Key

Performance
Indicators (KPI)
 Objectives
• Monitor Workshop and/or B&P service operations
• Recognition of weak areas
• Help Management guide
• Confirmation of improvement by BPI comparison
(before and after)
Let’s start a little
practice!
 Service & Parts Dealer Data Sheet
TSM-Basic Certified Dealer Evaluators' Course
TSM-Basic Certified Dealer Evaluators' Course
Parts Department Business Performance Indicators Data Sheet
Service Department Business Performance Indicators Data Sheet

UIO: (Year 2004) Yearly Parts Sales: (Year 2004)

Year 2004
Total UIO (Assigned by Dist) 9,796 Total Parts Sales $757,550
No. of Customers in Dealer File 6,200 Customer Paid $377,669
No. of Customers that visited in last 12 months 3,428 Warranty $44,236
Internal $259,889
Yearly Service Sales: (Full Year 2004) Retail Counter $ 75,755
Wholesale 0
RO (Units Serviced) Hours Sold Sales in $ Cost of Goods Sold in 2004 $ 416,653
Total 7,200 14,800 822,000
Customer Paid 4,600 8,200 492,000
Staff: (During the month of December 2004)
Warranty 480 960 48,000
Internal 2,120 5,640 282,000
Total Technicians Cost/Wages 246,600
Manager 1
Staff/Facility: (During the month of December 2004) Assistant Manager 0
Counter Staff/Operatives 1
Manager 1 Drivers/Others 2
Service Advisors 2 Toyota Certified: 1 Staff 4
Foreman 1
Total Technicians 5 Master: 2 Pro: 1 Toyota: 2 Parts Inventory: (For the full month of December 2004)
Total Apprentices 3
Total Service Stalls 10
Total Value of Inventory at Cost $43,400
Parts Sales at Cost $34,720
Hours: (Full Month of December 2004)
% Stock Order Utilization 90%
Hours Sold Hours Clocked Hours Available # Lines in Stock 1,395
Total 1,230 1,181 1,280 # Line Items Unsold in 12 months 114
Cust. Paid 683 650 675 Value of non-moving stock in last 12 months (at cost) $ 1,720
Warranty 80 84 90 # Lines Ordered 1,673
Internal 470 447 465 # Lines Supplied 1,540
Total Repair Orders 600
Miscellaneous: (Full Month of December 2004) # Repair Orders Filled 551

Maintenance 266 Miscellaneous:

General Repair 114
Customer Paid 380
Number of Working Days 240
Warranty 40
Average Dealer sales/UIO $87
Internal 180 Free Inspection (20)
Total Repair Orders 600
Cust. Paid Parts Sales (December 2004) $31,500
No. of customers with Appointment 300 Cust. Paid Labor Sales (December 2004) $41,000
No. of Repeat Repairs 2 Total Parts Sales (December 2004) $63,129
No. of Working Days 20 Number of Working Days for December 2004 20
 1. Number of Units In Operation (UIO)
Total number of Toyota vehicles registered in operation in our
market.

No. of UIO = 9 796 units

2. Number of Customers in Dealer File

Total number of registered customers that made a transaction
with the Dealer and are included in the Database

No. of customers in Dealer file = 6 200 customers

 3. Number of Active Customers
Number of customers that visit the Dealer in a regular basis. By
definition, the customers that have visited the Dealers at least
one time in the last 12 months.

No. of Active customers = 3 428 customers

4. Total Repair Orders (Units Serviced)
Total number of units serviced in the Workshop. These are
divided in: CPUS, Warranty and Internal jobs.

Total R/O = 7 200 R/O

5. Customer Paid (CPUS)

Services developed in the Dealer and the customers who bring
the vehicle to be maintained or repaired pay for this works

Customer Paid = 4 600 units

 6. Customer Paid per UIO
Frequency or rate of customers who visit the Dealer and pay for
a service compared with the total UIO of the Dealer.

CPUS per UIO = 0.47

7. Warranty
Number of Toyota vehicles serviced for restoring that includes
replacement of parts, inspection, tuning, etc., covered by the
Toyota Warranty Policy.

Warranty = 480 units

 8. Internal
Number of Toyota vehicles serviced for restoring that includes
replacement of parts, inspection, tuning, etc., to meet the
company needs, PDS, etc. Mainly, assistance to new and used
sales vehicles

Internal = 2 120 units

 9. Hours Sold
Number of hours (flat rate time) that are used to develop each
service. Amount of time that is sold/charged to the customer’s
invoice for the services conducted by technicians.

