must be maintained to sustain organizational harmony. For example, too much inventory will ensure customer demands are met, but the higher holding costs eventually will erode profits. The level of skill with which you can analyze trends and utilize financial information determines how

31、quickly you can recognize trouble spots or take advantage of emerging opportunities. Likewise, the degree to which person- nel are trained and their willingness to perform will guarantee the long-term profitability and growth of the organization. After all, achieving your goals will be a product of

32、team effort. What does all this mean? Simply, this: The future of a parts operation is closely dependent on how well the assets of the organization are managed. Assets mean more than inventory, buildings, vehicles, and the like. Assets also mean peopleyour customers and your employees. Success resul

33、ts from sound business strategy and a knowledge of industry demands, combined with satis- fied customers and a well-trained staff. In an ever-changing and fiercely competitive climate, the difference between increasing sales and growth, or declining sales and stagnation, is determined by: The degree

34、 to which the organization can surpass customer expectations and perceptions The ability of the organization to effectively and efficiently deliver products The importance the organization places on personnel training and the degree to which train- ing is made available to all employees The staffs l

35、evel of commitment to providing quality customer service The task of organizing this book was not easy. A large quantity of material had to be considered, and the book had to appeal to both dealer franchise parts departments and aftermarket parts stores. Nevertheless, my objectives were clear and ca

36、n be stated quite simply: xiiPreface To offer distilled reference material compatible to the parts supply industry and beyond To furnish a framework that parts managers, parts store owners, and similar individuals can use to improve overall organizational performance To provide specific, practical,

37、and functional guidelines for quality management, leading to loyal employees, loyal customers, and a better bottom line Tomorrows industry leaders will be those organizations that embrace the following concept: People + Quality Customer Service + Quality Timely Products = Profits Gary J. Naples xiii

38、About This Book This book is devoted almost entirely to managing the three most important assets of an automobile parts business: finances, customers, and personnel. It also includes other information critical for creating and managing a total quality organization. Moreover, because the management a

39、nd op- eration of a parts store or parts department is similar to many other businesses, for making certain points I decided to use examples of companies unrelated to the engagement of automobile parts distribution. This reinforced the shared relationships among different businesses and I hope added

40、 a fresh if not diverse perspective to this work. I intended to show that ideas for improve- ment can be exchanged across boundaries, likewise making the information in this book a useful resource outside the parts industry. This book is a culmination of my many years of experience in automotive par

41、ts management, combined with four years of extensive research. The parts managers, parts store owners, and dealer principals quoted, as well as the parts organizations illustrated in this book, were chosen because of their outstanding performance and reputation in the industry, as well as their tren

42、chant management of the three key aforementioned assets leading to their continued success. This does not mean they are the absolute best in their fields, because that would be unfair to many other stellar performers who were not part of this project. However, those who are part of this effort provi

43、de excellent representation for all. Their input, together with input from other people and organizations mentioned in this book, combine to add great value. The book contains five parts, divided into eighteen chapters. Part 1, entitled “First Things First,“ is composed of six chapters. This part is

44、 significant because it embodies pertinent essentials that all businesses, not only parts organizations, must possess and master before a successful venture can be assured. Chapter 1 explains how to create a customer-driven, people-involving vision. Chapter 2 explains the importance of learning from

45、 other companies to improve performance and provides helpful information for organizing a learning plan. Chapter 3 explains the importance of comparing your company to other companies and gives practical benchmarking techniques that can be used immediately. Chapter 4 discusses the link between well-

46、crafted strategy and successful competi- tion in a changing industry. Chapter 5 examines the most perplexing and damaging of all prob- lemsthose that occur between the customer and the parts organizationand describes problem-solving strategies to help you maintain high customer-service standards. Ch

47、apter 6 con- cludes Part 1 and delves into the measuring process, explaining why measuring everything that xvBeyond the Numbers can be measured is important, and how measuring the wrong things can cloud decision making. Chapter 6 also provides useful suggestions indispensable to the measurement proc

48、ess. Parts 2, 3, and 4 revolve around the important asset areas that must be managed both consistently and well if success is to be ensured and competitiveness sustained. Part 2 begins the first asset area of focusfinancial managementand includes Chapters 7 through 11. Chapter 7 is designed to expan

49、d the readers knowledge of the balance sheet by explaining the essential parts in plain language and by allowing the reader to follow along step-by-step as a hypothetical balance sheet is created. Chapter 8 covers the parts department and parts store income statement, break- ing it into components for easy understanding. The accompanying suggestions and techniques are helpful for using the income statement in performance comparison and operational planning. Chapter 9 is a composite of other relevant key information imperative to the