Measurement System Guidelines

Measurement
System Guidelines
Service Upgrade
Prepared by MSX International Australia Ltd.
Updated 05/07/04
TABLE OF CONTENT
APPOINTMENT PROCESS - ROW 1, 2, 2A, 2B & 2C ................................................................................................... 3
Appointment Rate - Row 1 & 2............................................................................................................................. 3
Reminder Call Rate - Row 2a & 2b....................................................................................................................... 4
Customer On Time Rate - Row 2 & 2c ................................................................................................................. 5
ADVISING PROCESS - ROWS 3, 5, 5A, 5B & 6 ........................................................................................................... 6
Fixed Quoted Price Rate - Row 3.......................................................................................................................... 6
Interactive Reception Rate (IAR Rate) With Client - Row 5................................................................................. 7
Interactive Reception Rate (IAR Rate) Without Client - Row 5a.......................................................................... 8
Right First Time Rate(# Repeat Repairs) - Row 6............................................................................................... 10
PART PROCESS - ROW 7, 8 & 9............................................................................................................................... 11
Parts Fill Rate workshop - Row 7 & 8................................................................................................................. 11
Parts Pre-picking Rate - Row 9 ........................................................................................................................... 12
DELIVERY PROCESS - ROW 10, 11 & 12 ................................................................................................................ 13
Right On Time Rate - Row 10............................................................................................................................. 13
Checking Rate - Row 11...................................................................................................................................... 14
Explanation Rate - Row 12.................................................................................................................................. 15
FOLLOW -UP PROCESS - ROW 13, 14, 15, 15A 15B & 15C ..................................................................................... 16
Follow-up Rate - Row 13 & 14 ........................................................................................................................... 16
Customer Satisfaction Rate - Row 14 & 15......................................................................................................... 17
Concern Resolution Rate - Row 15a, 15b & 15c................................................................................................. 18
WORKSHOP PERFORMANCE - ROW 16, 17, 18, 19, 20 &, 21 ................................................................................. 19
Productivity - Row 16 & 17 ................................................................................................................................ 19
Efficiency - Row 17 & 18.................................................................................................................................... 21
Performance Index - Row 16 & 18...................................................................................................................... 22
Labour Hours Sold Per Repair Order - Row 19 & 21 ......................................................................................... 23
Parts Value Sold Per Repair Order - Row 20 & 21 ............................................................................................. 24
PRO-ACTIVE CUSTOMER CONTACT SALES AND SERVICE - ROWS 23 – 26........................................................... 25
Service Introduction Rate - Row 23 - 26 ............................................................................................................. 25

MSX International Measurement System Guidelines Page 3/26
Appointment Process - Row 1, 2, 2a, 2b & 2c
Appointment Rate - Row 1 & 2
Appointment Rate measures the total number of customers who have

pre-arranged fixed appointments for an Interactive Inspection as a
WHAT? Definition
percentage of the total number of customer visits. The fixed appointments
are distributed during the day at 15-minute intervals.
n Fixed appointments represent an opportunity to increase customer

loyalty, through professional handling of repair problems and customer
concerns, during initial customer contact.
n Appointment Rate provides a useful measure of the quality of customer
WHY? Importance service when vehicles are handed over for servicing and repair.
n Pre-arranged appointments are needed to ensure there is enough time
for each customer and to avoid rushing and/or queuing.
Number of customers with fixed appointments (2) x100

Number of customer visits (1)
The number of customers with fixed appointments (2) is: the total
number of retail and warranty customers who have a pre-arranged
appointment for their visit.
The number of customers with fixed appointments (2) excludes
customer no shows.
Calculation n Fixed appointment means that the appointment was made at the latest,
the day before the customer visit (before list is distributed).
The number of customer visits (1) is: the number of vehicles accepted
for repair from retail and warranty customers.
HOW? n Internal customers are not included.
n Internal customers are only included in the number of customer visits
when jobs are done for retail and warranty customers e.g. optional
courtesy checks or used vehicle guarantee.
>50%
Target
“ERROR” will appear in the metrics if the rate is >100%
Collected and summarised on the Customer Appointment and Process

Data Collection
Checklist/sheet, which is part of Ford Service Upgrade implementation.
Responsibility Booking Person and Service Adviser.
Frequency Collected daily, summarised daily and weekly.
Lower Appointment Rates can indicate:

n Poor communication with customer during the booking process.
Interpretation n Lack of control in the appointment process, e.g. call routing, phone
system problems, … etc. or booking Person needs training/support.
Reminder Call Rate - Row 2a & 2b
Reminder Call Rate measures the total number of customers who received
a reminder call for their pre-arranged fixed appointments as a percentage
WHAT? Definition
of the total number of customers with fixed appointments that were
booked more than a day in advance.
n Measuring the reminder call rate allows the dealership to monitor the
efficiency of the booking process.
n It allows the dealership to provide better service to the customers and
WHY? Importance initiate pro-active measures to educate customers of the importance of
being on time.
n It helps get more customers to come on time for their pre-arranged
appointment.
Number of reminder calls (2b) x100

