TRUCK CONSULTING
Brilliant service,
brilliant figures
Service Key Performance Indicators
KPIs
The workshop process consultation
Powering your Service.
At more than 2.000 Mercedes-Benz dealerships our WPC
Coaches have successfully implemented the standard
workshop process for Mercedes-Benz dealers.
Get more out of your After-Sales business. Optimize your
workshop processes with us together:
• From a customers perspective: starting at the service
appointment across the vehicle handover to the service
follow-up.
• From your perspective: starting at the service reception
across the workshop organization up to the parts availability.
A recommendation rate 0f 98,5%* speaks for itself.
* Satisfaction survey among the consulted MB workshops in 2017/18
The Success.
Increase of your workshop profitability
Specified steering of workshop processes by utilization of
service key performance indicators (KPI)
Seamless processes by an optimized utilization of
resources and clearly defined interfaces
Minimization of costs and idle power
Sustainable increase of customer satisfaction and hence a
further improvement of your reputation
Increase employee satisfaction
Identifying of potentials
These parameters of success are closely connected and have a
positive effect on your customer retention as well as on
penetration
Mercedes-Benz TRUCK CONSULTING 1
The approach.
Your workshop processes stand in the foreground. We do
examine your After-Sales business in a universal manner and
point out possible ways of adjustment. The focus refers to your
customers, economical key figures, employees and market
circumstances.
After-
Sales
Retail
Prozesse
Processes
According to the agreed scope and content of the following
consultation, we than work out practical oriented measures
along with your employees whose fulfillment and implementation
is supported by “training on the job” activities. Our coaches will
support you with great sensitivity and intercultural competence in
order to generate a spirit of change among your employees.
The difference.
The WPC coach is the competent After-Sales expert to your
Mercedes-Benz dealership disposes of:
• comprehensive knowledge of workshop processes and
workshop organization
• longtime experience of the After-Sales business, previously
responsible within the most different positions inside the
German market and abroad
• extensive ability to compare process situations and with
various best practice examples brought from Mercedes-Benz
dealers from all over the world
• best connections to other company departments (GSP/SMS,
Global Training, etc.) and will utilize them to support you if
necessary
• a DEKRA “retail process consultant” certification according to
DIN EN ISO/IEC 17024
We open up new opportunities to meet your expectations and
support you towards a sustainable accomplishment of your aims.
Mercedes-Benz TRUCK CONSULTING 2
You stand in our focus.
Whether weak or already with a strong performance, whether
new in business or already settled since a long time, whether a
small or a big dealership – we will consult you.
Below our actual portfolio.
Mercedes-Benz TRUCK CONSULTING 3
Tailor made consultations.
As various the expectations and needs of our customers are as
flexible and individual our coaches develop WPC solutions.
Due to the performed After Sales Analysis you will be able to
adjust our consultation to your needs, using the different
modules offered.
After Sales Analysis
Classic workshop Start up and process
process consultation support
Customer contact Workshop process
Process/communication organization and quality
Service KPIs
Warranty
Coaching
Quality assurance/- control Logistic Process Consultation
Mercedes-Benz TRUCK CONSULTING 4
The key figures.
An important key towards more success is the awareness and
knowledge of After-Sales key performance indicators (KPI).
These indicators point out which steering levers are available,
how you can utilize them in order to optimize your business,
based on facts as well how to identify further potentials for an
increase of your turnover.
Take profit out of our extensive experience within the area of
service key figures and processes! This booklet contains
the most important KPIs. In addition, we explain how to
calculate these KPIs and we show what possibilities you have
to affect the development of your KPIs positively.
This booklet is divided into three sections that are indicated
by different colors. Such you are simply guided through the
entire booklet:
Workshop KPIs
Logistic KPIs
Service Marketing KPIs
We wish you many interesting insights!
Your TRUCK Retail Consulting Team
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KPI quick reference.
