This
KPI shows you the Productivity and Working Efficiency. It shows you the
Productives ability to complete their work within the agreed hours
provided by the Estimator.
This
statistic is not as straightforward as the Service Department equation,
as due to the nature of the work it is not possible for a franchise
manufacturer to apportion standard times.
Example:
A) Hours Sold = 1,083 B) Hours Worked Productively = 958 C) Productive Efficiency = 113% (A ÷ B X 100)
Discussion:
When
a customer brings a vehicle to your Bodyshop for repair you provide
them with an estimate that states the number of hours to be charged.
This allocated time is the maximum amount that you are able to charge.
In
order to make gains in profitability, your Productives must complete
the job in a lesser time than is allocated by the Estimator, thereby
increasing your Productive Efficiency %.
Productive
Efficiency is a double-edged sword. If you take more time
to complete the job then your Productive Efficiency falls below 100%.
Related Terminology:
This KPI is also known as Productivity and Working Efficiency.