Number of fixed appointments older than a day (2a)
The number of reminder calls (2b) is: the total number of successful,
person to person telephone calls to retail and warranty customers, to
remind them of their pre-arranged fixed appointment time.
§ The reminder calls need to be performed 12-24 hours prior to the
Calculation fixed appointment time to achieve the desired effect.
The number of fixed appointments older than a day (2a) is: the total
HOW? number of customers who have a pre-arranged fixed appointment that is
older than a working day.
>70%
Target

Data Collection Checklist/sheet, or other form, hard copy or electronic.
Responsibility Booking person or other dedicated person.
Lower Reminder Call Rates may indicate:

n Lack of trained staff to perform the calls.
Interpretation
n Lack of control in the appointment process, e.g. call routing, phone
Customer On Time Rate - Row 2 & 2c
Customer On Time Rate measures the total number of customers who

arrive on time for their pre-arranged fixed appointments as a percentage of
WHAT? Definition
the total number of fixed appointments.
n Measuring the customer on time rate allows the dealership to monitor

the efficiency of the booking process.
n It allows the dealership to provide better service to the customers and
WHY? Importance initiate pro-active measures to educate customers of the importance of
being on time.
n Prompt pre-arranged appointments are needed to ensure there is
enough time for each customer and to avoid rushing and/or queuing.
Number of customers on time (2c) x100

Number of customers with fixed appointments (2)
The number of customers on time (2c) is: the total number of retail and
warranty customers who arrive within 5 minutes before or after their pre-
arranged appointment.
The number of customers with fixed appointments (2) excludes
Calculation customer no shows.
n Fixed appointment means that the appointment was made at the latest,
HOW? the day before the customer visits (or before list is distributed).
Recommended >60%
Target
Collected and summarised on the Welcome Board and Customer

Data Collection
Appointment and Process Checklist/sheet.
Responsibility Booking Person, Service Adviser or other (Greeter).
Lower Customer on time rates may indicate:

n Lack of reminder calls performed.
Interpretation
n Lack of control in the appointment process, e.g. call routing, phone
Advising Process - Rows 3, 5, 5a, 5b & 6
Fixed Quoted Price Rate - Row 3
Fixed Quoted Price Rate measures the total number of customers who
WHAT? Definition were quoted fixed job prices from menu pricing as a percentage of the
total number of customer visits.
n Fixing the price up-front represents an opportunity to increase customer

loyalty by avoiding disputes over the final bill.
n Fixed Quoted Price Rate provides a key measure of the ability to fulfil
WHY? Importance customers’ expectations about the price to be charged on the invoice.
n Preparation of fixed quoted prices also helps establish parts availability
and pre-picking.
Number of fixed quoted prices (3) x 100

The number of fixed quoted prices (3) is: the total number of retail and
warranty customers who were quoted up front fixed job prices from menu
pricing.
Fixed quoted prices must cover all jobs on the repair order; otherwise
the fixed quoted price count is zero. Warranty and Fleet repairs where no
Calculation price is given to the driver are considered “fixed”.
n Internal customers are not included.
HOW? n Internal customers are only included in the number of customer visits
>60%
Target

Data Collection
Responsibility Service Advisers and Service Manager.
Lower Fix Quoted Price Rates can indicate:

n Service Advisers need training.
Interpretation n Lack of menu pricing information at workplace.
n Large proportion of unsold diagnosis jobs.
Interactive Reception Rate (IAR Rate) With Client - Row 5
Interactive Reception Rate measures the total number of customers who

WHAT? Definition participated in a vehicle pre-inspection with the Service Adviser, using a
hoist, as a percentage of the total number of customer visits.
n Interactive Reception represents an opportunity to increase customer

loyalty through:
⇒ Building confidence that customers’ views are being taken into
WHY? Importance account.
⇒ Improving trust by identifying all work while the customer is
present.
n Interactive Reception Rate provides a key measure of the quality of
customer service.
Number of Pre-inspections with customers (5) x 100

The number of pre-inspections with customers (5) is: the total number
of retail and warranty customer vehicles pre-inspected by the Service
Adviser with the customer following a written checklist and using a hoist.
Calculation The number of customer visits (1) is: the number of vehicles accepted
HOW? courtesy checks or used vehicle guarantee.
>50%
Target

Data collection
Lower Interactive Reception (IAR) Rates can indicate:

n Lack of Service Advisers’ training.
Interpretation n Lack of customer-friendly IAR area including hoist and light.
n Poor appointment rates.
Interactive Reception Rate (IAR Rate) Without Client - Row 5a
Interactive Reception Rate without client measures the total number of

WHAT? Definition pre-inspections carried out on customer’s vehicles by the Service Adviser,
using a hoist, as a percentage of the total number of customer visits.
n A pre-inspection in the Interactive Reception Bay represents an

opportunity to increase customer loyalty through:
⇒ A faster and informed contact with the customer, advising
WHY? Importance them of the areas requiring attention, cost of the repairs and the
total time that the vehicle will be required to carry out the
repairs.
⇒ Assists in the early identification of work required to the
vehicle, obtaining the customers authority early in the day, and
better planning and utilization of the workshop, as well as the
ability to pre-pick more parts before the technician clocks onto
the job.
n Interactive Reception Rate without customer provides also provides a
key measure of the quality of customer service.
Number of Pre-inspections with customers (5a) x 100

Number of customer visits (1-5)
The number of pre-inspections without customers (5a) is: the total
number of retail and warranty customer vehicles, pre-inspected on the
IAR hoist and using the written checklist without the customer present.
The calculation subtracts the number of vehicles already inspected with
Calculation the customer and then calculates the number remaining to calculate the
percentage inspected without the customer present.
HOW? n Internal customers are not included.
>50%
Target “ERROR” will appear in the metrics if the rate is >100%
Data collection
Lower Interactive Reception without customers (IAR) Rates can
indicate:
Interpretation n Lack of Service Advisers’ training.
n Lack of customer-friendly IAR area including hoist and light.
n Poor appointment rates.
Notes regarding vehicles inspection without customer:
n It is the intention that the Service Adviser inspects all vehicles, using a hoist regardless of the
customer’s presence. Written checklist should be used in all cases.
n Data should be collected and summarised on the Customer Appointment and Process
n The Service Advisers and Service Manager are responsible for the data collection, which is to
be collected daily and summarised daily and weekly.
n Vehicle inspection data (5) and (5a) is entered in the Measurement System Matrix. (5b) is
calculated automatically by the system.
n The Recommended Total Inspection Rate is 100%.

Right First Time Rate(# Repeat Repairs) - Row 6
Measures the total number of repair orders as a percentage of the total

WHAT? Definition number of customer visits, that is or has a Repeat Repair included in the
repairs requested by the customer.
n Customer research shows that repeat repairs damage customer loyalty

by inconveniencing customers and undermining confidence in the
WHY? Importance quality of work.
n Right First Time Rate is therefore a key measure of customer service.
Number of ROs without repeat repair (1 - 6) x 100

The number of ROs with a repeat repair (6) is: the number of retail and
warranty repair orders, which contain maintenance or repair work to be
carried out on the vehicle for the second time in this dealership.
n Repeat repairs must be identified during Interactive Reception, or
when customer is calling for an appointment (do not ask customers!).
Calculation
HOW? courtesy checks or used vehicle guarantee.
>90%
Target

Data Collection
Responsibility CRM Co-ordinator, Service Adviser and Service Manager.
Right First Time rate should be as close to 100% as possible.

Interpretation As not all customers return to the dealer after a repeat repair, this metric
has to be seen together with the main reasons for “customer
dissatisfaction” obtained from the follow-up calls.
Note: This measure should be cross-referenced to the Dealership’s CVP
results to ensure accuracy.
Part Process - Row 7, 8 & 9
Parts Fill Rate workshop - Row 7 & 8
Parts Fill Rate – workshop measures the total number of part lines
WHAT? Definition delivered from stock, when first requested, as a percentage of the total
number of parts lines requested by the workshop.
Ensuring that the parts stocking profile reflects normal Workshop

requirements:
n Avoids customer’s inconvenience. (Coming twice to dealership
because of parts not available first time).
WHY? Importance n Avoids lost business opportunities because of parts not available.
n Avoids repeat repairs caused by parts supply problems.
n Helps to ensure that jobs are completed on time.
n Minimises technicians idle time waiting for parts.
Number of lines delivered from stock (8) x100

Total number of lines requested by workshop (7)
The number of lines delivered from stock (8) is: the number of
complete lines delivered from stock prior to the Technician starting work
Calculation on the vehicle.
The total number of lines requested by workshop (7) is: the total
number of lines required to complete workshop repair orders. Requests
have to be counted through pre-picking document and/or workshop parts
counter.
HOW? Target The minimum level should be established at dealer, area or national level.
A summary record should be maintained by the Parts Department of:

n Total number of lines requests received in the Parts Department from
the Workshop, (7).
Data collection
n The number of lines delivered from stock, off the shelf (8).
n The number of ROs for which all requested parts were pre-picked and
ready for delivery to technician at the time of their request, (9).
Responsibility Parts Staff, Parts Manager, Service Adviser and Service Manager.
Frequency Daily and weekly
Low figures could indicate:

n Poor inventory management.
Interpretation n Inventory policy targeted more to retail or wholesale business.
n Retail/Wholesale inventory mix incorrectly biased.
Parts Pre-picking Rate - Row 9
Parts Pre-picking Rate measures the total number of repair orders with all
WHAT? Definition parts pre-picked and available in advance for technicians, as a percentage
of the total number of customer visits.
Parts Pre-picking is an essential customer service provided by the Parts

