April '20

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rv-pro.com April 2020 • RV PRO • 23 to help her. He wondered if the shop could afford her in the first place. It was going to be difficult to make money in that depart- ment anyway. "Jack," we said, "you're using the key ratios that we recommended. Therefore, we cannot deny that any additional per- sonnel costs to the service department are undesirable. But Jack, without a service writer, how much time do your techs waste switching from job to job?" Jack thought for a moment and said, "At the dealership where I used to work, it was not uncommon to see the techs wasting 10 to 15 minutes several times a day while they were waiting for instructions." "If a tech is held up four times a day for 12 minutes," we said, "that is 48 minutes, or 10 percent of an eight-hour workday. What is the value of increasing a mechan- ic's production by 10 percent?" Jack said, "I know there is some value, but I can't calculate how much." We showed Jack the following: 2,080 hours X 10 percent X $60/hour = $12,480 2,080 hours X 10 percent X $70/hour = $14,560 2,080 hours X 10 percent X $80/hour = $16,640 The 2,080 hours are derived by multi- plying 40 hours per week times the 52 weeks paid to the tech. So, 10 percent is the increase in efficiency as a result of eliminating four, 12-minute delays each day. The $60, $70 and $80 are the hourly retail service rates (editor's note: in 2005) for the dealership. Jack was surprised by the dollar amounts attributed to a 10 percent rise in produc- tivity. He also was surprised to learn how a $10 per hour increase ($60 to $70 to $80) made a substantial difference. Jack thought a moment and said, "You know, I think that my foreman will be able to increase his productivity at least 15 percent by having a service writer. If I can increase the efficiency of the other two shop people, I can determine the dollar value of having a service writer." LIMITED LIFETIME WARRANTY Safety cables are included Stowable on motorhome All steel 12,000 lb towing capacity Integrated tow brake Non-binding legs READYBRAKE.COM 620.365.7714 Includes patented Ready Brake supplemental brake system that's integrated into the head of the bar! Ask about our

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