GM Facility Development Parts

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FACILITIES

DEVELOPMENT

General Motors Dealer Development Systems

PARTS EXCELLENCE


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PA RTS EXC E L L E N C E

Reference Library

This reference library is to be used in conjunction with and is complementary tothe Service and Parts Excellence Standards Manual. Essentially this library is a collection of Dealership management and operating ideas gathered world-wide.

If, after reviewing a specific standard you have areas in your Dealershiporganisation that fall into the “needs improvement” category, then there will beideas in this library that may help you solve your problems.

While the reference libraries contain hundreds of good ideas, it should never beassumed that the ideas and examples presented are the only or desired means of solving your problem. You may have some better ideas to achieve a desiredoperating standard. This reference library provides “How to make it happen”guidance.

The contents of this reference library contain the Parts Excellence area of:

FACILITIES DEVELOPMENT

©2001 General Motors Automotive Limited

This publication is copyright. Other than for the purposes and subject to theconditions prescribed under the Copyright Act no part of it may be

reproduced by any means without prior written permission. Enquiries shouldbe addressed to General Motors Automotive Limited.

General Motors Dealer Development Systems


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i

FACILITIES DEV E LO P M E N T

Preface

PARTS EXCELLENCE

- A LONG-TERM APPROACH TO TOTAL

CUSTOMER SATISFACTION

Parts Excellence, a Dealer development system, is designed to organise your PartsDepartment into seven functional areas that are discussed as separate PartsExcellence modules. The seven modules of Parts Excellence are:• Dealer Development

• Parts and Document Flow • Inventory Analysis• Purchase Planning • Personnel Development• Facilities Development• Market Development

Each module includes:• A 4-page Certification Report• Evaluators• A Dealer Action Guide (the main text)• Dealer Decision Grids

THE CERTIFICATION REPORT

The Certification Report is the way a Dealership’s progress on the Module can bereviewed. The Report is also the way a Dealership is certified as meeting therequired performance level for a Module.

The Certification Report includes:

• (page 1) Dealer name and address, review and/or certification status,plant representative and Dealer representative. A copy of the completeddocument - whether for review or certification - must be forwarded to localmanagement as well as Detroit management. This information can alsoassist in communicating those areas requiring additional focus in order toachieve total customer satisfaction

• (page 2) A summary of Evaluators, in graph form, by each standard area of performance on which a Dealership will be measured. The document, if kept up to date, can provide a quick and accurate summary of where theDealership is positioned, at any time, with regard to certification

• (pages 3 and 4) The means for reviewing Dealership performance in thestandard areas to be measured– The principal areas that will be measured are shown under the column

titled “Section”.


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Preface

– Each principal area is comprised of specific standards that must bemaintained by the Dealership. These are indicated under the column

of “Qualifiers”.

– Each specific standard, or qualifier is comprised of the evaluators usedto measure Dealership performance for that specific standard. Sincethe evaluators require action by the Dealer, they are listed under thenotation “Dealer Action”.

– Please note that each evaluator is assigned a point value in order toavoid arbitrary measurement. A Dealer must achieve a minimum of 80% of the Module’s total point value in order to achievecertification.

– To make the Certification Review form most useful, several columnshave been included to the right of the point value so that the Review can be used as a check sheet for determining areas that requireattention.

• Certification in a Module requires achieving 80% of the Module’s totalpossible points (page 4) as well as 80% of each section’s possible point

value (page 2).

THE EVALUATORS

A page of Evaluators will be found at the beginning of each section in theModule. These are duplicated on pages 3 thru 4 of the Certification documentand indicate both the Qualifier and the Dealer Action to be measured.

THE DEALER ACTION GUIDE (Main Text)

The Dealer Action Guide serves as reference for developing Dealer action plansthat fulfil the measurement criteria of each Module. The ideas, approaches andtechniques provided in the Guide are suggestions to help augment your

thinking regarding improvements to be made.

Carefully read the Qualifiers and Dealer Actions (evaluators) as well as the textinformation in the Guide to clearly understand the intent of the standard areas.


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You can then decide if it feasible and practical to use the suggestions in theDealer Action Guide to bring your Dealership up to Parts Excellence standards.

You should find that many of the Guide’s suggestions offer practical applicationin your Dealership. If you choose an alternate approach for improving thesituation it must be approved and documented by the Parts Excellencerepresentative.

Do not think you have to limit your use of this Module to the Evaluators

marked “Qualify By” or “Will Not Qualify”. There is always room forimprovement even in the best organisation. Review how you now run your partsoperation and compare it to the way the material in the Module relates to thesemethods. You may find some new suggestions or you may be able to modify

some of the suggestions to improve your already successful business.

DEALER DECISION GRIDSIn addition to general text material, there are also Decision Grids which providespecific suggestions to help organise and enhance a Dealership’s approach tosolving problems and making changes.

APPROACHIt is suggested that you approach the materials in all Modules in an orderly manner which consists of:

This module has been developed by Mike Nicholas, Inc., Gresham, Oregon, in

co-operation with Asian Parts & Accessories Operations, GMC.

R. J. KagerL. J. Sorchevich

Detroit

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Preface


1 2 3 4 5

READ REVIEW ANALYSE CHOOSE IMPLEMENT

Module Forms Evaluators Alternatives Suggestions

• Contents • Operating • Standards • Grid • Specifics• Justification • Assessment • Potential • Decide • Monitor

Outcome


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iv


Module Six - Table of Contents

TITLE PAGE

Preface i-iiiTable of Contents iv List of Illustrations v

CERTIFICATION• Dealer Certification Review - Module No.6 1-4

INTRODUCTION• Facilities Development 5

• System Overview 5

PHYSICAL LAYOUT• Evaluators 7• Analyse Resources 9• Relative Location - Dealership 17• Relative Location - Customers 18• Relative Location - Internal 19• Decision Grid 20

PARTS STORAGE• Evaluators 21

• Storage Planning 23• Storage Equipment 29• Storage Areas 35• Specialised Bins 37• Supplies 38• Parts Organisation 39• Expansion 41• Decision Grid 44

CUSTOMER AREAS• Evaluators 45• Signage 47

• Displays 51• Counter Design & Location 58• Decision Grid 61

SAFETY & SECURITY • Evaluators 63• Safety 65• Security 69• Decision Grid 72

APPENDIX A

APPENDIX B


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Systems Overview 6

Parts Facilities Guides – Planning Potential 10

Parts Facilities Guides – Inventory Value 11

Basic Floor Plan 12

Detailed Floor Plan 13

Space Allocation Guides 16

Parts Department Relative Location 17

Sample Manual Planograph 27

Modular Drawer Cabinet 31

Aisle Saver 32

Parts Carousels 33

Service Department Monorail 34

Double Decking Requirements 41

Potential Area for Expansion 42

Free Standing Deck 43

Retail Area Planograph 55

Counter Dimensions 60

Space Recommendations 60

Maintenance and Safety Schedule 68

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Module Six - List of I llustrations

PAGE


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THIS PAGE INTENTIONALLY LEFT BLANK


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5

PURPOSEThe purpose of this Module is to establish:

• An understanding of the basic concepts that pertain to FacilitiesDevelopment

• Methods for fully utilising the resources of space and equipment in a PartsDepartment

• The relationships between Facilities Development and sales, profit and

Customer Satisfaction

REALISTIC BENEFITSProperly administering Facilities Development will result in:

• Increased operational efficiency • Reduced parts handling time• A safer, more secure, Parts Department• Properly stored parts• Regular maintenance of equipment• Improved sales• Improved profit• Improved Customer Satisfaction

FACILITIES DEVELOPMENT IS VITALSpace is a limited and expensive resource. Most Dealerships do not have theluxury of being able to expand their Parts Department. Because of this, theDealership must take full advantage of the space available in the PartsDepartment.

Proper management of the facility leads to improved operating efficiency. If lesstime is spent receiving, stocking, maintaining and retrieving parts, then greaterprofits can be realised through reduced personnel expense. Less time retrieving

parts also leads to greater Customer Satisfaction.

