Week 11 - 12 Car Service Center Mangment PDF

Prof. Dr.
Walid Abdelghaffar
Car Service Shop Layout- Sample
Dr. Walid Abdelghaffar

Efficient Service Shop Layout
❖ The purpose is to establish an efficient service shop layout by
zoning the service shop for general repair and periodic
maintenance service work to minimize both the vehicle and
staff movements throughout the service facility.
❖ This can be accomplished by:
Establishing an efficient service shop layout
Efficient location of ancillary facilities and equipment
Allocating parking based on work type to reduce excess
movement
Indicating the parking stalls and the vehicles by the
process and purpose
3 Dr. Walid Abdelghaffar

Service Reception
Effective Traffic Flow Control
❖ Parking bays should be clearly defined and marked by purpose: reception,

waiting for service, quality control, washing, delivery, parts, etc.
Clearly Marked Parking Bays

Service Shop
Efficient Stall Layout

Service Shop
Efficient Tool stand
Employee facilities—lunchrooms, training rooms, changing rooms

and toilet/wash areas—should be clean, well-maintained and
located for efficiency.
Floors must not be cracked, must have good drainage, must be
easy to clean, must not be slippery, and must be resistant to
damage.
Service Shop
Clearly Marked Service Shop Floor
Floors should be level, sealed, coated or tiled with an appropriate material and
have good drainage.
There should be a roof.
There should be a separate unit repair room.
There should be a warranty parts storage area to meet distributor requirements.
There should be adequate ventilation, which includes some form of powered
exhaust system.
Service entrances should be covered temperature-controlled (where
appropriate) areas, where the Service Advisor can work with the customer at the
vehicle. 7 Dr. Walid Abdelghaffar
Service Shop
Service Entrance Area
The Service Advisor’s counter should be as close as possible to reception

bays.

Reception Stalls
The service entrance should be clearly visible from the
road with reception area easily identifiable on entry.
Reception stalls should be positioned near the entrance

to the service reception area.
Reception stalls should have enough space for both the

customer and the service advisor to move around
comfortably during diagnosis
Reception stalls should have the quality service sign

and be clearly indicated with signs, road markings and
striping.

Reception Stalls
Clearly Marked Reception Stalls

Customer Lounge
The lounge should be adjacent to service reception,
preferably with an unobstructed view of the service shop.
The lounge should be designed to maximize
merchandising opportunities for the parts, accessories, ….

Customer Lounge
Parts and Accessories

Customer Lounge
Advertising Parts and Accessories
If the showroom, parts sales counter or cashier are not

visible from the lounge, signs should indicate their location.

Customer Lounge
Signs to Other Areas
Customer washrooms should be clean.

Customer conveniences, such as courtesy phones, a television, soft
drinks, reading material and comfortable seats should be provided.
Fax machines, a PC and phone sockets for customers to connect to
the office through modems are increasingly popular.
Use the customer waiting lounge to advertise parts and accessories.

Customer Lounge
Parts Counter
Parts Retail Area

Customer Parking
Place customer parking in a convenient area, but in an area
without heavy traffic flow. Areas to avoid are near the entrance
to the service shop, or near the cargo handling area of the
parts warehouse, or in front of the showroom.
One parking space should be about 3 m x 6 m with a passage
of about 5.5 m to 6 m.
Select the most suitable parking system for the size and shape
of the site.
Spaces and walkways should be clearly demarcated, both with
road surface signs and direction signs.
The road surface of your customer parking facilities should be
clearly marked to ensure safety and give directions.
Signs directing customers to the parking facilities should be
clearly visible
Customer Parking
Parking Area

Parts Warehouse Size and Layout
A considerable amount of warehouse space can be saved by
introducing small lot, high frequency ordering and delivery
Parts Warehouse Layout

Calculation of Parts Warehouse Space
Calculation of Necessary Space
Necessary Space = Storage Space + Receiving and Shipping Area +

Temporary Space for Receiving and Shipping
Storage Space = Estimated Inventory Value

Inventory Value per Square Meter
Receiving and Shipping Area + Temporary Space for Receiving and

Shipping = Storage Space x 0.25 - 0.30

Calculation of Estimated Inventory Value
Estimated Inventory Value =

Estimated Monthly Sales Value x Number of On-hand Stock Months x Target Immediate Service Rate
100
1. Estimated Monthly Sales Value = Estimated unit in operation

(UIO) x Monthly Sales Value per Vehicle
2. On-hand Stock Months and Target Immediate Service Rate

depend on the ordering/delivery frequency between distributor
and dealers.