. Workshop KPIs
Total vehicle throughput 7
Productivity 8
Efficiency 9
Effectiveness 10
Fixed First Visit (FFV-T = technical) 11
Labor turnover per vehicle throughput 12
Workshop turnover (total) per vehicle throughput 13
Sold hours per vehicle throughput 14
Logistic KPIs
Service level 15
Stock turn ratio 16
Dead stock 17
Stock discrepancies 18
Scrapping rate 19
Immediate requirement share 20
Job Card Fill Rate 21
Service Marketing KPIs
Customer satisfaction survey CSI 22
Net Promotor Score (NPS) 23
Retention 24
Penetration 26
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Number of vehicles
Workshop KPIs
per time interval
IIII II
Total vehicle throughput.
The total vehicle throughput comprises the number of
vehicles within a defined time period that had a service or
repair event with a repair order created, completed and
invoiced.
More than one repair order for the same vehicle within a
defined time period (e. g. W & G) must be counted as one
vehicle throughput.
! Consultant tip
A high vehicle throughput increases the turnover. But consider
that the vehicle throughput should always be adjusted to the
available workshop capacity
Options for a positive KPI development
• Best possible utilization of the existing workshop capacities
• Optimization of the appointment and resource planning
• Delivery of customer-oriented parts and services
• Qualified and motivated employees
• Workshop organization and personnel structure
• Acquisition of new and lapsed customers
• Only open 1 repair order per vehicle, even there is customer
pay, warranty and internal
Mercedes-Benz TRUCK CONSULTING 7
Workshop KPIs
Productive hours = Productivity
Attended hours
Anzahl Fahrzeuge pro Zeitintervall IIII
Reference value: 85% - 92%
Productivity.
Productivity indicates the ratio of productive hours against the
attended hours for all productive employees within a
defined time period.
Productive hours = Total of all hours stamped/recorded as productive on the
operating sheets or in the time recording system within a certain time period.
Attended hours = Start of work(time recording) to end of work(time recording)
less the breaks actually taken(time recording) for all productive employees.
! Consultant tip
Your workshop specialists are only productive as long as there is
enough work. It is therefore important to determine in advance
how much capacity is required. Experience shows that Service
Advisors are busy with customer requests particularly in the
morning. Consequently, attempt to leave enough space between
the appointments.
Options for a positive KPI development
• Appointment and workshop capacity planning
• Procedures and processes
• Proper time recording
• Workshop organization
• Ratio of Service Advisors to productive employees
• Labor time models
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Workshop KPIs
sold hours = Efficiency
productive hours
Anzahl Fahrzeuge pro Zeitintervall IIII
Reference value: 100% - 120%
Efficiency.
Efficiency indicates to what extent the technicians exceed or
go below the standard time.
Sold hours = Total of all customer, internal and warranty & goodwill
hours invoiced within a certain time period.
Productive hours = Total of all hours stamped/recorded as productive on
the operating sheets or in the time recording system within a certain time
period.
Externally purchased hours for which the charges are
forwarded (subcontract work) must not be included.
! Consultant tip
Enable the best possible framework conditions for the workshop
processes (e. g. scheduling) so that quality and profitability can
be ensured in the workshop.
Options for a positive KPI development
• Proper time recording
• Highly qualified productive employees
• Shorter waiting times at the parts counter
• Repair order quality
• Scheduling of the orders
• Incentive and reward systems
• Workshop equipment and special tools
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Workshop KPIs
sold hours = Effectiveness
attended hours
Anzahl Fahrzeuge pro Zeitintervall IIII
Reference value: 85% - 110%
Effectiveness.
Effectiveness describes the ratio of the sold hours (turnover)
against the attended hours (costs).
Sold hours = Total of all customer, internal and warranty & goodwill
hours invoiced within a certain time period.
Attended hours = Start of work(time recording) to end of work(time
recording) less the breaks actually taken(time recording) for all productive
employees.
Externally purchased hours for which the charges are
forwarded (subcontract work) must not be included.
! Consultant tip
Productivity x Efficiency = Effectiveness. Check these three most
important Key Performance Indicators on a regular basis.
Options for a positive KPI development
Options for a positive KPI development
• Regular checks and evaluation of the KPIs by the After Sales
management
• Appropriate labor time models and good spacing of
appointments
• Suitably qualified technicians
• Quality control
• Communication of the results to all employees
• Repair order quality checks
• Documentation and customer agreement in case of order
extensions
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Workshop KPIs
Number of non effective W & G repairs X 100%
Total number of W & G repairs
Anzahl Fahrzeuge pro Zeitintervall IIII
Fixed First Visit (technical).
