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Farm Machinery
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Insane MF dealer workshop prices.
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<blockquote data-quote="njneer" data-source="post: 6868387" data-attributes="member: 65582"><p>If you look at the car and truck industry for example charge out rates are routinely £90-100/ hr .</p><p>The whole set up is done on “Productivity Management”.</p><p>The dynamic is very different from Ag in that all work is pre booked ,because it is all done in house, with no on-site repairs . </p><p>This allows them to have a full book of</p><p>Previously arranged work for every hour of each day for work for each man .</p><p>All jobs will have a “book time “ and each man / woman is managed on their “Productivety” so if the book time for a repair is 4 hours and the mechanic repairs it in 2 then he is scored as being in a plus percentage of productivity and moves on to his next job.</p><p>It is possible that some mechanics can have well over 100% productivity .</p><p>I have heard even in some garages each mans productivity is shown on a screen within the workshop to drive competion and ultimately maximise profit from each man.</p><p>Even if they only break even on Productivety its</p><p>still 100% as they have accounted and charged every hour with a healthy margin.</p><p>Ag is very different , travel time , tidy up time, very flexible working practices with regards time slots for repairs , weather dependency, doesn’t suit customer today or a sudden change in weather when you have organised work.</p><p>I did a detailed study on workshop productivity and “Recovery Rate” ie what we paid out and what we charged out and the % of productivity for each man in the workshop and it is an eye opener as to how unproductive an Ag workshop can be , even a very well organised one .</p><p>The amount of “dead “ time, ie, hours that cannot be charged but still being paid for at certain times of the year is frightening .</p><p>When you start adding up these hours and multiplying it by your charge out rate it is a frightening amount of money being lost but it is impossible to ever run as efficiently as a car or truck garage due to the way the industry works.</p></blockquote><p></p>
[QUOTE="njneer, post: 6868387, member: 65582"] If you look at the car and truck industry for example charge out rates are routinely £90-100/ hr . The whole set up is done on “Productivity Management”. The dynamic is very different from Ag in that all work is pre booked ,because it is all done in house, with no on-site repairs . This allows them to have a full book of Previously arranged work for every hour of each day for work for each man . All jobs will have a “book time “ and each man / woman is managed on their “Productivety” so if the book time for a repair is 4 hours and the mechanic repairs it in 2 then he is scored as being in a plus percentage of productivity and moves on to his next job. It is possible that some mechanics can have well over 100% productivity . I have heard even in some garages each mans productivity is shown on a screen within the workshop to drive competion and ultimately maximise profit from each man. Even if they only break even on Productivety its still 100% as they have accounted and charged every hour with a healthy margin. Ag is very different , travel time , tidy up time, very flexible working practices with regards time slots for repairs , weather dependency, doesn’t suit customer today or a sudden change in weather when you have organised work. I did a detailed study on workshop productivity and “Recovery Rate” ie what we paid out and what we charged out and the % of productivity for each man in the workshop and it is an eye opener as to how unproductive an Ag workshop can be , even a very well organised one . The amount of “dead “ time, ie, hours that cannot be charged but still being paid for at certain times of the year is frightening . When you start adding up these hours and multiplying it by your charge out rate it is a frightening amount of money being lost but it is impossible to ever run as efficiently as a car or truck garage due to the way the industry works. [/QUOTE]
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Insane MF dealer workshop prices.
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