Department, which helps ensure that:
n Avoids repeat repairs caused by parts supply problems.
WHY? Importance
n Jobs are completed at the time agreed.
n Waiting for parts is minimised (Efficiency is directly affected).
Number of advanced parts orders ready in time

for technician (9) x 100
The number of advanced parts orders ready in time for technician (9)
is: the total number of ROs with all scheduled parts ready for the
technicians.
Calculation
n The number of ROs pre-picked should be counted at the point when
the pre-picking box is delivered to the technicians on their request.
• Internal customers are only included in the number of customer visits
>60%
Target
HOW? A summary record should be maintained by the Parts Department:
n Total number of lines requests received in the Parts Department from
the Workshop, (7).
Data collection n The number of lines delivered from stock, prior to the Technician
starting work on the vehicle (8).
n The number of ROs for which all requested parts were pre-picked and
ready for delivery to technician at the time of their request, (9).
Responsibility Parts Staff, Parts Manager, Service Advisers and Service Manager.
Low parts picking rates may be consequence of:

n Low Parts Fill Rate. Problems with menu pricing information.
Interpretation n Low Interactive Reception Rate.
n Poor communication between Service Advisers and Parts Department.
Delivery Process - Row 10, 11 & 12
Right On Time Rate - Row 10

Right On Time Rate measures the total number of vehicles completed by
WHAT? Definition the time agreed with the customer during Interactive Reception, as a
percentage of total number of customer visits.
A vital factor of service quality is the ability to exceed customers’

expectations. Being able to deliver the completely repaired vehicle before
WHY? Importance the time agreed with the customer will ensure best customer handling
levels.
Right On Time Rate is a key measure of the quality of vehicle hand-over.
Number of cars ready on time (10) x 100

The number of vehicles ready on time (10) is: the number of vehicles
completed in time by the workshop and have been checked for completion
and presentation, as well as washed & invoiced, at least 15-minutes before
the time agreed with the customer, (i.e. the promised collection time is
2.30 p.m. the vehicle has been completed on time by the techs,
Calculation washed, road tested & Invoiced where applicable (e.g. excluding
Warranty & Internal finalisation) by the Service Advisor – before the
promised 2.30 p.m. collection time).
HOW? >80%
Target

Data collection
Low Right On Time levels of performance adversely effort customer

loyalty and may indicate:
n Inadequate workshop scheduling/poor use of planning board.
Interpretation n Poor communication through the whole process.
n Low technician efficiency.
n Problems during repair process.
n Poor Parts Department performance.
Checking Rate - Row 11
Checking Rate measures the total number of invoices ready and cars
WHAT? Definition checked before the customer arrives to collect the vehicle, as a percentage
of the total number of customer visits.
n Queuing and work not completed on time are major c auses of customer
dissatisfaction. Advance preparation of invoices and checking that all
the work agreed has been completed helps to leave a positive lasting
impression with the customer.
WHY? Importance n Preventing queues and meeting customers’ expectations that all work
has been completed.
n Checking Rate is a key measure of Customer Service at the point of
vehicle hand-over.
Number of invoices ready and cars checked (11) x 100

The number of invoices ready and cars checked (11) is: the number of
cars which have been visually checked for completion and presentation
after completion by workshop and where all points discussed with the
customer have been completed and reflected on the printed invoice
before the customer arrives to collect the car.
Calculation The number of customer visits (1) is: the number of vehicles accepted
HOW? >90%
Target

Data collection
A poor Checking Rate may indicate the need for investigation in one
or more of the following areas:
n Scheduling the delivery time.
Interpretation
n Service Advisers training and attitude.
n Poor communication between Workshop, Service Office and Service
Advisers.
Explanation Rate - Row 12
Explanation Rate measures the total number of customers who received an

explanation from the Service Adviser, at their car, about the work carried
WHAT? Definition out and the charges made, as a percentage of the total number of customer
visits.
n The ability to meet customers’ expectations about the work carried out
and associated charges, even if these have been agreed in advance, is
vital for customer loyalty.
WHY? Importance n Explaining the work done and charges made provides an opportunity to
reinforce important messages such as fixed prices and right first time.
n Explanation Rate provides a key measure of the quality of Customer
Service during vehicle hand-over.
Number of Invoices explained (12) x100

The number of invoices explained (12) is: the total number of customers
who received an explanation from the Service Adviser, at their car, about
work carried out and charges made when they arrived to collect their
vehicles regardless if they are fleet, warranty or retail repairs.
Calculation for repair from retail and warranty customers.
HOW?
>85%
Target

