question:make20 mcq qustions withs answer using this contant (Organizational and Personnel Administration ❖ An organization chart will be created which includes all the duties of the Service and Parts divisions ❖ Employee personal appearance standards will be set. A handbook will be created for new employees. The Service Manager will bear responsibility for the success of the service division in reaching its targets. Necessary training will be performed so that all staff members can perform their duties. Organizational and Personnel Administration The wage system and level will be competitive, appropriate and motivating. Evaluation of all service staff members will be conducted periodically. Plans will be created to manage, monitor and fix problem areas in the Service Division. Service Manpower Capacity Service manpower capacity in hours is calculated as follows: Calculations determining the number of technicians may vary from country to country, as some use a ratio or percentage for apprentice technicians. Total technician hours available x Current overall productivity (%) Service Manpower Capacity Requirements Service manpower capacity must always be equal to or greater than the target total labor hours sold (including in house service sales). Organization The following is a listing of some standard organization charts and their corresponding production models. The lines of management flows are often different from those used in the production flow. Both are included to help you determine which will better suit the needs of your organization. Service and labor sales volume is one determining factor in deciding which system you will use. Case 1 – Direct Reporting Management Flow In this organization, all staff members report to the Service Manager. This is appropriate for small to medium-sized dealerships. The Service Manager is responsible for all activities and reports directly to the owner or General Manager. Case 1 – Direct Reporting Management Flow Direct Dispatch Production Flow Case 1 – Direct Reporting Management Flow General Application Suitable for small dealerships. Advantages Disadvantages Direct control and knowledge of all operations. Too difficult to control beyond a certain size. Communication level within department is enhanced. May be too dependent on a single individual. Limited accommodation to needs of customer; loyalty is difficult to increase when a business is growing. Case 2 – Basic Management Flow ❖ In this organization a Foreman is added as a superior. ❖ A Controller is added to control the proper dispatching of service work. Case 2 - Basic Management Flow Bas ic Management Flow ❖ Suitable for small to medium dealerships. General Application Advantages Disadvantages One central control point for job flow If productive staff exceed 14 Technicians, job flow and control can be difficult for one Controller. Improved time management control Communication difficulties between Controller and Foreman due to overloading. Allows Foreman more time for supervision. Case 3 – Management Flow Production Teams/Dispatch Operation Lateral Support Groups ❖ Large shops with a minimum of 20 Technicians can benefit from this organizational structure. ❖ Each Service Advisor becomes responsible for a work group. ❖ Each group must be carefully constructed in order to ensure compatibility. ❖ This organization type may need outside assistance to be implemented correctly. ❖ It relieves the Service Manager from many daily supervisorial tasks. ❖ Delegated authority is more formal and better defined Case 3 – Management Flow Production Teams/Dispatch Operation Lateral Support Groups Production Team or Lateral Support Team Flow Case 3 – Management Flow Production Teams/Dispatch Operation Lateral Support Groups Production Teams Dispatch Flow Case 3 – Management Flow Production Teams/Dispatch Operation Lateral Support Groups ❖ The differences between the production team organization and lateral support group organization are in the way wages are decided. ❖ In the production team organization, the wages of the team members are decided based on the results of all the team members. ❖ In the lateral team organization, wages are based on individual results. ❖ If there are many teams or groups, Service Advisors must maintain an even workload for each group. General Application ❖ Suitable for medium-large and larger dealerships Advantages Disadvantages Promotes communication within the workgroup. Difficult to implement because of possible changes in pay plans. Gives closer supervisory support. Requires compatibility between coworkers. Natural process for training and promotions. Major reorganization may cause disruption in production during changes. Customer needs are accommodated easily, making it easy to increase customer satisfaction and loyalty. Parts Department Organization ❖ Depending on