The data source system for the FFV-T Quota is VEGA. There
are W & G requests to ascertain the data from VEGA without
certain damages such as service measures, CharterWay,
mobility, etc..
! Consultant tip
Every customer wants a defect to be rectified quickly and at the
first workshop visit. Therefore, the Service Advisors should
question in depth about the customer’s complaint and document
this information in detail on the workshop order.
Options for a positive KPI development
• Highly qualified employees
• Communication skills of service employees
• Pre-diagnosis /diagnostic test drive
• Repair order quality
• Knowledge of vehicle history
• Use of workshop information systems
• Review and evaluation of FFV-T reports
• Final inspection and quality assurance
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Workshop KPIs
Total workshop labor turnover
Total vehicle throughput
Anzahl Fahrzeuge pro Zeitintervall IIII
Labor turnover per vehicle
throughput.
The labor turnover per vehicle throughput describes the
amount of labor sold on average per vehicle throughput
within a defined time period. This key performance indicator
is of particular interest in the countries in which various
charge rates are used.
Subcontract work is not included in the total workshop labor
turnover sold.
! Consultant tip
If you wish to increase your total workshop labour turnover and
are familiar with the various sales contribution of the different
areas (maintenance, repairs, electrical components and body),
you can determine targeted measures when needed. If this is
achieved, many attractive offers can be made to the customer
during the interactive service .
Options for a positive KPI development
• Wide service scope
• High repair order quality
• Coordinated appointment planning and scheduling
• Customer satisfaction
• Price structure and pricing
• Increase of the consultation service by the service advisor
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Workshop KPIs
Workshop labor turnover + workshop parts turnover
Total vehicle throughput
Anzahl Fahrzeuge pro Zeitintervall IIII
Workshop turnover per vehicle
throughput.
The total workshop turnover (parts and total labor turnover
sold) per vehicle throughput describes the ratio between
the total workshop turnover and the vehicle throughput within
a defined time period.
Subcontract work is not included in the total labor and parts
turnover.
! Consultant tip
A customer-oriented service scope combined with targeted
marketing for existing, lapsed and new customers leads to
ensuring and increasing workshop turnover.
Options for a positive KPI development
• Service advise/active reception at vehicle
• High repair order quality
• Coordinated appointment planning and scheduling
• Customer satisfaction
• Documentation of/and customer agreement in case of repair
order extension
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Workshop KPIs
Total sold hours
Total vehicle throughput
Anzahl Fahrzeuge pro Zeitintervall IIII
Orientation value (EU): PC 2,5h ; Truck 5,0h
Sold hours per vehicle throughput.
The sold hours per vehicle throughput indicator describes the
ratio of all retail hours, internal hours and those recorded
as warranty & goodwill on invoices within a certain time period
against the total vehicle throughput in the same period.
! Consultant tip
Make sure your Service Advisors point out the advantages and
benefits of the services and service products so as to overcome
objections.
Options for a positive KPI development
• Customer-oriented parts and service scope
• Interactive service reception
• Communication skills of service employees
• Ensuring repair order quality
• Coordinated appointment planning and scheduling
• Service contracts
• High service level at the parts counter
• Customer satisfaction
• Consistent customer integration into the service reception
process
• Repair order extensions
• Repair versus exchange
Mercedes-Benz TRUCK CONSULTING 14
Service level = Total of part items immediately available
Logistic KPIs
Total of all part items requested
Anzahl Fahrzeuge pro Zeitintervall IIII
x Orientation value: 60% - 70%
Service level
The service level shows the share of customer orders or sales
that can be served immediately from the warehouse. It is an
indicator for a need-based parts range.
Total of part items immediately available = total of all sales to
customers and workshop.
Total of all part items requested = acquisition that was not ordered
via disposition scheduling system (e.g. order via immediate
requirement).
! Consultant tip
Avoid unplanned delivery of parts within a scheduled strategy
adapted to your company.