Data collection
Low Explanation Rates (which may also be reflected in low CVP

scores) may indicate:
n Service Advisers need training.
Interpretation
n Low Checking Rate.
n Service Adviser is involved in other activities in the afternoon.
n Vehicle delivery time is not scheduled in a staggered way.
Follow -up Process - Row 13, 14, 15, 15a 15b & 15c
Follow-up Rate - Row 13 & 14
Follow-up Rate measures the total number of successful communication

WHAT? Definition
exchanges between the dealership and the customer, as a percentage of
the total customers due to be contacted by either a person to person
contact or via a returned survey form. (Handing a customer a survey form
does not constitute a successful contact).
n After Service Customer Follow-up is an opportunity to improve

customer loyalty by identifying and addressing potential customer
WHY? Importance concerns at the earliest opportunity.
n Follow-up Rate therefore provides an important measure of after
service customer care and supports the spirit of Ford Customer Care.
Number of Follow-up calls (14) x100

Number of invoices to be Followed-up (13)
Number of successful Follow-up contacts (14) is: the total number of
customers successfully contacted / responded after their visit, through a
Calculation direct phone call or return of their questionnaire card.
n Dissatisfaction identified during the follow-up process should be
reported to the Service Manager immediately.
The number of invoices to be followed-up (13) is: the number of
customers due to be contacted. This should include retail customers and
fleet drivers that have an assigned car.
>65%
Target
HOW? Collected and recorded on the telephone follow-up log by the person/s
Data Collection carrying out the follow-up calls.
Responsibility Follow-up persons, CRM Co-ordinator and Service Manager.
A low Follow-up Rate may indicate:

n After sales service focus may need review.
n Training of Follow-up person/s may need review.
Interpretation n Follow-up person and process needs revision.
n A low Follow-up Rate represents a missed opportunity to improve
customer loyalty through prompt corrective actions if customers’
initial expectations have not been met.
n This measure should be cross-referenced to the CVP report to ensure
accuracy.
Customer Satisfaction Rate - Row 14 & 15
Customer Satisfaction Rate reflects the total number of customers

WHAT? Definition completely satisfied with their visit to the dealership as a percentage of
the total number of customers reached by the follow-up process.
n Customer Satisfaction Rate provides an event driven, dealer generated,

“voice of the customer ” measure of the overall service quality
delivered to customers.
WHY? Importance
n At the same time it gives the dealership a unique opportunity to
identify unsatisfied customers early enough to take corrective action.
Research shows that only one of 20 unsatisfied customers complains.
Number of customers completely satisfied (15) x100

Number of Follow-up calls (14)
Numbers of customers completely satisfied (15) are: those who answer,
Calculation “yes” to the question/s asked by the follow up person / method.
Number of Follow-up calls (14) is: the total number of customers
successfully contacted after their visit, through a direct phone call or
return of their questionnaire card.
n Dissatisfaction identified during the follow-up process should be
reported to the Service Manager immediately.
The recommended target is 100%. This metric should be constantly

HOW? Target maximised. The minimum level for a Ford Service Upgrade dealer should
be established at dealer, area or national level.
Collected and recorded on the telephone follow-up log by the person/s

Data collection carrying out the follow-up calls.
Responsibility CRM Co-ordinator and Service Manager.
Frequency Collected daily, summarised daily, weekly.
n The closer this figure is to 100% the closer the dealership is to meeting
its objective of complete customer satisfaction.
Interpretation
n Consistently high customer satisfaction rates are necessary to ensure
long-term customer loyalty.
n This measure should be cross-reference to the CVP report to ensure
accuracy.
Concern Resolution Rate - Row 15a, 15b & 15c
Concern Resolution Rate measures the number of customers who had

WHAT? Definition concerns that were addressed and resolved to the customer’s complete
satisfaction as a percentage of the total number of concerns received
during the Follow-up process and any other concerns received.
n Addressing customer concerns in a prompt manner would give the

dealership a second chance to win the customer back.
n If identifying the concern is the first step on the road to customer
WHY? Importance satisfaction, then trying to alleviate that concern as quickly as possible
goes a long way down that road.
n It shows customers that the dealership listens to their concerns and
attempts to rectify it.
n It would help improve the dealer’s CVP result.
Number of concerns addressed (15c) x 100

Number of total customer concerns (15a +15b)
Numbers of concerns addressed (15c) is: the total number of customer
who had concerns that were addressed to their complete satisfaction.
§ Customers with multiple concerns in one visit should count as one.
§ Customers with multiple concerns should be considered addressed
only when all their concerns have been addressed to their complete
Calculation satisfaction.
Number of total customer concerns (15a +15b) is: the total number of
customers who expressed concerns during the Follow-up process (15a)
and/or at any other time (15b).
n Each of the customer concerns should be documented and addressed.
However, it should be counted as one only in the metrics (its one
customer only).
n If a customer has more than one concern in any one visit, then more
attention should be dedicated to that customer.
>80%
Target
HOW? “ERROR” will appear in the metrics if the rate is >100%
Collected and recorded on the telephone Follow-up log by the person/s

