bmw thailand v5-jt-1/ ingo reitz seminar service manager feb. 2003 page 1 bmw group thailand...

BMW ThailandV5-JT-1/ Ingo ReitzSeminarService ManagerFeb. 2003

BMW Group Thailand

Management and Service ReportSeminar for Service Manager

BMW Group Thailand


BMW Group Thailand

Who am I?

Ingo ReitzService Consultant

BMW Group Thailand



BMW Group Thailand


- What do I expect from this seminar?

- What does my Dealership expect from me?

- What does BMW Thailand expect from me?

Why are we here?


BMW Group Thailand



BMW Group Thailand


Ready for take off?


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Time Analysis Reasons

- Time is the most important factor in the Workshop

- Foundation for the Service Report

- Service Report (the mirror of your workshop)

- Only accurate time recording allows improvements


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Time Analysis Benefits

- Control instrument for the workshop

- Target settings according to the Dealership

- Substantiate for all repairs in the Workshop

- Adjustment tool for turnover improvement

- Workshop results in the Service Report

- Control instrument for individual mechanics

- Target settings according to BMW Standard


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Time AnalysisBasics

> Paid time <

Available time

W – Variabletime

K and H Productive

time

W – Fixedtime


BMW Group Thailand

Time AnalysisProductivityProductivity is the relationship between the productive labor hours (used) for the reference period, to the total hours Available by the productive mechanics.

Formula:

* 100 Hours worked (used)Available Hours

(clocked)= Productivity (%)


BMW Group Thailand

Time AnalysisAvailabilityThe Availability is the relation between the available hours of all productive personnel to the Paid time in a given period in Percent.

Available Hours (clocked) * 100

Formula:

Paid time

= Availability %


BMW Group Thailand

Time AnalysisEfficiencyEfficiency is the relationship between the labour hours sold (charged) to the total productive hours (used).

Formula: Hours sold (charged)

Hours worked (used)

FRU sold (charged)

= Efficiency (%)Hours worked

(used)

= Efficiency (FRU/hr)

* 100


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Time Analysis W Fix time

* 100

Formula:Training days + Public Holidays + VacationNumber of paid days in the

year

= W fixed time target (2003)

Fixed W-Time will reduce the hours the mechanics are actually at their work bays. During this times the mechanic is not working productively. W-Fix time is planable.

10 + 10 + 15313

* 100


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Time Analysis W Fix time

Times clocked for:W5

- Public Holiday- Training- Vacation

figure from time records. (Time cards)


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Time Analysis W Variable timeOf course, just because mechanics are employed by the dealership does not mean they will be in the dealership working for every available hour.

A mechanic rarely spends every available hour producing work. He loses many hours per week due to the time spent waiting for the next job, waiting for parts, waiting for customer authorizations, etc. This unproductive time spent while the mechanic is at the dealership is called “Variable W-Time”.


BMW Group Thailand

Time AnalysisW Variable times

Times clocked for:

W2 Idle time

W3 Repairs to workshop cars and mobile serviceW4 ReworkW51 Sick leave


W1 General Workshop maintenance

W21 Waiting for parts (delay at the workshop parts counter i.e. queue, etc.)W22 Waiting for Customer AuthorizationW23 (open)


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Time Analysis Setup Input sheet

February 2

41

55

Test200377.570

8

55

45


BMW Group Thailand

Time Analysis Setup Example

MU and FRU target setting:

1 Junior Mechanic: Khun Ingo1 Mechanic: Khun Andi1 Foreman: Khun Banchop


BMW Group Thailand

Time Analysis Setup of MU

MU FRU/hr Target Efficiency

Junior Mechanic Level 1 0.0 0 0%

Junior Mechanic Level 2 0.5 6 50%

Mechanic Level 1-3 1 12 100%

BMW Service Technician 1 12 100%

Workshop Supervisor / Foreman 0 - 1 12 100%


BMW Group Thailand

NameExample Position FRU

Target/hr

Target Efficienc

y

MUValue

ME Value

Ingo

Andreas

Banchop

JM L2 6 FRU / Hr 50% 0.5 1

M L3 12 FRU / Hr 100% 1 1

WSV 12 FRU / Hr 10.3100%

Time Analysis Setup of MU


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Time Analysis Setup of FRU target

Formula:

MU* Working Hours per Day* 12 FRU per Hour* Number of Paid Days* Efficiency Target* Productivity Target


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February 2003:

Junior Mechanic Khun Ingo 0.5 * 8 * 12 * 24 * 70% * 77.5%

= 625 FRU


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February 2003:

Mechanic Khun Andi: 1 * 8 * 12 * 24 * 70% * 77.5%

= 1250 FRU


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February 2003:

Foreman Khun Banchop: 0.3 * 8 * 12 * 24 * 70% * 77.5% = 375 FRU


BMW Group Thailand


February 2003:

Workshop target: 1.8 * 8 * 12 * 24 * 70% * 77.5%

= 2250 FRU


BMW Group Thailand

Time Analysis Setup Input sheet

0.51

1.5

1.83

0.3

0.3

Ingo (Junior Mechanic L2) Andi (Mechanic L3)

Banchop

2

1


BMW Group Thailand


BMW Group Thailand

FCS Field Communication System

The Input for the

Service Report


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FCSField Communication System


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FCS Field Communication System

TheService Report

Output


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FCS Service Report Output


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FCS K Hours

Hours clocked for

customer and warranty work



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FCSH Hours

Hours clocked for Internal work



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FCS Staff in parts department

Number of all employees in the Parts department.


