It is my belief that 99.9% of collision repair businesses operate at LESS THAN 50% efficiency!!!! If you don't believe me here is a simple formula to see if your collision repair business DOES operate at a better than 50% efficiency.
HOW EFFICIENT IS YOUR COLLISION REPAIR BUSINESS?
Process Cycle Efficiency: PCE measures how efficient a shop’s overall business processes are.
The goal of any business is to operate at 65% or higher for all repair orders.
There are two calculations for PCE. One is an Average and the other is Actual.
Average PCE = RO Hours/Keys to Keys Hours (Example: If an RO has 40 hours on it and the keys to keys cycle time is 10 days and your shop is open 10 hours per day the calculation would be 40/100)
Actual PCE = Actual clocked Technician Hours /Keys to Keys Hours. Hours (Example: If an RO has 40 hours on it BUT the technicians ONLY logged 24 ACTUAL hours and the keys to keys cycle time is 10 days and your shop is open 10 hours per day the calculation would be 24/100)
I dare all repairers to calculate how efficient their busienss processes are!!!!!