Parts staffing formula

[AIIVESINCE85]

Hi,
Long story short, our dealership is going through some changes and I'm trying to help with avoiding staff cutbacks. Back in the day, I believe the formula was "Parts Sales / Employee / Months = $x.xx (benchmark sales per employee $40,000 - $50,000?) Is there a more current calculation used today?

Thank you

[Mike Nicholes]

dollars/man/month is out of date and bereft with a number of problems. A more accurate indication of the workload is pieces/man/month. You total up the total pieces sold plus the lost sales for the month and divide by the total number of people working in the part department (the whole team, not just the counter personnel); The median number for over 14,000 dealerships is about 1400 - 1600 pieces/man month. If the figure goes above 2500 for any length of time; 3-4 months it is a better indicator of the need for another person in parts. There are no good figures for departments with 3 or fewer people. In this case we get into a 'minimal staff' argument of what it takes, minimally, to get the job done right.
Mike Nicholes

[Parts007]

You total up the total pieces sold plus the lost sales for the month and divide by the total number of people working in the part department (the whole team, not just the counter personnel); Mike Nicholes

Mike, nice to hear from you!

Question about the above comment.. You are including manager, assistant, counterpersons, warehouse personnel, parts drivers also?

[EH427]

Awesome formula.

I ran our's with all staffing including management and we are at 1944 for the last 3 months.

Thank you.

[Mike Nicholes]

I am including everyone in the parts 'team'. It takes all of them to order the stuff, put it up, take it down, sell it and/or deliver it. That's why we use all those in the team. The only exception is the 1,2 and 3 person parts departments who, in reality, are at minimal staffing to get ANY job done in the part department.

[WhoParted]

What report in Reynolds do I run to see "pieces/man/month" totals?

[LivinDaDream]

Post by WhoParted » Tue Mar 13, 2018 2:42 pm
What report in Reynolds do I run to see "pieces/man/month" totals?

That would be the 2213 Analysis report. At the top of the first page, under cost-of-sales, look at the "pieces" column and don't forget to add in the "pieces" number from lost sales (just below that section). Mike is spot on, once again, with the 1500 pcs/month per person in the department.

Hope this helps !!

[SHANNA]

What report in Reynolds do I run to see "pieces/man/month" totals?

SAME QUESTION BUT FOR CDK?

[JeepGuy]

What report in Reynolds do I run to see "pieces/man/month" totals?

SAME QUESTION BUT FOR CDK?

It is in your MGR reports, monthly summary then go to gross sales under pieces and then lost sales under pieces.

[__JW__]

Had to register for an account to post this.. (longtime lurker)

Trying to convince my GM that I need more help is like pulling teeth.

I've always wondered what a good formula is, but I'm more interested in knowing what, or where this "median number of 14,000 dealerships" metric came from. Any sources for that information?

I've always just felt that, being a parts manager, when it comes to staffing you just "know" when you need more people or not. Kind of hard to put a finger on 'how' you know that. So seeing this formula I thought what the heck, this would take 5 minutes to calculate.

My total last 6 months pieces moved: 171,905, or 28,650 pieces per month. Divided by my 11 employees (5 counter, 2 wholesale, 1 warehouse, 2 drivers, and myself) comes to 2,604 pieces per employee. Definitely more than 1,400-1,600 per employee like suggested above, which means, I need help.

Although... I already knew that... sigh