GEM-CAR FAQ

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How to Measure Technicians or Work Bays Performance

To measure technicians or work bays performance, follow the instructions below.

  1. Configure the work bays and assign them to technicians.
  2. If technicians don't use the Punch clock, assign jobs to technicians and enter the planned and real times in the Point of sale.
  3. Generate the Performance reports by work BAY / technician.
  4. Generate the Tech time report.

With these reports on hand, you have all the needed information to measure technicians' performance.

Please note that the data used by GEM-CAR to generate the statistics are available 24 hours after having completed the end-of-day procedure.

This is to be taken into account when generating the reports if you want the statistics to be as precise as possible.

The statistics will also be much more precise if you use the Punch clock module.

Understand the technician performance reports

After having generated the technician performance reports, you are now ready to read them considering the the measurement units and ratios definitions detailed below.

Technician performance reports measurement units

  • Actual time: The time technicians are working on income-producing jobs. It includes comebacks and company vehicles if they are punched on work orders.
  • Expensive time: The time technicians are working on jobs that don't produce income. It includes comebacks and company vehicles if they are punched as internal jobs.
  • Available time: The total time technicians are available for work excluding breaks and lunch time. It is equal to the actual time plus the expensive time.
  • Sold time: The time technicians are working on jobs customers are charged for.

Technician performance reports measurement ratios

  • Productivity: This ratio measures the income-generating work against the total worked time. It is equal to the actual time divided by the available time and measures how much work was done on jobs that produce income.
  • Efficiency: This ratio measures the time sold to customers against income-generating jobs. It is equal to the sold time divided by the actual time and measures how much income-generating work was sold. It's an indicator of work speed.
  • Proficiency: This ratio measures the time sold to customers against the total worked time. It is equal to the sold time divided by the available time and measures how much time technicians work on sold time.

Calculations of statistic for technicians performance

Number of work days

  • With the Punch clock

The number of worked days is calculated according to the punched hours in the Punch clock by the technicians.

  • Without the Punch clock

The number of worked days is calculated according to the number of days for which technicians took part to jobs on estimates, whatever the number of invoiced hours.

  • With the Punch clock

The paid time is calculated according to the punched hours in the Punch clock by the technicians.

  • Without the Punch clock

To simplify management, GEM-CAR considers that technicians worked for 8 hours when they start their working day. Paid time is then equivalent to the number of worked days multiplied by 8 hours.

Invoiced time

  • As per the hourly rate

GEM-CAR calculates the labor sales total and divides it by the technicians' hourly rate and by the number of invoices. 90% of shops in the industry calculate the invoiced time this way.

  • As per the quantity

GEM-CAR multiplies the sold quantities by the planned time configured for each labor inventory items. For example, 4 tire changes for which all planned times are of 15 minutes on an invoice corresponds to 1 hour.

Planned time

Planned time corresponds to the total of planned hours in the Calendar. By default, the planned time is equal to the invoiced time. You can modify this data directly in the Point of sale, if need be. To do so, select the jobs on the estimate and modify the duration in the field. You can also right-click the jobs in the calendar.

Real time

Real time corresponds to the sum of real hours configured for each labor inventory item. By default, it is equal to the planned time.

Invoice rate

The invoice rate corresponds to the invoiced time divided by the paid time. As an indication, 50 to 60% is sufficient to cover the fix costs while efficient shops generally reach 70%. Concerning car dealers, they normally reach 80% and more.

Average per invoice

The average per invoice corresponds to the average invoiced hours for each invoice. It should ideally be over 1.3.

Cost price

GEM-CAR calculates the cost price by multiplying the real time by the technicians' bays cost price, all of it divided by the technicians' hourly rate.

Sale price

GEM-CAR calculates the sale price by adding the quantities entered in the Point of sale and multiplying them by the unitary sale price of jobs.

Profit margin

GEM-CAR calculates the profit margin by doing the following operations. It first deducts the cost price from the sale price to calculate the profit. Then, it divides the profit from the sale price.

Calculations relative to the theoretical pricing

You will find below 3 formulas used by GEM-CAR for calculating the theoretical pricing.

  • [Real hourly pricing] = [Planned sales] * [Hourly rate] / 100

  • [Planned sales] = [Sum of sales] / Sum([Required time]) / [Number of invoices] * 100

  • [Sum of sales] = Sum([Labor sales]) / [Hourly rate] / [Number of invoices]

 

Other articles on the subject:

Planned Time/ Real Time/ Sold Time

Start using the Punch clock 

Filling the Timesheet

 

Posted  6 months  ago by  Olivier Brunel
#457 122 views Edited  3 months  ago

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