This
KPI shows you the relationship between your Technicians speed in
completing jobs and the abilities of your Front Counter staff to sell
the hours to your customers.
Most
franchise manufacturers provide dealers with allocated times for jobs
on all vehicles and this allocated time is what the Hours Worked are
usually measured against. The Hours Sold is the responsibility of the
front counter staff and they could sell more or fewer hours than the
manufacturers book times.
In
order to make gains in profitability, your Technicians must complete
the job in a leser time than is allocated by the manufacturer, or the
front counter must sell more hours on the same jobs, thereby increasing
your Working Efficiency.
Example:
A) Hours Sold = 1,130 B) Hours Worked Productively = 957 C) Productive Efficiency = 118% (A ÷ B X 100)
Discussion:
Working Efficiency is a double-edged sword. If your Technicians take more time
to complete the job than the manufacturers allocated time then your
profitability diminishes and Working Efficiency falls below 100%.
Related Terminology:
This KPI is also known as Productivity and Productive Efficiency.