Data collection
carrying out the Follow-up calls. Other concerns should be recorded in the
concern log as well identifying it as direct concern (i.e. not from Follow-
up)
Responsibility CRM Co-ordinator and Service Manager.
Frequency Collected daily, summarised daily, weekly.
n Consistently high concern resolution rates are necessary to ensure

long-term customer loyalty.
Interpretation n Concern resolution should be on top of Management’s priority list and
low rates might indicate that it is not the case.
Workshop Performance - Row 16, 17, 18, 19, 20 &, 21
Productivity - Row 16 & 17
Productivity measures the total number of clocked hours as a percentage

WHAT? Definition of total hours attended by technicians / Apprentices.
Productivity is a key measure of technician/apprentice and workshop

WHY? Importance effectiveness. It shows the proportion of technician hours clocked versus
available.
Number of clocked hours (retail, warranty, internal) (17) x 100

Workshop Capacity (hours available to work) (16)
Number of clocked hours (retail, warranty, internal) (17) is: the total
workshop hours clocked and are theoretically saleable to all customers,
including warranty and internal. Excluding clocked idle time, in-
Calculation dealership maintenance and other activities that cannot be sold.
Workshop Capacity (16) is: the total hours attended by all service
technicians, excluding:
⇒ Holidays, sick leave.
⇒ Planned training.
⇒ Meal breaks, etc.
>90%
Target
HOW? n Total hours clocked are recorded on ROs and technician cards or
recorded with an electronic clocking system linked to the invoicing
system.
n Total hours available are recorded through time cards or wage records.
Data Collection
n A summary record should be maintained of clocked time, invoiced
time and attended time.
n Important: If using data from an electronic system, it should be
ensured that invoices are closed quickly in order to reflect a realistic
picture.
Responsibility Workshop Foreman and Service Manager.
Frequency Collected daily, summarised weekly and monthly.
A good productivity figure indicates that there is a sufficient flow of jobs

through the workshop to ensure that technicians/apprentices are working
most or all their attended hours. Clocking for maintenance, cleaning, …
etc. may be detrimental to this figure and their influence should be
considered.
A low figure may indicate:
HOW? Interpretation n No proactive customer contact.

n Poor scheduling of staggered fixed appointments.
n Poor dealership image because of convenience, quality or value for
money aspects.
n Need to increase the number of retail and warranty customers.
n Lack of forward planning.
n Need for further marketing actions.
n Too many technicians.
Efficiency - Row 17 & 18
Efficiency measures the total hours invoiced on ROs as a percentage of

WHAT? Definition the total hours worked on the same ROs.
n Efficiency is a key workshop indicator. It demonstrates the ability of

technicians/apprentices to complete repair jobs within the assigned
WHY? Importance time.
n This is important to both workshop profitability and customer loyalty
(see - Right On Time).
Number of hours invoiced (retail, warranty, internal) (18) x 100

Number of clocked hours (retail, warranty, internal) (17)
Number of hours invoiced (retail, warranty, internal) (18) is: is the
Calculation total number of workshop hours sold to all retail, warranty and internal
customers.
Number of clocked hours (retail, warranty, internal) (17) is: the total
workshop hours clocked and are saleable to all customers, including
warranty and internal. Excluding clocked idle time, in-dealership
maintenance and other activities that cannot be sold.
Target >95%
n Total hours invoiced should be taken from completed ROs or Service

Invoices, ideally through an electronic Invoicing System.
Data collection n Total hours clocked/worked should be clocked on ROs and technician
HOW? time cards or recorded with an electronic clocking system linked to the
invoicing system.
n A summary record should be maintained of clocked time, invoiced
time and hours worked.
Responsibility Technicians, Foreman and Service Manager.

n No target times for technicians on repair orders.
n No individual Efficiency measure and feedback to technician.
n No dedicated bay per technician with hoist and necessary tools.
Interpretation
n Weak Internal processes.
n Excessive time spend on free diagnosis.
n Low Parts Pre-picking Rate.
n Lack of technical training and/or new starter/apprentice.
Performance Index - Row 16 & 18
Performance Index measures the total number of invoiced hours as a

WHAT? Definition percentage of total technician’s/apprentices’ attended time.
Performance Index helps identify the amount of spare technician capacity

WHY? Importance available. It is therefore a key indicator of how effectively work is being
supplied to the workshop from the service reception.
Number of hours Invoiced (retail, internal, warranty) (18) x 100

Workshop Capacity (16)
Number of hours Invoiced (retail, internal, warranty) (18) is: the total
hours clocked by technicians and invoiced on all retail, warranty and
Calculation internal ROs.
Workshop Capacity (16) is: the total hours attended by all service
technicians, excluding:
⇒ Holidays, sick leave.
⇒ Planned training.
⇒ Meal breaks, etc.
The optimum level of this metric has to be investigated and set at dealer,
Target area or national level.
n Hours worked should be recorded on technician/apprentice time cards,

