Fixed Ops Magazine - 2022 Vol19 02 - 38

FEATURE BY DUSTIN JONES
SHOP
EFFICIENCY
M
y specialty is helping dealers squeeze every
ounce of performance from their reconditioning
so they get more cars sale-ready faster to
save money and meet demand. One costly error occurs
when a service or recon manager reactively adds a technician
to meet volume requirements and seemingly improve
shop labor efficiency. Sometimes this is the right
decision, but often not.
CONSIDER TIME LEAKS BEFORE
ADDING A TECHNICIAN
If you are in a position to face this decision, before you
go any further, first consider TIME LEAKS that might
be in your process. When discovered and remedied,
your current techs might deliver a sufficient level of increased
productivity and profitability to solve your issues
-- without adding headcount and payroll.
AN ACTUAL EXAMPLE FROM HISTORY
One dealership faced this decision. But before they
hired staff, I asked to visit and observe their shop
38
Cure shop inefficiency with a technician's bonus pay plan
practices. As part of my analysis, I audited the service
department's payroll. As a result, I had my solution. An
underperforming line technician had cost the department
$6,700 a month in lost production. Although
these losses can happen in different scenarios, the primary
cause here was slack service manager oversight.
This laxity encouraged at least one technician to be
less productive than his potential.

Fixed Ops Magazine - 2022 Vol19 02

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2022 Vol19 02

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