SYSTEM OVERVIEW An overview of the Facilities Development System is shown on the next page. Inorder to present a logical review of the materials, the System will be discussed inthe four major sections:

• Physical layout • Customer Areas• Parts Storage • Safety & Security

Each of these areas has an impact on sales, profit and Customer Satisfaction. Thediagram on the following page points out the relationships.


Introduction - Faci li ties Development


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Introduction - System Overview

PHYSICALLAYOUT

PARTSSTORAGE

SAFETY &SECURITY

CUSTOMER AREAS

SALES PROFITCUSTOMER

SATISFACTION

OPERATING EFFICIENCY



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Physical Layout - Evaluators

QUALIFIER DEALER ACTION VALUE

ANALYSE • Parts Department space resourcesRESOURCES are analysed to determine if they

are most effectively utilised– Facilities Guides 10– Floor Plan 15

RELATIVE • Parts Department to be easily LOCATION – accessible to all other departments,DEALERSHIP especially Service and Body Shops 20

RELATIVE • Parts Department to be organised inLOCATION – a manner that is convenient and logicalCUSTOMERS for customers

– Retail and Wholesale Counter 15– Cashier 10

RELATIVE • Parts Department to be organised in a

LOCATION – manner which maximises work-flow INTERNAL efficiency

– Technician 10– Shipping and Receiving 10– Parts Manager’s Office 10

Assessment Score (100 points possible)Certification requires a score of 80 or above


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INTRODUCTIONIn this section methods for optimising floor space will be addressed. In someDealerships, the Parts Department accounts for up to thirty-three per cent of thetotal Dealership building space. Efficient use of that space is critical.

In most Dealerships, personnel expense accounts for the greatest portion of totalParts Department expenses. Proper layout of the facility maximises not only space but the efficiency of personnel as well.

Every Parts Department should show evidence of planning. Efficient layouts donot just happen, they are planned. Plans should take into account current and

future needs of the Parts Department.

PURPOSEThere are two objectives to the layout of the Department:

1. To get parts from inventory to a customer (SALES)

2. To do it at minimum cost (OPERATING EFFICIENCY)

The layout of the Parts Department is the key element in obtaining the least costof handling parts. There are a number of good reasons for improving the

effectiveness of layout planning. Space is becoming more expensive with higherbuilding materials, labour and land costs. Also, when a layout is changed or anexpansion has to be made, we need to minimise the effect of the change on theparts operations.

The strongest reason to obtain the best possible layout is that most of thehandling operations that are performed in the Department are repeated daily allyear long. If the shortest and most direct method of handling is not practised,each increment of wasted time by people quickly reduces the total effectivenessand profit of the Parts Department. Ineffective planning of Department layoutcan build a space penalty which may take years to overcome.

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Physical Layout - Introduction


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FACILITIES GUIDES

Facilities Guides are used to aid the Dealership in determining the appropriateamount of space to devote to the Parts Department. They are used to assist theParts Manager in determining the adequacy of existing facilities and estimating what is needed for projected growth.

Total Parts Department square footage (metres) recommendations are based on:

1. Planning Potential

2. Inventory Value

PLANNING POTENTIAL

Planning Potential is a reasonable expectation of annual new car or truck unitsales level for a Dealership. It is particularly helpful to use Planning Potential asa basis for total Parts Department floor space when a major expansion or new facility is being considered.

Planning Potential guidelines have been included for reference purposes only and should not be the principal factor in estimating floor space requirements foran existing Parts Department. The guides cannot replace individual experience

and familiarity with local market conditions. Each Dealership must analyse itsown current parts business and set goals for future sales levels.

INVENTORYVALUE

Facilities Guides based on Inventory Value are also available. As it is used here,Inventory Value refers to the dollar value of on-hand parts and accessories at themost recent factory price. The guidelines were developed based on the following assumptions:

• No obsolete parts

• Balanced inventory of normally stocked parts

• 3 to 4 turns per year

• Maximum of 10% inactive parts

• 30% wholesale business

The following pages provide Facilities Guides based on both Planning Potentialand Inventory Value.

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Physical Layout - Analyse Resources



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PARTS FACILITIES GUIDESBased on Planning Potential

Full-Line Full-LineCars and Lt. Cars and Lt. Heavy Duty Heavy Duty

Planning Duty Trucks Duty Trucks Trucks TrucksPotential Sq. Feet Sq. Metres Sq. Feet Sq. Metres

50

100200300400500600700800900

1,000

1,1001,2001,3001,4001,5001,6001,7001,8001,9002,000

2,1002,2002,3002,4002,5002,6002,7002,8002,9003,000

3,000and Over

1,200

1,6002,0002,8003,8005,0005,8006,6007,4008,2009,000

9,3009,6009,900

10,20010,50010,80011,10011,40011,70012,000

12,50013,00013,50014,00015,50016,00016,50017,00017,50018,000

Add 500 sq. ft.

Per 100 P.P.

112

149186260353465540614688763837

865893921949977

1,0051,0331,0601,0881,116

1,1631,2091,2561,3021,4421,4881,5351,5811,6281,674

Add 50m2

Per 100 P.P.

1,700

2,0002,5002,9003,8005,0005,8006,6007,4008,2009,000

158

186233270353465540614688763837


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PARTS FACILITIES GUIDESBased on Inventory Value

Total Total Total TotalInventory Sq. Feet Sq. Metres Sq. Feet Sq. MetresValue $ Required* Required* Required** Required**

25,000

50,00075,000

100,000125,000150,000175,000200,000225,000250,000275,000

300,000325,000350,000375,000400,000425,000450,000475,000500,000

1,790

3,0004,0405,0406,0107,0207,9708,8909,700

10,55011,300

12,03012,83013,52014,27014,98015,68016,30016,90017,500

167

279376469559653741835902981

1,051

1,1191,1941,2581,3271,3941,4591,5161,5721,628

895

1,5002,0202,5203,0053,5103,9854,4904,8505,2755,650

6,0156,4156,7607,1357,4907,8408,1508,4508,750

84

140188235280327371418451491526

560597629664697729758786814

* Using Standard Bins** Using High Density Bins


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FLOOR PLAN

Regardless of size, most Dealership Parts Departments have a similar set of functional requirements…basic, common business needs that must be supportedby the appropriate facilities. Limitations are imposed on any Parts Departmentby the physical size of the Dealership and the available floor space. Furtherlimitations are introduced by building design and construction. The PartsManager must make the best possible use of that floor space to meet or exceedDepartmental objectives.

A Floor Plan is an architect’s rendering of the fixed construction features of thebuilding. The basic floor plan is normally an overhead view, looking straightdown at the floor space, drawn to scale and showing the exact location of walls,doorways, windows, pillars and other non-moveable building elements. The

Floor Plan of a typical Parts Department is shown below.

BASIC PARTS DEPARTMENT FLOOR PLAN

Other construction drawings show the location and capacity of electrical wiring,fixtures and outlets, plumbing, heating and air-conditioning elements. All of thisinformation can be important in planning the cost-effective use of existing floorspace, particularly where only rearrangement and a minimum in alterations aredesired.

Body Shop

Parts Department

Retail &Wholesale

Counter

PartsMgrs.Office

InventoryMgmtOffice

OrderDept.

Cashier


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If the primary planning tool, a basic Floor Plan, is not available, one can bedeveloped. All that is needed is a tape measure, a sketch pad and the time tomeasure and record dimensions and locations, transferring the data into FloorPlan format on graph paper to maintain the scale relationships. In any case, theFloor Plan should be a reference drawing, altered only when changes are madeto the fixed construction.

Arrangement of storage equipment should be planned by using a layoutdrawing. A layout is a working drawing, a tracing or reproduced copy of theFloor Plan.

A layout of the Parts Department should be used to plan, in advance,rearrangement of functional elements such as bin and rack locations, aisleways,shipping and receiving areas, counter service space and so on. A detailed layout

indicates the placement of storage equipment within the Floor Plan.

