Sect 3, Performance diagnostics


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Sect 3, Performance diagnostics

  1. 1. Distributor Service Department Performance Diagnostics<br />Section 3<br />
  2. 2. Performance Diagnostics<br />3.1 Management and Supervision<br />3.2 Direct Expenses, High<br />3.3 Gross Profit Low<br />3.4 Indirect Expenses, High<br />3.5 Net Contribution, Low<br />
  3. 3. 3.1<br />Performance Diagnostics<br />Diagnostics Chart - 1:<br />Total Workshop Sales<br />Managerial,<br />Supervisory<br />issues<br />
  4. 4. 3.1<br />Performance Diagnostics<br />Business Prospecting<br />Customer Relations<br />3.1<br />Management and Supervision<br />Service Department<br />Parts Department<br />Direct and Non-Direct Productive Staff<br />
  5. 5. 3.1<br />Performance Diagnostics<br />3.1.1<br />Business Prospecting<br />
  6. 6. 3.1<br />Performance Diagnostics<br />Analyze True Potential?<br />3.1.1<br />Business Prospecting<br />Reasons<br />Exploit Fleet Service?<br />Customer Visits?<br />Customer Records?<br />Wrong Targets?<br />
  7. 7. 3.1<br />Performance Diagnostics<br />Proper Market Study<br />3.1.1<br />Business Prospecting<br />Actions<br />Service Contracts<br />Customer Visit Plans<br />Customer Data Base<br />SMART Targets<br />
  8. 8. 3.1<br />Performance Diagnostics<br />3.1.2<br />Poor Customer Relations<br />
  9. 9. 3.1<br />Performance Diagnostics<br />Department Image?<br />3.1.2<br />Poor Customer Relations<br />Reasons<br />Poor Work Standards?<br />Customer Complaints?<br />Customer Consent?<br />No Service Contracts?<br />
  10. 10. 3.1<br />Performance Diagnostics<br />Improve Overall Image<br />3.1.2<br />Poor Customer Relations<br />Actions<br />Improve Procedures<br />Complaints Procedure<br />Receipt Procedure<br />Various Contracts<br />
  11. 11. 3.1<br />Performance Diagnostics<br />3.1.3<br />Service Department<br />
  12. 12. 3.1<br />Performance Diagnostics<br />Productivity/Efficiency?<br />3.1.3<br />Service Department<br />Reasons<br />Improper Workflow?<br />Supervision?<br />Monitor Unsold Time?<br />Improper Facilities?<br />
  13. 13. 3.1<br />Performance Diagnostics<br />Increase Sales/Training<br />3.1.3<br />Service Department<br />Actions<br />New Procedures<br />Management<br />Performance Monitoring<br />Review Facilities<br />
  14. 14. 3.1<br />Performance Diagnostics<br />3.1.4<br />Parts Department<br />
  15. 15. 3.1<br />Performance Diagnostics<br />Service to Workshop?<br />3.1.4<br />Parts Department<br />Reasons<br />First Pick Availability?<br />Pre-Planning?<br />Communication?<br />Retail More Important?<br />
  16. 16. 3.1<br />Performance Diagnostics<br />Change Attitude<br />3.1.4<br />Parts Department<br />Actions<br />Forecasting<br />Better Pre-planning<br />Communication<br />Biggest Customer<br />
  17. 17. 3.1<br />Performance Diagnostics<br />3.1.5<br />Direct and Non-Direct Productive Staff<br />
  18. 18. 3.1<br />Performance Diagnostics<br />Quality and Training?<br />3.1.5<br />Direct and Non-Direct Productive Staff<br />Reasons<br />Supervision?<br />Systematic Planning?<br />Incentives, etc.?<br />Missed Service Sales?<br />
  19. 19. 3.1<br />Performance Diagnostics<br />Train or Replace<br />3.1.5<br />Direct and Non-Direct Productive Staff<br />Actions<br />Management<br />Workshop Planning<br />Motivational Schemes<br />Better Inspections<br />
  20. 20. 3.2<br />Performance Diagnostics<br />Diagnostics Chart - 2:<br />Total Workshop Sales<br />Managerial,<br />Supervisory<br />issues<br />Direct Expenses<br />
  21. 21. 3.2<br />Performance Diagnostics<br />Unsold Time<br />3.2<br />Direct Expenses, High<br />Policy Adjustments<br />Consumables, Tools<br />
  22. 22. 3.2<br />Performance Diagnostics<br />3.2.1<br />Unsold Time<br />
  23. 23. 3.2<br />Performance Diagnostics<br />Workshop Planning?<br />3.2.1<br />Unsold Time<br />Reasons<br />Parts Supply?<br />Workshop Facilities?<br />Supervision?<br />Time Management?<br />
