Account Car Workshop Work Activity

It's time to tag

& # 39; Time is money & # 39; In the studios and services. Basically, these features buy and sell time panel beaters, painters and technicians. Service provider, for example, could buy one hour from the technician for 10 pounds and sell it to customers for 40 pounds and earn 30 pounds. (These figures are of course subjective).

Buying and selling time of production is or should be the main source of income and profits in the studios and services. Profit from the sale of spare parts; Oils and lubricants; Paints and materials; And sublet and diverse are all subsidiary companies to buy and sell production time. If you do not sell time, you do not sell any of these other things.

Just as you would take great care when purchasing and selling spare parts, pay close attention to buying and selling Manufacturing time – or even more because you can not & # 39; store & # 39 ; Produce time. In other words, if you do not sell their time today, you can not sell it tomorrow.

Time for sale

So when the time has elapsed, it's gone. Item will still be stocked. So it's a good idea to know how much time you have for sale. This seems rather simple. If you have six products, and there are eight hours each day, you definitely have 48 hours to sell? Well, no, it does not happen.

To begin, production could be in the studio for eight hours each day, but they do not work for eight permanent hours. For example, a customer could come back with a car you service yesterday and complains that it will continue to steal. It will then be necessary to correct the problem, and of course you can not charge the customer for it.

Time Sold

To complicate it, you can actually end up selling more than 48 hours. For example, imagine that the vehicle manufacturer's standard for more services is two hours and you testify to the customer on this basis. If your technician completes the service in one hour (unlikely to know) then you will still charge the customer for two hours.

If this happened all day, you could sell 96 hours less in four hours you might have sold if any of your technicians had not spent two hours to fix a motorized problem. (It's four hours because you're selling two hours for each hour worked in this example.) If your production could be standard times a day, it's 92 hours sold rather than 48 hours.


What we're talking about here are three types of time available at the workshop or service center:

Present time – this is The time that hangovers, artists or technicians are in the workplace to work.

Working time – this is the time they actually spend working on jobs at the end of the day paying a customer for. Obviously, "working time" does not take some time to correct problems, or anything else they do, has not paid a customer at the end.

Sold time – this is the time you load customers. It may be the time cited in the assessment of an insurance company or service with menus.

You may say that "attend time" and "working time" are both "real" because you can almost see them. You can see when your workplace is productive and you can see a productive job. Additionally, you can measure & quot; downloaded time & # 39; And & # 39; working time & # 39; With a clock.

On the other hand, "sold time" is not "real". You can not see it, and you can not read it with a clock. But at the end of each day you can add up all the time you've sold customers from your work cards or accounts.

How fast and how long

If you recommend spending time and working hours and adding up time by the end of the day, you can see how fast and how long your production has Worked during the day.

How fast they have won is sold Hours divided by working hours. In our example, it is 92 hours sold compared to 46 working hours, or 200% expressed as a percentage. Thus, your products are working twice as fast as regular time.

How long they have worked is working hours divided by hours. In our example, it is 46 hours compared with 48 hours or 95.8% expressed as a percentage.


What we have used as a percentage is two "labor force"

Efficiency manufacturer tells you how fast your production is Work compared to the usual time or schedule when it comes to body repair – how many sales times they produced compared to the working hours they took to produce these sold hours.

Work adjustment (sometimes called "sold efficiency") tells you how long output worked to pay jobs based on the time they visited the workplace.

As formulas, efficiency and workflow, this is calculated as follows:

Manufacturer efficiency = (Sold hours / working hours) x 100%

Workout = Work hours / downloaded hours x 100%

] Overall Workforce

It is another measure of labor efficiency and is called overall efficiency. This is a simple combination of effective efficiency and utilization of workforce, by multiplying them:

Overall efficiency = efficiency x Workplace protection

Or is another way to view overall efficiency like

It's obvious that the laborer returns a profit

You'll earn more if you can squeeze more sold hours from the time your productions meet. We have already said that if you buy one hour from a service technician for £ 10 and sell it to customers for £ 40 then you get 30 gr. But if you bought one hour from a technician and then sold two hours, you will make a lot more profits – £ 70.