Total = 14 800 hours

Customer Paid = 8 200 hours
Customer Paid per UIO = 0.84 hours (rate of the hours
Sold for Customers paid units compared with the total UIO)

Warranty = 960 hours

Internal = 5 640 hours
 10. Service Sales
Record of the income generated in the Dealer in the specific
service sales categories, as well as the overall income
performance

Total = $ 822,000
Customer Paid = $ 492,000
Customer Paid per UIO = $ 50.22 (rate of the sales for
Customers paid units compared with the total UIO)

Warranty = $ 48,000
Internal = $ 282,000
 11. Service Labor Gross Profit
Total income received from the difference between sales and
expenses from labor sales

Labor GP = Labor Sales – Labor Cost expenses

Labor GP (%) = Labor Sales – Labor Cost expenses

Labor Sales

Labor GP = $ 575,400
Labor GP (%) = 70%
 12. Service Staff
Individuals who perform any activity according to the job titles in
the Service department of the Dealer

Managers = 1 person
Foreman/Dispatcher/Controller = 1 person
Technicians/Apprentices = 8 persons
Service Advisors = 2 persons (Toyota Certified: 1)
Total # of Service Stalls = 10 stalls
 13. Appointment Rate
Percentage of number of vehicles with appointments in relation
to the total number of vehicles that were received for a job.

App. Rate (%) = # of vehicles with appointments x 100

Total vehicles brought-in
 Practice
• # of Customers with Appointment: 300 units
• # of total R/O (Cust Paid+Wty): 420 units

Appointment Rate (%) = 300 = 71 %

420
 14. Technician Efficiency
Technician Efficiency (TE) is used to monitor technicians’ skills
and job allocation accuracy. In other words to analyze how fast a
technician completes a job compared with the “labor hours sold”

TE (%) = Labor Sold Hours x 100

Clocked Hours
 Practice
• Labor Sold Hours: 1 230 h
• Clocked Hours: 1 181 h

TE (%) = Labor Sold hours x 100 = 1 230 x 100 = 104 %

Clocked Hours 1 181
 15. Labor Utilization
Labor Utilization (LU) shows how productive is a Technician
compared with his total work available hours (not including meal
times, breaks, training, tardiness, vacations, etc.)

LU (%) = Clocked Hours x 100

Available Hours
 Practice

• Clocked Hours: 1 181 h

• Available Hours: 1 280 h

LU (%) = Clocked hours x 100 = 1 181 x 100 = 92 %

Available Hours 1 280
 16. Overall Productivity
Productivity represents the overall performance of the Workshop
ability to sell its total available hours

Productivity (%) = Labor Sold Hours x 100

Available Hours
 Practice

• Labor Sold Hours: 1 230 h

• Available Hours: 1 280 h

Productivity (%) = Sold hours x 100 = 1 230 x 100 = 96 %

Available Hours 1 280
 17. Repeat Repair Rate
This ratio indicates how is the performance level of our
Technicians by monitoring vehicles that has either failed the
quality control process or returned by the customer due to an
unsatisfactory repair.
Repeat repair: Repair that is done again due to a bad done first
service.

Repeat Repair Rate (%) = Repeat R/O x 100

Total R/O
 Practice
• Repeat R/O = 2 R/O
• Total R/O = 600 R/O

Repeat Repair Rate (%) = 2 x 100 = 0.33%

600
18. Maintenance to General Repair Ratio
Mix or ratio of Periodic Maintenance jobs versus General Repair
jobs.

Maintenance to GR ratio (%) = Total number of PM

Total CPUS
 Practice
• Total Periodic Maintenances = 266
• Total CPUS = 380 R/O

PM Ratio = 266 x 100% = 70%

380
 19. Parts Sales
Sales for parts sold in-house from the Parts department to the
Service department, as well as the sales for retail and wholesale
of parts.