  24. 24. 3.2<br />Performance Diagnostics<br />Service Marketing?<br />3.2.1<br />Unsold Time<br />Reasons, cont’d<br />Pre-Planning?<br />Parts Forecasting?<br />Tools Not in Order?<br />Waiting Approvals?<br />
  25. 25. 3.2<br />Performance Diagnostics<br />No Jobs?<br />3.2.1<br />Unsold Time<br />Reasons, cont’d<br />Other Duties?<br />Training?<br />Redo as Unsold?<br />Goodwill as Unsold?<br />
  26. 26. 3.2<br />Performance Diagnostics<br />Bill of Materials, BOMs<br />3.2.1<br />Unsold Time<br />Actions<br />Parts Management<br />Review Facilities<br />Service Management<br />Capture Relevant Data<br />
  27. 27. 3.2<br />Performance Diagnostics<br />Marketing Strategy<br />3.2.1<br />Unsold Time<br />Actions, cont’d<br />Systems/Procedures<br />Parts Forecasting<br />Tools Management<br />Approvals Process<br />
  28. 28. 3.2<br />Performance Diagnostics<br />Service Marketing<br />3.2.1<br />Unsold Time<br />Actions, cont’d<br />Proper Time Sheets<br />Training Plans<br />Improve Sold Quality<br />Correct Job Bookings<br />
  29. 29. 3.2<br />Performance Diagnostics<br />3.2.2<br />Policy Adjustments<br />
  30. 30. 3.2<br />Performance Diagnostics<br />Quality Assurance?<br />3.2.2<br />Policy Adjustments<br />Reasons<br />Warranty Recovery?<br />Customer Goodwill?<br />Labor on Accessories?<br />Warranty Terms Info?<br />
  31. 31. 3.2<br />Performance Diagnostics<br />Work Procedures<br />3.2.2<br />Policy Adjustments<br />Actions<br />Warranty Management<br />Book Cost Properly<br />Improve Quotations<br />Hand-Over Procedure<br />
  32. 32. 3.2<br />Performance Diagnostics<br />3.2.3<br />Consumables and Tools<br />
  33. 33. 3.2<br />Performance Diagnostics<br />Improper Control?<br />3.2.3<br />Consumables and Tools<br />Reasons<br />Purchase Agreements?<br />Store Keeper?<br />Cost on Job Card?<br />Proper Charge?<br />
  34. 34. 3.2<br />Performance Diagnostics<br />Proper Procedures<br />3.2.3<br />Consumables and Tools<br />Actions<br />Purchase Agreements<br />Store Keeper<br />Proper Costing<br />Charge Rate Policy<br />
  35. 35. 3.3<br />Performance Diagnostics<br />Diagnostics Chart - 3:<br />Gross Profit<br />Total Workshop Sales<br />Managerial,<br />Supervisory<br />issues<br />Direct Expenses<br />
  36. 36. 3.3<br />Performance Diagnostics<br />External Labor Sales<br />3.3<br />Gross Profit Low<br />Warranty Labor Sales<br />Internal Labor Sales<br />Sublet and Bought-Out<br />
  37. 37. 3.3<br />Performance Diagnostics<br />3.3.1<br />External Labor Sales<br />
  38. 38. 3.3<br />Performance Diagnostics<br />Unbalanced Work Mix?<br />3.3.1<br />External Labor Sales<br />Reasons<br />Customer Database?<br />Prospecting Customers?<br />No Customer Goodwill<br />Time to Sell<br />
  39. 39. 3.3<br />Performance Diagnostics<br />More External Sales<br />3.3.1<br />External Labor Sales<br />Actions<br />Create Database?<br />Prospect Customers<br />Customer Relations<br />Training<br />
  40. 40. 3.3<br />Performance Diagnostics<br />3.3.2<br />Warranty Labor Sales<br />
  41. 41. 3.3<br />Performance Diagnostics<br />Improper Diagnostics?<br />3.3.2<br />Warranty Labor Sales<br />Reasons<br />Warranty/Normal Job?<br />Incomplete Claim?<br />Service Campaigns?<br />Low Efficiency?<br />
  42. 42. 3.3<br />Performance Diagnostics<br />Training, Procedures<br />3.3.2<br />Warranty Labor Sales<br />Actions<br />Decision Process<br />Claim Administration<br />Do All Campaigns<br />Supervision<br />
  43. 43. 3.3<br />Performance Diagnostics<br />3.3.3<br />Internal Labor Sales<br />
  44. 44. 3.3<br />Performance Diagnostics<br />Sales Dept?<br />3.3.3<br />Internal Labor Sales<br />Reasons<br />Internal Rates?<br />All Jobs Charged?<br />Job Authorization?<br />Units Over-Prepared?<br />
