Insurance Quality Parts Best Practices

Insurance Quality Parts
Best Practices

What is meant by "Insurance Quality Parts"?

What is meant by Insurance Quality Parts?

To Collision repairers, it means a new, undamaged part, with no imperfections and typically primed for immediate use. For a recycled part to match this, the part may require additional preparation and/or repair to remove imperfections such as scratches, paint chips, orange peel, or stress cracks.

It is important to recognize this is not a profit centre for collision repairers; it is simply to make a part usable per the CEG outline.

1. Auto Recycler Best Practices
Slide Presentation	The best practices for auto dismantlers/recyclers are described in the following slide presentation. There are 30 slides in all. It will take 10-15 minutes to go through the entire presentation. We recommend that you take notes where applicable. In each slide, the content has finished loadin when you see the little red square icon like this:

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Part One: General Facility Standards

Standard

Best Practice

1. Adequate Customer Parking.

Adequate customer parking separate from vehicle holding area.

Part One: General Facility Standards

Standard

Best Practice

2. Professional Counter Sales Area.

Area is safe, friendly, and professional. Counter is clean and free of debris.

Area is clear of hazardous wastes and components.

Part One: General Facility Standards

Standard

Best Practice

3. Proper Store and Affiliate Signage.

Facility has proper signage.

Part One: General Facility Standards

Standard

Best Practice

4. Facility Structures.

Property is well maintained and reflects an orderly business. Offices are organized and tidy.

Part Two: General Environmental Health
and Safety Standards

Standard

Best Practice

1. Health and Safety Policy.

The facility has a written health and safety policy.

Things to Look For

For more information on health and safety visit ohs.ara.bc.ca.

Click Here

Part Two: General Environmental Health
and Safety Standards

Standard

Best Practice

2. Environmental Compliance

Things to Look For

Are hazardous waste storage areas in compliance with MoE guidelines?

Are batteries and fluids stored in appropriate containers?

Meet or exceed MoE requirements

Part Two: General Environmental Health
and Safety Standards

Standard

Best Practice

3. Tools and Equipment.

Things to Look For

Is all mobile equipment (e.g. forklifts, hoists or lifts) in good operating condition and compliant with regulations?

Are unsafe/defective tools and/or
equipment marked ‘unsafe' or 'do not use’?

Equipment is in good working order and complies with WorkSafeBC regulations.

Part Two: General Environmental Health
and Safety Standards

Standard

Best Practice

4. Health and Safety Training.

Workers have received adequate training
(e.g. forklift, WHMIS).

Part Two: General Environmental Health
and Safety Standards

Standard

Best Practice

5. Adequate First Aid.

Minimum requirements met or exceeded.

Part Two: General Environmental Health
and Safety Standards

Standard

Best Practice

6. Personal Protective Equipment Policy.

Does the employer have a written PPE policy?

Part Three: Vehicle Dismantling, Parts Pulling,
Shipping, and Environmental Processing

Standard

Best Practice

1. Vehicles are properly prepared prior to dismantling
& processing.

A procedure is in place prior to processing vehicles.

Vehicle garbage is removed and the vehicle is made safe for handling prior to transport into dismantling and/or processing area.

Vehicle electrical components are properly tested and any dismantling prep work is performed.

Vehicle is transported safely into processing area.

Part Three: Vehicle Dismantling, Parts Pulling,
Shipping, and Environmental Processing

Standard

Best Practice

2. Vehicles are processed according to environmental standards.

Hazardous materials removed and stored with proper containment.

Part Three: Vehicle Dismantling, Parts Pulling,
Shipping, and Environmental Processing

Standard

Best Practice

3. Vehicles are dismantled according to written procedures.

Things to Look For

Dismantler(s) review work order before dismantle or pulling parts?

Are any discrepancies noted and brought to the attention of the appropriate personnel?

Any deficiencies are properly noted and communicated to supervisor or sales staff.

Part Three: Vehicle Dismantling, Parts Pulling,
Shipping, and Environmental Processing

Standard

Best Practice

4. Mechanical parts are removed with care.

Dismantler follows correct procedures and keeps a clean and orderly area.

A catchment container is placed under all parts that may contain residual oils and fluids.

Dismantler wears appropriate PPE when pulling parts and complies with company policy.

Dismantler properly writes stock number and other information on part and places and or stores part in proper location or as otherwise noted.

Dismantler properly disconnects wires and attachments from parts.

