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Punishment for Reward


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So I have this young tech. He thinks he's a hot shot (What tech doesn't other then real good ones) He's been with me about a year. He WILL be a great tech in a few years. He had asked about going to a BMW training class. I researched it. I think it is slightly over his head at this point but I agreed. I am paying for everything but accomodations.

 

The other day I was out of town and my manager was scheduled for all day training. He was told he could not be late under any circumstances. Well lo and behold he shows up 45 minutes late. My number 2 sent him home and wrote him up. I know we all take our lumps with young techs. I cancelled the training.

I told him if he keeps his nose clean for 6 months and shows me responsibilty I will have no problem sending him to the next one that comes up.

 

Looking for wisdom

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Out of 8 employees, we had 2 that could never get to work on time, period. We have meetings in the morning 2x a week and they would come straggling in. Let me say they are both good Techs in most other ways. I had tried everything to get them here. I can't stand being late and I think if they want their job they should be on time. Finally, I did the following, not sure it would be good or right for everybody. It has worked for me. If they are late I will deduct 1 hour for each day they are late. This was for flat rate technicians. The 1st two weeks I deducted 4 hours. He came in and asked me how come. I told him we had a meeting and this was my last resort. He said well, I didn't think you would really do it. When you hit them in the pocket book, it makes a difference. I also had told him if he was on time, he would also get a raise, which he deserved. He then made the effort and is on time. He came in and now wants his hours back. I will give them back after he proves he can come to work on time for more than 2 weeks.

 

But did I make the decision

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  • Have you checked out Joe's Latest Blog?

         0 comments
      Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
      As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
      But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
      Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
      Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
      Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
      The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
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