  45. 45. 3.3<br />Performance Diagnostics<br />Service a Profit Center<br />3.3.3<br />Internal Labor Sales<br />Actions<br />Uniform Rates<br />Specify All Jobs<br />Approvals Process<br />Set PDI Standards<br />
  46. 46. 3.3<br />Performance Diagnostics<br />3.3.4<br />Sublet and Bought-Out<br />
  47. 47. 3.3<br />Performance Diagnostics<br />Manage Lube Oil Stock?<br />3.3.4<br />Sublet and Bought-Out<br />Reasons<br />Negotiate Rates?<br />Late Invoices?<br />Job Authorization?<br />Scrap Management?<br />
  48. 48. 3.3<br />Performance Diagnostics<br />Oil Stock Procedures<br />3.3.4<br />Sublet and Bought-Out<br />Actions<br />Supply Agreements<br />Enforce Supplier SLA<br />Approvals Process<br />Scrap Sales Procedures<br />
  49. 49. Diagnostics Chart - 4:<br />Gross Profit<br />Total Workshop Sales<br />Managerial,<br />Supervisory<br />issues<br />Direct Expenses<br />Indirect Expenses<br />
  50. 50. 3.4<br />Performance Diagnostics<br />Employee Expenses<br />3.4<br />Indirect Expenses High<br />After Sales Expenses<br />Admin Expenses<br />Depreciation Expenses<br />
  51. 51. 3.4<br />Performance Diagnostics<br />3.4.1<br />Employee Expenses<br />
  52. 52. 3.4<br />Performance Diagnostics<br />Salary Levels?<br />3.4.1<br />Employee Expenses<br />Reasons<br />Ratio Productive Staff?<br />High Sick Leave?<br />Manage Attendance?<br />Poor Staff Quality?<br />
  53. 53. 3.4<br />Performance Diagnostics<br />HR Policy, Assessment<br />3.4.1<br />Employee Expenses<br />Actions<br />Ratio 3.5:1<br />Staff Management<br />Attitude<br />Training, Assessment<br />
  54. 54. 3.4<br />Performance Diagnostics<br />3.4.2<br />Aftersales Expenses<br />
  55. 55. 3.4<br />Performance Diagnostics<br />Warranty Recovery?<br />3.4.2<br />Aftersales Expenses<br />Reasons<br />Goodwill Repairs?<br />High Redo Level?<br />Warranty Terms?<br />Manage Ad Campaigns?<br />
  56. 56. 3.4<br />Performance Diagnostics<br />Warranty Procedures<br />3.4.2<br />Aftersales Expenses<br />Actions<br />Approvals Process<br />Repair Quality<br />Handover Process<br />Marketing Policy<br />
  57. 57. 3.4<br />Performance Diagnostics<br />3.4.3<br />Administrative Expenses<br />
  58. 58. 3.4<br />Performance Diagnostics<br />Manage Vehicle Fleet?<br />3.4.3<br />Administrative Expenses<br />Reasons<br />Expensive Rent?<br />Facilities Maintenance?<br />Control of Utility Cost?<br />Purchasing Policy?<br />
  59. 59. 3.4<br />Performance Diagnostics<br />Proper Procedures<br />3.4.3<br />Administrative Expenses<br />Actions<br />Negotiate Rent<br />Maintenance Policy<br />Review Utility Usage<br />Purchasing Policy<br />
  60. 60. 3.4<br />Performance Diagnostics<br />3.4.3<br />Depreciation Expenses<br />
  61. 61. 3.4<br />Performance Diagnostics<br />Incorrect Policies?<br />3.4.4<br />Depreciation Expenses<br />Reasons<br />Rent/Purchase Policy?<br />Manage Fixed Assets?<br />Manage Capex?<br />Insufficient Capex Budget?<br />
  62. 62. 3.4<br />Performance Diagnostics<br />Proper Policies<br />3.4.4<br />Depreciation Expenses<br />Actions<br />Decide Buy or Rent?<br />Asset Management<br />Capex Policy<br />Proper Capex Budget<br />
  63. 63. 3.5<br />Performance Diagnostics<br />Diagnostics Chart - 5:<br />Net Contribution<br />Gross Profit<br />Total Workshop Sales<br />Managerial,<br />Supervisory<br />issues<br />Direct Expenses<br />Indirect Expenses<br />
  64. 64. 3.5<br />Performance Diagnostics<br />Direct Expenses<br />3.5<br />Net Contribution<br />Low<br />Indirect Expenses<br />Service Management<br />Resource Optimization<br />
  65. 65. 3.5<br />Performance Diagnostics<br />3.5.1<br />Direct Expenses<br />
  66. 66. 3.5<br />Performance Diagnostics<br />Cost Productive Staff?<br />3.5.1<br />Direct Expenses<br />Reasons<br />High Unsold Time?<br />High Redo Level?<br />Manage Productive Staff?<br />Manage Sublet/Bought-out?<br />
