This indicator shows lets you see the value of each hour invoiced by the Service Department, to see if standard hourly rates are being respected.
The analysis can also be performed by customer to determine, for example, if certain customers are being charged special hourly rates.
This KPI can be measured globally, or discriminated by who the work is charged to: the customer, warranty or the dealership. The following table shows the effective labor rate divided into three groups:
|
Charged to |
Amount invoiced |
Hours invoiced |
Effective labor rate |
|---|---|---|---|
| Customers | $185,500 | 3,998 | $46.40 |
| Warranty | $29,900 | 439 | $68.08 |
| Internal | $66,000 | 1,808 | $36.50 |
Depending on the desired depth of analysis, filters can continue to be applied to determine the effective labor rate by customer type, for a specific customer, by store, by workshop, by job type, etc.