DETAILED PARTS DEPARTMENT LAYOUT

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OVERALL FLOOR PLAN

Scaled to size cutouts of bin units, desks, chairs and almost every other moveableitem of equipment can be prepared. Moving these cutouts around on the layoutdrawing, to arrive at the best arrangement for space utilisation is the mostpractical way to plan for optimum function and usage. There are also computersoftware programs available that can be used to develop Floor Plan layouts.

Obviously, the planned allocation in any particular Dealership should be

determined by actual and projected needs. Comparisons are helpful, however, inevaluating how other successful Dealerships’ parts operations are handling thesame kind of space utilisation challenges.

The following is not a complete list in evaluating a Floor Plan; however, here aresome items to be considered:

• Parts Manager’s office should be located so as to afford maximumvisibility of Department

• The inventory control system should be located near the Parts Manager’soffice when practical

• A separate area should be used by telephone order interpreters for

incoming wholesale parts orders, whenever practical, to avoid confusionat counter

• Complete physical security

• The Cashier should be located near the retail counter

• Shipping and receiving areas should provide easy access to public streetsand adequate area for vehicle manoeuvring

• Large body panels should be stored in a location convenient to theshipping area and as near the Body Shop as is practical

• Elevators, winches, forklift trucks or conveyors should be employed aspractical

• Department should be inaccessible to anyone other than Parts

Department employees

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TO IMPROVE AVAILABILITY OF FLOOR

SPACE

If the Dealership does not currently have adequate area to meet the needs of theParts Department:

• Make sure all existing obsolete and excess parts are removed fromInventory. Re-evaluate your need for additional area

• Buy, rent or lease additional area • Measure the area currently used for bulky parts – storage-fenders,

mufflers, etc.

• Determine if this area might be used more profitably for storing fastermoving, smaller parts

• If a favourable decision is reached, consider using nearby suitablebuildings or an area within a building for storing bulky parts

• Consider “double-decking” the existing area. Adequate height must beavailable to permit building a mezzanine and adhering to local building and safety codes

• Use a trailer for obsolete parts

TOTAL AREA

The Floor Plan of the Parts Department must be efficiently laid out. An efficientFloor Plan can have a significant effect on how quickly parts are located, pickedand re-stocked. Also, it will reduce both customer and technician waiting time.

The Parts Department requires approximately twenty to thirty-three per cent of the total Dealership’s building area depending on the planning potential.

Efficiency in the Parts Department begins with its relationship to the Service

Department. A central location that allows fast distribution to servicetechnicians in the customer service area and the Body Shop is the best.

The configuration of the service area will influence the amount of efficiency andcontrol that is possible. For instance, a long drive-through in the ServiceDepartment with the Parts Department at one end tends to reduce partsdistribution efficiency in proportion to its length. This is important to keep inmind when planning for eventual expansion of the service area. The questionshould always be: How will the service area expansion affect parts distribution?

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SPACE ALLOCATION As a rule of thumb, the total floor space allocated to the parts operation isdistributed in the following proportions:

PARTS DEPARTMENT

SPACE ALLOCATION GUIDES

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AREA % of TotalParts Space

Regular Parts Bins 25Bulky Parts 25Other Bins and Racks 25Shipping and Receiving 10Counter 6Supplies 5Office 4

TOTAL 100

All percentages include aisles

New storage concepts such as Modular Drawing Cabinets, Aisle Savers andCarousels will be discussed in the parts storage section of this Module. Thesemodern storage units allow a Dealership to store more parts in much less space.


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RELATIVE LOCATION - OTHER

DEPARTMENTS

The Parts Department must be located to provide convenient access to theService and Body Shops, whiles also allowing easy access for wholesale and retail

walk-in customers. Oversights in the planning stage can create a significantamount of additional operating expense through inefficiency.

The primary Parts Department customers are the Dealership’s own Service and

Body Shops. They require replacement parts, materials and accessories to serviceand maintain customers’ vehicles. Adequate servicing of vehicles is a majorconcern to the Dealership. The location of the Parts Department, relative to theService and Body Shops, is an important factor for efficient operations.

The arrangement shown below replaces the Parts Department in anadvantageous location. This location permits more efficient service and partsdistribution for internal sales as well as for wholesale and retail customers.

PARTS DEPARTMENT RELATIVE

LOCATION

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Physical Layout

- Relative Location, Dealership

Quick Service

Body Shop Parts Dept.

Service Dept.

FACILIT IES DEV E LO P M E N T


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Within the Parts Department there are three areas which external customersmust approach:

• Retail Counter

• Wholesale Counter

• Cashier

The customers’ perceptions of ease of doing business with the Dealership areaffected by these areas.

RETAIL AND WHOLESALE COUNTERIf the Retail and Wholesale Counter (often the same counter) area is so smallthat it creates customer “traffic” problems and it cannot be expanded, relievesome of the pressure by making the waiting area comfortable and pleasant. Usea numbered tag system to determine who is to be waited on next. If spacepermits, install food and beverage vending machines to increase customercomfort and Dealership revenues.

Consider moving microfiche readers and catalogues to a separate partsadministration area to provide additional counter space.

Use imagination to discover ways to display parts and accessories without using valuable counter space. The key to successfully planning this area is to keep itconvenient and functional for both the Dealership and its customers.

CASHIER

The Cashier area should be located near the:

• Retail and Wholesale Counter

• General Office

• Repair Order Rack

Correct location of the Cashier makes it convenient for customers to pay forparts and accessories and also prevents them from leaving without paying.

By locating the Cashier near the general office it is easier to review customers’accounts. Past due receivables and customer credit limits become readily accessible.

Locating the Cashier near the repair order rack speeds up paper flow. When a repair order is closed and the hard copy is turned in, it can be handedimmediately to the Cashier for labour posting and parts pricing.

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Physical Layout

- Relative Location, Customers


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The location of three main areas within the Parts Department have a significant impact on operating efficiency. They are:

• Technician’s Counter

• Shipping and Receiving Area

• Parts Manager’s Office

TECHNICIAN’S COUNTER

If possible, separate technician and customer traffic. A counter for each allowsboth to be serviced without having problems arise from the different nature of each customer’s transaction.

Keep the Technician and Retail/Wholesale Counters close enough to oneanother to allow one counterperson to service both of them.

As much as possible, store fast-moving parts and supplies near the Technician’s

Counter to save time for both the counterperson and technician.

SHIPPING AND RECEIVING

Although the Shipping and Receiving area is part of the inventory storage space,

it should be clearly separated. Ideally, Shipping and Receiving functions shouldbe separated from each other and identified with signs to avoid confusion. If thisis not possible, separate doors for this area may provide enough separation. Or,at a minimum, different coloured stripes on the floor can be used to designatethe appropriate area for each function.

The Shipping and Receiving area should be close to the outside receiving door.This promotes quicker unloading and loading, better security against“wandering” delivery people, and better control for checking in deliveries. Thereceiving clerk should have a desk and workspace for shipping informationbooks, packing slips and other paperwork.

PARTS MANAGER’S OFFICE

The location of the Parts Manager’s Office should provide adequate visibility of the Parts Department while working on administrative activities.

If possible, the office should be designed for privacy (when needed), forplanning, for working on sensitive financial information, for paperwork and foremployee counselling.

If the Department is short of space, consider placing the inventory controlsystem in the Parts Manager’s Office. This critical, time consuming functionshould be isolated from the rest of the Department so it can receive theconcentration it requires.

