Parts variance for period is where we want to see how effective the parts use is by the tech so we do that by cpc.
For any call closed during the week, we find the prior tech on the machine and see how effective he was on that call. The prior call parts cost and copies produced by that call gives us the parts cpc. Then we compare his prior call to the avg cpc for that model segment. This gives us the variance for the call in dollars.
To better explain the parts target; let’s say I ran this report for a model segment (digital segment 3) for the last 365 days, something every technician has in their territory (at least for most dealers). We provide this report as a custom report you can run from eAuto.
When looking the company total parts variance, we should see a number near zero*. This is because our parts used equaled our target for the last 12 months. However, looking at each technician, we see variances. –(and the managers totals as well; see example below.) Positive numbers mean they used more parts than the previous period and negative means they used less.
Let’s say, you think being average as a company is not good enough. Maybe you would like to drive the team to using 3% less parts for the next year. Then set variable adjustment to = .97
Run this as a rolling six month period every month, and take the copies and parts Var divided by 6. As a bonus program, pay per click earned and deduct/credit 10% of the parts variance from the total. -The six month rolling average is a very telling number, -good for some, bad for others.
Example for a full 12 months, all models; - total at the bottom, one manager on the group and each technician on a line.