How To Calcualte Dollars Per Repair Order

Hours Per Repair Order in Stock-still Operations Is a Central Measurement

Past Leonard G. Buchholz  | Submitted On Oct 04, 2010

In Fixed Operations there are several closely watched numbers. In this article we will discuss one of the most of import measurements, Hours Per Repair Order or HPRO.

If you are a Service Advisor in Dealership today, you have heard of HPRO. It is the measuring stick by which not merely Advisors are measured; it is besides how many Managers and Departments are measured likewise.

Lately at that place has been debate near the importance of HPRO with some Managers and Directors eschewing HPRO for Profitability or Total Labor Sales. At the end of the day though, you may have Labor Sales simply how do you really compare an Advisors performance or counsel them based on full Labor Sales?

HPRO is the universal measurement. It is hands understood and tin can exist an fantabulous Coaching and Counseling bespeak.

And so what is HPRO and how is it measured?

HPRO is the Labor Time sold on a Repair Society. Information technology is expressed as a unit of time. Each 60 minutes is divided into units of time called tenths of an hr. In each hour in that location are x units, each representing vi minutes of time.
When a Service Advisor sells ane Labor Hour he/she has sold 10 units of fourth dimension. If your labor rate is $100.00 an hour, so each labor hour sold is worth $100.00. Six tenths would be $60.00; iii tenths would be $thirty.00 and so on and so on.

When HPRO is calculated, the corporeality of money collected from the Client is used to determine the Hours Per Repair Lodge sold. Let me explain. If an Advisor sells 1.5 hours of labor @$100.00 that would be $150.00 in Full labor Sales. Say the Advisor only collects $135.00 from the Customer because he/she gave a ten% discount. This would reduce the HPRO. Why?

Considering the Counselor only collected $135.00 from the Customer and the Customer Pay labor rate remained the same. $135.00 divided by $100.00 equals 1.35 hours sold not i.5. In the Technicians example, the corporeality of collected money does trivial to affect the actual flag fourth dimension. The Technician would still have earned the 1.5 hours of labor time. What happens is the Dealership loses not only the 10% discount; it besides affects the Constructive Labor Rate (another cardinal measurement we will cover in another article.)

If you lot take that same 1.5 hours sold and divide the amount nerveless by the fourth dimension sold, the Constructive Labor Rate is $ninety.00 and not $100.00. Getting back to the question of whether or non you measure out HPRO, if you are non, y'all must exist keeping rail of the corporeality of fourth dimension sold another way. And if you do it by total Labor Sales, y'all could exist contributing to the career of an underachiever.

Let me explain.
What if Sally Service Counselor has been having slightly above average total Labor Sales yet achieves this by writing more repair orders that the other Advisors by x%? Or Sally has college than average Full Labor Sales and is accomplishing this past only writing Repair Orders with Maintenance or Accessories scheduled, in other words, ruby picking the appointments.

In both cases Emerge may have high Labor Sales nevertheless be a very poor Advisor.

Using HPRO as a measuring tool will ensure that you have a very articulate picture of the performance of your Advisors. As yous tin run into the Hours Per Repair Society is not only an of import measurement, it is one that is vital to determining the performance of your Advisors and your Service Department.

Schedule a Profit Potential Analysis at your Dealership by sending an email to lbuchholz@dealerprotraining.com. Read more manufactures on Service Absorption and Profit Edifice at http://www.dealerproblog.com or bank check out the website at http://world wide web.dealerprotraining.com.

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