the size of the site , multiple functions could be handled by one person. General Parts Management Flow Job Description Template ❖ A clear and objective breakdown of the qualifications, responsibilities, authority and principal tasks for each position is essential to ensure a good level of staff cooperation. ❖ Once these tasks have been established, they should be monitored regularly. Service Steps Definitions ❖Time recording The mechanics’ clocked times are registered in the form of a time recording system. In the beginning of job order and in the end of it . Time recording is used to record the personal working hours of each mechanic and the time spent on each order. Definitions ❖Overtime ❖Paid overtime is normally for productive hours which have to be added to the hours paid, to prevent a negative influence on the productivity calculation. Definitions ❖MU ❖Abbreviation for mechanic unit. ❖A mechanic unit is one member of staff whose entire working time is devoted to productive mechanical work. ❖Some time we can calculate some persons a part of MU like under training technician. Definitions ❖WB (work bay) ❖A work bay is a working area for one mechanic in the workshop to which a car can be brought. ❖ Its area depends on the nature of the work bay. Definitions ❖Indirect productive personnel • Indirect productive personnel include all Service employees who do not directly perform productive work on vehicles and therefore do not contribute directly towards generating turnover from labour sales. • These include such employees as Service advisors, cashiers and secretaries, etc. Time Analysis Factors ❖ PaidHours =Normal AttendanceHours +Over TimeHours ❖ Paid Hours = C Hours + H Hours + W1 + W2 ❖ C Hours : Productive working hours spent on customer , including warranty hours. ❖ H Hours : in-house orders (like dealer transporting vehicle repair , PDI (pre-delivery inspection new cars), demonstration cars. orders ❖ W1 (variable): unproductive time loss in waiting for next job, come back, waiting for parts and waiting for customer authorizations. ❖ W2 (fixed) : reduce the hours the mechanics are actually working in training , Vacations and Public holidays. Efficiency • Efficiency is the relationship between sold hours or FRU (Flat Rate Unit) and total hours worked. • The efficiency factor refers to one individual mechanic is named Performance. Efficiency (Performance) (%) = (Hours sold (C&H) х 100 (Hours worked) Productivity ❖Productivity is the relation between hours worked and hours paid for all productive employees in a given period (year, month, day) disregarding efficiency. Productivity = Productive hours (C+ H) * 100 Available hours Utilization ❖ Attendance Utilization ❖ The utilization figures always relate the actual performance to the theoretical maximum performance. ❖ Here it is the productive time in relation to the time the mechanic is in the workshop. It shows the efficiency of management in using productively the mechanics hours available. Attendance utilization in % = Hours worked (C + H) * 100 (%) Hours attended Utilization ❖ Capacity Mechanic Utilization • The utilization figures always relate the actual performance to the theoretical maximum performance. Here you relate the actual FRU turnover in a period to the maximal possible FRU turnover in a period of all mechanics. Utilization of MU capacity [%] = total hours sold * 100 (%) total hours paid - fixed W hours Utilization ❖Work-bay Utilization ❖ The utilization figures always relate the actual performance to the theoretical maximum performance. Here you relate the actual FRU turnover in a period to the maximum FRU turnover which is possible for all work-bays in the same period. Utilization of WB capacity [%] = total hours sold x MU / WB x 100 (%) total hours worked + fixed W hours*) Flat rate manual Flat Rate ❖It’s the time of certain operation on certain vehicle according to standard work shop condition and full skills technician. ❖ Flat rate is a price a customer pays for a specific service based on the amount of time considered necessary to perform the service, which remains constant regardless of the actual time a particular worker needed to complete the service. ❖Flat rate manuals are used throughout the service industry and are based on timed studies of the time it takes to perform a specific job. Flat rate helps to provide a uniform pricing menu for service work and helps to establish the value of the performance of a particular job Flat Rate Units. ❖Flat rate unit (FRU) is a part of time that we use in our calculation. ❖It may be an hour or a minute or number of minutes. Flat rate manual ❖A manual that lists the various jobs that can be done on vehicles, along with the estimated time. ❖ Depending on the kind of vehicle and if there is another associated work.)

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