Dismantler does not take unnecessary risks when lifting, transporting or removing parts.

Part Three: Vehicle Dismantling, Parts Pulling,
Shipping, and Environmental Processing

Standard

Best Practice

5. Body Parts - interior and exterior parts are removed with care.

Dismantler follows correct procedures.

Dismantler does not take unnecessary risks when lifting, transporting or removing parts.

Dismantler wears appropriate PPE when removing parts.

Dismantler writes stock numbers and other important information on part prior to storage.

Any extra or extraneous parts removed are left in vehicle with stock number and other information written on them.

When removing any component that has wiring or attachments the dismantler is careful to disconnect from source and avoids any unnecessary cutting.

Part Three: Vehicle Dismantling, Parts Pulling,
Shipping, and Environmental Processing

Standard

Best Practice

6. Parts are cleaned prior to shipment.

Things to Look For

Observe shipping of parts:

Does the shipper check to see if the part has been cleaned?

All parts have been cleaned and inspected prior to shipping.

Cleaning procedures ensure parts will not be damaged while cleaning (e.g., mechanical parts are properly protected during cleaning; grease, and oil and dirt is thoroughly removed during cleaning).

Part Three: Vehicle Dismantling, Parts Pulling,
Shipping, and Environmental Processing

Standard

Best Practice

7. Parts are securely wrapped and shipped with proper shipping documentation.

Things to Look For

Check to ensure that glass and other fragile parts are securely wrapped and appropriately marked as fragile along with other important information.

Check shipments of electronic components to ensure they are properly wrapped and protected.

Check shipment of larger sheet metal parts to ensure they are properly crated and protected against damage.

Check to ensure that packages and shipments include all necessary information.

Small parts like engine control modules should be placed in a box with filler paper, bubble wrap, or vacuum sealed to protect them from damage.

Doors and quarter panels will need to be crated or placed on a pallet. Rear sections, front sections, and truck boxes are to be placed on a pallet.

All packages must have a shipping order with the company information to which it is being
shipped clearly marked on it.

Part Three: Vehicle Dismantling, Parts Pulling,
Shipping, and Environmental Processing

Standard

Best Practice

8. Parts are stored with care and properly identified.

Things to Look For

Check to ensure that glass and other fragile parts are securely wrapped and appropriately marked as fragile along with other important information.

Check storage areas and ensure that body panels are stored with care.

Check that all parts are stored in a safe manner.

Check to ensure that delicate parts are stored with other delicate parts.

Check that parts in storage are properly tagged and/or have stock numbers and other identifiable information written on
them.

Body panels should always be stored with care.

Parts should be stored in a safe and tidy manner.

Delicate parts are stored with other delicate parts.

Stock numbers with proper identification should accompany each part (either tagged or written on part).

Part Three: Vehicle Dismantling, Parts Pulling,
Shipping, and Environmental Processing

Standard

Best Practice

9. Section cuts are properly identified on the work order.

Things to Look For

Examine work orders for appropriate section cutting details.

Work order properly details sections to be cut and communicated to parts dismantler.

Vehicle dismantler takes appropriate care when sectioning vehicle and follows all health and safety protocols.

Part Four: Inventory and Parts Grading Standards

Standard

Best Practice

1. Advertised parts are properly graded and list pricing.

Things to Look For

Inventory management and sales staff are familiar with standardized parts grading.

Inventory listed on Car-Part.com describes appropriate parts grade and pricing.

Part Four: Inventory and Parts Grading Standards

Standard

Best Practice

2. Pictures used reflect parts grade and damage.

Things to Look For

Part grade matches the visual representation.

Pictures of damage should be clear and show an unobstructed view of the part reflecting the type and location of damage.

Parts grade properly reflects what is shown in the picture.

Part Four: Inventory and Parts Grading Standards

Standard

Best Practice

3. The facility has a quality control system in place for returned parts.

Things to Look For

Verify there is a system in place for returned parts that records the reason for the return.

Verify that parts are being re- inspected and errors in the system corrected made before being re- stocked and advertised.

Quality control measures are in place and staff members are familiar with them and follow them.

Part Four: Inventory and Parts Grading Standards

Standard

Best Practice

4. All employees whose job entails inventorying, recording, grading or selling parts should have a good working knowledge of parts coding, grading and the ARA parts definitions standards.

Things to Look For

Visit the ARA Training Centre of Excellence website for the related training:

Staff have completed the Inventory Specialist Course (AR102).

