hrs per ro help

[nineball]

can someone please point me in the correct direction here,i am actually a PM but my DP asked me to find out why our SM numbers dont look right.We are a ford store and it looks like we are selling 3.25 hours per ro,but i dont think that correct..what should i look at here ??

[GMFXDOPSMGR]

I look at our CP ELR screen for that figure. We are on Rey Rey. That screen is 3606.

[topshop]

So, you are saying you are looking at some type of KPI report that shows 3.25/RO?

If accurate, that would put your average RO somewhere between $400 (midwest) and $800 (Socal) depending on where you are located with the techs averaging about 3 cars a day assuming you are steady. Does that sound about right?


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Tom Ham
AutomotiveManagementNetwork.com

[nineball]

Tom

maybe im looking at this incorrectly..im not sure what a kpi report is,im simply using his flag hours of 801 divided by the ro count of 246.Is this incorrect ?? im on adp,is the RAP report (advisor recap) a better option ??i ran it and it shows the same but still doesnt seem right..what effect does the number of lines have if any ??

[TD]

What exactly is your DP wanting you to figure out? What doesn't seem right to him? Once that is known I'm sure a number of people can help you read into the report to figure it out.

BTW, 3.25 is great if oil changes are included. The general benchmarks are 2.5 with oil changes and 3.5 without.

Your math is correct on hours divided by RO count = hours per RO.

The number of lines should not factor into anything. It is only counting the amount of lines written on all repair orders.

Hope some of this helps. TD

[TD]

RAP report is correct as well. TD

[nineball]

TD

thanks for the info,the deal with the DP is that this SM is new and almost overnight the store went from 1.8 to 3.25 and yes oil changes are included.The ro count hasnt changed much nor has the monies but the hours per ro sure went up.

[nineball]

will building more time in the labor ops elevate this ?? if so wouldnt the ELR go down..his posted is 95. his elr is 71.

[Art_Mopar]

With a posted rate of 95 and a ELR of 71 you just explained the jump from 1.8 to 3.5 per ro. I would start out with a review of your pre priced menu items. If all the SM did was arbitrarily inflate the times paid to the tech's he may have opened a Pandora's Box that better get corrected ASAP!

[Old Irish]

Art is right. Better check into this.

It would be very easy to simply pay the tech 4.0 hours for a job that should be 2.5 hours so as to come out looking like a hero....if total hours is the only focus.

Lots of SMs do this. Or sometimes its the techs and advisors. Next thing you know everyone is slapping themselves on the back over how "efficient" and "productive" they've become when, in fact, nothing about the operation has changed except arbitrarily applying more flat rate hours to the job.

Well, anyhow, I'm not adding anything that hasn't already been said. This is just one of my favorite rants, that's all <grin>

Art is right. It can be a Pandora's Box if you're not careful

Cheers
DD