Idle
Time does not mean that the Productives are standing around idle; it simply represents the time spent at the dealership that
cannot be charged out to the customer.
Typically this could be time spent locating keys or vehicles, waiting for parts and other such issues.
The
mathematical formula is simply Hours Attended minus Hours Worked and
this is always shown as a monetary value, which can usually be found
within the Variable Expenses of the Bodyshop.
Example:
A) Hours Attended = 320 B) Hours Worked = 304 C) Hours Idle = 16 (A - B) D) Prime labour Cost = R10 E) Idle Time = R160 (C X D)
Discussion:
In
addition to this, some financial reports might show the monetary value
of Idle Time as a percentage of the Departmental Gross Profit.
Related Terminology:
This term is also known as Unrecovered Time or Diverted Time.