“We’re measuring everything, but keep getting the same results”… this is a common problem reported by managers who are faced with an immensity of data that doesn’t seem to say anything in particular. The best tools won’t work without good practices and training.
These best practices can be summed up with two ideas:
- Define the critical areas to control
- Create a habit of measuring regularly and acting on what you measure
In this article we will look at four KPIs that the Service Manager must monitor regularly.
1. Workshop Mix
Why is this indicator important? Special attention should be given to this set of indicators that describe how repair orders are distributed according to who they are billed to: internal, warranty or customer.
Calculate your KPI
- Internal ORs / Total ORs * 100
- Warranty ORs / Total ORs * 100
- Customer ORs / Total ORs * 100
Total Monthly ORs
How to improve this KPI? Modern DMS applications have Service Marketing functions that predict when eadh customer will need their next service. With this information, service advisors can contact customers to book those appointments.
2. Customer Service Mix
Why is this indicator important? This KPI is related to the previous one and lets you detect what types of work are performed the most, how much time is dedicated to each one, and how repair orders are composed.
Customers usually come into the workshop when something happens to their vehicle. However, the service advisor’s sales skills can motivate the customer to request more jobs. For example, repairing the air conditioning is circumstantial, but taking advantage of the fact that the vehicle is in the workshop to rotate tires is an extra job that the customer did not plan to do and we can offer them.
How to improve this KPI? By promoting two habits in service advisors:
- Always try achieve more than one job per repair order
- Record the type of work to be performed in the DMS (repair, reconditioning, maintenance, etc.)
3. Workshop Occupancy Rate
Why is this indicator important? It helps you see how technicians’ available time is used. Available hours are the total hours purchased from each technician minus the time allocated to non-repair tasks (cleaning, etc.) Hours not dedicated to repairs are called unproductive hours and it is important to keep track of them.
How to improve this KPI? Know what happens in the workshop at all times. The service manager has to know in real time if there are delays or idle times, as well as what each technician is doing.
To facilitate this task, Autologica DMS has a Technician Panel that lets you see what time is being spent on. If you detect a delay, you can act to resolve it; If you see idle time, you can assign other tasks.
4. Workshop Performance
Why is this indicator important? This KPI shows the productivity and efficiency of the workshop, and indicates the number of hours that are billed in relation to the number of hours available for each operator.
How to improve this KPI? You must act on billed hours, because available hours are fixed. You can improve billed hours by training technicians to perform their work optimally and in or under the expected time. You can then detect which jobs each technician is best at and assign these tasks to them.
You should regularly measure these KPIs in order to know what decisions to make to improve departmental profitability. Everything that is measured can be improved; this premise must be reflected in the dealership’s culture.
Autologica DMS allows you to measure your dealership’s vital KPIs, and provides tools to help you optimize them. Request a demo today.