Total = $ 757,550
Total per UIO = $ 77.33 (rate of the sales for total parts sales
compared with the total UIO)
Distributor Average = $ 87 (average of total Dealers sales per
UIO to compare the performance of the Dealer with the rest of the market)
Customer Paid = $ 377,669 (parts sales income from Service
department)

Warranty = $ 44,236 (parts sales income from manufacturers

warranty)

Internal = $ 259,889 (parts sales income from the jobs of other

Dealer departments)

Retail counter = $ 75,755 (parts sales income from the

customers who purchase for their own use)

Wholesale = $ 0 (parts sales income usually other businesses that

purchase for the resale to other customers)
 20. Parts Gross Profit
Total income received from the difference between sales and
expenses from parts sales

Parts GP = Parts Sales – Parts Cost expenses

Parts GP (%) = Parts Sales – Parts Cost expenses

Parts Sales

Parts GP = $ 340,897
Parts GP (%) = 45%
 21. Parts Staff
Individuals who perform any activity according to the job titles in
the Parts department of the Dealer

Managers = 1 person
Counter staff = 1 person
Assistant Manager = 0
Drivers/Others = 2 persons
Parts sales per Parts staff (Full month)= $ 15,782.25
(Parts sales per staff = Total parts sales: Idea of amount of sales per staff)
Total Parts staff
 22. Total Value of Inventory at Cost
Total monetary value of all parts and accessories in the Dealer
inventory at cost
Total value of Inventory at cost (Dec 2004)= $ 43,400

23. Average Daily Sales at Cost

Average of parts sales at cost by working day

Average daily sales at cost = Cost of sold parts

Number of working days

Av. Daily sales at cost(Full month) = $ 34,720 = $ 1,736

20 days
 24. Days Supply
Available parts supply days according to the total inventory and
the average daily sales

Days Supply = Total Inventory at cost

Average daily sales at cost

Days supply = $ 43,400 = 25 days

$ 1,736
 25. % Stock Order Utilization
Percentage that indicates how many of the parts orders are for
the purpose of replenish the stock

% Stock order utilization = # of stock replenishment parts orders

Total # of parts orders

% Stock order utilization = 90%

 26. # of Line items in stock
Number of line items covering all parts in Dealer inventory

# of line items in stock = 1 395 lines

27. % of Line items unsold in 12 months

Percentage of line items that have not been moved for 12
months and there is a risk to become obsolescence

% of line items unsold in 12 months = 114 = 8.2%

1 395
 28. % Inventory value unsold in 12
months
Percentage of value in money of the unsold inventory in the last
12 months to have a better idea of the obsolescence in money
terms

% Inventory value unsold = Value of non moving stock at cost

Total value of inventory at cost

% Inventory value unsold = 1,720 = 3.96 %

43,400
 29. Service Rate
This rate measures the ability of the Parts department to provide
parts immediately from the parts stock of the Dealer

Service Rate = # of immediately supplied lines

Total ordered lines
Parts Service Rate (Remark)
Available at
Parts Number/ Parts Qty Line
part order
Part Line ordered Service Rate
timing

AAAAA-AAAAA 10 10 Imm. supplied

BBBBB-BBBBB 10 10 Imm. supplied

CCCCC-CCCCC 10 9 Not Imm. supplied

DDDDD-DDDDD 10 10 Imm. supplied

EEEEE-EEEEE 10 8 Not Imm.supplied

Service Rate: Lines supplied/Lines Ordered = 3/5 = 60%

 Practice

• # of immediately supplied lines: 1 540 lines

• # of lines ordered: 1 673 lines

Service Rate (%) = 1540 = 92.1 %

1673
 30. Repair Order Fill Rate
This rate measures the ability of the Parts department to provide
all the necessary parts of the Repair Orders to the Workshop

R/O Fill Rate = Total R/O with a 100% of supplied parts

Total R/O requiring parts
 R/O Fill Rate (Remark)
Repair Order Parts Qty Available at Completely
Parts Number
Number ordered in R/O order timing filled R/O
AAAAA-AAAAA 1 1

xxxxx BBBBB-BBBBB 2 1* No

CCCCC-CCCCC 4 4

DDDDD-DDDDD 1 1

yyyyy EEEEE-EEEEE 2 2 Yes

FFFFF-FFFFF 4 4

GGGGG-GGGGG 1 1

zzzzz HHHHH-HHHHH 2 2 No

IIIII-IIIII 4 0*

R/O Fill Rate: 100 % Filled R/O / Requesting Parts R/O = 1/3 = 33%
 Practice

• # of R/O with 100% of supplied parts: 551 R/O

• # of R/O needing parts: 600 R/O

R/O Fill Rate (%) = 551 = 91.8 %

600
31. Parts/Labor Sales Ratio (Customer
paid)
This indicator is used to measure the value of sold parts on
customer paid R/O in relation to the amount of labor sold

Parts/Labor Sales Ratio = Value of parts in customer paid R/O

Value of labor in customer paid R/O

Parts 43% /Labor Sales Ratio = 31,500 = 0.77

41,000
Let’s monitor the KPI
of our Dealers!