Reducing Personnel Expense

As everybody is adjusting to the new normal and becoming more efficient in the collision industry's changing environment, personnel expenses need to be reduced. Eliminating positions in a business is never an easy process, even when it's necessary to remain profitable.
The implementation of lean, which promotes efficiency and continual improvement, has already reduced administrative positions throughout our industry. As shops adopt more lean processes, the number of shop floor personnel also can be reduced. One position to look at is the production manager. In most shops this is considered a needed non-production expense. Repair planning and blueprinting are making the repair process smoother and eliminating the "spot fires" that a production manager would be employed to put out. Depending on where you are in the lean process, this position could be eliminated without affecting workflow. Combining lean processes with effective management system use further justifies eliminating this position.

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