HOW? by clocking each repair order.
n Hours attended should be recorded from time cards by clocking at the
Data collection
beginning and end of a day (or working period).
n A summary record should be maintained of both hours worked and
hours attended.
Responsibility Technicians, Workshop Foreman and Service Manager.

n No proactive customer contact.
n Poor scheduling of staggered fixed appointments.
Interpretation n Poor dealership image (reasons to be investigated).
n Need to increase the number of retail and warranty customers.
n Forward planning is required. Need for further marketing actions.
n Too many technicians.
Labour Hours Sold Per Repair Order - Row 19 & 21
Labour Hours Sold Per Repair Order measures the average number of
WHAT? Definition labour hours sold per repair order to retail and warranty customers.
Labour Hours Sold Per Repair Order is an important measure of how

WHY? Importance effectively the Service Department identifies and sells additional work.
Number of hours invoiced (retail, warranty) (19) x 100

Number of closed ROs (retail, warranty) (21)
Number of hours invoiced (retail, warranty) (19) is: the total number
of labour hours on closed ROs during a reporting period, excluding
Calculation internal jobs/ROs.
Number of closed ROs (retail, warranty) (21) is: the total number of
closed ROs during the same period, excluding internal jobs/ROs.
n If dealers cannot separate figures of internal ROs, then they should be
included in both total hours invoiced and the number of closed ROs.
Reported in hours/RO, e.g. 2.5 hours/RO. The optimum level of this

Target metric has to be investigated and set at dealer, area or national level.
n Total number of retail and warranty labour hours sold.

HOW? Data Collection n Number of retail and warranty invoiced repair orders, should be taken
from invoices or invoice summary records per Service Adviser and
total.
Responsibility Service Adviser and/or Service Manager.
Frequency Collected daily, summarised weekly.
Low values may indicate:

n Low interactive reception rates.
n Service Adviser lacks customer-handling skills.
Interpretation n Service Adviser lacks product training.
n Service Adviser does not use Interactive Reception Checklist.
n Parts supply problems.
n Low menu-pricing support.
n Newer vehicle age mix. (Low service market share!)
Parts Value Sold Per Repair Order - Row 20 & 21
Parts Value Sold Per Repair Order measures the average dollar value of
WHAT? Definition parts sold per invoice to retail and warranty customers.
Parts Value Sold Per Repair Order provides an important measure of how
WHY? Importance effectively additional repair work opportunities are identified and sold to
customers.
Parts turnover (retail, warranty) (20) x 100

Number of closed ROs (retail, warranty) (21)
Parts turnover (retail, warranty) (20) is: the total value of parts
invoiced on closed ROs during a reporting period, excluding internal
Calculation jobs/ROs.
Number of closed ROs (retail, warranty) (21) is: the total number of
closed ROs during the same period, excluding internal jobs/ROs.
n If dealers cannot separate figures of internal ROs, then they should be
included in both total hours invoiced and the number of closed ROs.
Reported as a dollar value/RO, e.g. $100/RO. The optimal level of this

Target metric has to be validated at dealer, area or national level.
The value of retail and warranty sales and the number of invoiced repair
orders should be obtained from invoices, or invoice summary records.
A daily summary should be maintained which shows a total and per
HOW? Data Collection Service Adviser:
n Parts invoiced value on retail and warranty repair orders.
n Total number of retail and warranty repair orders.
Responsibility Service Adviser and/or Service Manager.
Frequency Collected daily, summarised weekly
Low values may indicate:

n Low interactive reception rates.
n Service Adviser lacks customer-handling skills.
Interpretation n Service Adviser lacks product training.
n Service Adviser does not use Interactive Reception Checklist.
n Parts supply problems.
n Low menu-pricing support.
n Newer vehicle age mix (low service market share!)
Pro-active Customer Contact Sales and Service - Rows 23 – 26
Service Introduction Rate - Row 23 - 26
Service Introduction Rate measures the total number of new car customers
WHAT? Definition who received an introduction to the Service staff and the Interactive
Reception (IAR) process, as a percentage of total number of new car
delivered.
Taking delivery of a new car is an exciting experience for most customers

and introduction of customers to the Service staff is common practice in
WHY? Importance most dealerships. In addition, in the SUG environment it is important that
the sales person accompanies customers to the IAR bays and familiarises
them with the IAR and booking procedures and shows them practically
why it is important to respect their booked timeslot.
Number of customers introduced to Service staff

and IAR process (26) x 100
Number of new & used cars delivered (23)
The number of customers introduced to Service staff and IAR process

