Understanding Service Department KPI’s – Productivity


Productivity represents a combination of the workshops Efficiency and Utilisation

Productivity = (Hours Sold / Hours Available) X 100

Benchmark: 103% – 110%

Hours Sold is a function of the work available to the Service Department that is dependent on the bookings taken by the Service Department and the Costing of the Repair Order

Hours Attended is the standard technician value (MU factor) entered into the Dealer Management System based on a 9 hour working day.

In order to maximise Hours Sold are you paying attention to:

  • Loading workshop bookings according to available hours and NOT jobs per day. If bookings are not made on hours available then you are at risk of having insufficient hours available to convert into labour sales.
  • Lead-time
  • Upsell hours
  • Idle-time

In order to maximise Costing of the Repair Order are you paying attention to:

  • Every single labour operation being charged for
  • Your costing clerk’s competence
  • Technician discipline in listing every task of the work they complete
  • Disciplined technician clocking

Generally, if Productivity is below 100% then:

  • There is insufficient work available to technicians
  • Technicians are taking too long to carry out the repair
  • The Repair Order is not being costed correctly

For a Service Department to be profitable it MUST sell more hours than the available technician hours

If the Service Department is not booked to its available hours available then it is operating below its potential Utilisation and Productivity.

Simply stated “Productivity is an indicator of your potential Labour Gross Profit”

Contact Amatz Automotive for a comprehensive solution to your Dealership Development.

Amatz Automotive Aftersales Consultants – Dealer Development, Dealership Assessments, Operational Process Development, Customer Satisfaction Interventions, and Training Solutions.

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