I would like to open up a discussion about what I view as a business critical measurement.
I will put some thoughts forward and welcome other’s comments.
There are different schools of thought about how to calculate it.
Insurance Companies prefer “Life Cycle” where they measure from FNL (first notification of loss) right up to payment of invoice.
I have worked with some insurance companies who through repairer self-authorisation and electronic payments can get this parameter down to less than twenty eight days.
For me in the body repair business I prefer “Key to Key”
Again there is difference of thought on how to calculate, some count calendar days while others just working days.
For me I measure calendar days, this gives a true measurement and may show some serious flaws in your working practices. But this is the best way forward if you truly want to improve your business.
A lot will depend on your work mix and the average size of the jobs you undertake, but I would expect most well run shops to operate a key to key time in the region of five to seven days.
Some causes and effects of key to key times and the impact on your business are as follows.