We’ll say it again: Absorption Habits in the Service Department calls for the right techs on the right trucks at the right time in the right bays at the right price.

So far, we’ve covered Hours & Rate, and Customer Communication. The last of our three categories of best practices covers Work Flow.

Mark and Casey will be online to talk about these topics during our end of month webinar on Friday, January 31. 
1. The Six Minute Challenge

Identify and fix anything that is unnecessarily keeping the technician out of the bay. Six minutes may not sound like a lot of time, but it adds up, and this calculation can show you where your monetary opportunity lies:

       Rate per minute = Average labor rate/60 minutes
       Value of 6 minutes = Rate per minute x 6 minutes
       Value of 6 minutes x 8 hours = Dollars per day per tech
       Dollars per tech per day x total number of technicians = Opportunity lost per day
       Opportunity lost per day x 260 work days per year = Per year opportunity
 
As an example, let’s say your average labor rate is $100 and you have 10 technicians in your department.

       Rate per minute = 100/60, or $1.67
       Value of 6 minutes - $1.67 x 6, or $10.02
       Value of 6 minutes x 8 hours = $10.02 x 8, or $801.60
       Opportunity lost per year - $801.60 x 260, or $208,416
 
That’s a staggering number, wouldn’t you say? And even if you can recover only a fraction of it, you are definitely winning the game. What would keep technicians out of their bay?

  1. Search for tools
  2. Missing parts
  3. Other departmental inefficiencies


2. Implement an effective triage process and provide ongoing measurement

  • Measure and manage a dedicated triage process to make sure that you are accomplishing your goals.
  • Measure the triage outcome: Did the triage technician accurately diagnose the problem? Typically 75% of vehicles triaged will end with a complete diagnosis and the balance will need more in-depth diagnosis and should be dispatched to an “A” technician in the shop.
  • Triage is a crucial part of the repair process and it needs to be evaluated and enhanced. The ultimate goal is to maximize the number of times when a repair order is dispatched to the shop, you have parts in hand and customer or warranty authorizations, allowing the tech to be more efficient making the repair.

Provide for well-organized shop tools and equipment
  • Everything has a place and should be in its place. Your goal includes not only the ability to find tools or equipment in a timely fashion, but to have them distributed in the shop conveniently to minimize wasted motion.
  • Proper organization saves everyone time and creates an efficient work environment for all.
KEA Advisors
785-842-6498
PO Box 1229
Lawrence, KS 66044