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Physical Layout

- Relative Location, Internal



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Physical Layout - Decision Grid

RESPONSIBILITIES

EXPECTATION RESPONSE

PHYSICAL LAYOUT

PURPOSE

APPROPRIATE AMOUNT OFSPACE, BINS ANDRACKS AVAILABLE

• Department is organised to facilitatesales

• Department is organised to maximiseoperating efficiency

• Adequate total space based oninventory value

• Adequate total space based on planningpotential

• Sufficient number of regular bins• Sufficient number of bulky bins• Sufficient number of other bins and

racks

• Suitable shop counter space• Suitable retail and wholesale counter

space• Satisfactory shipping and receiving area • Satisfactory office space area


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Parts Storage - Evaluators


STORAGE • Parts Department space resources arePLANNING planographed to determine if they are

most effectively utilised 7

STORAGE • Parts Department utilises appropriateEQUIPMENT types and adequate number of bins and

racks– Regular Bins 10– Bulky Bins 10– Racks 12

STORAGE • Special areas are designated for the AREAS following types of parts

– Special order 6– Warranty 6– Return 6– Cores 6

– Supplies 6

PARTS • The Parts Department hasORGANISATION – A logical and easy to use bin

locating system 12– Same quantity and location

in bins as in system 5– Correct labels on bins 4

EXPANSION • Parts Department is capable ofexpanding upward and outward 10



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INTRODUCTIONStorage space in a Dealership’s Parts Department is always at a premium. Therenever seems to be enough room. Even in a new facility, empty space fills upalmost overnight.

Methods for storing parts will be covered in this section. In some PartsDepartments, parts storage accounts for up to eighty-five percent of the totalParts Department area. As space and manpower are so important to the Parts

Department, it is vital to have good organisation and location of parts, properstorage equipment and room for expansion.

One of the responsibilities of a Parts Manager is planning for effective inventory storage. This plan should consider not only current parts storage requirements,

but also those needed for the future.

PURPOSE

The objectives of this section on Parts Storage are:

1. To plan for storage areas

2. To utilise proper storage equipment

3. To have special purpose areas

4. To locate and retrieve parts accurately and easily

5. To plan for growth

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Parts Storage - Introduction


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STORAGE PLANNING

Good planning avoids the use of critically needed parts storage areas for otherDealership needs. These needs often include utilities (e.g. electrical andtelephone terminal areas) and remote service equipment (e.g. air compressorsand bulk fluid storage tanks). These installations frequently end up in the PartsDepartment almost as an afterthought in overall Dealership design. The locationof utilities somewhere other than the Parts Department will facilitate future

expansion.The Parts Department’s space resources should be analysed to determine if they are being utilised most effectively. The Parts Manager should make every effortto ensure that all available space in the Parts Department is being used as well asit could. It also implies that consideration for expansion (upward and/oroutward) has been made.

PLANOGRAPHING

Before growing outward and upward, the existing storage areas in a PartsDepartment should be utilised in a logical and efficient manner.

A Planograph can be of considerable help before setting up bins in a new facility or making major alterations in an existing one. A Planograph is simply a drawing

which establishes how parts best fit into existing bin space.

Planographing, computerised or manual, is virtually the only available methodthat systematically assures adequate storage space for every part in a specificinventory. The benefits of Planographing include:

• Maximising storage efficiency

• Reducing labour expense

• Planning for future storage requirements

A Planograph drawing, one for each bin unit, represents a full front view of where every part will be located in each bin space or opening. Necessary shelf heights and spaces between dividers (where appropriate) are laid out in advance,to accommodate the various sizes and quantities of each item to be carried instock. Surplus or open space on the shelves, usually designated by an “S” isincluded for future growth and expansion. Ideally, the inventory should include

no obsolete parts and a minimum of inactive parts.

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Parts Storage - Storage Planning



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To obtain good information for developing a Planograph the Dealership shouldhave a computerised parts inventory control system. The system should havebeen operating for at least one year. It also should be able to generate a piece salesreport (i.e. number of piece sales over the past twelve months by part number).If any of these conditions are not met the Dealership would be better off notinvesting the time and money on a Planograph.

There are three primary methods of organising parts:

• By piece movement• By size or weight

• By group and part number sequence

Normally, parts are stored by a combination of these three rather than by justone. The Parts Manager must prioritise them. Historically, group and partnumber sequence was of primary importance followed by size/weight and thenpiece movement.

Modern facilities are being driven more by efficiency than by group and partnumber logic. Given this, the first priority is piece movement followed by size/weight then group and part number sequence. Fast moving parts are close to

the front and slow movers are toward the rear. Bulky parts have special storageareas. Parts that are not fast, slow or bulky are then organised by group and partnumber.

These three criteria must apply whether the Parts Manager chooses manual orcomputerised Planographing.


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COMPUTERISED PLANOGRAPHING

Computerised Planographing is a recent innovation that provides parts storagesuggestions in very little time. Creating a computer generated Planograph is thequickest and easiest way to plan the storage space required for a Dealership’sinventory.

Many bin companies provide Planographing services. There are also companiesthat specialise in creating Planographs for dealers.

The physical dimensions of the majority of service parts can usually be obtainedfrom the vehicle manufacturer’s parts operation. The Planograph computerprogram combines this information with the Dealership’s bin dimensions.

With Computerised Planographing individual bin units are “blue-printed” toshow the spacing of shelves, locations of dividers and the part number shown foreach opening. Part numbers are assigned to bin locations dependent upon theirpiece movement, size/weight and group sequence based on the priority chosenby the Parts Manager.

A computer can automatically add the desired percentage of open bin spacedesired for future expansion. A twenty-five percent surplus is recommended as a

minimum.

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While it is faster and easier to have specialists perform the Planographing, a PartsManager can prepare his own Planographs using simple tools and informationavailable within the Dealership.This Manual Planographing requires a great dealof time and a considerable amount of calculations. However, it can produce thesame kind of customised results as a computer based Planographing process.

The first step in Manual Planographing is the preparation of a complete listing of every part number in inventory. The listing should not include parts to bereturned or scrapped, or special order parts that normally are not carried in theinventory. The Parts Manager should decide the criteria by which parts will bestored. The use of an inventory pad will be helpful and reduce writing. During this phase, the following information should be determined for each part oraccessory:

• Piece sales by part number

• Group and part number, in sequence

• Quantity or guide level to be carried in stock

• Number of units per package

• Items to be stored in drawers

• An “R” notation for sheet metal and other parts to be stored in racks• A “B” notation for items to be stored in bulky bins

• An “MR” notation for moulding racks

With a computer based inventory control system, the inventory company canfurnish an up to date list of part numbers by piece sales, as well as therecommended stocking quantity for each part. A listing by numeric sequence

will also be helpful.

The second step is determining the physical size (length, width and height) of each part or package. These dimensions should be recorded next to the partnumber on the inventory listing or inventory pad.

The third step is combining the stocking levels and dimensions of each part todetermine the bin size opening needed for each part number.

After all information has been compiled an organised parts storage system canbe properly planned. Prepare an outline drawing of the front view of each typeof storage unit. The dimensions should be drawn to scale on graph paper tosimplify the Planograph layout.

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SAMPLE MANUAL PLANOGRAPH

Provision should be made for a 3 inch (7.6cm) dust plate at the bottom of thebin. Also allow for the 1 inch (2.5cm) flange on the front of each shelf and oneach bin side and divider, although this will vary with different equipmentdesigns. A copy of the drawing for each type of standard bin or rack can be usedto make the actual Planographs for individual units of that type. Follow thesesteps:

• Plan the regular parts bins first• Number each bin Planograph consecutively • Start with regular parts bin number one

Determine a top shelf position by the height needed for the first four or fivenumber openings. If, for example, the first parts were to require 6 inch by 6 inch(15.2cm x 15.2cm) bin openings, the uppermost shelf should be positioned 6inches (15.2cm) down from the top. Draw a line on the Planograph to show thatshelf location. Develop a percentage of surplus space, shelf by shelf, so new partnumbers or an expanded stock of existing part numbers can be added without

major rearrangement.

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MANUAL PLANOGRAPHING

Continue the same process for each shelf, looking ahead on the inventory list toselect the most efficient shelf space for each row of parts depending on thepriority of criteria.

After regular parts bin number one has been planned completely, number twoshould be laid out then bin number three and so forth, until all the regular partsin inventory (or recommended for stocking) have been included in the storage

plan.

