Sect 2 KPI's
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Sect 2 KPI's

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This section covers various KPIs for service, definitions, why they are important and how they impact your business

This section covers various KPIs for service, definitions, why they are important and how they impact your business

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Sect 2 KPI's Sect 2 KPI's Presentation Transcript

  • Profitable Distributor Service Management
    Make Your Service Department the Driver of Your Dealership
  • Key Performance Indicators
    Distributor Service Department Key Performance Indicators (KPIs) Definitions and Reasons For Deviations
    Section 2
  • Key Performance Indicators
    2.1 Why KPI?
    2.2 Time to Sell
    2.3 KPI, Definitions, Impact, Reasons for Deviations and Actions
    2.4 5 x Super KPIs
  • 2.1
    Key Performance Indicators
    Section 2.1
    Why KPI?
  • 2.1
    Key Performance Indicators
    Uniform Snapshot of Department Performance
  • 2.1
    Key Performance Indicators
    Enables Performance Health Checks
  • 2.1
    Key Performance Indicators
    Forces the Department to Capture All Relevant Data
  • 2.1
    Key Performance Indicators
    Will Enable Correct Measurement of Progress Made
  • 2.1
    Key Performance Indicators
    “The beginning of wisdom is to call things by their right names”
    Chinese Proverb
    Know Your KPIs!
    Food For Thought:
  • 2.2
    Key Performance Indicators
    Section 2.2
    Time to Sell
  • 2.2
    Key Performance Indicators
    Total Calendar Time
    Productive Time
    Total Available Time
    Improvement Area
    Sick leave, vacation, unauthorized absence
    Unsold time:
    Idle time
    Other unsold time
  • 2.2
    Key Performance Indicators
    “Work Expands to Fill the Time For Its Completion”
    Cyril Northcote Parkinson, 1909-1993
    Parkinson’s Law #1:
  • 2.2
    Key Performance Indicators
    “Expenditures Rise to Meet Income”
    Cyril Northcote Parkinson, 1909-1993
    Parkinson’s Law #2:
  • 2.3
    Key Performance Indicators
    Distributor Service Department Key Performance Indicators, KPI
    Section 2.3
  • 2.3
    Key Performance Indicators
    2.3.1
    Technicians Availability Against Calendar Time, %
  • 2.3
    Key Performance Indicators
    Technician’s attendance hours/Theoretical calendar time = Technicians Availability, %
    Target >87%
    2.3.1
    Technician’s Availability Against Calendar Time, %
    Definition
  • 2.3
    Key Performance Indicators
    2.3.1
    Technician’s Availability Against Calendar Time, %
    Impacts
    Total Hours to Sell
    Turnover
    Profit
  • 2.3
    Key Performance Indicators
    Management?
    2.3.1
    Technician’s Availability Against Calendar Time, %
    Reasons
    Time Management?
    Follow Up Attendance?
    Dissatisfaction?
    “Ownership”?
  • 2.3
    Key Performance Indicators
    Awareness
    2.3.1
    Technician’s Availability Against Calendar Time, %
    Actions
    Attitude
    Care
    Educate
    Ownership
  • 2.3
    Key Performance Indicators
    2.3.2
    Technicians Productivity, %
  • 2.3
    Key Performance Indicators
    Technician’s Sold Time/Technician’s Attendance Time = Technicians Productivity, %
    Target >85-90%
    2.3.2
    Technician’s Productivity, %
    Definition
  • 2.3
    Key Performance Indicators
    2.3.2
    Technician’s Productivity, %
    Impacts
    Turnover
    Margins
    Net Profit
  • 2.3
    Key Performance Indicators
    Low Sales?
    2.3.2
    Technician’s Productivity, %
    Reasons
    Management?
    Awareness, Hrs to sell?
    Pre-planning?
    Workshop layout
  • 2.3
    Key Performance Indicators
    Workshop Maintenance
    2.3.2
    Technician’s Productivity, %
    Reasons, Cont’d
    Parts Availability?
    Skill levels?
    Incentive systems?
    Management System?
  • 2.3
    Key Performance Indicators
    Increase Sales
    2.3.2
    Technician’s Productivity, %
    Actions
    Awareness
    Attitude
    Pre-plan
    Management
  • 2.3
    Key Performance Indicators
    2.3.3
    Technicians Efficiency, %
  • 2.3
    Key Performance Indicators
    Technician’s AllottedTime/ Technician’s UsedTime = Technicians Efficiency, %
    Target >100%
    2.3.3
    Technician’s Efficiency, %
    Definition
  • 2.3
    Key Performance Indicators
    Turnover
    2.3.3
    Technician’s Efficiency, %
    Impacts
    Bay Utilization
    Margins
    Net Profit
    Turnaround Time
  • 2.3
    Key Performance Indicators
    Skill Match?
