apd Australia

  • Phone: +61 (3) 8878-8797
  • Fax: +61 (3) 8878-0897
  • Mail: support@apd-australia.com.au
  • Website: www.apd-australia.com.au
  • Address: Suite 2C Bldg 2, 303-313 Burwood Hwy, Burwood East VIC 3151, Australia

Performance Management Program
apd Australia’s “Dealer Assessment” enabled labour sales and productivity growth for Car Dealership Service Department

Profile

A large single franchised Dealer Service Department with profit levels significantly below potential and benchmark.

Challenge

The dealership was experiencing the consistent underselling of available workshop hours, with “Work in Progress” hours constantly higher than benchmark, and the workshop continually running out of work.

There were significant process issues, including poor availability scheduling, carry- over not entered, and poor booking practices. Further, the dealership had relied on warranty campaigns to fill capacity, and reductions in warranty requirement had eroded this volume.

Solution

apd Australia’s performance monitoring identified the decline and the issues with the sales results. A dealer meeting was convened to highlight the labour management and sales issues. The dealer requested a Service Operational Processes review to identify causes and to recommend corrections. apd Australia’s performance management program improved profit levels, productivity, and capacity utilisation above benchmark, and ensured that the business captured its full potential.

Insights 2Causal analysis identified many process gaps:

Scheduling by mix of work and number of cars rather than by available hours
Appointments not monitored to allow for current work in progress
DMS booking diary and loading programs not in use
Quality management systems lacking

Through structured meetings with the Dealer Principal, Service Manager and key service staff, specific action plans were created and implemented in order of priority, resulting in rapid growth in daily labour sales and capacity utilisation.

Business concept: arrow whis ROI on grunge wall background1.  Labour sales exceeded Business Planner budget

Use of the DMS Diary to manage labour hours availability and sales maximised bookings
Introduced appointment management process with times allocated to each job line for review
Developed workflow management processes

2.  Profitability increased by $32,600 per month in the Service Department

Driven through increased productivity and efficiency resulting from revised workshop Practices
Supported by working to scheduled operation codes
Quality management processes introduced

MORE CASE STUDIES

Operational Analysis & Process ImprovementCustomer Data Analysis Process Improvement Plan Warranty Administration Management

There are no comments so far

Leave a Comment

Don't worry. We will never use your email for spam.

Don't worry. We never use your email for spam.