Are you getting enough production out of your facility? What is your potential capacity? Do you need to expand? Do you need to add another paint booth? Do you have room for more techs? A few more KPIs will answer these common questions and gauge a shop’s actual output and potential capacity.
- Sales per Square Foot of Production Area or Sales per Stall
- Stalls per Tech
- Technician Productivity
- Booth Cycle Time / Vehicles per Day per Booth
To calculate these KPIs you will need some additional non-financial data:
a. # Techs
b. # Repair Orders (painted)
c. # Work Stalls
d. Production area square footage
e. # of Workdays
f. Daily booth operating hours
g. Billed Labor Hours and Technician clock hours worked
Sales per Stall or Square Foot
This is easy to calculate as it is Total Monthly Sales ÷ # of Work Stalls, or Total Monthly Sales ÷ Production Area (in SF) respectively. Depending on facility design, one may be more meaningful than the other one, but both are a way to benchmark your Total Output. Common benchmarks are $28.00 per sf or
$16,000 per stall.
Stalls per Tech
The more techs you have working, the greater your capacity. Each tech can put his hands on only one car at a time, so utilizing more than two stalls per tech means idle vehicles are taking up space in the shop. The benchmark is 2.0 Stalls per Tech, or less.
This is the ratio of Billed Labor Hours to Clock Hours actually worked. If a technician works an average of 38 hours per week and produces 65 labor hours then his “Productivity” is 171% (65 Billed Labor Hours ÷ 38 Clock Hours Worked). Benchmarks vary regionally in the range of 150% – 200% or more.
Booth Cycle Time / Vehicles per Day per Booth
These are two ways of looking at daily booth output. The former is the average time it takes to process a vehicle through your paint booth(s) during the course of a month; the latter is how many cars are painted in each booth, on an average day. To calculate these, you need # workdays, # RO’s painted, # of booths, and the daily operating hours for your paint department… For instance, if you operate your paint department from 8 AM to 5 PM, that’s 9 operating hours.
Maximizing Output each month is the result of:
More Techs on the floor (Stall per Tech Ratio of 2.0 or lower)
+ High Productivity (170% or more)
+ Effective Booth Use (BCT of 1.8 or less / 5 Vehicles per day per Booth)
= Maximum Total Sales $ (and Sales per Stall or per Square Foot)
Tips to Consider
Look at the underlying factors that affect these KPI’s.
√ Sell / negotiate all appropriate Not-Included Labor Operations and P&M items to increase Sales
√ Make repair / replacement decisions based on minimum cycle time to enable more output
√ Identify barriers to Technician Productivity with an effective repair planning process, complete damage reports, and by expediting parts acquisition.
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