Storage of bulky parts can be planned manually following the same proceduresused for Planographing the regular parts bins.

From the inventory printout or pad, all the items with a “B” notation areassigned shelf space on the bulky bin Planographs. Follow these tips:

• Group number and part number sequence should be maintained withinthe bulky bin storage section

• Surplus space should be allowed for addition of new parts or increasedquantities of existing inventory

Bulky parts bins are usually for parts of such a size that bin dividers are notrequired. A bin label, in the middle of the assigned space on a shelf is used todesignate the parts’ location.

A similar process should be used for sheet metal and moulding racks.

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Bins and racks are the building blocks used to put a stock room together.Commercial bins and racks are available to provide optimum storage for almostany type of automotive part. Most are manufactured in standard sizes to fit

together for compact arrangement.

REGULAR BINSRegular bins are available in a range of standard sizes. Almost any shape and size

can be ordered to fit a particular requirement. Adjustable shelves and dividersprovide the flexibility needed for the most effective use of total bin space.

Regular Bins used for storing small parts are designed with a shelf depth of 6inches (15.2cm) to 36 inches (91.4cm). They are available in 6 inch (15.2cm)increments.

The most commonly used unit is 36 inches (91.4cm) wide by 84 inches (2.1m)high by 12 inches (30.5cm) deep. Each unit requires 3 square feet (27.9 sq. dm)of floor space and an aisle width of 36 inches (91.4cm).

BULKY BINS

Bulky Bins are used to store parts that usually do not require bin dividers. They typically come in depths of 18 inches (45.7cm). 24 inches (61cm) and 36 inches(91.4cm).

The most commonly used unit is 36 inches (91.4cm) wide by 84 inches (2.1m)high by 24 inches (61cm) deep. Each Bulky Bin unit requires 6 square feet (55.8sq. dm.) of floor space and an aisle width of 36 inches (91.4cm).

RACKSIn addition to Regular Bins and Bulky Bins other storage units called Racks areused for odd shaped parts. Although prefabricated Racks are available for a PartsDepartment, most are assembled from components to meet the specific needs of a Dealership.

The majority of Racks are constructed in the Dealership using commercially available steel framing materials. Most uprights and cross members can beobtained in convenient pre-cut lengths. Most types interact and require nospecial tools to assemble. From a range of steel thicknesses, a selection can bemade to support virtually any weight.

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Parts Storage - Storage Equipment



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Racks can be used to store the following:

• Mouldings• Wheels

• Tail pipes• Mufflers• Tyres

• Sheet metal

• Windshields• Pallets

The actual design of a Rack will depend on the storage required and the availablefloor space. Ingenuity is the key to effective Rack design. Carefully consider theshapes, sizes and weights of the parts to be stored. Then draw the possibleconstruction layouts on graph paper. This should result in a Rack that meets theexact storage need and uses a minimum amount of floor space.

ADDITIONAL STORAGE IDEAS

Store heavy items on the lowest shelves and bulky items overhead or hung in a rack. Never cover ventilators with bins, cases or other storage racks.

Another way to get more storage from the same amount of space is to change tosmaller depth bins. By replacing 18 inch (45.7cm) or 24 inch (61cm) deep bins

with 12 inch (30.5cm) bins an extra row can be added in the same space.

Open space above existing parts bins might be a source of additional storagecapacity. With 2 feet (61cm) of space over the bins, units known as quarter binscan be added. These 18 inch (45.7cm) high bins are available in depths to matchthe units on which they are placed. As the name quarter bin implies, abouttwenty-five per cent can be added to the existing storage capacity without theneed for additional floor space.

When quarter bins are used step stools are needed for bin access. The mostconvenient type of stool is on castors that lock when anyone steps on the stool.These stools can be rolled easily to wherever they are needed and yet are stable

and safe during use.

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MODERN EQUIPMENT

Many new pieces of equipment are available for parts storage. These high density storage and retrieval systems are configured to take advantage of the spaceavailable in the Parts Department.

MODULAR DRAWER CABINETS

Modular Drawer Cabinets allow more parts to be stored in less space. They holdapproximately twice the amount of inventory in the same amount of floor spaceas conventional storage systems.

They are available in various dimensions and drawer configurations. Within eachdrawer, a number of parts may be stored. This helps to speed order picking and

stocking and therefore lowers labour costs.

MODULAR DRAWER CABINET

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AISLE SAVERS

Aisle Savers are moveable storage systems that create space by eliminating theneed for aisles. This type of system also condenses the amount of space neededto store parts into almost half of that required using standard aisles.

Only one aisle is needed in this type of system. Shelves on wheels are connectedto a track. A parts picker can open to the aisle required for the desired part. This

system works well in small Dealerships.

AISLE SAVER

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PARTS CAROUSELS

Parts Carousels are a series of bins on a motorised track. Parts are stored incontainers on adjustable shelving. The parts picker simply dials the bin desiredand the parts carousel automatically brings it to the counter.

This system increases storage capacity by nearly one third compared toconventional storage. It also reduces the time required to pick parts. Carouselsystems work well in Dealerships with a large inventory of fast moving parts.

PARTS CAROUSELS

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SERVICE DEPARTMENT MONORAILSService Department Monorails are overhead dispatch systems that automatically deliver parts to the technician’s work area. The part is placed in a special basketthat hangs from the Monorail. The basket travels along the monorail from theParts Department to its pre-determined destination within the Service

Department for use by the technician.

SERVICE DEPARTMENT MONORAIL

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This system eliminates the need for parts runners and does not requiretechnicians to walk to the counter to request parts. An intercom system orcomputer terminal between the technician’s work area and the parts counter isnecessary for this system to operate properly.


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Within the Parts Department, specific storage areas should be dedicated to thestorage of Special Order Parts, Warranty Parts, Return Parts, Cores and Supplies.Because these parts are not kept with normal inventory they require their ownlocations.

SPECIAL ORDER PARTS

Special Order Parts should be maintained separately from the rest of the stock.They can be organised alphabetically and by the customer’s last name to facilitatestorage and retrieval. Standard procedures should be established to notify thecustomer that the ordered part has arrived.

Even though customers often have paid a deposit and are aware that their SpecialOrder Parts are available, some are negligent in picking up the part or arranging for its installation by the Service Department. All Special Order Parts should bereviewed periodically. After reasonable customer notification and follow-up(approximately 60 days) parts not picked up, if returnable, should be returned.

A specific person in the Parts Department should be responsible for the handling of Special Order Parts. When received, follow up all special orders with both a mailed notice and telephone call to the customer’s home or business.

Special orders that sit for long periods of time waiting to be picked up by customers take up valuable space. The space required will vary greatly depending upon the volume of Special Orders, length of time held and follow-upeffectiveness.

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WARRANTY PARTS

Dealership procedures for the handling of parts replaced under warranty termsare critical to customer satisfaction and Dealership profit. These parts should bestored in a separate area until their disposition is determined. The area, of course,should not interfere with traffic flow, but it should be accessible, secure, wellventilated and well lit.

Having an area assigned for storage of Warranty Parts reduces obsolescence and

helps avoid loss due to misplacement. A central location for Warranty Partsimproves control over these items and provides a place for those scheduled forreturn or inspection.

The Warranty Parts area should be separate from the general parts storage area because of the static nature of Warranty Parts. It also should be located nearshipping and receiving.

Administration of Warranty Parts is usually hampered by lack of space.Overflowing bins or empty boxes in the Parts Department are a commonproblem. Allow about three per cent of the total Parts Department for the

Warranty Parts return area. There are many configurations which can be used tocreate an efficient Warranty Parts area. Depending upon individual needs and

Warranty Parts volume, consider the following examples as possible solutions.

TEN BIN SYSTEM

In the Ten Bin System, the storage area is divided into ten sections with eachsection numbered to correspond with the last digit of either the repair ordernumber or the warranty claim number.

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Parts Storage - Storage Areas

1 2 3 4 5

6 7 8 9 10


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CALENDAR SYSTEMThe Calendar System has a bin number that corresponds to the day of the

month on a repair order or the warranty claim.