    2.3.3
    Technician’s Efficiency, %
    Reasons
    Complex, Frequency?
    Non-Productive Time?
    Wrong Method?
    More Than Required?
  • 2.3
    Key Performance Indicators
    Separate Operations?
    2.3.3
    Technician’s Efficiency, %
    Reasons, Cont’d
    Availability, Manuals?
    Improper Procedures?
    Supervision?
    Job Planning?
  • 2.3
    Key Performance Indicators
    Workshop Layout?
    2.3.3
    Technician’s Efficiency, %
    Reasons, Cont’d
    Tool Maintenance?
    Climate/Environment?
    2 Technicians not 1?
    Lack of Training?
  • 2.3
    Key Performance Indicators
    Improve Supervision
    2.3.3
    Technician’s Efficiency, %
    Actions
    Better Planning
    Correct Job cards
    Education
    Awareness/Attitude
  • 2.3
    Key Performance Indicators
    2.2.4
    Recovery Rate on Technician’s Available Time, Money/hr
  • 2.3
    Key Performance Indicators
    Total Labor Sales/Total Available Time = Recovery Rate, Money/hr
    Target: 3-4 x cost direct productives
    2.3.4
    Recovery Rate on Technician’s Available Time, Money/hr
    Definition
  • 2.3
    Key Performance Indicators
    Turnover
    2.3.4
    Recovery Rate on Technician’s Available Time, Money/hr
    Impacts
    Margins
    Net Profit
    Required Charge Rate
    Break-even level
  • 2.3
    Key Performance Indicators
    Attendance?
    2.3.4
    Recovery Rate on Technician’s Available Time, Money/hr
    Reasons
    Productivity?
    Efficiency?
    Internal/External?
    Management?
  • 2.3
    Key Performance Indicators
    Improve Attendance
    2.3.4
    Recovery Rate on Technician’s Available Time, Money/hr
    Actions
    Improve Productivity
    Improve Efficiency
    Increase External Sales
    Manage and Coach
  • 2.3
    Key Performance Indicators
    Attendance, Productivity and Efficiency, How They Impact Turnover and Gross Margin
    Workshop 2
  • 2.3
    Key Performance Indicators
    2.3.5
    Technician’s Unsold Time, %
  • 2.3
    Key Performance Indicators
    Technician’s Non-productive time/Total Attendance Time = Technician’s Unsold Time, %
    Target <10-15%
    2.3.5
    Technician’s Unsold Time, %
    Definition
  • 2.3
    Key Performance Indicators
    Turnover
    2.3.5
    Technician’s Unsold Time, %
    Impacts
    Margins
    Net Profit
    Required Charge Rate
    Break-even level
  • 2.3
    Key Performance Indicators
    Low Sales
    2.3.5
    Technician’s Unsold Time, %
    Reasons
    Management?
    Awareness, Hrs to Sell?
    Pre-planning?
    Workshop Lay-out
  • 2.3
    Key Performance Indicators
    Increase Sales
    2.3.5
    Technician’s Unsold Time, %
    Actions
    Awareness
    Attitude
    Pre-plan
    Management
  • 2.3
    Key Performance Indicators
    2.3.6
    Work-bay Utilization in % of Potential
  • 2.3
    Key Performance Indicators
    Sold hours per work bay divided by total available hours to sell per work bay = work bay utilization, %.
    Target >90%
    2.3.6
    Work-bay Utilization in % of Potential
    Definition
  • 2.3
    Key Performance Indicators
    Turnover
    2.3.6
    Work-bay Utilization in % of Potential
    Impacts
    Margins
    Net Profit
    Sales Potential
    Expansion Plans
  • 2.3
    Key Performance Indicators
    Pre-planning?
    2.3.6
    Work-bay Utilization in % of Potential
    Reasons
    Units Waiting For Parts?
    Productivity/Efficiency?
    Admin Process?
    Supervision?
  • 2.3
    Key Performance Indicators
    Service Marketing?
    2.3.6
    Work-bay Utilization in % of Potential
    Reasons, cont’d
    Workshop Layout?
    Cleanliness?
    24/7 Operation?
    Low Skill Levels?
