Measuring and Improving "Thru-put"

How long does it take to repair a vehicle relative to the number of labor hours on the repair order?

Let's say that a repair order includes 40 labor hours. The customer dropped it off on Monday morning, and it was ready for pick-up the Wednesday evening a week later. From Monday through the following Wednesday is 8 working days (excluding the weekend). Therefore, the shop averaged 5.0 flat rate hours of labor for each day the vehicle was in the shop (40 billed hours, 8 working days). If the shop personnel operate at a 150% proficiency level and work 8 hours per day that's a potential 12 flat rate hours (8 X 150%) that could have been applied to that vehicle each day. What accounts for the difference between 5 hours per day actual and 12 hours per day available? What if you could find a way to increase the 5 hours to 8 or 9 billed hours per day?

This could tremendously affect you shop's profitability!

Need some ideas? Call CMS: 410-944-3383 or email us: cmsinfo@earthlink.net

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