Finding The Hidden Value In Repair Orders

  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |

Finding the Hidden Value in Repair Orders

Roams is a Repair Order Analysis and Management System that integrates with your dealer management system. ROAMS is delivered via the web as a Software as a Service (SaaS) access ROAMS from any computer with internet access securely. Dealer Management Systems are focused on accounting and the day to day operation of a service department. ROAMS has focus on Key Performance Indicators, following the ROAMS system can turn around a struggling service department and make a well run department tremendously profitable.   

And How Roams Reports Them

1 Item Ro's, as displayed in Roams on line 12 of the Key Performance Indicators Report (KPI), are displayed as both a count or 1 Item Customer Pay (CP) Ro's for the current date range and what percentage those 1 Item Ro's represent of all the CP Ro's in the current date range. 

For example if 10 / 25% is returned on line 12 of the KPI report, it means that there are 10  1 Item CP Ro's in the current date range, and that those 10 represent 25% of all the CP Ro's in the current date range.   To fully understand this information we need first to understand exactly what Roams considers to be an Item (or Line) and what it does not consider as an Item, we will attempt to explain these facts in the paragraphs to follow.

The first thing to consider, is that Roams was designed to improve CP net profit, so the KPI report line 12 is measuring and reporting RO's with only 1 Item of CP labor. Internal and Warranty Labor has absolutely no impact on line 12, 1 Item Ro's. Therefore, If an Ro has 12 lines of Warranty work and 22 lines of internal work totaling $50,000, and if a single line of CP work was added to remove a nail from a tire, it will be counted as a 1 Item Ro on line 12 of the KPI report. Because we are only measuring CP work for line 12, this data should be used as an additional measuring tool to look for relative improvements in your Menu Sales and FDCI (Multi-Point) Technician Up-Sell programs.

The second issue to consider when looking at 1Item Ro's is that CP Labor Sales Dollars and Flat Rate Hours are required, and that the line must be resolved to "Competitive" , "Maintenance"  or "Repair" to be counted as an Item (or line). So any line on an Ro that is resolved to N/A  or has less than $1.00 of Labor Sales, will not count as an Item in Roams for the purpose of counting 1 Item Ro's.  This is important, because if an Ro has 2 CP lines on it and one of them is a sublet and correctly resolved to N/A, then it is considered a 1 Item Ro.  We have also seen Ro's with 2 CP lines where 1 line is correctly resolved to "Maintenance" and the second line incorrectly used an op-code in the N/A category of the Labor assignment area so that line resolved incorrectly to N/A and did not count as an Item, so again you have a 1Item Ro.

Menu Sales is the third issue to clarify, as they relate to 1 Item Ro's. Careful consideration was given to the issue of menus being sold where 1 op-code contains multiple operations or (Items). If  a stores Menu Mileage Chart contains the correct intervals being sold and the number of Items in each interval is properly defined in the Menu Mileage Chart,  then Roams will credit that menu sale line with the number if Items it contains, if the op-code used is also properly set up in the Menu Sold Box of the Labor Categories screen's Menu Tab.

What that all means is simply this, If a 30K service is sold using a 30K op-code that is set up correctly then the Line containing the 30K op-code will not count as a 1 Item line. But if a 30K service is sold with a "Misc."  op-code that is not set up for menu sales then that 30K Line will count as a 1 Item Line and possibly be on a 1 Item Ro if it is the only CP line on the Ro.

Finally, there is one more common problem we see with stores that have a high occurrence of 1 Item Ro's, and that is the use of one op-code (or line) to do multiple un-related repairs. For example an Ro has one CP line with a single op-code  and a customer complaint that reads like this, " Customer states do LOF and change left rear tire & 4 Struts per previous estimate.".  This is combining 3 different unrelated repairs all on one line. (Not to mention the fact that they are 3 different types of CP labor as well ( "C" , "M" & "R" ) all on one line.) If this is the only CP line on the Ro then it will be considered a 1 Item Ro unless those three repairs are split up and each one put on a line of it's own with the correct op-codes for the repairs (which is the correct way to write them up in the first place!).

 To schedule an online demo of the ROAMS product and learn about the complimenting products please visit http://www.roamstechnologies.com or call us 800-948-9377.

Rate this Article:
  • Article Word Count: 863
  • |
  • Total Views: 9
  • |
  • permalink
  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |
>