How to Calculate Effective Labor Rate (ELR)

how to calculate effective labor rate

Effective Labor Rate, or ELR, is probably one of the most important numbers in your Service Drive. It never ceases to amaze me when I’m on strategy sessions with Service Managers and Shop Owners, and we’ll be reviewing their financials and I come to realize that they don’t understand Effective Labor Rate. That blows me […]

How to Calculate Hours Per Repair Order (HPRO)

hours per ro

What is Hours per Repair Order, and why is it important? This is one that Service Advisors and Managers get beat up on all the time– and rightly so. It’s kind of confusing. Hours per Repair Order, also abbreviated as Hours per RO, HPRO, or H/RO, is the average amount of time your Service Advisors […]

How to Calculate Technician Efficiency

how to calculate technician efficiency

What is Technician Efficiency, and Proficiency? We have to talk about how to calculate Technician Efficiency, and some would argue you should also know how to calculate Proficiency. I disagree. A lot of consultants like to emphasize the importance of Proficiency as the Key Performance Indicator (KPI) for the Technicians in your Service department. Don’t […]