Jon McNeill
๐ค SpeakerAppearances Over Time
Podcast Appearances
In fact, I'll just run parts for you if you want.
So I went home that weekend and I started to do research and found out the auto collision industry is a $50 billion industry.
And then found out that there were 38,000 of these.
And so the average business is around 1, 1.2 million.
So pretty small.
And I had been exposed to advanced manufacturing.
And I got a sense of that was not what was happening in the back of these shops.
So I went and just observed.
I was running parts, just observing.
And what I saw was essentially a hair salon.
Every technician had two bays and they were on commission and they made money off of those two bays.
So they had no interest in how fast that car went through because that car was sitting in front of them as a cash register to make money.
And so I thought to myself, what if this was $50 billion industry was modernized?
What if you put these cars into a production line like Henry Ford did?
And what if you paid the entire team a bonus based on cycle time and throughput?
They wanted to control their paycheck, and so they would surround themselves with three or four cars, and they would just cherry-pick hours off of those cars, and they got paid by the hour, but not... So the car didn't have to get finished.
They were getting paid by the shop just on the hours they worked on that car.
So that car could sit there for a couple weeks.
They didn't care.
And you had these two terms, cycle time and touch time.