Click Here

Part Five: Sales and Communication

Standard

Best Practice

1. Sales and counter staff conduct themselves in a friendly professional manner.

Things to Look For

Conversations are professional.

Calls are answered in a friendly professional manner. Also add in about instant messages.

Part Five: Sales and Communication

Standard

Best Practice

2. Written policies.

Things to Look For

Are sales persons aware of policy terms and conditions?

Sales staff is aware of all warranty and return policies.

Part Five: Sales and Communication

Standard

Best Practice

3. Standards of Performance.

Things to Look For

Do counter/sales refer to the standards of performance when discussing or resolving conflicts with repair facilities?

If the repair facility is not aware of the standards and/or the expectations of recyclers and repair facilities then the sales staff will do their best to communicate and explain that information to the repair facility.

Part Five: Sales and Communication

Standard

Best Practice

4. Parts Grading.

Things to Look For

When describing parts quality and/or damage to repair facilities do the sales/counter person(s) use ARA parts grading?

Sales staff references parts grade when communicating parts quality to ICBC repair facilities.

The sales staff should avoid use of common slang and acronyms when communicating parts quality to repair facilities.

Thank You

This concludes the presentation

Exit

2. Communication
Car-Part	Utilize/refine features of Carpart.com to promote use of recycled parts. List parts pricing on CarPart.com to reduce delays, increase accuracy, and eliminate unnecessary calls. Collision facilities are encouraged to use identifiers to remove poor quality providers which promotes business to reputable recyclers. Increase training to promote features such as instant messaging. Allow for meaningful communication when using digital platform.

2. Communication

Car-Part

Utilize/refine features of Carpart.com to promote use of recycled parts.
- List parts pricing on CarPart.com to reduce delays, increase accuracy, and eliminate unnecessary calls.
- Collision facilities are encouraged to use identifiers to remove poor quality providers which promotes business to reputable recyclers.
Increase training to promote features such as instant messaging.
- Allow for meaningful communication when using digital platform.

3. Quality
Quality Vs Price	Recognize that balancing “quality” with “lowest price” is the driving factor for replacement parts. Modifying the price of parts to match quality promotes usability which helps overall repair cost reduction.
Delivery	Educate your employees on cycle time KPIs to improve service delivery expectations. Provide sufficient details to better educate recycler parts policies, expectations & standards of performance.
Recycler	Establish a quality control process based in industry business practices – dismantle, process, packaging, inventory, and storage. Quality control review of parts at time of delivery. Provide education around quarter panel joining techniques. (rolled flanges) that makes the use of recycled not economical.
Collision	Establish quality control business practice for the timely review of parts at time of delivery.
Images	Improve overall quality of images. Provide quality images to support confidence in part grading.

4. General Best Practices
Part Pricing	Parts price should consider the cost to incorporate insurance quality. Industry will see a financial benefit to utilizing recycled parts (eliminates industry subsidizing costs to bring part to insurance quality). Increased profitability will reduce incentive to price match resulting in less sales lost to OEM. Potential for a higher percentage of recycled parts usage.
Collision	Promote constructive dialogue between recycler and shop to: Determine cost/time needed to bring to insurance quality, adjust price accordingly vs hours of repair. Clarify policy that recycled parts that are prepped/painted are not returnable (cannot be resold).
Recycler	Increase the professionalism of interaction with collision facilities by: Setting expectations on parts quality and timing (improved overall service). Build understanding that recyclers are service providers, not simply order takers. Establish quality control business practice: Before packaging and delivery to reduce conflict and ensure clear lines of dialogue. Adopt higher standards for increased service/sales levels to: Demonstrate a progressive industry focused on quality and service. Improve your process for dialogue and pricing: To eliminate parts return and freight issues as more parts will be utilized in the repairs; with less returns, there will be less lost freight charges.
Hourly Rate	Repairs to be factored at $85/hr: When repairs are required to bring a part to an insurance quality. Anticipate a recycled part will require some re-work to bring to insurance quality. Promote communication between collision and recycler to ascertain the correct price inclusive of repair consideration to ensure price will not result in a net loss to either collision or recycler.
Pre-Pricing	Part pricing should anticipate costs to make the part usable: Only “A” parts are listed on Car-Part.com. If the shop wishes to use a lower grade part, they will need to contact the recycler directly.
Older Parts	The sale of parts 10 years and older: Requires a conversation between industry to determine the needs of both parties. Increased dialogue will result in greater overall satisfaction and part utilization.