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FCS Indirect productive PersonnelThe PU Value (Personnel Unit) is the number of all employes in the Service Department.

Position PU Value PU Efficiency MU Efficiency Service Manager 1 100% 0% Service Advisor 1 100% 0% Controller 1 100% 0% Service Assistant 1 100% 0% Foreman (according to productive

target)1 80% 20%

Warranty Clerk 1 100% 0%

If part time, then percentage vise.


BMW Group Thailand

FCSThroughput Regular CustomersEnter here all External and Warranty Customers throughputs of the report month, with at least one history throughput within the past15 month.

(including PMP customers)


BMW Group Thailand

FCS Throughput Transient CustomersEnter here all External and Warranty Customers throughput of the report month without any history throughputs within the past 15 month.

(and External and Warranty Customers throughput who visited the workshop for the first time).


BMW Group Thailand

FCSThroughput InternalEnter here all throughputs of internal orders (H orders) of the report month.

Example:Pre-delivery check, preparation of used cars, inspections and repairs of demonstration cars, …


BMW Group Thailand

FCSRegular Customers on fileEnter here all External and Warranty Customers from your customer file with at least one history record within 15 month.


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FCSLabor turnover sub-contractorEnter here the sum of all sub-contracted labor sales for all contracted franchises within the dealership, excluding any taxes.


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FCSParts turnover workshopEnter here the sum of all parts turnover sales to the workshop (External/Warranty/Internal) within the dealer ship excluding any taxes.


BMW Group Thailand

FCSParts turnover otherEnter here the sum of all parts turnover sold to others (Counter sales)excluding any taxes.


BMW Group Thailand

FCSNumber of Work baysEnter here the sum of all Work bays in your shop, separated in mechanical, body, and paint work bays.


BMW Group Thailand

FCS Vehicle Parc

This term refers to all BMW vehicles registered in a country, a region, a district or in a dealer's area of market responsibility.

Establishing the vehicle parc:The number of vehicles legally registered with the authorities in the dealer's area of market responsibility or in a particular country.By adding together units sold officially, dating back up to 10 years, including acquired customers ("grey market" etc.). If a country's "grey"imports were recorded by a state body, this figure should also be added to normal dealer sales.


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FCS Service Market Potential (SMP)The service market potential is the maximum possible Service turnover for a dealer in a special period related to an allocated vehicle parc.

Formula:

Vehicle parc * Maintenance & repair requirements / vehicle / year in FRU

* Seasonal factor of the month * Weighted FRU price


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FCS Service Market Achievement

The SMA shows the coverage of the Service market potential by the Service turnover achieved.

Formula:

Labor turnover external + Labor turnover warranty + Labor turnover sub-contractors


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FCS Seasonal factor Service


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FCS Service Market Achievement %The SMA shows the coverage of the Service market potential by the Service turnover achieved in percentage.

Formula:

Service Market Achievement Service Market Potential

* 100= SMA %


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FCS Workshop Efficiency in FRU/hFormula:

Total labor turnover (month) FRU price * (K + H hrs)

= Workshop Efficiency in FRU/hr


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FCS K Hours %Formula:

All clocked K hours Total clocked hours

* 100

= K hrs %


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FCS H Hours %Formula:

All clocked H hours Total clocked hours

* 100

= H hrs %


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FCS W variable Hours %Formula:

Clocked W variable hours Total clocked hours

* 100

= W variable hrs %


BMW Group Thailand

FCS W fixed Hours %Formula:

Clocked W fixed hours Total clocked hours

* 100

= W fixed hrs %


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FCS BMW Retention (%)

Percentage of BMW vehicles in the dealer market area which are serviced by the dealer.

Formula:

Regular Customers on file Vehicle Parc

* 100= BMW Retention (%)

Guide figure:


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FCS BMW annual visit

Average visits of the Regular Service customer per year.

Formula:

Throughput Regular Customers (month) * Working days (year) Working days (month) * Regular Customers on file

= BMW annual visit

Guide figure:


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FCS FRU / throughput

Average FRU‘s of the Regular and Transient Customers in the month.