  • 2.3
    Key Performance Indicators
    Workflows
    2.3.6
    Work-bay Utilization in % of Potential
    Actions
    Parts Planning
    Training
    Clean up Workshop
    Management
  • 2.3
    Key Performance Indicators
    Marketing Plan
    2.3.6
    Work-bay Utilization in % of Potential
    Actions, cont’d
    Supervision
    Customer Interaction
    Workshop Layout
    Extend Operating Hrs
  • 2.3
    Key Performance Indicators
    2.3.7
    Gross Profit on Own Labor, %
  • 2.3
    Key Performance Indicators
    Total Labor Sales less Direct Expenses for own productive staff = Labor Gross Profit
    Target 65-80%
    2.3.7
    Gross Profit on Own Labor, %
    Definition
  • 2.3
    Key Performance Indicators
    Net Profit
    2.3.7
    Gross Profit on Own Labor, %
    Impacts
    Break-even level
    Required Charge Rates
    Expansion Plans
    Investments
  • 2.3
    Key Performance Indicators
    Productivity?
    2.3.7
    Gross Profit on Own Labor, %
    Reasons
    Efficiency?
    Unrealistic Salary?
    Labor Rate?
    Internal/External?
  • 2.3
    Key Performance Indicators
    Service Marketing
    2.3.7
    Gross Profit on Own Labor, %
    Actions
    Training
    Differentiate Charges
    Supervision
    Procedures
  • 2.3
    Key Performance Indicators
    2.3.8
    Workshop Direct Expenditures
  • 2.3
    Key Performance Indicators
    Includes personnel expenditures for Technicians (salary, HRA, visa cost, vacation package, health insurance, etc.)
    Target 20-35%
    2.3.8
    Workshop Direct Expenditures
    Definition
  • 2.3
    Key Performance Indicators
    Margins
    2.3.8
    Workshop Direct Expenditures
    Impacts
    Break-even level
    Required Charge Rates
    Net Profit
    Indirect Expenses
  • 2.3
    Key Performance Indicators
    Salary Level?
    2.3.8
    Workshop Direct Expenditures
    Reasons
    Overtime, Sick Leave?
    Budget?
    Management?
    Follow up KPI?
  • 2.3
    Key Performance Indicators
    Differentiate Charges
    2.3.8
    Workshop Direct Expenditures
    Actions
    Attendance
    Realistic Budget
    Supervision
    Management
  • 2.3
    Key Performance Indicators
    2.3.9
    Workshop Indirect Expenditures
  • 2.3
    Key Performance Indicators
    Costs which can not be directly allocated towards a specific job such as rent, entertainment, head office expenses, etc.
    Target <35%
    2.3.9
    Workshop Indirect Expenditures
    Definition
  • 2.3
    Key Performance Indicators
    Net Profit
    2.3.9
    Workshop Indirect Expenditures
    Impacts
    Required Charge Rates
    Investments
    Break-even Level
    Company Future
  • 2.3
    Key Performance Indicators
    Management?
    2.3.9
    Workshop Indirect Expenditures
    Reasons
    No Control?
    Budget?
    Supply Agreements?
    In Expansion Mode?
  • 2.3
    Key Performance Indicators
    Procedures
    2.3.9
    Workshop Direct Expenditures
    Actions
    Controls
    Realistic Budget
    Supply Agreements
    Delegation
  • 2.3
    Key Performance Indicators
    2.3.10
    Service Department Net Contribution, %
  • 2.3
    Key Performance Indicators
    Total Sales – Direct Expenses – Indirect Expenses = Net Profit
    Net Profit/Total Sales = Net Profit %
    Target 25-30%
    2.3.10
    Service Department Net Contribution, %
    Definition
  • 2.3
    Key Performance Indicators
    Company Performance
    2.3.10
    Gross Profit on Own Labor, %
    Impacts
    Expansion Plans
    Investments
    Company Future
    Future Bonus, etc.
  • 2.3
    Key Performance Indicators
    Sales, Charge Rates?
    2.3.10
    Gross Profit on Own Labor, %
    Reasons
    Direct Expenses?
    Productivity/Efficiency?
    Internal/External?
    Profit Generator?
  • 2.3
    Key Performance Indicators
    Price Management
    2.3.10
    Gross Profit on Own Labor, %
    Actions
    Salary Levels
    Supervision
    Management
    Service Marketing
  • 2.3
    Key Performance Indicators
    2.3.11
    Spare Parts Sales Through Own Workshop, %
  • 2.3
    Key Performance Indicators
    Sales of Spare Parts Through Own Workshop/ Total Sales of Spare Parts = Sales in %
    Target 30-70%
    2.3.11
    Spare Parts Sales Through Own Workshop, %
    Definition
  • 2.3
    Key Performance Indicators
    Company Performance
    2.3.11
    Spare Parts Sales Through Own Workshop, %
    Impacts
    Turnover
    Margins
    Net Profit
    Company Reputation
  • 2.3
    Key Performance Indicators
    Favor Counter Sales?
    2.3.11
    Spare Parts Sales Through Own Workshop, %
    Reasons
    Workshop Discount?
    Contracts, Combos?
    Service Marketing?
