Principles of Estimating: Automatic Calculations

Jan. 1, 2020
Is your computer estimating system transparent? Considering all the pieces of data available for any combination of parts and labor operations on any of a vast number of production vehicles on the street today, your estimating system is doing a lot o

Computers have revolutionized our lives in ways that would have been hard to believe even 20 years ago. These calculating devices have been developed for some critical things, like heart pacemakers, some useful things, like cell phones, and some not-so-useful things, like video games.

Similar to most computer technology, the necessary processing is transparent. That is, you don’t see what they are actually doing. You only see results. In most cases, this is a good thing. You don’t need to see all the math involved for a video game, you just want the high score. You don’t need to see how your cell phone figures out an incoming call, you just answer it. If you have a pacemaker, you probably don’t want to know how it works, just that it keeps working.

Is your computer estimating system transparent?

Considering all the pieces of data available for any combination of parts and labor operations on any of a vast number of production vehicles on the street today, your estimating system is doing a lot of computing. How much of that do you really want to see?

Of course you are interested in results, which is the estimate print, but what about all the calculations that went into producing it? Was the right part selected? Were any options applied to replacement labor? Where was overlap removed? Is there labor for refinishing any edges or undersides? Is there labor for two-stage application to those edges or undersides?

We see the results of choices and calculations on the estimate print. What else is going on?

Correct parts depend on the detail and accuracy of each estimating system. Not all systems carry every color or variety for every part, so there are some limits. Not all parts are computer-selected; some still require a writer’s choice. Verifying part numbers is still the best way to avoid problems later. ADP and Mitchell both show part numbers on their regular estimate print. CCC has part numbers available on a separate report.

Alternate part automation depends on system setup choices. Search parameters and thresholds must be set up properly to get viable choices.

However, labor is usually the largest area for questions. Is it accurate? How do I know that?

As usual, each system is different. Each follows its own procedures so its own end result is consistent. Both procedures and displays of results are different among these competing vendors.

ADP’s estimate print shows the least amount of calculations but has the most detail available. Refinish labor breakout is shown directly on the estimate (optional in ShopLink). It shows refinish labor amounts for surface, edges and multi-stage applications. It does not show where overlap was removed. Replacement labor is shown as a net amount only, including any adds for selected options and any deductions for overlap.

ADP’s Labor Report details calculations behind the net labor amount shown on the estimate. You can see itemized information for each pre-stored labor amount and how those operations interact. You can see all the itemized tasks that could be involved in overlap. You can see which ones may have been eliminated due to another part (overlap). This report does not detail any additions for optional equipment, although any applicable labor amount is already added in.

Mitchell’s regular print shows additions for refinish edging and undersides, but not refinish overlap. Replacement labor amounts are shown after any overlap is removed. They also show labor adds for options, if available, and selected separately. Automatic labor added for a selected option is already included in the net labor amount shown.

Mitchell’s Audit Print shows the full labor amount in a column next to the net estimate labor amount. Any difference between them shows either an automatic add for an option or an automatic deduction for an overlap calculation.

CCC’s regular print shows each labor addition for a selected option and each overlap deduction for both refinish and replacement labor. All calculations are shown so there is no additional report.

With a little effort, you can determine more of the calculations going on behind the estimate print. With your own system you have more access to print additional reports or research a question. With estimates from other systems, be aware of what is available and learn to find answers when needed.

The computing behind any estimating system need not be transparent.

“Do not do to others as you would not have done to you.”

— Confucius, circa 500 BC

About the Author

Bruce Burrow

Bruce Burrow has been in the automotive repair business for more than 30 years, and he has been ASE certified since 1974, currently with ASE master certification in collision repair. He has worked as a technician, shop manager and dealership service director. Burrow was a senior trainer for one of the information providers, and he is currently a certified I-CAR instructor. In addition to running an esti-mating seminar for the Automotive Management Institute (AMi), he is a freelance consultant for the automotive repair industry.

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