Optimizing Fixed Ops with AI

AI and new technology are everywhere. Every day, I see tools promising to solve problems—or at least mask their symptoms. But I’ve realized that the real question isn’t about the tools themselves; it’s about whether we’re focusing on the right things.

As technology changes how we work, I’ve been asking myself: How can we use AI to truly make a difference? Specifically, how can it help us improve performance and profits in Fixed Ops?

Time is the most valuable resource. It controls everything we do, yet inefficiencies steal so much of it. The key isn’t in spending time but in investing it wisely.

Think about this: How many times have you rewritten a task on your to-do list, only to eventually forget about it? It’s something I’ve done more times than I’d like to admit. That’s why I’ve turned to AI as a way to reclaim time and reinvest it into solving the root causes of inefficiencies.

Take Service Managers, for example. Many of us want to focus on improving the business, but instead, we get bogged down in daily firefighting. Repeating answers to the same questions. Fixing problems that stem from unclear communication and poor processes.

Let’s break it down with a common issue: warranty processing delays. If we use Sakichi Toyoda’s “Five Whys” method to dig deep, we discover that slow processing isn’t the real problem—it’s just a symptom. The root cause lies in poor documentation caused by a lack of written processes and clear responsibilities for each role.

When this happens, everyone involved—Technicians, Service Advisors, Parts staff, and the Warranty Admin—wastes time chasing missing details. This costs the department both time and profit.

Facing Inefficiencies: The 3 C’s

In my experience, tackling issues like this involves moving through three stages:

In our warranty processing example, the symptom is poor documentation. Clarity reveals the absence of a written process outlining each role’s responsibilities. Creation involves developing that process—and this is where AI becomes a game-changer.

Using AI to Build Processes

Creating Standard Operating Procedures (SOPs) can feel daunting, especially when time is limited. I’ve used AI tools like ChatGPT and NotebookLM to make this process faster and more effective.

Here’s a refined prompt I’ve found useful when starting with ChatGPT:

"I am the service manager of an automotive dealership. I need to create a Standard Operating Procedure (SOP) to improve efficiency and customer satisfaction in my department. Please outline clear steps for [insert topic here], and ask me clarifying questions to tailor the SOP to my needs. Your response should be structured and actionable."

For example, using this prompt for warranty repair orders, you might outline:

• Service Advisors handle all customer communication and document the customer complaint, cause, and correction.

• Technicians complete repairs, verify their work, document labor operation codes, and use electronic time tracking for each repair job.

• Parts staff manage defective parts with proper tags and documentation.

• Warranty Admins verify paperwork, submit claims, and monitor accounting schedules for unpaid claims.

AI doesn’t deliver perfection, but it offers an excellent starting point. With just a few refinements, I’ve developed clear processes that are easy to implement and follow.

So It’s Settled. This IS a BIG Deal! 

The cost of inefficiency is staggering. If one technician spends 30 minutes a day clarifying warranty issues, that’s 2.5 hours a week of unproductive time. Multiply that by the current effective labor rate (ELR) of let’s say $175, and you’re losing nearly $2,000 a month—per technician!

Investing a small amount of time to improve these processes can pay massive dividends. It’s not just about saving time or money. It’s about reducing stress for yourself and your team while delivering better results and higher performance.

AI is far more than a trendy tool. It’s a practical solution to real problems—problems that impact performance, profits, and the overall success of Fixed Ops.

We’re only scratching the surface of what’s possible with AI, but even this one example shows how powerful these tools can be.

With the right guidance and input, AI brings opportunities for faster execution, smarter decisions, and real impact in Fixed Ops. The future is here, and I’m excited to see how far we can take it.

Kyle Newsom
Co-Founder, VISPERIO