  67. 67. 3.5<br />Performance Diagnostics<br />Review HR Policy<br />3.5.1<br />Direct Expenses<br />Actions<br />Workshop Management<br />Repair Quality<br />Supervision<br />Sublet/Bought-out Management<br />
  68. 68. 3.5<br />Performance Diagnostics<br />3.5.2<br />Indirect Expenses<br />
  69. 69. 3.5<br />Performance Diagnostics<br />Cost Non-Direct Productive Staff?<br />3.5.2<br />Indirect Expenses<br />Reasons<br />High Facilities Cost?<br />Manage Sundry Exp.?<br />High Admin Expenses?<br />Manage Depreciation?<br />
  70. 70. 3.5<br />Performance Diagnostics<br />Ratio Direct/Non-Direct<br />3.5.2<br />Indirect Expenses<br />Action<br />Maintenance Policy<br />Expense Policies<br />Cost Control<br />Depreciation Policies<br />
  71. 71. 3.5<br />Performance Diagnostics<br />3.5.3<br />Service Management<br />
  72. 72. 3.5<br />Performance Diagnostics<br />Manage Main KPIs?<br />3.5.3<br />Service Management<br />Reasons<br />Low Sales?<br />Staff Management?<br />Policies/Procedures?<br />Ratio Internal/External?<br />
  73. 73. 3.5<br />Performance Diagnostics<br />Know Your KPIs<br />3.5.3<br />Service Management<br />Actions<br />Sales Strategy<br />Supervision<br />Policies/Procedures<br />Increase External Sales<br />
  74. 74. 3.5<br />Performance Diagnostics<br />3.5.4<br />Resource Optimization<br />
  75. 75. 3.5<br />Performance Diagnostics<br />Facilities Usage?<br />3.5.4<br />Resource Optimization<br />Reasons<br />Low Productivity?<br />Low Efficiency?<br />Low Pre-Planning?<br />Improper Follow-up?<br />
  76. 76. 3.5<br />Performance Diagnostics<br />Facilities Optimization<br />3.5.4<br />Resource Optimization<br />Actions<br />Increase Sales<br />Training<br />Workshop Management<br />CRM Policy<br />
  77. 77. Diagnostics Chart - 6:<br />Net Contribution<br />Gross Profit<br />Total Workshop Sales<br />Improvement Area<br />Managerial,<br />Supervisory<br />issues<br />Direct Expenses<br />Indirect Expenses<br />
  78. 78. 3.6<br />Performance Diagnostics<br />Productivity<br />Efficiency<br />3.6<br />Improvement Areas<br />Resource Optimization<br />Service Management<br />Cost Control<br />
  79. 79. 3.6<br />Performance Diagnostics<br />3.6.1<br />Productivity<br />
  80. 80. 3.6<br />Performance Diagnostics<br />Improve Management<br />Differentiated Labor Rate<br />3.6.1<br />Productivity<br />Actions<br />Improve Skill Levels<br />Increase Pre-Planning<br />Incentive to Boost Sale<br />
  81. 81. 3.6<br />Performance Diagnostics<br />3.6.2<br />Efficiency<br />
  82. 82. 3.6<br />Performance Diagnostics<br />Skills Assessment<br />3.6.2<br />Efficiency<br />Actions<br />Tools and Equipment<br />Capture Actual Time<br />Improve Common Jobs<br />Review Work Procedure<br />
  83. 83. 3.6<br />Performance Diagnostics<br />3.6.3<br />Resource Optimization<br />
  84. 84. 3.6<br />Performance Diagnostics<br />Facilities Utilization<br />3.6.3<br />Resource Optimization<br />Actions<br />Productivity/Efficiency<br />Right Tools/Equipment<br />Service Vehicle Usage<br />Assessments<br />
  85. 85. 3.6<br />Performance Diagnostics<br />3.6.4<br />Service Management<br />
  86. 86. 3.6<br />Performance Diagnostics<br />Customer Prospecting<br />3.6.4<br />Resource Optimization<br />Actions<br />Customer Relations<br />Layouts/Workflows<br />Service Marketing<br />Manage KPI and Staff<br />
  87. 87. 3.6<br />Performance Diagnostics<br />3.6.5<br />Cost Control<br />
  88. 88. 3.6<br />Performance Diagnostics<br />Improve Attendance<br />3.6.5<br />Cost Control<br />Actions<br />Approvals Procedures<br />Update Facilities<br />Supply Agreements<br />Manage and Follow up<br />
  89. 89. 3.6<br />Performance Diagnostics<br />Impact of Productivity and Efficiency on Bottom Line<br />Workshop 3<br />
  90. 90. Section 3 - Summary<br />Service Department Total Sales:<br />- Direct Expenses = Gross Profit<br />- Indirect Expenses<br />= Net <br />Contribution<br />