Regardless of the system used, it is imperative to purge parts from warranty binsregularly.

RETURN PARTSReturn Parts bins should be used to consolidate parts to be returned for credit.Items designated for return may include:

• Special Order Parts (not normally stocked) which have not been pickedup by the customer

• Parts received in error• Parts ordered in error (and coded returnable)• Items damaged in shipment (awaiting disposition) from the factory.

• Incorrectly unitised parts

CORESCores and other exchange parts should have their own storage area. An area nearshipping and receiving is a logical choice. Existing policies and proceduresshould dictate how frequently they are returned.

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Parts Storage - Special Bins

1 2 3 4 5 6 7 8

16151413121110

18

26

19

27

20

28

21

29

22

30

23

31

24

9

17

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SUPPLIESIt is common practice to store office supplies, sales promotion materials, formsand housekeeping supplies in the Parts Department. But it is not good business

when these supplies occupy storage space that could be better used to storemoney-making parts and accessories.

Common office supplies and forms should be stored in the general office area.Housekeeping supplies should also be stored outside the Parts department.

Bulk stored fluids such as oil, anti-freeze and transmission fluid should be keptin above ground tanks or in drums located in the Service Department. Usageshould be controlled by a meter system and monitored by the Parts Department.

In the ideal Parts Department, the only items that should be stored, other thanparts and accessories, are the counter tickets required for the month anddisbursable shop materials.

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BIN LOGICIn addition to having proper equipment and storage areas for parts, a PartsDepartment should have a logical bin locating system. This not only contributesto efficienct operation, but also to improved customer service and profit.

There are two primary methods by which bins are organised:

1. Group numeric sequence

2. Bin number location

Using a group numeric sequence, parts are first organised by group number andthen sequentially by part number within each group. There are a number of benefits to having a Parts Department organised in this fashion:

• Easy to locate parts

• Easy to stock parts

• Parts of similar function are stocked together

A second method is to organise by bin number location. This type of logic is bestutilised in a Dealership which has a computerised inventory control system. Whereas the previous method is organised by group number, this method

organises by movement and size. Parts are stored where they best fit into a binrather than rearranging the bins to fit group numbers.

The advantages of storing parts by bin number location are:

• Faster moving parts are located near the counter

• Any part can be stored where it best fits into the storage system, providedample space is available for the size of the particular part

BIN LOCATIONBin Locations should be specific and should be easy to locate for new employees.Combining numeric and letter codes seems to work best. For example the firstletter might indicate the following:

A – Regular storage area, main levelB – Upstairs storage area C – Counter area high density storage cabinets

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The next number would indicate groups of bins or cabinets within a singlesection. For example the number “15” could indicate 15 sets of bins from thefront of the Parts Department. The following letter could indicate the shelf orrow of a cabinet. These letter codes usually start with “A” at the bottom and goup from there. Finally, a number code could indicate from left to right how many slots over, or in, the part is located.

Bin location A15C4 could indicate that the part is stocked on the main level, 15sets of bins from the front, third shelf from the bottom and fourth location from

the left.

Bin location C4B1 - 3 could indicate the fourth high density storage cabinet in

the counter area, second drawer, first r ow, third section.

BIN CHECKSIt is a good practice to occasionally conduct a Bin Check. The purpose is toensure that the Bin Location and quantity shown in the computer system matchthe physical location and inventory.

Randomly select twenty-five part numbers. Find their location and on handquantity in the computer system, and compare it to the actual physical

inventory. Any discrepancies with the bin location should be correctedimmediately. Discrepancies with quantities need to be investigated further.

BIN LABELSBins should be identified with readable labels. Bin Labels should be used toidentify all parts storage locations.

Good labelling assists not only parts locating but restocking and inventory taking. Poor labelling can result in:

• Lost sales of stocked parts

• Emergency orders of stocked parts

• Picking incorrect parts

• Unintentionally stocking a part in multiple locations.

Bin Labels are available from vendors or the Parts Manager may prefer to createhis own.

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Parts Storage - Parts Organisation


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Important features for planning expansion include:

• Ceiling height

• Reinforced floors• Outside wall for expansion

Another important consideration for expansion is the ability to double deck theParts Department.

CEILING HEIGHT Although parts facilities are typically planned for only one level, a provisionshould be made for increased ceiling height. A minimum height of 17 feet(5.2m) of unobstructed space will allow upward expansion for an eventualsecond level for parts storage. 25 Feet (7.3m) would allow for triple decking.This also lends itself to more efficient use of working floor space. The cost of extra ceiling height is small when weighed against the possibility of insufficientspace or the additional cost of construction at a later date.

DOUBLE DECKING REQUIREMENT

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REINFORCED FLOORSReinforced Flooring is also considered an essential construction feature to permitdouble decking. Local building codes specify the load bearing capacities of various types of reinforced flooring. Codes should be considered before plans arefinalised. Again the initial construction price is small compared to the cost of

additional modifications at a later date.

OUTSIDE WALL FLOOR EXPANSION A second deck may not be sufficient for parts storage. The Parts Manager may need additional storage space to accommodate increased sales. When designing a new facility, one wall of the Parts Department should always be a non-load-bearing outside wall to allow for expansion. In the following diagram, the shaded

portion shows an area for possible expansion.

POTENTIAL AREA FOR EXPANSION

DOUBLE DECKINGDouble Decking or “mezzanine storage” is a method of creating a second floorfor parts storage by using metal grating above the first floor parts bins. Thismethod has the advantage of being economical while not restricting heat,lighting, visibility or voice communication as a solid floor would. There are,however, physical factors that must be considered:

• Existing ceiling height

• Floor load limitations

• Stairway locations

• Sprinkler head locations• Ventilation duct locations

• Lighting arrangement

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Body

Shop

Parts

Dept.

Service

Dept.

Showroom

Office


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The specifications and locations for all of these must be analysed. A separatenetwork of lights might be needed for each level. The existing location andcapacity of sprinklers and vents will determine the extent of alterations oradditions which may be required.

Installation of a stairway to the mezzanine level should connect the lower mainaisle to the upper main aisle. These aisles must be wide enough to sustain a heavy flow of traffic and be arranged to provide the highest level of convenience andaccessibility. A vertical lift or conveyor can provide more efficiency for receiving

and picking of inventory.

A pallet setdown area on the upper level will be needed when materials areelevated by a lift truck. This setdown area should be located directly above or asclose as possible to the shipping and receiving area. Regardless of type, theunloading area should be large enough to allow convenient unloading andtemporary stocking.

There are two basic types of Double Decks. One type is supported by framing over the top of existing shelving. The lower level provides the support.

A second type is freestanding. It is designed to span the first floor without relying

on existing shelving or racks for support. Following is an example of this type:

FREESTANDING DECK

Most bin supply companies are able to specify a multideck renovation thatcomplies with local building codes. Typically, Dealerships rely on the supplier’sexpertise to advise on Double Decking.

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44


Parts Storage - Decision Grid

RESPONSIBILITIES

EXPECTATION RESPONSE

MAXIMUM • Fastest moving parts are stored near countersOPERATING • Nuts and bolts are stored near countersEFFICIENCY • Shop supplies are stored near counters

• Bin number sequence is logical

• Bin locations are easily found• Obsolete inventory is regularly removed

SPACE IS WELL • There is room for expansionUTILISED • Bins are not overstocked

• Parts are not on the floor• Parts are not on top of bins• Bins, shelves and dividers are easily adjusted

SPECIALISED • Warranty bins existBINS ARE • Return bins exist AVAILABLE • Special order bins exist

• Core bins exist

PART NUMBER • System on hand count equals actual shelfINFORMATION inventory IS ACCURATE • System bin location is correct

• Multiple bin locations are recorded


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45


Customer Areas - Evaluators


SIGNAGE • Dealership provides adequateParts Department signage

– Outdoors 5– Parking 5– Entrance 5

– Indoors 15

DISPLAYS • Parts and accessories are displayedthroughout the Dealership

– Parts Counter 20– Customer Lounge 5– Showroom 10– Cashier 5– Service Reception 5

• Various types of parts displaysare utilised 15

COUNTER • Counter area is easily accessible toDESIGN AND customers and designed to be customerLOCATION friendly 10



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INTRODUCTIONCustomer Areas should be clean, attractive and visually stimulating forcustomers. These areas are often overlooked by Dealers and Parts Managers.They should be viewed as opportunities to enhance the image of the PartsDepartment in the eyes of the customer and to sell additional parts.