Options for a positive KPI development
• Ensuring correct local booking processes
• Ensuring adapted and uniform order processes
• Orientation towards an optional total acceptance rate
• Product range selection according needs, e.g. means of
participation in initial supplies
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Stock
turn = Inventory drawdown (12 months pieces or value)
Logistic KPIs
rate inventory (12 months pieces or value)
Orientation value: > 5,0
Stock turn rate.
This is also referred to as the stock turnover factor and shows
how often the average stock in terms of value was completely
removed and replaced from a warehouse in one year. The
higher the turnover rate, the lower the average storage time
of the parts and the capital tie-up. The turnover rate is an
important indicator for the economy of your warehouse.
! Consultant tip
Observe the slow moving items. If these increase compared to
the stock outflow value, the turnover factor worsens. Regularly
clear out your stock.
Ensure that parts ordered on behalf of customers are also
actually delivered.
Options for a positive KPI development
• Parts ordering from workshop only with repair order
• Cooperation between warehouse and workshop: avoid
repeat and incorrect orders
• Benefit of parts offering and returns, e.g. DIMS
• Regular dead stock analysis
• Regular scrapping actions
• Defined maximum inventory volumes for items, automatic
reordering
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Total of dead stock value > 1 year
as well as Total of dead stock items > 1 year
Logistic KPIs
Anzahl Fahrzeuge pro Zeitintervall IIII
Orientation value :
Value of dead stock > 1 year < 7,5%
Dead stock items ratio > 1 year< 15%
Dead stock.
These are parts that have not been used for a certain period
of time (> 1-2 years; > 2-3 years; > 3 years). The observation
of the stock for establishment category provides information
on the product range structure and its marketability.
The more dead stock are in stock, the more liquidity and
storage area are tied-up over the long-term. This lowers your
flexibility!
! Consultant tip
Analyze why the items are not moving. Often parts are ordered
for customers, but not delivered. Record reasons for take-backs
and cancellations and evaluate them on a regular basis. This
will identify weak points in the process which you can then
permanently remedy. Consistently cut back dead stock. Even if
it hurts.
Options for a positive KPI development
• Part ordering only with workshop order
• Avoid repeat and incorrect orders
• Benefit of the parts offering and DIMS returns
• Regular establishment analyses
• Regular turnover analyses
• Constantly check stock volumes
• Use the parts sales and logistics manual!
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Total of stock discrepancies according to value
as well as Total number of items with stock discrepancies
Logistic KPIs
OrientationIIIIvalues:
Anzahl Fahrzeuge pro Zeitintervall
stock discrepancy < 2%
1=1 items discrepancy < 10%
Stock discrepancies.
Stock-or inventory discrepancies determine the value or
number of stock items which are deviating during the
counting (stock taking) from the book inventory balance.
! Consultant tip
No parts movement without accounting voucher. Immediate and
correct posting of parts movements.
Goods flow = data flow!
Regularly perform spot checks when storing and removing parts.
Options for a positive KPI development
• Ensuring update of daily inventory
• Precise analysis of the causes for differences
• Check warehouse organization, e.g. open or closed warehouse
• Check and clarification/definition of tasks duties and
responsibilities in the warehouse
• Precise, disciplined and correct work is essential
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Scrapping rate = Total scrapping value x 100
Logistic KPIs
Total stock value
Anzahl Fahrzeuge pro Zeitintervall IIII
Orientation value:
ca. 2% - 3% per year
Scrapping rate.
The scrapping rate shows how high the value-related share of
the scrapped stock items from the total stock value per year.
The higher this value, the more capital is destroyed.
! Consultant tip
The definition sounds like scrapping should be avoided at all
cost. But scrapping is an important measure for continuous stock
adjustment if other measures are unsuccessful.
The advisors recommend regular scrapping of dead stock in the
orientation framework and hereby always keeping the stock up-
to-date. You should preferably plan a corresponding scrapping
budget from the outset.