Service Facility Capacity
This formula can be used to calculate service facility capacity.
Service Facility Capacity (hrs.) = No. of Stalls x Stall Utilization (%)x Number of available
hours (hrs.) x Current productivity (%).
Stall utilization is a measure including vehicles in stalls but not being

worked on.
A typical reason for this is that the vehicle is waiting for parts.
A reasonable stall utilization figure is 85% to 90%.

Service Facility Capacity Requirements
The service facility capacity must always be equal

to or greater than the target number of total labor
hours sold (including in-house service sales).

Role of Service Manager
❖The Service Manager must determine when the

monthly total labor hours sold will catch up to the
facility capacity.

Service Shop Zoning
❖ The concept for improving the layout of the service shop is to
reduce the amount of wasted time the technician spends away from
the working stall conducting nonproductive work; e.g. locating and
moving vehicles, collecting parts, repair orders, tools & equipment
etc.
❖ By allocating working stalls based on work type, General Repair and

Periodic Maintenance you can increase the service shop efficiency
through the reduction of unnecessary movement.
❖ If a shop average work-mix is 60% periodic maintenance and 40%

general repair allocating service working stalls in line with the
percentages is recommended e.g. 60% of bays are allocated to
periodic maintenance and 40% to General Repairs.

Efficient Service Shop Layout
Service Shop Zoning
❖ Zone the service shop to reduce the technician’s movements, as
Periodic Maintenance work on average requires more visits to the
control office or dispatch area and the Technicians parts counter,
therefore, locating these stalls closer will reduce unnecessary
movement.
❖ In turn general repair work requires less visits to the above areas
but more visits to the unit repair room and SST room, therefore
locating these closer to these areas will reduce unnecessary
movement.
Concept of Service Shop Zoning
Minimize Staff and Vehicle Movements

❖ To realize highly efficient parts and service operations, the time taken in
locating ,moving and transferring vehicles must be reduced. To clearly
identify the causes of delays in the movement of staff and vehicles the
current situation needs to be understood. Conducting two surveys does
this.
1. Survey of parked vehicles
2. Survey of the movement of staff and vehicles
1. Survey of Parked Vehicles
❖ Develop a layout plan of the parts and service facility including
all parking stalls , conduct a review of the parking situation
four times in one day at 9am, 11am, 2pm and 4pm to clearly
understand facility shortfalls. Record the findings on the facility
layout plan noting problem areas. Develop countermeasures
for improvement.

2. Survey of the Movement of Staff &
Vehicles
❖ Survey the movements of staff & vehicles by following the flow of
movements in conjunction with the transfer of vehicles, verify this
with each staff member.
❖ Using a plan of the entire service shop record the movements of
staff & vehicles, noting any problem areas.
❖ Record the time taken for each vehicle transfer from beginning to
end this process should be repeated five or six times, calculate the
average and use this figure as the reference for improvements.
Use this survey to identify

the causes of bottlenecks
and delays, develop
countermeasures to
improve the overall
efficiency.

Cashier
The cashier should be in a highly visible place near the retail
parts sales area, clearly indicated with signs
Security measures such as barriers or partitions should be

considered

Service Operating Standards
❖ All signage should be designed to conform to the
corporate image.
❖ All parking bays should be clearly identified by their
purpose (e.g. reception, waiting for service, quality
control, washing, waiting for delivery, parts department,
etc.).
❖ All customers should be able to easily identify the
service reception area and stalls through the provision of
good directional signage.
❖ The road surface of the parking area should be clearly
marked to ensure safety and provide directions.

❖ The service shop should have a clean, neat, sealed
surface with good drainage and work stalls should be
clearly marked.
❖ The traffic flow should be designed to minimize traffic
congestion and bottlenecks.
❖ There should be an area assigned for service reception
where the customer, the vehicle and Service Advisors
can come together for writing of an effective repair order.
❖ The service reception area should have a level, neat and
sealed surface.
❖ Reception stalls should be located near the service
reception office.

