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Measuring the performance of technicians

November 23, 2010
It is possible to measure a technician's productivity, efficiency and proficiency. But what does each measurement mean? A dealer must know that to determine if a technician's time has been allocated well and if they use that time well. "Technician productivity" is the actual time worked in a day versus the number of clock hours available in that day. The National Automobile Dealers Association recommends 85 percent to 87.5 percent as a productivity guideline, since non labor-related activities can consume 15 percent to 20 percent of available time. As an equation, Productivity = Hours worked ??hours available "Technician efficiency" is the actual number of hours a technician takes to perform the labor, as opposed to the number of labor hours sold. It boils down to the ability of a technician to beat a time standard published in a flat rate manual issued by the factory or an independent company. Top NADA 20 Group dealers recommend efficiency guidelines of 125 percent (factory manual) and 135 percent (non-factory manual). Efficiency = Flat rate hours produced ??hours worked "Technician proficiency" is a measure that combines productivity and efficiency, and compares hours produced to hours available. Proficiency provides the truest measure of a technician's use of time. The NADA recommends that technicians always be 100 percent proficient, with peaks to 120 percent. Proficiency = Hours produced ??hours available Learn more about the equations in a new NADA video training program, "A Perfect Match for Service Management: Profit, Productivity and People." The program can be ordered in VHS video and compact disk formats, and orders include an accompanying 20- page study guide. To order the program, call the NADA at 800-252-6232, ext. 2. Cost to NADA members is $189 plus shipping, plus $10 for each additional study guide.
 

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