FIX: Cost Management For Service 3.0

FIX 3.0 will continue to focus on cost management for service and how it can impact departmental efficiency and profitability. KPIs will include those from the ProFinance model and will be used to "open the hood" to tell the story within. At the heart of the benchmarks continues to be first-call effectiveness (FCE) and its impact on manpower requirements, response time and, ultimately, profitability.

A new addition to FIX will be the development of an action plan after completion of the course. Jack Duncan Consulting (JDC) will work with each dealership individually to establish this action plan based on the company's specific benchmarks. The cost of the action plan is included in the tuition fee.

Agenda

Average Daily Productive Hours Per Tech

• • What qualifies as productive time?
  • Average start and end times

Calls Per Day Per Tech

• • Gross and net

Hold for Parts Percentage

• • Effective car stocks
  • Restocking frequency

Callback Percentage

• • Callback criteria

First-Call Effectiveness

• • The "king" of profitability

Performance Measurements

• • Mean copies between visits
  • Mean time between visits
  • Mean copies between failures
  • Mean time between visits

The Data Tells a Story

• • How do we interpret the data to find opportunities?

Burden Rates

• • What is it?
  • What goes into it?
  • How do we calculate it?

Manpower Requirements

• • Demand time — What is it and how can we calculate it?
  • How many technicians do we need? What if our performance (FCE) improves?

Goals

• • Goal setting to drive profitability
    • Monthly productive hours per tech
    • Callback percentage
    • HP percentage
    • FCE percentage

Service Cost Factors

• • Labor cost per page
  • Parts cost per page

Developing Maintenance Agreements

• • What needs to be included in the SLA?
  • Margin versus markup
  • Using cost factors to produce pricing for profit

Privately Owned Vehicle (POV) Reimbursement

Review and Discussion

Schedule

• Tuesday - Friday, 11 a.m. to 2 p.m. Central, held via Microsoft Teams

Course Instructor

Jack Duncan's career in the office technology industry spans more than 50 years, beginning in 1972 after his return from the Vietnam War. Beginning as a service technician in Kansas City, Missouri, he rose to service manager and then spent time as a senior regional technical manager for Ricoh. From there, Duncan spent 15 years at a large dealership in Arkansas, where he was responsible for all service, supply and inventory operations, and moved from director of service to vice president of service. During that time, Duncan also became active in the OMD User Group, where he began teaching classes as well as serving on its board of directors.

After the Arkansas dealership was purchased, Duncan moved to the Dallas, Texas, area, where he implemented the OMD software system, as well as served as a service manager and vice president of service.

Thanks to Duncan's love for teaching, in 2004 he started JDC – Jack Duncan Consulting, which is still in operation today. He developed and taught classes beginning with Service Managers University, as well as classes on optimizing inventory and more. During this time, Duncan also worked with NEXERA (BEI) and Digital Gateway on many projects. He estimates that he has taught approximately 350 to 400 students during his career, and still actively works with two dealerships.