Think a labor allowance in one of the estimating systems is out-of-line with reality? Find an incorrect part number in an estimating system? Got an insurance adjuster trying to tell you a certain operation in included in the time for another operation when you’re confident that’s not the case?
A growing number of shops in these situations are turning for help to the Database Enhancement Gateway (DEG). A few recent examples:
• An insurance appraiser this past fall told Autocraft Bodyworks in Austin, Texas, that the insurer would not pay to paint both the top and bottom of the floor pan replaced on a 2009 Honda Accord the shop was repairing. The shop submitted DEG Inquiry No. 1787, and used the confirmation from Audatex (that its paint labor allowance is for the interior surface only, not the underside of the floor pan) to get paid by the insurer for the work.
• Estimator Michael Ferrucci at Ray’s CARSTAR Auto Body in Bristol, Conn., said the labor allowance for repair and replace of vehicle name plates – in this particular case on a 2006 Saturn Relay – seemed insufficient to cover cleaning up all the adhesive that is left behind after removal. He submitted an inquiry (No. 1901) to the DEG, and Mitchell International confirmed that the R&R time does not include cleaning and retaping of nameplates or adhesive exterior trim.
• Maine shop owner Mark Cobb submitted DEG Inquiry No. 1695, saying the rear body panel replacement labor allowances in Audatex for the 2009 Dodge Caravan were insufficient. Based on Audatex research, it changed the labor allowances for one panel from 7.2 hours to 10 hours, and for another panel from 4.1 hours to 28.2 hours - nearly a seven-fold increase.
It’s this kind of results that is attracting more estimators and shops owners to the DEG – and keeps many of them coming back on a regular basis. But there is still a surprising a lack of awareness of the DEG among some in the industry – and some misperceptions about it among others.
“Our user base continues to grow but there is still an incredibly large number of collision repairers that are not taking advantage of the tools the DEG offers,” said Bud Center Jr., the administrator of the DEG.
The formation
Although formally launched in late 2007, the DEG’s roots actually go back to a project launched in 2001 by the Collision Industry Conference (CIC). At that time, Hawaii shop owner March Taylor – also a working technician – began a volunteer effort through the CIC Web site to collect, research and process hundreds of inquiries about the estimating databases. Although the major estimating system providers have long provided a way for anyone in the industry to submit such inquiries directly to them, Taylor believed that a centralized inquiry system would be easier to use and offer a way for the industry to monitor what happens to such inquiries.
As the number of inquiries submitted and tracked on the CIC Web site grew – and as more people realized the value of improving the accuracy of the estimating systems through such a system – a number of industry groups began discussing a more formalized organization and system for database inquiries.
Three trade groups – the Automotive Service Association (ASA), the Alliance of Automotive Service Providers (AASP) and the Society of Collision Repair Specialists (SCRS) – agreed to work together to create and initially fund what became known as the DEG. (The DEG has expanded its funding sources through a sponsorship program, but it is still is largely paid for by the industry associations.) Although Taylor died just months before the formal launch of the DEG, he is still considered by many to be the “godfather” of the organization.
The process
One goal of the associations was to make the database inquiry process relatively simple and quick for time-strapped collision repairers. Ferrucci said he remember his boss telling him about the DEG well over a year ago, and he initially thought it seemed like a waste of time that he couldn’t spare as a busy estimator.
“But insurance companies frequently say something is included as part of another operation,” Ferrucci said. “When one of those instance came up, I told my boss this was a perfect opportunity to try the DEG, to have direct contact with the producers of the estimating system to find out what was accurate. So after I submitted it and had the documentation that what the insurance company was saying wasn’t accurate, I was just hooked.”
The system is free to use. New users can visit the DEG Web site (www.degweb.org) to read a brief explanation of the process and see tips for submitting a clear and complete inquiry. But the process involves little more than filling out a brief form identifying the vehicle, the area or part of the vehicle involved, and including one or two sentences explaining what information you feel is missing or inaccurate in one of the estimating databases.
“At first I thought, ‘This will be so time-consuming,’” Ferrucci said. “But once you start doing it? Honestly, I can submit an inquiry in less than 5 minutes.”
The DEG then posts the inquiry to its Web site and submits it to the estimating database company. Once that company reviews the inquiry, it provides its response – indicating what change, if any, it is making in response to the inquiry – to the DEG, which posts its to the Web site and forwards it on to the person submitting the inquiry.
Although the entire process can sometimes be completed in just one or two days, some inquiries require more research (the database of inquiries on the DEG Web site lists the resolution time for each). Over a 12-month period measured recently by the DEG, the average resolution time was 8.5 days.
The progress
In its first two years, the DEG processed about 1,000 inquiries each year. Center, who became DEG administrator (its only paid staff) about a year ago, recently published some statistics about 605 of those inquiries submitted during one 12-month period. The stats showed that the CCC and Motor database and estimating system generated 380 (or nearly 63 percent) of the inquiries submitted during that period, compared to 124 for Audatex and just 101 for Mitchell. CCC and Motor had the quickest response time – an average of just two days compared to 7.9 days for Audatex and 15.2 days for Mitchell.
“But the single largest thing I think we should take from those stats is that working together we are making tremendous strides toward improving the accuracy of collision repair data,” Center said. “More than half of the inquiries submitted, almost 59 percent, resulted in a data correction.”
Although all of the estimating database providers still have systems in place to accept and review inquires sent to them directly, some shop owners have reported better success in going through the DEG. Cobb said he initially submitted his inquiry about the Caravan labor allowances to Audatex directly; Audatex responded that after review it determined the labor time was sufficient. It was only after he resubmitted the inquiry with photos through the DEG that Audatex made a change.
Center said in his experience, any such situation is the result of better communication of the inquiry, such as the addition of photos.
“There are instances when the information provider may be having a difficult time understanding the concern, but after we provide a photo, everything makes sense and the inquiry is resolved quickly,” he said. “The DEG also works with the end-user and the information provider to ensure everyone has a clear understanding of the concern. In some cases these inquiries are very complex and require a fair amount of discussion to help ensure everyone clearly understands. This is a great example of the value DEG brings. The end-user submits an inquiry, and the DEG takes over and works with the information provider to reach an appropriate resolution in a timely manner.”
Center said although he’s proud of what the DEG has accomplished in its first years, he’s concerned about how difficult it’s been to build awareness of and use of it among collision repairers.
“I’ve spent many years managing multiple repair centers and I understand how hectic everyday life can be in most collision repair shops,” Center said. “However, if you take a minute to think about how much time you lose every day due to unnecessary supplements, parts delays, etc., you quickly realize how much time we could all save ourselves by taking the time to submit an inquiry though the DEG any time we find incorrect data. It only takes a couple of minutes and we take it from there.”
Ferrucci agrees, saying he just keeps a file on his desk where he slips a quick note for himself when he finds something to submit to the DEG.
“Then I just take five minutes in the morning before any customers walk in the door to sit down and submit it,” he said. “You have to make the time. That’s the way I look at it. We’re just one collision shop in Connecticut, but if every shop in the entire country had the same philosophy, we could help improve this industry and make sure the estimating systems are accurate.”
