I have a couple young techs that have been with me for 4 to 6 years. I am in the Panhandle of Florida. I am looking for some training classes, other than the Snap-on, Napa pizza parties. I would like to get them away a few days for some knowledgeable with general info and basic training, I am just not aware of any in the Southeastern USA. Thanks Guys
Curious how others are keeping track of technician productivity. Is it something built into your shop management software that you are able to run a report on? Do you have a simple equation you run at the end of the week or month? Are you having guys punch a time clock? Do you even track productivity? If you do, do you mind sharing what your productivity numbers are? And do the fluctuate much?
By Joe Marconi
Got your attention? Good! Before I start, let’s get something out of the way. Does technician aptitude or attitude affect the productivity of your shop? Absolutely. But this is the exception, not the rule. If your overall production levels are low, that is the sole responsibility of management. Let’s look at a few reasons for low production levels.
The first area I want to address is billing. Many hours of labor go unbilled due to not understanding how to charge. This area is most prevalent with testing and inspecting. If your technicians are handed a work order, with no direction and not a clear process of what to do, or when to stop and ask for labor testing fees, there will be a ton of wasted labor hours, never to be recovered again.
Next is training. Service advisor and technical training is a key component to high production levels. But let’s not forget in-house training. All policies and procedures must be reviewed often and refined if needed. Your team must follow a process. With no road map, labor dollars are lost. By the way, if you don’t have procedures in place, you need to make this top priority. Every successful organization has a detailed set of workflow guidelines.
Let’s look at shop layout. How organized is your shop? Are shop tools and equipment readily accessible? Or do techs tend to wander around looking for the shop scanner or TPMS reset tool. Are stock items such as wiper blades and oil filters fully stocked and cataloged properly? Do technicians have separate access to technical information? Or are techs waiting to use the same computer station? Again, all these things kill labor production, which kills labor dollars.
Next up is scheduling. There should be a structured approach to scheduling where the day is balanced with enough opportunity to make profitable sales. Have a process where vehicle history is reviewed before the customer arrives. Any previous service recommendations or notes is any opportunity to make a sale. But the key ingredient is in preparation. A customer that’s scheduled for an oil change may have forgotten that he or she received a recommendation for tires. Informing the customer at the time of scheduling and preparing for the work ahead of time, greatly improves productivity and overall efficiency.
Another problem area is with service advisors and their workload. The service advisor, in many situations, handles the front counter, the phone, scheduling, helps with dispatch, part procurement and sales. All these tasks are critical to the daily operations. However, nothing happens in the shop until a sale is made. You need to look at your service staff. Are estimates getting processed quickly and upsells getting back to the technicians in a timely manner? If not, this is another area where production suffers. Carefully analyze your staff and run the numbers. More estimates processed means more sales and higher profits. Adding a service advisor or an assistant may be the missing link in a shop’s production problem.
Knowing your numbers is another key component to attaining high production levels. I will refrain from giving you benchmark numbers, since all businesses models are different. With that said, you need to determine your breakeven and establish your labor goal for the week. Then knowing your labor goal, you need to calculate how many labor hours you need per technician. Then, you need to communicate this number to each technician. Having clear expectations and knowing the goals of one’s position is essential for hitting production goals.
With regard to the technician’s responsibility, let’s remember one important fact; the technician has control over his or her efficiency. That’s it. If you dispatch a four-hour ticket to a tech, the ability of the tech to meet or beat that time depends on the technician’s skill, experience and training.
There are a lot of other factors that influence production, such as the right pay plan and hiring the right people. But perhaps the most important influence is leadership. The shop owner or manager must study and look at the entire operations of the shop. Productivity goals must be established and then a system of monitoring production must be put into place. This includes sales goals, as well. Service advisors and technicians must get continuous feedback on their progress. Improvements in sales and in production, no matter how small, must be celebrated.
The bottom line is this: If you’re not happy with your production level, you need to look at every aspect of your company that influences production. Improvements in key areas put technicians in a position to win. When they win, so do you.
This story was originally published by Joe Marconi in Ratchet+Wrench on March 1st, 2019
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By Joe Marconi
The day to day operations of running a business can take its toll on anyone. To be a business owner means to address problem after problem and finding the right solutions. Sometimes the decisions we make will be the right ones, sometimes not. If we are not careful, this emotional roller coaster we call being in business, can make us focus too much on the negative, and not the positive things that happen in our lives.
With nearly 4 decades as a business owner, I can say with certainty that one of the basic building blocks of being successful in business is having the right team of people around you and getting yourself in the right frame of mind.
You need to find and hire great people. But once you have them, you need to do all you can to take care of them, train them and make them successful in order for you to be successful. Is it easy? No. But it is essential.
Most important; you need to treat each day as if it were a gift from the heavens and base your entire perspective from a position of strength and remaining positive. I know it’s not easy, but I can tell you, it works.
Those shops doing courtesy inspections how much time are you paying your tech's to do the inspection? I've read on some forums anywhere from .30-.50. I am attaching a link to one of our courtesy inspections to give you an idea of what we check during our inspection process. Also, what do you pay the technicians for oil change & rotations each?
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By Joe Marconi
Not every shop pays flat rat; for many reasons. So, many techs are on hourly pay. There is nothing wrong with hourly pay, as long as you have an incentive program in place that promotes high production levels to avoid complacency. For hourly paid employees I strongly urge you to have a pay plan that rewards production levels on a sliding scale.
As a business coach, I have seen too many times shops with low production levels and high tech payroll due to overtime pay. Overtime pay must not be used to get the jobs done with no regard to labor production. Limit overtime and create a strategy that increases production and rewards techs with production bonuses. By the way, there are many ways to incentivize techs, it's not all about money.
Overtime without high levels of production will eat into profits and if not controlled, with kill your business.
If your shop is an hourly paid shop, what incentives do you have in place to maintain production levels?
By Joe Marconi
There is been a lot of discussion lately across this nation about raising the minimum wage. I am not going to debate that issue today, but I will go on the record that I believe it may affect our industry and how we pay out technicians.
With companies such as Wall Mart, McDonalds, Starbucks, Chipotles, and many more increasing wages, this will send a message to the workforce that wages need to be more in line with the needs of the worker.
Pay scales for techs are all over the map depending on where you are in the country. But, the age old issue is that we need to attract quality entry-level people to our industry. With chatter that entry-level positions in the fast food chains and other big box stores may exceed $10.00 per hour and even reach $15.00, we need to take a look at what we pay our people.
The bottom line here is truly the “bottom line”. Shop owners cannot simply raise wages unless the shop’s profits are enough to support the raise. Shop owners need to take a long hard look at their pay plans and ensure that you offer competitive wages, but importantly, offer a work environment and career paths that will attract quality people.