Digital Dealer - September 2017 - 39

program? Likely not.)
THE BIG BOY

The potential output of a
larger repair shop is actually
just multiples of one from
the technician standpoint.
Each tech has a potential
amount of flat rate hours he/
she can/should generate
each day. Carryover flat rate
hours can be measured and
the average established -
sometimes dependent on
the day of the week - but
not difficult to calculate. To
simplify, repair shop flat rate
hour capacity is calculated
using the number of techs,
working hours, and proficiency multiplied together
(10 techs x 8 working hours
x 110% proficiency = 88 flat
rate hours of capacity). Proficiency is the measurement
of the flat hours produced
versus clock hours worked
- too often mislabeled
as "productivity," which is
actually repair order clock
hours versus attendance
clock hours of a tech, so the
maximum would be 100% or the tech was clocked on
an RO (working) the entire
attendance time.
Of course, carryovers,
completed diagnostics, additional found items, special
ordered parts, emergencies,
sold units, used cars, and
just plain "show-ups" clutter
this venue, so it is never
pre-filled to actual capacity. Many find around 70%
appointment pre-fill (best
is flat rate hours or at least
RO counts) to work well.
Another caveat is managing
skill pre-loads since many
franchises require only spe-

cifically trained/certified
techs to perform designated warranty work. Blocks
for this have to be inserted
into the pre-load mix.
STAFFING ANYONE

I have visited quite a
few shops where, for example, two ASMs (writers)
would be able to successfully handle the workload
effectively at 16 to 20
ROs a day each. Yet, the
department will be staffed
with three or four ASMs
because of an uncontrolled or semi-controlled
preloading plan, topped
off by usually unprofitable
extended hours. Each
day is a combination of
"watch it happen" ending
with "wonder what the
hell happened?" followed
by multiple nerve-saving
martinis in preparation for
the next day of sameness.
This is the perfect example of insanity as it is said.
Imagine what a repair
shop dispatcher goes
through attempting to
satisfy an unorganized
pre-loading approach. For
the most part his/her day
is targeted to the squeaky
wheel getting the grease
philosophy. Of course, one
can tell the near perfect
dispatcher when, in fact,
everyone is pissed off.
Eventually, this task turns
into handing out multiple
jobs to each tech along
with a bit of prayer.
There are essentially
two choices to pre-loading. One is to staff up expensive support personnel
excessively to handle the

"I don't have a clue what
is going to happen today"
situation, hoping to somehow build the volume to
cover the expense, or to
make a determined effort
to understand and take
control of pre-loading
details to create a smooth
customer-friendly environment. Personally, I find the
latter superior for creating
customer and employee
satisfaction and retention,
as well as profitability. Of
course, I have witnessed
some very large service
operations functioning within an unending
super-sized customer
market deal with little planning controls fairly well,
but "market size" is the
key here. For most dealers' markets, deliberate
and effective pre-loading
controls are the superior
choice.
SO, WHAT NOW
DUDE?

My advice is to study
thoroughly whichever
appointment system you
have (are stuck with),
including every control it
provides. Set up separate
quick service venues if
applicable, which are controlled differently from the
repair shop, then contact
your provider and ask for
a very knowledgeable representative to assist you in
perfecting your program.
This week an experienced service director
and I spent some four
hours, starting with me
developing an Excel
worksheet related to

available daily ASM and
tech skill staffing as well
as department hours,
perfecting the pre-loading
plan in both quick service
and the repair shop. We
also used the resources of
the provider for additional
insight and direction. In
only one day the difference was substantial,
especially for the quick
service manager, appointment coordinator, and the
repair shop dispatcher.
Suddenly the staff was
"making it happen" rather
than "watching it happen"
and there were even a
few high-fives passed
around! Was it worth the
time and concerted effort?
- you betcha my brothers and sisters! Got any
comments, send a note to
Ed@NetProfitGroup.com
- I always enjoy hearing
from the chain gang.
ED KOVALCHICK
has traveled the world
training and consulting
in fixed operations with
manufacturers and dealers.
His extensive background
includes master technician
status, independent shop
owner, dealer with all
Chrysler & Nissan franchises,
and founder of Net Profit Inc.,
fixed operations consulting
and training. He is a graduate
of the University of Louisiana,
and has served as state
president of the Automotive
Service Councils, and the
advisory boards of Wyo Tech
and Virginia College. He has
been a regular columnist and
conference presenter with
Dealer magazine and Digital
Dealer since 1995. EMAIL:
Ed@NetProfitGroup.com.

D I G I TA L D E A L E R . C O M

SEPTEMBER 2017

39
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