Mervin Winston, Ltd. - Case Studies

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Mervin Winston, Ltd.
CPA's and Business Consultants
3033 Campus Drive Suite W115
Plymouth, MN 55441
Phone: 763-557-6030
Fax: 763-557-9030
E-mail: info@mwinstonltd.com

Case Study - CFO for Hire

	Client Industry:	Collision Repair

	Client Issue:	Need to improve bottom line

	Background:	A husband and wife ownership team of a collision repair facility had a need to maximize their resources: labor, facility and materials. They had accomplished some degree of profitability but wanted help with the fine-tuning and enhancements of the operation in order to improve their bottom line. Their financial reports were timely but there was a lack of understanding of some aspects of their accounting system and they were not using financial reports as a management tool.

	The Mervin Winston Ltd., Solution:	Reviewed the accounting system, determined the level of understanding and usage of financial reports, and trained owners to better run their operation. Completed a capacity study of the operation to determine the maximum number of cars that could be repaired in a month. Worked with the owners to design and install a scheduling system that allowed the operation to smooth the input and output of cars and maximize capacity. Installed a body and paint technicians' skill assessment matrix. Based on this matrix, on-the-job and specialty training was scheduled. Provided budget guidelines so the owners could complete a more realistic yearly budget. The guidelines focused on cost of sales and expenses that needed to be fine-tuned in order to improve the bottom line. Developed a yearly marketing and sales program that insured the key customers were being contacted on a consistent basis with each contact having a clear objective. Completed yearly business models of the business. Reviewed these models with the owners who then determine their operating goals for the year focusing on revenues, cost of sales, expenses and profit. Developed a series of Key Performance Indicators (KPIs) and a reporting process with the objective of providing feedback relative to the KPIs. Established monthly review process to review financial and Key Performance Indicators and develop action plans to correct performance where not acceptable.

	The Results:	The owners realized their gross margin and expense percent goals even through a slow business cycle. Communication about the priorities of the business became clear to the staff through the use of KPIs. The owners, estimators and staff consistently analyzed monthly results to identify where enhancements could be made in the operation. The owners felt in greater control of their operation. By following the detail of the operation their business decisions were based on more concrete information. The marketing representative had a precise monthly plan, reported results and would change priorities if the market dictated such a change.