Signs and displays show customers where the Parts Department is and what ishas to sell. Customers can be made aware that the Dealership is a merchandiser

of parts and accessories.

PURPOSE

The objectives of this section on Customer Areas are:

1. To have signs in the Dealership which make it easier for customers todo business with the Parts Department

2. To have displays throughout the Dealership which promote parts andaccessories sales

Proper signage facilitates doing business with the Dealership. It also enhancesCustomer Satisfaction.

Nearly two out of three buying decisions are made at the point of purchase.Dealerships should take advantage of the variety of opportunities they have tosell parts and accessories throughout the facility.

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SIGNAGE

Signs used to inform, such as the location of the Parts Department, are a courtesy to customers. Signs make it easier and more pleasant for people to do business

with the Dealership and minimise the communication load on employees.

They are also important merchandising tools. Signs can be used to direct people’s

eyes toward displays or specials.

GENERAL GUIDELINES All signs should have a specific purpose. They should be:

• Useful

• Positive

• Professional

Customers should be provided with information that the Dealership wants toconvey. Signs can also be used to make them feel comfortable in an unfamiliarsetting. They should be used only where there is a genuine need. Customerscould be annoyed by signs that demand their attention but provide no usefulinformation.

Keep signs positive. Negative impressions should be avoided. Signs which read“Customers not allowed” or “We do not accept...” are negative signs. Instead,signs should provoke a positive reaction. The previous examples could be madepositive by saying “Employee Area” or “We accept...”

Signs should be professionally created. They should also conform to theappearance of other signs used in the Dealership. Parts Department signs shouldbe prepared in co-operation with other departments.

Because a sign is intended to inform it should be placed where it is needed and will be seen. The message should be stated as simply as possible. This is trueregardless of whether the sign is outdoors or indoors.

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Customer Areas - Signage



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OUTDOOR CURB

This type of sign is designed for outdoor use to attract people to the Partsdepartment and identify its location. Curb signs should be located at allentrances to the Dealership facility.

If the curb signs are of the portable variety, a Parts Department employee shouldbe assigned the responsibility of placing the signs in designated locations whenthe retail parts area opens. They should also be returned to a secure location

when the area closes.

POLE OR WALL

The pole or wall sign can be utilised either indoors or outdoors to identify theretail parts location to customers. As the name implies these signs are mountedon either poles or walls around the Dealership. If the retail area is open at night,consider using lighted signs.

Utilise a pole or wall sign outdoors where a curb sign is not practical, or use thepole or wall sign to offer further assistance to customers in locating the Parts

Department once they are at or near the Dealership facility.

Note: Before placing any outdoor curb, pole or wall signs, the Dealership shouldcheck with the local government to ensure compliance with local ordinances andregulations.

PARKING

Identified parking spaces should be reserved for wholesale and retail partscustomers. Since parking convenience can make a substantial difference inoutside sales, these spaces should be located as close as possible to the PartsDepartment entrance.

A sign should clearly indicate that this area is for “Parts Customers Parking”. Theparking area itself should be paved or blacktopped and each parking spacedefined by painted lines to obtain maximum use of the area. A professionalparking lot striping service can provide expert advice.

It should be stressed that employees are not to use these spaces, even fortemporary parking. This area should be checked periodically to see that it is

adequate for parts customers and that it is not used for other purposes.


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ENTRANCES Whenever possible, a separate entrance from the parking area to the PartsDepartment permits easier access for wholesale and retail customers. Controlledaccess makes it easier to monitor this traffic for security reasons. It also tends toreduce unnecessary congestion in the Service Department. A prominent sign tothis entrance assists customers.

OVERHEAD

An overhead sign is designed to hang from the ceiling to tell customers that they have found the retail parts area. The sign should be placed at the entrance to, orinside of, a retail parts display area.

FEATURE BOARD A feature board is typically placed near the entrance to the Parts Department ornear the counter. This type of sign is hung on a wall or mounted on a tripodstand. It can be a letter board, chalk board or even an electronic sign that hasmessages moving across it.

It permits the Parts Department to communicate a variety of information tocustomers such as:

• Store hours• Promotional messages• Special prices or sales• New product offerings

The feature board should be positioned so that customers can easily read it whenentering the retail display area.

SHELF TALKERS As the name implies, shelf talkers are signs that direct customers’ eyes to

particular items displayed on shelves. They often use starbursts and bold lettersto draw attention to special items.

INDOOR DIRECTIONALIndoor directional signs are designed to guide customers around the Dealership.

Indoor directional signs should be placed in hallways, walkways, the customerlounge, the showroom or any area that has direct access to a retail parts display.

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Proper signage is necessary to help the customer find various departments andfacilities within the Dealership, plus make them aware of services offered andprocedures and policies affecting their transactions.

The following list denotes locations, services and policies to be appropriately designed:

• Locations

– Customer Parking

– Entrance– Parts Counter

– Other Departments

– Customer Lounge

– Cashier’s Window

– Restrooms

• Services

– Days Open for Business

– Hours Open for Business

– Sales and Discounts Offered

– Employees’ Names and Years of Experience

• Policies

– Customer Relations Policy

– Special Order Policy

– Credit Policy

– Acceptable Methods of Payment

– Pricing Policy

– Return Policy

– Safety Precautions

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Parts Departments can truly manage the facility well with a variety of displays.Seeing the merchandise often reminds the buyer of what he/she needs. Displayscreate a desire to buy and because people are more likely to buy something if they can see it, displays can sell parts and accessories.

To attract attention, displays should be bright, clean and colourful. They shouldbe located conveniently near electrical outlets in case additional lighting isneeded, or for use with displays which have moving parts requiring electricalpower.

DISPLAY LOCATIONS

There are a variety of areas where parts and accessories can be displayed. It isimportant to consider the type of customer that will be in a particular area and

the types of parts he/she is most likely to purchase.

There are five primary areas where parts and accessories should be displayed:

• Parts Counter

• Customer Lounge

• Showroom

• Cashier• Service Reception

PARTS COUNTER

The Parts Counter is the most obvious location to set up parts and accessoriesdisplays. Displays near the retail counter should feature do-it-yourself (DIY)products, car care products, accessories which require only minor installation

skills, chemicals and solvents. The types of products that may be included are:

• DIY Products • Car Care Products

– Belts – Waxes

– Hoses – Polishes

– Filters (petrol, oil, air) – Fabric Sealant

– Ignition Parts – Paint Sealant

– Mufflers – Glass Cleaner

– Lubricants

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Customer Areas - Displays


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• Accessories • Chemicals and Solvents(minor installation) – Loctite– Baby Seats – Lockeze– Floor Mats – Anti-freeze Coolant– Emergency Kits – Oil Supplements– Floodlights (Hand Held) – Gas Supplements– Touch-Up Paints – Coolant Rust Inhibitor– Mudflaps

– Driving and Foglights– Wiper Blades

These products should be merchandised in the parts counter area, sincecustomers are typically these to purchase parts for either the repair ormaintenance of their vehicle.

Frequently requested small parts can be displayed on the ends of bins facing theCounter. Tasteful displays not only increase impulse buying but also improve theappearance of the Parts Counter.

If the Counter is consistently manned, put parts in front of the Counter socustomers can see the merchandise up close. Be sure that the merchandise is

priced.

CUSTOMER LOUNGEThe Customer Lounge is another obvious choice to display parts and accessories.Since the Customer Lounge is most often frequented by service customers, tieparts prices to labour prices for installation. Handsome display cases can beordered for use in this heavy traffic area.

