Absorption

Service Department Financial Indicators

There are numerous indicators available to management that contribute to an in-depth analysis of the financial health of the workshop. Each provides a detail that enables maximisation of workshop profit. Listed alphabetically below are typical examples of financial indicators in commonly use: Actual Turn-over as a % of Potential Turn-over Average Hours per Job Card …

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The Potential Risk of Work In Progress

Work In Progress Work In Progress represents income that is at risk of being lost to the Service Department. Work In Progress refers to repair orders (Warranty, Retail, or Internal) not finally costed and allocated for payment. Usually, within a 12-hour period, this is could be an operational delay in processing warranty and internal jobs …

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