It is equally obvious that if you buy one hour from a service technician for £ 10, and then the whole hour is used to correct withdrawal that you can not pay for, you've lost 10 pounds. Less obvious is that you have lost the opportunity to sell two hours (in our example), thus losing an opportunity to earn 70 pounds.

So the reason for measuring time in the studio and then calculating work activity is very clear. It's all about profits. And if you do not count on time and calculate your workforce, it's certain that you will not maximize profitability because you will not know:

How fast are your productions working as a team individually and whether they

How long are your products working as a group and individuals and how much time they waste on work that customers are not paying for.

How Time Is Measured

The simplest way to measure time in a studio is by using a clock that stamps time on a "clock card" to retrieve time and time Working card for working hours. The times are then manually linked to the day-to-day management chart and labor activity calculated.

Computers have, however, largely replaced this basic method by clocking using bar codes or magnetic cards. The computer then completes all correlations and calculations immediately.

Typical Workforce for Top 25%

In recent years, the workforce achieved by studios and service centers has fallen from what had been considered a "norm" a decade ago . The reasons for this are complex. On the other hand, 25% of retailers and distributors are still achieving normal results, usually:

For pharmaceutical companies, average efficiency is 106%, utilization 88% and efficiency is 93.3% (106% X 88%)

For a workshop, the production value is 115%, 92% utilization and total efficiency 105.8% (115% x 92%)

For 40 hours attended

For a workshop – 40 hours downloaded, 35.2 hours. Working for a job and 37.3 hours. Sold or calculated to customers

For a service center

Why service centers are generally more costly than studios

Studios are clearly less efficient than why? First, work between bodybuilding – starts with strips, then the panel, then preparation, paint, improved and valeting. Typically, this means moving the vehicle physically around the fitness center, which is far less efficient than the direct check, the work and the direct attitude of the service. The result for studios is less labor than for a service center.

Production capacity in the studios was higher than for service centers, due to the fact that sold working hours were negotiated with policyholders – so-called "inspection hours". A fitness center could get 20 hours for work and the production would complete it in 15 hours and achieve 133% capacity. Nowadays, the times are set up with a computerized scheduling system with virtually no space for negotiations or "viewing hours".

Service centers, such as fitness centers, have also seen normal times. But their customers are millions of drivers, rather than dozens of insurance companies, so the service managers can put whenever they want – for reasons and, of course, subject to competition. Lost

Obviously, it would be great if you could get away by paying technicians when they are working for a job but you can not. What you actually pay for them is attendance, or "attend time" and they do not work to pay jobs all the time they are applying.

The time and working time difference is "Lost Time", also known as unprocessing time – a few hours each week, technicians are paid when they are not working on a job. Three common things that make up for lost time are remedies for combo-backs, collection and delivery of cars and cleaning and maintenance.

In addition to paying for lost time, you could pay a bonus And overtime, and you pay for the technical time, sickness and training time. Then, the employer is a social security contribution and the cost of any kind of beneficial technicians receives like a pension or health insurance contributions.

It's tempting to throw all these payments at the expense of buying a technician's time in our Example and figure out what you could see as a "real" profit. If you did, the cost of buying an hour would probably be around £ 13 and the profit is 27.7.

Accounting for Time

Facts Introduced So far, it seems to be profitable when buying and selling technicians are quite simple. It seems that all you need to do at any time – day, week, month or year – is to add up all your workflow and reduce all costs of technicians (including base, bonus, overtime, vacation, sick, cost And social security) in order to achieve your earnings in the labor market.

You can, but it's far better to identify the cost of technicians especially on your management accounts because you can then see how much you are paying. They do not work. And by understanding these payments to technicians, you can explore more closely how the workforce affects your work, whether it's mechanical services or repairs or repairs to your body.

The following example shows the traditional profiles for Service Provider Accountancies or bodyshop . Here we have taken the results for one technician over 12 months, based on the base salary of £ 12 per hour and hours sold an average of £ 60 per hour. In addition, we have assumed that the technician goes 44 weeks a year and 40 hours a week and works 37 of those hours with lost 3 hours. As a result of the technician's efforts, a workshop is sold 42 hours a week (or 1,848 sold hours a year from 44 weeks x 42 hours) and this is achieved without overtime or bonus fee.