(26) is: the total number of new and used car customers who were taken to
the IAR bays, received an explanation of the Interactive Reception and
Calculation
Booking procedures and were introduced to the Service Adviser/s.
§ In case of a company representative who is taking delivery of a
number of cars then that representative is considered to be the
customer.
§ A fleet or company driver who is taking deliver of a car that is
allocated to him/her is considered to be the customer.
The number of new & used cars delivered (25) is: the total number of
eligible new and used vehicles delivered on the day.
n In case of company representative who is taking delivery of a number
of cars, then the delivery is counted as one regardless of the number of
cars delivered.
HOW? >65%
Target
Data collection Collected and summarised on a daily sheet, paper or electronically.
Responsibility Service Manager and Sales Manager.
Low Service Introduction Rate affects customer loyalty and may

indicate:
Interpretation n Poor communication between Sales and Service.

n Poor data record keeping.
n Sales staff lacks understanding of the IAR and booking process.
n Lack of new car delivery planning.
n Sales and Service are located on different premises.

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Measurement

Prepared by MSX International Australia Ltd.

APPOINTMENT PROCESS - ROW 1, 2, 2A, 2B & 2C ................................................................................................... 3

Appointment Rate - Row 1 & 2............................................................................................................................. 3

Reminder Call Rate - Row 2a & 2b....................................................................................................................... 4

Customer On Time Rate - Row 2 & 2c ................................................................................................................. 5

ADVISING PROCESS - ROWS 3, 5, 5A, 5B & 6 ........................................................................................................... 6

Fixed Quoted Price Rate - Row 3.......................................................................................................................... 6

Interactive Reception Rate (IAR Rate) With Client - Row 5................................................................................. 7

Interactive Reception Rate (IAR Rate) Without Client - Row 5a.......................................................................... 8

Right First Time Rate(# Repeat Repairs) - Row 6............................................................................................... 10

PART PROCESS - ROW 7, 8 & 9............................................................................................................................... 11

Parts Fill Rate workshop - Row 7 & 8................................................................................................................. 11

Parts Pre-picking Rate - Row 9 ........................................................................................................................... 12

DELIVERY PROCESS - ROW 10, 11 & 12 ................................................................................................................ 13

Right On Time Rate - Row 10............................................................................................................................. 13

Checking Rate - Row 11...................................................................................................................................... 14

Explanation Rate - Row 12.................................................................................................................................. 15

Follow-up Rate - Row 13 & 14 ........................................................................................................................... 16

Customer Satisfaction Rate - Row 14 & 15......................................................................................................... 17

Concern Resolution Rate - Row 15a, 15b & 15c................................................................................................. 18

WORKSHOP PERFORMANCE - ROW 16, 17, 18, 19, 20 &, 21 ................................................................................. 19

Productivity - Row 16 & 17 ................................................................................................................................ 19

Efficiency - Row 17 & 18.................................................................................................................................... 21

Performance Index - Row 16 & 18...................................................................................................................... 22

Labour Hours Sold Per Repair Order - Row 19 & 21 ......................................................................................... 23

Parts Value Sold Per Repair Order - Row 20 & 21 ............................................................................................. 24

PRO-ACTIVE CUSTOMER CONTACT SALES AND SERVICE - ROWS 23 – 26........................................................... 25

Service Introduction Rate - Row 23 - 26 ............................................................................................................. 25

Appointment Process - Row 1, 2, 2a, 2b & 2c

Appointment Rate - Row 1 & 2

Appointment Rate measures the total number of customers who have

n Fixed appointments represent an opportunity to increase customer

Number of customers with fixed appointments (2) x100

Collected and summarised on the Customer Appointment and Process

Responsibility Booking Person and Service Adviser.

Frequency Collected daily, summarised daily and weekly.

Lower Appointment Rates can indicate:

Reminder Call Rate - Row 2a & 2b

Number of reminder calls (2b) x100

Collected and summarised on the Customer Appointment and Process

Responsibility Booking person or other dedicated person.

Frequency Collected daily, summarised daily and weekly.

Lower Reminder Call Rates may indicate:

Customer On Time Rate - Row 2 & 2c

Customer On Time Rate measures the total number of customers who

n Measuring the customer on time rate allows the dealership to monitor

Number of customers on time (2c) x100

Collected and summarised on the Welcome Board and Customer

Responsibility Booking Person, Service Adviser or other (Greeter).

Frequency Collected daily, summarised daily and weekly.

Lower Customer on time rates may indicate:

Advising Process - Rows 3, 5, 5a, 5b & 6

Fixed Quoted Price Rate - Row 3

n Fixing the price up-front represents an opportunity to increase customer

Number of fixed quoted prices (3) x 100

Collected and summarised on the Customer Appointment and Process

Responsibility Service Advisers and Service Manager.

Frequency Collected daily, summarised daily and weekly.

Lower Fix Quoted Price Rates can indicate:

Interactive Reception Rate (IAR Rate) With Client - Row 5

Interactive Reception Rate measures the total number of customers who

n Interactive Reception represents an opportunity to increase customer