Accessories that require either major or minor installation skills may be displayed

in the Customer Lounge. Some ideas are:

• Accessories • Accessories(major installation) (minor installation)– Luggage Rack – Baby Seats– Cruise Control – Floor Mats– Running Boards – Emergency Kits– Brush Guards – Touch-Up Paints– Roll Bars – Mudflaps– Stereo Systems – Driving and Foglights– Trailer Hitches – Cigar Lighter Element

– Wind Deflectors

Chemicals, solvents and car care products are also excellent items to display heresince customers are conscientious about their vehicles, as evidenced by their

presence in the Dealership.

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SHOWROOMThe most frequently missed merchandising opportunity is the parts andaccessories display in the New Car Showroom. Not only do such displays greatly improve sales and profits for the Parts Department, but they also improve grossprofit retention on new and used vehicle sales. Whenever possible, themerchandise should be installed on the vehicles and sold as an added option.This allows the customer to view the accessory if it is an appearance item, oroperate the accessory if it is a functioning item.

Installed accessories on vehicle inventory should feature:

• Accessories • Accessories(major installation) (minor installation)– Aero Packages – Pin Stripes– Stereo Systems – Floor Mats– Luggage Rack – Wind Deflectors– Running Boards – Driving and Foglights– Brush Guard – Trunk Release– Roll Bars – Wheel and Door Edgeguards– Cruise Control – Custom Wheels

– Trailer Hitches A stand alone kiosk is excellent for displaying radios and theft deterrent systems.

CASHIERThe Cashier’s window is an excellent place to sell impulse items such as

windshield washer fluid, polishing cloths and other low cost items that have wide customer appeal. Simple selling messages may read:

• “Have you forgotten touch-up paint”?

• “Taking a trip? Take extra windshield washer fluid with you”.

A supply of the product should be stored in the Cashier’s office for easy, quick selling. A low cost employee sales incentive works wonders.

The Cashier should be located near the wholesale/retail parts counter, thegeneral office area and within easy reach of the repair order rack located at theTechnician’s counter.

If the Cashier’s window is not within sight of the parts counter, directions andsignage should be explicit enough for the customer to follow. Painted lines onthe floor or signs can provide directions. In any case, the customer should notbe expected to walk great distances through the shop or other areas wherevehicular traffic is present.

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SERVICE RECEPTIONParts and accessories featured in these displays should be inexpensive impulseitems that involve little or no installation. Everything should be priced. Themessage “Free Installation, No Waiting” can be an effective persuader. Car caredisplay stands can be used to promote impulse buying.

PLANOGRAPHING RETAIL AREAS

The manner in which product displays are arranged will impact both the retailcustomers’ buying decisions and the efficient operation of the Parts Department.To begin the actual planographing process, measure the display area and outlinethe area on a planographing grid.

The following page provides an example of planographing for retail displays.

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RETAI L AREA PLANOGRAPH FOR 600 SQ. FT.

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Door

Door

PartsDept.

20 ft.

30 ft.

Window

Door

Window

Parking

GON: GONDOLA PPD: PRODUCT PLATFORM DISPLAY WU: WALL UNIT FMR: FLOOR MAT RACK


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DISPLAYTYPES

The Parts Department needs to be aware not only of where it will place displaysbut also how it will display parts and accessories. There are a variety of ways by which items can be displayed.

SELF SERVE/MASS MERCHANDISING

Many Dealerships are becoming more and more interested in a visual or display

type merchandising operation because of its potential for producing greaterprofit.

Effectively utilised, this type of merchandising requires changing from an order-taking retail operation to one employing the principles of mass merchandising.It will take time, effort, money and commitment from Parts Departmentpersonnel, but the important result will be a more efficient and profitable parts

operation – and more satisfied customers.

ENDCAPS

The two ends of gondolas are referred to as endcaps. These are very valuable

spaces in that they typically have very high visibility.Since the eye level position is the most valuable area, a typical strategy is to putspecially priced items on the lowest shelf. Related items with higher gross profit

margins can then be placed at eye level.

SEASONAL

Seasonal displays should be oriented to the customers’ upcoming needs. Forexample, once the weather turns cold, displays featuring anti-freeze, windshield

washer fluid, block heaters and other cold weather accessories are appropriate.On the other hand, in Spring or early Summer, a display of cleaners and polishes

would be effective.

“EXPLODED PARTS”

An “exploded parts” display is made by arranging the component parts of theunit in the order they would be assembled in a vehicle. This type of display canbe used to point out to the customer the exact parts that need replacing, or toexplain their function. It also makes replacement of the complete assembly morepractical.

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CUTAWAYSSome parts, like oil filters, all look alike on the outside. Cutaways allow customers to see what is inside and compare directly with competitive products.Cutaways are often available from manufacturers or a Dealership can create its

own.

WORN vs. NEW

This type of display shows the probable condition of the old part in thecustomer’s car and points out the advantage of installing a new part while the caris in the shop for repairs. For maximum effectiveness, a display of this kindshould feature fast moving, high volume items like mufflers, brakes, shock absorbers and belts. Customers will usually respond to low pressure salesmanshipthat emphasises the fact that timely replacement normally saves costly repairs in

the future.

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TECHNICIAN’S COUNTER

The majority of parts transactions take place at the parts counters. Counter areasshould be sufficiently stocked with the necessary supplies to conduct business. Additionally, a separate Technician’s Counter encourages priority service being provided for the shop. Priority service keeps technicians from waiting in line

while the service customer’s repair is being expedited.

Parts counters provide workspace on which to identify and deliver needed parts

and to transact necessary paperwork. It is also very desirable to have a separateretail/wholesale counter. Technicians waiting at the same counter as retailcustomers can lead to poor public relations and customer dissatisfaction.

Technicians represent a large percentage of the Department’s total parts sales.Because a technician typically works on a flat rate, waiting time at the partscounters literally comes out of his own pocket. Excessive waiting time reducesService Department productivity at a significant cost to the Dealership.

Technicians should be provided with immediate quality service. They should notbe required to wait if at all possible, especially for other customers of the PartsDepartment.

Located near the Technician’s Counter should be:

• Repair Order Copies

• Standard Parts (nuts, bolts, clips)

• Shop Supplies

• Technical Bulletins

• Campaign Notices

• Special Tools (if monitored by Parts Department)

If possible, separate technician and customer traffic. A counter for eachminimises problems which could arise from the different nature of their

transactions. Keep the technician’s and retail/wholesale counters close enough toone another to allow one counter person to serve both.

Providing priority service to technicians is not an easy task. It takes dedicationand teamwork between the Service and Parts Managers.

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- Counter Design and Location


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Analyse your current efforts at the Tehnician’s Counter to see what can beimproved. Areas on which to focus include:

• Wait time

• Size and location of counter areas

• Quantity and quality of counterpersons

• Manpower scheduling

• Shop loading • Volume and flow

• Bin arrangement

• Stock location

• Document flow

WHOLESALE/RETAIL COUNTER

Most Dealerships maintain a common counter for wholesale and retailcustomers. Occasionally, larger parts operations will have separate counters

which are preferable. Whatever system is employed, it must be adequately

manned and provide efficient service.Handle customers in an equitable manner. That means next-in-line service andconfidentiality of their transaction.

Located near the Wholesale/Retail Counter should be:

• Counter tickets

• Illustrations

• Cross-referencing charts

• Suggested list of related parts

• Displays and advertised specials

• Car care products and impulse items• Cashier’s window

• Customer entrance

• Customer parking

If the Dealership has only one counter, a partition splitting the counterspaceshould be considered. If building design permits, placing counters at right anglesto each other is a good workable combination for efficient counter service.

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- Counter Design and Location



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Counter tops should be 24 to 30 inches (61cm to 76.2cm) wide and 40 to 42inches (101.6cm to 106.7cm) high with ample toe room at the base. Totalcounter length will de

Documents

GM Facility Development Parts