WHAT IT IS: The measure of your technicians’ average time per repair order
HOW TO CALCULATE IT: Hours worked in a week ÷ repair orders in a week
INDUSTRY AVERAGE: 2.50–3.25
OPTIMAL BENCHMARK: 3.50+. At its heart, hours per repair order (H/RO) reveals the difference between being busy and being productive. The goal is to achieve more hours billed than worked by the technician. That figure alone, however, isn’t very useful; owners also need to know the average labor hours billed on each ticket. The ultimate goal is to have the number of hours billed exceed the amount of hours worked by the technician; achieving this benchmark will push each technician’s productivity over 100 percent.
What makes H/RO unique is that it’s universal—no matter where your shop is located, the nature of your repair work or the average income of your customers, H/RO is applicable. A shop in Duluth, Minn., should work as hard to achieve maximum H/RO as a shop in downtown San Francisco or Dallas.
At worst, remember the rule of three: for every 8-hour shift, a technician should average three repair orders at three billable hours each. That results in an H/RO score of 2.67 and a productivity rating at 112 percent.
HOW TO IMPROVE IT: H/RO suffers because of the daily goings-on at a shop; a poorly laid out floor, difficulty getting cars in and out of bays, running errands, test drives—all contribute to poor H/RO. An overstaffed shop, however, is the No. 1 reason for low H/RO scores.
WANT TO IMPROVE H/RO? HERE ARE SOME STRATEGIES:
- COMMUNICATE BETTER. As in all shop factors, communication and transparency is key to a successful shop. If the service advisors and technicians aren’t on the same page or if the manager or owner isn’t aware of what’s happening every day, it’s time to evaluate why. It starts with communication.
- USE A REPAIR CHECKLIST. Every repair should have a checklist. From simple oil changes and seasonal maintenance to engine overhauls and complicated drivetrain repair, every part, component, issue and fix should be recorded. Every operation should be billed to either parts or labor—a checklist will show you every little detail.
- RETRAIN CUSTOMERS. Customers don’t need to draw techs away from other work for spot inspections or questions; that’s what calendars and appointments are for. Customers need to understand that time is money, and taking technicians away from the work they’re meant to do is costly to everyone involved.
