Key Performance Indicators

Key Performance Indicators
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http://www.leanmaterialmanagement.com/KPIs/KPI1.html
Lean Material Management

Jim@LeanMaterialManagement.com
Turning Data into Information

Because you can't manage what you don't
measure!
Lean Material Management for the Auto Body Industry
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KPI Terms for the Auto body Industry

Often an over used buzz words KPI (Key Performance Indicators) are critical in measuring most all areas
of business management. They are critical in managing productivity and material / resource utilization.
Where we sometimes get lost in the inundation of too many KPI's. We strongly encourage our
customers to focus a select list of KPI's. The list of KPI's we choose to focus on may and should evolve
as we hone and polish our procedures. Below we have assembled a comprehensive list of Auto Body
Industry KPI's.
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Cycle Time KPIs

Production Biased
Cycle Time
The average number of calendar days elapsed from the date the vehicle was
received at your business, to the date the repairs were completed. Formula: Date
Received - Repairs Completed
Customer Biased
Cycle Time
The average number of calendar days elapsed from the date the vehicle was
received at your business, to the date the customer took delivery. This is also
commonly referred to as keys-to-keys. Formula: Date Received - Date Delivered
Little's Law Cycle

Time Performance
# of Vehicles in Process (keys in hand Authorization in hand) / Average # of Vehicle

Delivered per day
Throughput
Performance Index
Average repair hours per job / Average cycle time in days (using Little's Law)
You can visit our Tools page perform some of these calculations On-Line.
Common KPI's
Total Sales Sum of Sales for Labor, Parts, P&M & Sublet. (Total Sales)
Sales per RO Average Repair Order Amount. (Total Sales / R.O. Count)
Effective Labor Rate (ELR) Actual Labor Dollars per Hour Sold. (Labor Sales / Labor Hours)
P&M Sales per Paint Hour P&M Dollars per Paint Labor Hour (Material Sales / Paint Labor Hours)
to Total Sales P&M Dollars as a Percentage of Total Sales (P&M Sales / Total Sales)
Paint Hours per R.O. Average Paint Hours per R.O. (Paint Hours / RO Count)
Parts to Labor Sales Parts Sales as Percentage of Labor Sales (Parts Sales/ Labor Sales)
Effective Labor Cost (ELC) Total Production Cost per Labor Hour (Labor Sales / Labor Hours)
P&M Cost per Hour (Material Costs / Paint Labor Hours)
P&M Material Costs to Total Sales (Material Sales / Total Sales)
Paint Labor Gross Profit (Paint Labor Costs / Paint Labor Sales)
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P&M Gross Profit (P&M Sales - P&M Costs)

P&M Gross Profit % (P&M Gross Profit / P&M Sales)
Sales per Tech (Total Sales / # of Techs)
Sales per Stall (Total Sales / Production Stalls)
Sales per Admin Employee (Totals Sales / Admin Employee Count)
Admin Hours per $1000 in Gross Sales (Totals Sales in 1,000 / Admin Hours)
El sitio o pgina webVehicles
no puede per Day per Booth (RO Count / Production Days / Booth Count)
Booth
Cycle Time Number of RO's Generated vs. Hours Booth is in Operation
ser desplegada por algn falla
los sistemas o por permisos
deWaste per RO (Waste Generated in Gallons / RO Count)
Gallons
navegacin. Por favor
contacte
Waste
Costs per RO (Total Waste Costs / RO Count)
UHD para mayor informacin.
Sales per Gallon of Clear (Total Sales / Gallons of Clear Used)Color per RO (Ounces of Color
Oz. Surface Prep per RO (Ounces of Surface Prep used / RO Count)
Oz. Clear per refinish Hour (Ounces of Clear used / Flagged Paint Hours)
Oz. Color per refinish Hour (Ounces of Color used / Flagged Paint Hours)
Oz. Surface-Prep per refinish Hour (Ounces of Surface Prep used / Flagged Paint Hours)
Total Liquid Cost per RO (Total Liquid Costs / RO Count)
Allied Cost per RO (Non-Liquid Costs / RO Count)
Re-Do Count Count of ALL RO's with any paint re-work throughout the month
Re-Do Costs Sum of all costs in Re-do, this includes Labor and Materials
Avoid Information Over Load, Start with Select KPI's.

LMM Paint Shop KPIs You Cant Manage what you dont measure. These are the
KPI's we start with when working with new shop clients.
Average Material Cost per R.O.
Material Cost and Sales per Refinish Labor Unit.
Material Sale & Cost as a Percentage of Gross Sales.
Labor as a Percentage of Sales (Paint Sales?).
Material Gross Profit.
Color and Clear Usage per R.O.
Major Material Category.
Comparisons to Regional and Group (MSO or other group) Averages.
Our most popular report is our LMM (Lean Material Management) report. We are often asked about the
flow of data in and out of these reports, with data coming from multiple sources we thought perhaps a
map view would help. You can also download the Data Flow Chart along with some basic notes on our
download page.
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Waste is NOT always obvious.

Unnecessary
Material
Movement
The flow of material through the process is often a big opportunity towards getting
Lean. Handle P&M twice on it's way in and on it's way out.
Unnecessary
Worker Movement
Most companies have employees wandering around to get materials. All are great
opportunities to get employees involved, get their input.
Wasted Space
Keeping unneeded material or tools in the workspace/stall is wasteful. This is

premium space and needs to be well-planned and reviewed frequently. 5-S principles
should be appliedeverything has a place and everything in its place. If it is not
needed, get rid of it.
Wasted Time
Wait time, queue time and setup time are non-value-added time. Minimize this waste
through improved scheduling processes and setup reduction.
Wasted Material
Poor Quality
Wasted
Knowledge
Wasted Creativity
Zero Waste is the Goal of our Lean Material Management.

Quality is a major opportunity in all companies since process variation is never
completely eliminated. Poor quality wastes labor, material and time.
Documentation is a boring topic but it is the only way. Document procedures and
work instructions don't relearn the same task repeatedly. Benefits of S.O.P.s
Problem solving and continuous improvement are built around employee imagination
and creativity. The culture in good business needs to be tolerant of mistakes ... the
first time they are made.
Added Benefits to Lean Material Management:
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Reduced Waste Costs

Improved Labor Efficiencies
Cleaner Production Areas
Reduced Material Handling Costs
A Greener Shop
Improved Employee Moral
Stronger P&M Profits
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Key Performance Indicators

Lean Material Management

Turning Data into Information

KPI Terms for the Auto body Industry

Cycle Time KPIs

Little's Law Cycle

# of Vehicles in Process (keys in hand Authorization in hand) / Average # of Vehicle

24/03/2016 01:35 p.m.