    Profit Generator?
  • 2.3
    Key Performance Indicators
    Discount Management
    2.3.11
    Spare Parts Sales Through Own Workshop, %
    Actions
    Contracts and Combos
    Structured Marketing
    Management
    Customer Satisfaction
  • 2.3
    Key Performance Indicators
    2.3.12
    External Workshop Sales Versus Internal, %
  • 2.3
    Key Performance Indicators
    Sales of External Jobs/ Total Workshop Sales = External Sales in %
    Target 80%
    2.3.12
    External Workshop Sales Versus Internal, %
    Definition
  • 2.3
    Key Performance Indicators
    Turnover
    2.3.12
    External Workshop Sales Versus Internal, %
    Impacts
    Margins
    Net Profit
    Service Penetration
    Company Performance
  • 2.3
    Key Performance Indicators
    Service Marketing?
    2.3.12
    External Workshop Sales Versus Internal, %
    Reasons
    Workshop Discount?
    Contracts, Combos?
    Manage KPIs?
    Profit Generator?
  • 2.3
    Key Performance Indicators
    Management
    2.3.12
    External Workshop Sales Versus Internal, %
    Actions
    Structured Marketing
    Add Value
    Contracts and Combos
    Customer Satisfaction
  • 2.3
    Key Performance Indicators
    2.3.13
    Redo Work in Percent of Total Workshop Sales
  • 2.3
    Key Performance Indicators
    Redo Sales, parts and labor/ Total Workshop Sales, parts and labor = Redo in %
    Target <1%
    2.3.13
    Redo Work in Percent of Total Workshop Sales
    Definition
  • 2.3
    Key Performance Indicators
    Productivity
    2.3.13
    Redo Work in Percent of Total Workshop Sales
    Impacts
    Margins
    Net Profit
    Customer Satisfaction
    Company Reputation
  • 2.3
    Key Performance Indicators
    Training?
    2.3.13
    Redo Work in Percent of Total Workshop Sales
    Reasons
    Diagnostics?
    Definition of Work?
    Supervision?
    Wrong Technician?
  • 2.3
    Key Performance Indicators
    Staff Development
    2.3.13
    Redo Work in Percent of Total Workshop Sales
    Actions
    Proper Procedures
    Management
    Proper Tools
    RTFM
  • 2.3
    Key Performance Indicators
    2.3.14
    Time, Vehicle In to Invoice Out
  • 2.3
    Key Performance Indicators
    Time elapsed from vehicle arrives to workshop until invoice is issued and sent.
    Target: 1 workday after technical completion
    2.3.14
    Time, Vehicle In to Invoice Out
    Definition
  • 2.3
    Key Performance Indicators
    Cash Flow
    2.3.14
    Time, Vehicle In to Invoice Out
    Impacts
    Margins
    Net Profit
    Productivity/Efficiency
    Company Reputation
  • 2.3
    Key Performance Indicators
    Pre-Planning?
    2.3.14
    Time, Vehicle In to Invoice Out
    Reasons
    Parts Availability?
    Procedures?
    Customer Approvals?
    Supervision?
  • 2.3
    Key Performance Indicators
    Better Pre-Planning
    2.3.14
    Time, Vehicle In to Invoice Out
    Actions
    Parts Forecasting
    Detailed Procedures
    Approvals Process
    Management
  • 2.4
    Key Performance Indicators
    Section 2.4
    5 x Super KPIs
  • 2.4
    Key Performance Indicators
    Recovery Rate/ Calendar Hr
    Parts Sales Through Workshop
    Work-bay Utilization, %
    Redo Work Versus Total Sales, %
    Time, Vehicle In to Invoice Out
  • 2.4
    Key Performance Indicators
    Charge Rate(s)/Hr
    Attendance
    Recovery Rate/ Calendar Hr
    Covers:
    Productivity
    Efficiency
    Internal vs. External
  • 2.4
    Key Performance Indicators
    Gives an Indication of Total Growth Potential For the Workshop
    Parts Sales Through Workshop vs. Total Parts Sales
  • 2.4
    Key Performance Indicators
    Gives an Indication of Growth Potential Within Existing Premises
    Work-bay Utilization Versus Potential
  • 2.4
    Key Performance Indicators
    Gives an Indication of Total Repair Quality of the Workshop
    Redo Work Versus Total Workshop Sales
  • 2.4
    Key Performance Indicators
    Approval Process
    Management
    Time, Vehicle In to Invoice Out
    Covers:
    Productivity/Efficiency
    Parts Availability
    Admin Procedures
  • Key Performance Indicators
    Measure Performance
    Capture Relevant Data
    Section 2, Summary
    Uniform Snap Shot
    Correct Decisions
    Measures Trends