Efficiency is a function of the hours sold vs. the hours worked.
Efficiency % = (Hours Sold / Hours Worked) X 100
Benchmark: 110% – 125%
Efficiency is assumed to measure either individual Technician Efficiency, or the Workshop’s Efficiency as a whole.
Hours Sold depends essentially on:
Amount of work available. This may be dependent on either bookings taken by the Service Department or the work available to the Service department.
How are your bookings being made?
Do they understand the booking principles or are they following orders to book in a specific number of jobs per day?
If bookings are not made on hours available then you are risking having insufficient hours available to convert into labour sales.
How much work do you have available?
Have you fully loaded your available hours?
What is your lead-time?
How many hours did you upsell?
How many hours idle-time was recorded?
Costing of the Repair Order.
How certain are you that every single labour operation is being charged for?
How competent is your costing clerk?
How disciplined are your technicians in listing every task of the work they completed?
How disciplined is your technician clocking?
Hours Worked is obtained through your Dealer Management System from your technicians clocking.
How disciplined are your technicians in their clocking practice?.
The lack of discipline is one of the major problems in most service departments.
If this is inaccurate then the Efficiency value obtained is meaningless and makes interpretation of the Efficiency % pointless
The manufacture’s labour time schedules dictate the number of hours sold but is not influenced by the number of hours worked.
The Service Advisor can have a major influence Workshop Efficiency by increasing the hours sold via upselling proficiency.
A technician can influence Efficiency by working faster and by identifying additional potential work and upselling via the Service Advisor.
Did you know that the allocation of work can influence Technician Efficiency?
If a technician receives their total daily job cards all at once they most likely will pace themselves accordingly.
The workshop foreman should control the technicians work pace by allocating one job at a time with an expected completion time.