Profit and Loss Account

Workshop 1,848 hours sold @ £ 60 = £ 110.880

Payment of a technician for 1,628 working hours @ £ 12 = 19.5936 kr.

Technician's Wage (All Bonus Fees Listed If Earned) = NIL

Overdue Technician (All Overworking Period Is Registered) = NIL

Profit from Sales in the Labor Market (Profit from Workforce ) = £ 91,344

Direct Expenditure

Technician Paid For 132 Hours @ £ 12 = £ 1,584

Payer Pay for Health, Illness, and Training (40 days 8 hours ) @ 12 £ = £ 3,840

State Insurance & Perks Technicians = £ 3.744

Direct Labor Profit = £ 82.176


Working Profit

Working Profit


In this traditional form of management accounts, the cost technician is divided into not less than six lines. The first three lines appear directly by workforce and consist of all payments to the technician in order to produce work that is actually sold to customers. This involves paying for "working hours" and all bonuses and overtime. Accountants call this cost of sale.

By subtracting these three lines of sale, you will earn a profit from the purchase and sale of the technician's time-usually referred to as "profit from labor". The overall labor force is often expressed as a percentage of the labor market, which in this example amounts to 82% (£ 91,334 divided by £ 110,880, expressed as a percentage).

Other three lines appear in direct charges. Part of management bills as well as incomes, courses, consumables, courtesy cars, advertising, etc. The idea, as we have said, is to analyze what you pay technicians for not working. In this example, the total cost of the technician is £ 28,704 per year and £ 9,168 for work. It's almost a third and far from the unusual rate!

Payment Technician's Payment

The way paid by technicians is self-evident – bonus, overtime, vacation, etc., and social security and benefits. It only understands the technician's basic fee, divided by "working hours" and "lost time":

In our example, we know that the technician goes 40 hours a week and works 37 of these hours, which means that the technician works 1,628 hours Per year (37 hours x 44 weeks) which is £ 12 per hour £ 19,536.

It leaves three hours lost time each week or 132 hours a year (3 hours x 44 weeks), or £ 1,584 per £ 12 per hour.

Indeed, this endangers one of the efficiency we discussed before – labor consumption. Working hours are "working hours" divided by "downloaded hours", expressed as percentage, or 92.5% in this case (37 hours divided by 40 hours). The dividend in management accounts accounts for 92.5% of the basic salary as the cost of doing the work. The remainder (7.5% of the base salary) – which corresponds to the technician's payments for a lost time – is allocated as an expense.

It should now be clear that labor has a direct impact on how much profit is actually

Labor Market Calculations

Our example works workshop 42 hours a week As a result of 37 hours, the technician works from 40 hours. We have already seen that labor consumption here is 92.5% (37 hours divided by 40 hours). Manufacturer efficiency can also be calculated as 113.5% (42 sold hours divided by 37 working hours) and overall efficiency is 105% (42 sold hours per 40 hours). All of these formulas were covered earlier.

Sales in our example are calculated by multiplying the sales hours of 60 pounds per hour (1,848 hours) per hour. In full, this calculation is as follows:

Annual Workshop = 1 technician x 40 attended hours per week x 44 weeks attended per year x 105% total output x £ 60 per hour labor = £ 110,880

Increased productivity efficiency

Now we can see what is happening in the labor market if labor productivity increases. Suppose our technician still works 37 hours of 40 hours, but works faster (ie more productive) and reaches 43 sold hours. The utilization is still 92.5% (37 hours divided by 40 hours), while productivity efficiency has increased to 116.2% (43 sold hours in 37 hours) and overall efficiency has also increased to 107.5% (43 sold hours 40 attended hours). The effect is as follows (and we have assumed that bonuses and overtime are:)


1 technology x 40 att. Hours x 44 weeks x 107.5% overall activity x £ 60 per hour = £ 113,520


1 technique x 40 att. Hours x 44 weeks x 92.5% utilization x £ 12 per hour = £ 19,536

Profit from sales on the labor market (working profit) 93.984 kr


1 technique X 40 that. Hours x 44 weeks x 7.5% lost time x £ 12 per hour = £ 1.584

The payer pays for health, illness and training (40 days 8 hours) @ £ 12 = £ 3,840

] Profit and Loss Benefits = £ 3,744

Direct Profit From Labor Sales £ 84,816

Small increase in cost-effectiveness – about three percentage points – has led to increased annual earnings of labor

Increase labor force and productive efficiency

To date, we have explained how to measure time in service or bodywork, how workforce is calculated, and how management accounts are designed to identify sources labor. We have shown how efficiency affects profitability. Almost we consider the impact on profits to improve labor, and then both productive and utilization of labor at the same time.

