Improving Automotive Repair Operations by Using Key Performance Indicators

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Automotive repair operations can be evaluated using a number of key performance indicators. In this area the effectiveness and efficiency of business processes can be measured and improved if necessary. As in any area key performance indicators should be compared to benchmarks such as industry averages or same period previous year. Excellence in automotive repair operations is realized in premium service and profit margins. Following are key performance indicators that can be used to evaluate and improve automotive repair operations:

  1. Shop Proficiency – This indicator is a measure of the percentage of available labor hours used for vehicle repairs. This indicates how well the shop is doing at utilizing available resources. If this indicator compares unfavorably to applied benchmarks then improvements are most likely needed in resource planning. Activities such as scheduling and parts procurement should be evaluated for possible improvement.
  2. Employee Efficiency – This is a measure of how well technicians perform in relation to sold hours. If this indicator is negative when compared to benchmarks then work routines and incentives should be investigated and steps taken to make improvements.
  3. On Time Vehicle Delivery – This KPI measures the percentage of vehicles that are delivered to the customer on or before the promise date/time. This can be a significant factor in customer retention. If the measurement is not positive then reasons for late delivery should be identified and corrective actions taken.
  4. Quality Control Failures – This indicator is a measure of the percentage of completed services that are returned to the technician because they don’t pass quality control. If this measurement is negative compared to benchmarks then corrective actions should be taken. It should always be remembered that most quality control problems are process oriented and not the result of employee negligence.
  5. Appointment vs. Walk Ins – This is a measure of the percentage of repair orders that result from appointments. Appointments allow for advance planning and parts procurement thus increasing vehicle throughput. If not enough business is appointment driven then steps should be taken to improve in this area.
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