Measuring Technician Performance
Do you know how to measure a technicianês productivity, efficiency, and proficiency, and what each measurement means? To determine if you have allocated a techês time well, you need to know how well they use that time.
Technician productivity is measured by the actual time worked in a day versus the number of clock hours available in that day. NADA recommends 85 to 87.5 percent as a productivity guideline, since non-labor-related activities can take up to 15 to 20 percent of available time.
Productivity = Hours worked É hours available
Technician efficiency is measured by the actual number of hours technicians take to perform the labor versus the number of labor hours sold. Itês really the ability of technicians to beat a time standard published in a flat rate manual issued by the factory or an independent company. Top NADA 20 Group dealers recommend 125 percent (factory manual) and 135 percent (non-factory manual) as an efficiency guideline.
Efficiency = Flat rate hours produced É hours worked
Technician proficiency is a measure that combines productivity and efficiency, and compares hours produced to hours available. Proficiency provides the truest measure of a technicianês time usage. NADA recommends that technicians be 100 percent proficient all the time with peaks to 120 percent.
Proficiency = Hours produced É hours available
Learn more about these equations in NADAês newest video training program, A Perfect Match: Service Management: Profit, Productivity, and People. You can order the video in VHS or Video CD format with an accompanying 20-page study guide from the National Automobile Dealers Association (NADA) by calling (800) 252-6232, ext. 2 or (703) 821-7227. Cost to NADA members is $189, and $10 for each additional study guide, plus shipping.Download Bulletin PDF