Options for a positive KPI development
• Avoid built up of dead stock
• Ensure high acceptance rate
• No part ordering without order
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Immediate Immediately
requirement = required items ordered in the LC
Logistic KPIs
share Total items ordered in the LC
Orientation value: < 40%
Immediate requirement share
The order items from your Logistic Centre are differentiated
based on replenishment of stock (order frequency: weekly,
bi-weekly or monthly) and immediate requirement (order
frequency: daily or multiple times per week). The immediate
requirement share (emergency share) describes how high the
share of order items with immediate requirement is
compared to the total number of ordered items in the
Logistics Centre (LC).
! Consultant tip
Differentiate the orders for your customers as per the desired
delivery or pickup date. Order based on need and use the stock
expansion orders in the disposition scheduling system.
Immediate requirement items should be the last option. The
higher your emergency share, the higher the administrative effort
for everyone involved, in the workshop and in the parts business.
With a low emergency share, your processes run more smoothly
and also at a lower cost!
Options for a positive KPI development
•
Möglichkeiten für eine positive Kennzahlenentwicklung
Stocking of an assortment that fulfils customer expectations
• Careful planning of items entering and exiting current assortment
• Clarification of the order items and the pickup date with your
customer
• Careful determination of the parts requirement for your customer
• Avoidance of orders for immediate requirement provisioning
• Avoidance of orders without a concrete customer order
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Service level
75%
Logistic KPIs
Anzahl Fahrzeuge pro Zeitintervall IIII
JCFR
100% 0% 0% 100%
50%
Job Card Fill Rate (JCFR).
The Job Card Fill Rate is a key figure, showing the ratio of
repair orders, for which all spare parts are available at the
time of repair order opening. The value is calculated as
follows: start time of the measurement is the first time a part
is booked to the workshop order. As soon as even just one
required part is not in stock for a workshop order, the repair
cannot be completed. This corresponds to 0%. If everything is
available, the rate is 100%.
On average, this generates a value that provides realistic
information about the direct parts availability for workshop
orders.
! Consultant tip
A good and always improving Job card fill rate is an important
indicator, showing that a dealership is often having all needed
spare parts available to proceed with the repairs. Therefore the
workshop effectiveness is improving and decreasing the costs for
replacement vehicles and additional ordering expenses. Even
customers in transit can be serviced. Using the JCFR can result in
shortening waiting-/downtimes, having a positive impact on
customer satisfaction.
Options for a positive KPI development
• Stocking of an assortment that fulfils customer expectations
• Careful planning of items entering and exiting current
assortment
• Clarification of the order items and the pickup date with your
customer
• Careful determination of the parts requirement for your
customer
• Avoidance of orders for immediate requirement provisioning
• Avoidance of orders without a concrete customer order
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CSI = Workshop performance from the
Service Marketing
customer point of view
KPIs
Anzahl Fahrzeuge pro Zeitintervall IIII
IIII II
CSI = Customer Satisfaction Index.
The CSI (Customer Satisfaction Index) is an index value for
customer satisfaction calculated on the basis of customers
answers. The sales and service CSI are measured
independently of each other.
! Consultant tip
Satisfied customers come back – and may even bring along new
customers. To ensure that everyone is satisfied, everything
should be adapted to the customer’s requests: from the service
reception to the vehicle handover.
Options for a positive KPI development
• No waiting times for the customers
• Explanation of the invoice for every customer
• Mobility offer
• Regular interactive service reception
• Adherence to quoted delivery times and dates
• All requests are completed/can be delivered at the same time
• Enthusiasm for the brand
• Respect of the golden rules in the customer contact process
Mercedes-Benz TRUCK CONSULTING 22
NPS = Promotors – Detractors
Service Marketing
KPIs
Anzahl Fahrzeuge pro Zeitintervall IIII
Net Promotor Score (NPS).
The net promoter score (NPS) gives a forecast of
willingness for recommendation by customer. Opposite
to the CSI, which indicates potentials of improvement
within the internal processes the NPS allows an
indication of the emotional relationship of your
customers to your dealership.
! Consultant tip
Only customers who are satisfied and convinced by the
workshop, its performance and efforts will actively recommend
their dealer to friends and relatives.
A customer will be convinced, if he/she is having consequently
positive experiences with the dealer employees, their efforts and
performances.
