I completely agree with Wheelingauto as a lot of people understand these terms to mean different things. We work with dealers and vehicle importers in roughly 20 countries, and this does get a bit confusing some times. As a way to define the perspective of my answer, we actually utilize three terms when monitoring performance Metrics. The first is Productivity, which can also be referred to as clocked hours. Basically it's a comparison of how long your tech was clocked into your shop as compared to how many hours they were clocked onto vehicles. So if they were in your facility and available for work for 8 hours, and clocked onto actual jobs for 7.2 hours, they would be considered 90% productive. The second term we look at is efficiency. Think of it as how efficiently is the technician working during those clocked hours. Referring back to the last example, if your 90% productive technician was clocked on vehicles for 7.2 hours, yet invoiced 9 hours, (or billed 9 hours), their efficiency would be at 125%. The final figure we look at is called Utilization, which isn't too common a term in the United States, but is very common overseas. Utilization is a comparison of Invoiced (Billed) hours as compared to Available Hours. Again referring to the above example, your technician invoiced 9 hours while available for 8 hours in your facility. This results in a Utilization of 112.5%, which is the target we look to achieve with our dealers on a consistent basis. As you can see, you can now fluctuate between different techs and personalities where some techs are highly productive but not as efficient, or vice versa of lower productivity yet higher efficiency. As long as the Utilization at the end of the day, month, year is averaging 112.5%, you're reaching your targets. Another thing to realize is that this is a shop average, so a department with 8+ technicians may have some techs not achieving this while others are others exceeding it. We try to focus on averages realizing that due to the different types of jobs (gravy work vs. longer troubling jobs), you may not have every technician achieving this, so again, focus on the workshop average. Now I'm sure there will be a lot of people on this thread with different definitions and there is no right a wrong way to define these measures, as long as you are in fact measuring them. This is just the way we do it and the targets we set for the dealers and shops we work with.