The most important document in your Service Department is the Repair Order. It’s what tells you when and where to order materials, what to do when parts are not available, and how to track progress. It’s also a great way to track advisor performance within the service department. Let’s review why performing a monthly repair order analysis is a great service management tool for your dealer, and how a dealer service advisor can handle your monthly review.
How to Measure Advisor Performance Based on Repair Orders
You can glean quite a few insights into your Service Department just from the Repair Orders. Advisors can use this information to measure their own performance and to see where they can improve.
For example, you may be able to see that your advisor is ordering parts in too high of a quantity. This can lead to parts shortages, which can impact the quality of the repairs being completed.
Alternatively, you may find that your advisor is not ordering some parts at all. This can lead to repairs taking much longer than necessary and can also impact the quality of the repairs being completed.
To make the most effective use of your Repair Orders, it’s important to have a good understanding of how to read them. A dealer service advisor can help you understand the various elements of a Repair Order and can help you to improve your overall service department performance.
NADA Actual Service Analysis
Calculate your monthly labor sales potential using a month’s actual performance:
1. Divide your total labor sales for the month by the total hours billed. The result is your ELR.
Labor Sales ÷ Hours Billed = Effective Labor Rate
2. Multiply total technicians by total time. The result is the number of clock hours available.
Number of Techs × Hours/Day ×
Working Days/Mo. = Clock Hours Available/Mo.
3. Multiply available time (clock hours) by your ELR to arrive at your labor sales potential.
Available Hours/Mo. × ELR= Labor Sales Potential
The figures from your NADA Actual Service Analysis can be used to help you determine how much revenue your Service Department can generate each month. This information can be helpful in planning your service budget, and in ensuring that you’re making the most effective use of your advisor and technician resources.
Professional Training from Dealer Service Advisors at DealerPRO Training
DealerPRO Training offers a variety of professional training programs that can help you to improve your service department performance. Our programs cover everything from understanding and using Repair Orders to improving advisor performance.
If you’d like to learn more about how to improve your service department performance using Repair Order Analysis, our dealer service advisor training programs also provide your dealer with a monthly repair order analysis.
Contact us today to learn more about our workshops and dealer service advisors.