By: Mark Martincic
Date: July, 29th 2015
Triage has many positive impacts on a service department. It can increase gross profit, ELR, through-put and technician proficiency. It also can lead to quicker RO closing, “real time” RO management, accurate month-end WIP reconciliation process and improved customer satisfaction. All of these lead to an increase in PROFIT!
Why is it important?
Improved technician proficiency.
Through-put is increased, leading to better technician and facility utilization. This is a domino effect in terms of both increased sales and gross profitability ($’s and %.)
Increased Effective Labor Rate
Improves gross profit ($’s and %) and sales.
Improved RO closing time
Improved cash flow, less discounting, fewer “forgotten” items not sold (i.e. hours not accounted for, parts, etc.)
Improved GL to WIP inventory reconciliation.
Integrity in accounting reporting and accuracy of performance calculations.
What to do now: