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December 11, 2017
11:00AM - 12:00PM

Revenue Generated From Each Service Stall: The True Measure of Service Performance

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For years dealerships have measured service performance based on how many billed hours they can get a technician to produce each day/week/month. This is referred to as Proficiency (a combination of Productivity and Efficiency).

Measuring service performance based upon what the technicians can produce is missing the point of what a service department should be accomplishing, and that is maximizing the utilization of the stalls (facility) the manager has to work with. It is easy for a technician to be very proficient, when the technician has three stalls to work out of. Unfortunately, the stall utilization in this case is only going to be 30% at best. The question you need to ask yourself is how much labor revenue are your service stalls producing? Actually, overhead is the only thing a stall produces. How many hours each day the stall is utilized and how many technicians are assigned to a stall ultimately determines how much revenue a stall can produce.

Measuring individual technician hours produced does not tell the true picture. The most important measurement is not how many hours the technicians produce, it is how much revenue the stalls produce.

Join OADA as we welcome Peter Kowcz, a consultant with Edwards & Associates Consulting, Inc, as we take a deep dive into this topic so that you can get the most out of your service department. Edwards & Associates Consulting has worked with many associations across the country, and we are pleased that they have agreed to partner with us to present this topic to you.

There is no connection fee for OADA member dealers. Non-members will be charged a $50 connection fee. Register today!

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