Expanded Work

The same example discussed before, let's improve workforce by assigning our technician 38 hours of 40 hours to Instead of 37, but understands productivity efficiency the same (113.5%) and in the original example. This means that the utilization goes up to 95% (38 hours divided by 40 hours) and even if productivity efficiency is the same at 113.5%, our technician will produce 43.1 sold hours (38 hours x 113.5%) . Thus, the overall efficiency of the technician has increased to 107.8% (43.1 sold hours per 40 hours).

The impact on labor is then:


] 1 technology x 40 att. Hours x 44 weeks x 107.8% overall performance x £ 60 per hour = £ 113,520


1 technique x 40 att. Hours x 44 weeks x 95% utilization x £ 12 per hour = £ 20,064 Net income from labor market profit (Labor Gross Profit) = £ 93,456


1 technology x 40 att. Hours x 44 weeks x 5% lost time x £ 12 per hour = £ 1.056

The payer pays for health, illness and training (40 days 8 hours) @ £ 12 = £ 3,840

Insurance Fund Techniques and Perks = £ 3,744

Direct Labor Profit = £ 84,816

One-time extra pay per week is 2,640 pounds per year.

Do both!

But what would happen if both utilization and productivity efficiency improved at the same time? The technician still works for 40 hours but works 38 hours with improved efficiency of 116.2% (from 2nd part), giving 44.2 sales time (38 working hours x 116.2%) and consequently total activity 110.5% (44 , 2 sold hours divided by 40 downloaded hours). The calculation looks like this:


1 technique x 40 att. Hours x 44 weeks x 110.5% total power x £ 60 per hour = £ 116,688


1 technique x 40 att. Hours x 44 weeks x 95% utilization x £ 12 per hour = £ 20,064

Profits from Labor Gross Profit = £ 96,624


1 Technology X 40 to. Hours x 44 weeks x 5% lost time x £ 12 per hour = £ 1.056

The payer pays for health, illness and training (40 days 8 hours) @ £ 12 = £ 3,840

Insurance Fund Techniques and Perks = £ 3,744

Direct Labor Profit = £ 87,984

Recovery is £ 5,808, multiplied by (say) seven technicians are a significant £ 40,656 increase in profits per year.

This shows how important for profitability only a relatively small increase in labor efficiency can be. However, labor can increase evenly if the laborer returns even a small amount.

Hidden Lost Time

If small improvements in labor efficiency translate into a big job benefits, but a slight decrease means a big drop in profits, you need to know which rod to Pull to make sure you are next to big profits. So what's the secret? Or is it about managing minutiae?

It's no secret. The trick is to control all aspects of the workshop. Managers need to do all they can to ensure that technicians, panelists or artists are working as fast as possible for as long as possible. In other words, you must do everything to reduce lost time and provide your productive staff with all means to support faster work such as training, energy … and even setting certain jobs with the most productive ones.

But it's one secret worth knowing, and it's a "hidden lost time."

As we have shown, lost time Is a murderer. But then lost time, if it is usually recommended, it is usually about the obvious factors like correction of work defects, collection and delivery of cars and cleaning and maintenance. However, much more lost time is hidden at work. Technology may seem difficult, but too often you can wait for spare parts on the back of the stores. Or a technician may be waiting in line to use equipment such as steering equipment.

The result "hidden lost time" is a function of effective efficiency, but the workforce is unchanged because you have & # 39; T measured the loss. But as you've seen, the impact on profits can be high. So, in addition to having an obvious and direct impact on the workforce's efficiency, which affects how fast technicians work (productivity productivity) and how long (utilization), executives will also be involved in everything that can slow them down when they Have to work.

Source by Charlie Oakham

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