Options for a positive KPI development
• Built up a relationship to your customers
• Gain your customers confidence
• Provide helpful suggestions
• Be focused on your customers and her/his needs
• Initiate additional benefits for your customers, e.g. pick up
service, vehicle cleaning
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Serviced vehicle park
Retention = in catchment area x 100
Service Marketing
Total number of registered
KPIs
vehicles in catchment area
Retention.
Retention indicates the degree of serviced vehicles within a
defined area related to the total amount of registered
Mercedes-Benz (MB) vehicles.
Serviced vehicle park in catchment area: Number of MB vehicles
that have visited your dealership at least once within one year
Total number of registered vehicles in catchment area: Number of
all registered MB vehicles within a defined area
! Consultant tip
For a selective improvement of this key figure personal contacts
and durable confidence are important in order to avoid loss of
your customers. Mercedes-Benz stands for premium quality –
you should prove it to your customers from the very beginning on
durable high service quality.
You should furthermore develop an awareness & sense to
different customer profiles/-groups at your dealership (e.g.
familiar and serviced customers, familiar but not serviced
customers, unknown customers) in order to create individual
measures to tap the full potential.
Options for a positive KPI development
(see next page)
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Serviced vehicle park
Retention = in catchment area x 100
Service Marketing
Total number of registered
KPIs
vehicles in catchment area
Retention.
Options for a positive KPI development
• Implementation of a systematic service marketing process and
set up of a service marketing responsible in your dealership
• Offering of products that create customer loyalty (e.g. warranty
extension, service contracts, MB insurances, bonus card,
storage of wheels, etc.)
• Regular analyzing of your DMS regarding possible lost
customers (those who are not loyal to your dealership or those
who gave according signs/statements to change/leave the
dealership)
• Segmentation of customer/vehicles, for developing and
conducting customized marketing measures
• Analyzing of catchment area regarding possible acquisition of
new customers and planning of segment specific marketing and
brand activities
Mercedes-Benz TRUCK CONSULTING 25
Workshop parts
Penetration = turnover customer x 100
Service Marketing
Number of serviced vehicles
KPIs
Penetration.
The figure of penetration describes the degree of average
workshop parts turnover (customer pay) per serviced vehicles.
Workshop parts turnover (customer pay) =
turnover of parts within a defined time period, excluding internal as
well as warranty & goodwill turnover
Serviced vehicles =
total amount of vehicles, which have been repaired or maintained
within a defined time period by a MB dealership (connected to a MRA-
interface). As a reference figure the country specific penetration value
has to be considered, calculated by your Market Performance Center
(MPC) and is to be provided accordingly
! Consultant tip
The quality and performance of the service advisor has a strong
influence on the penetration rate. During a customer oriented
active service reception, the service advisor has the opportunity
to avoid “lost sales” by directly communicating with the present
customer. Attention: relation between the figures of retention
and CSI - Better a realistic penetration rate than an unsatisfied
and/or lost customer.
Options for a positive KPI development
(see next page)
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Workshop parts
Penetration = turnover customer x 100
Service Marketing
Number of serviced vehicles
KPIs
Penetration.
Options for a positive KPI development
• Reception process that considers with adequate time frame for
an active vehicle reception
• Availability of the service advisor is ensured for the
appointment
• Preparation of the customer appointment in terms of possible
sales potentials (utilization of check lists)
• Perform active reception together with the customer
(utilization of check lists)
• Implementation of systematic service marketing processes and
set up of a service marketing responsible in your dealership
• Incentive and bonus system for service advisors and/or
productive employees for selected subjects/products
Mercedes-Benz TRUCK CONSULTING 27
Together successful.
Achieve more out of your service, together with Workshop
Process Consulting. Plan your success and measure it.
Let us talk about your demands, expectations and wishes. We are
going to listen carefully what you have to say.
Together with you we identify your consultation needs and create
an individual service agreement for you.
We are glad to inform you in detail. Simply get in touch with
us by e-mail!
E-Mail: mbtruckconsulting@daimler.com
Your aim is our demand!
Mercedes-Benz TRUCK CONSULTING
Mercedes-Benz TRUCK CONSULTING 28