Formula:

Labor turnover external + Labor turnover warranty FRU price (weighted) * (Throughput “Regular + Transient” Customers)

= FRU/throughput (m/b/p) in FRU


BMW Group Thailand

FCS Turnover per vehicle throughputAverage Labor Turnover per Vehicle of Regular, Transient and Internal Throughputs in the month.

Formula:

Labor turnover (external + warranty + internal)

Throughput (Regular + Transient + internal) Customers

= Turnover / veh. thru’put (THB)


BMW Group Thailand

FCS Workshop parts turnover per vehicle throughput

Average Parts Turnover per Vehicle of Regular, Transient and Internal Throughputs in the month.

Formula:

Workshop parts turnover

Throughput (Regular + Transient + internal) Customers

= W.shop parts t/o / veh. thru’put THB


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FCS Staff in parts department

Number of all employees in the Parts department.


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FCS Productive Personnel (MU)

Summary of all Mechanical Units working productive in the workshop.

MU Values Junior Mechanics + MU Values Mechanics + MU Values BMW Service Technician

+ MU Values Workshop Supervisor / Foreman

Formula:


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FCS Ratio prod. to indirect prod.

The relation between the productive personnel to the indirect productive personnel.

Formula:

Number of all MU’s

Number of all PU’s

= Ratio prod / ind. prod

Guide figure:


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FCS Capacity Utilization of MU (%)The utilization figures always relate the actual performance to the theoretical maximum performance.

Here you relate the actual FRU turnover in a period to the maximal possible FRU turnover in a period of all mechanics.

Guide figure:


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FCS Capacity Utilization of MU (%)FRU per MU per yearFormula 1:

Paid days (year)* Working Hours per day

* 12 FRU per Hour* Efficiency target

= FRU/MU/year

Guide figure:

* Productivity target


BMW Group Thailand

FCS Capacity Utilization of MU (%)Formula 2:

MU Value * FRU/MU/year * Working days (month)

Working days (year)

FRU Labor turnover (month) in FRU

MU Capacity (month) in FRU

= MU Capacity (month) in FRU

Formula 3:

* 100

= Capacity Utilization of MU (%)


BMW Group Thailand

FCS Capacity Utilization of WB (%)The utilization figures always relate the actual performance to the theoretical maximum performance.

Here you relate the actual FRU turnover in a period to the maximum FRU turnover which is possible for all work bays in the same period.

Guide figure:


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= [313-15-(313x18.82%)] x 8 x 12

= [313-15-58.9] x 8 x 12

= 239.1 x 8 x 12

= 22,953 FRU/WB/Year

FCS Capacity Utilization of WB (%)Formula 1:

[ Paid days (year) - Public holidays

- (Paid days (year) * W Variable%) ]

* 8 Hours / day

= FRU/WB/year

Guide figure: 22,953 FRU/WB/Year

* 12 FRU / Hour


BMW Group Thailand

FCS Capacity Utilization of WB (%)Formula 2:

No of WB * FRU/WB/year * Working days (month)

Working days (year)

FRU Labor turnover (month) in FRU

WB Capacity (month) in FRU

= WB Capacity (month) in FRU

Formula 3:

* 100

= Capacity Utilization of MU (%)


BMW Group Thailand

FCS Ratio labor to parts%

Formula 1:

Labor turnover (External + Warranty + Internal)

Total turnover for Labor and Workshop parts

Parts turnover Workshop

Total turnover for Labor and Workshop parts

= Labor share

Formula 2:

* 100

= Parts share

The ratio from labor to parts shows the relationship between parts sold to the workshop and labor turnover

* 100


BMW Group Thailand

FCS Parts turnover per pers. in PartsFormula 1:

Parts turnover workshop + Parts turnover other

Number of staff in parts department

= Parts turnover per person in parts department


BMW Group Thailand

FCSThroughput Regular CustomersExternal and Warranty Customers throughputWith at least one history throughput within the past15 month.

(including PMP customers)


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FCSRegular Customers on filewhich are own sale

External and Warranty CustomersOnly those customers from two history records within 15 month are sold by the same dealer ship.


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Time Analysis Setup of Workshop Calendar

1 Public Holiday

24 Paid days


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Time Analysis Key figures (Efficiency/Productivity)


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Time Analysis Key figures (W-Fixed)


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Time Analysis Key figures (W-Variable)


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Time Analysis Key figures (FRU/Vehicle/Year)


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Time Analysis Key figures (Retention Rate)


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Time Analysis Key figures (Annual visits)


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Time Analysis Key figures (Ratio ind prod / prod)


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Time Analysis Key figures (FRU/MU/Year)


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Time Analysis Key figures (MU Utilization)


BMW Group Thailand

Time Analysis Key figures (WB Utilization)

bmw thailand v5-jt-1/ ingo reitz seminar service manager feb. 2003 page 1 bmw group thailand...

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