❖ The service shop should be zoned for efficient
operations with periodic maintenance bays situated
closer to the control office and parts counter, with
general repair bays located nearer the unit repair room
and service special tool (SST) room.
❖ All periodic maintenance bays should be equipped with
all necessary tools and equipment to efficiently conduct
routine service work (e.g. overhead outlets for oil, water,
air and oil drain bays, air gun, pressure gauge, filter
SST's, mirrors).

❖ The service shop should have adequate ventilation
which may include some form of powered exhaust
system.
❖ There should be parts storage area that is secured and
uses the bin warranty storage system.
❖ There should be in place adequate staff facilities,
washroom, toilets, change-room, lunchroom, in-house
training room including TV and video.
❖ The dealer should provide customer-only restrooms
which are kept clean and hygienic at all times. These
should be checked at least twice daily by the person in
charge.

Parts Operating Standards
Create the following to maintain efficient warehouse
receiving and shipping operations in the parts department.
Separate technician and customer parts counters and
convenient access to the service shop.
Entrance and exit area for delivery trucks.
Receiving and shipping operations in a single area that
is large enough for safe and efficient operations.
Appropriate storage rack layout and shelf
layout/dimensions

Parts Operating Standards
Aisles wide enough for efficient binning and picking

operations (minimum size 95 cm).
A special-order parts bin (for dealer non-stock) parts

should be placed near the retail counter and a rack for
pre-pulled parts should be placed near the technician
counter.

Service Capacity Standards
❖ Each parking stall should be about 3 m x 6 m, with a
passage about 5.5 m to 6 m.
❖ Each work stall should be a minimum of about 4 m x 7 m.
❖ Service shop lighting in all work stalls areas should be 350

to 500 lux.
❖ The shop should provide adequate customer parking stalls

to meet market demands.

Organizational and Personnel
Administration
❖An organization chart will be created which
includes all the duties of the Service and Parts
divisions
❖ Employee personal appearance standards will be
set.
A handbook will be created for new employees.
The Service Manager will bear responsibility for the
success of the service division in reaching its targets.
Necessary training will be performed so that all staff
members can perform their duties.

Organizational and Personnel
Administration
The wage system and level will be competitive,

appropriate and motivating.
Evaluation of all service staff members will be
conducted periodically.
Plans will be created to manage, monitor and
fix problem areas in the Service Division.

Service Manpower Capacity
Service manpower capacity in hours is calculated as follows:
Total technician hours available x Current overall productivity (%)
Calculations determining the number of technicians may vary

from country to country, as some use a ratio or percentage for
apprentice technicians.

Service Manpower Capacity
Requirements
Service manpower capacity must always be equal to or
greater than the target total labor hours sold (including in-
house service sales).

Organization
The following is a listing of some standard organization charts

and their corresponding production models.
The lines of management flows are often different from those
used in the production flow.
Both are included to help you determine which will better suit
the needs of your organization.
Service and labor sales volume is one determining factor in
deciding which system you will use.

Case 1 – Direct Reporting Management Flow
In this organization, all staff members report to the Service

Manager. This is appropriate for small to medium-sized
dealerships.
The Service Manager is responsible for all activities and

reports directly to the owner or General Manager.


Direct Dispatch Production Flow

General Application
Suitable for small dealerships.
Advantages Disadvantages
Direct control and knowledge of all Too difficult to control beyond a
operations. certain size.
Communication level within May be too dependent on a single
department is enhanced. individual.
Limited accommodation to needs
of customer; loyalty is difficult to
increase when a business is
growing.

Case 2 – Basic Management Flow
❖ In this organization a Foreman is added as a superior.
❖ A Controller is added to control the proper dispatching of service
work.

Case 2 - Basic Management Flow
Bas
ic Management Flow

General Application
❖ Suitable for small to medium dealerships.

One central control point for job If productive staff exceed 14
flow Technicians, job flow and control can
be difficult for one Controller.
Improved time management Communication difficulties between
control Controller and Foreman due to
overloading.
Allows Foreman more time for
supervision.

Case 3 – Management Flow Production
Teams/Dispatch Operation Lateral Support Groups
❖ Large shops with a minimum of 20 Technicians can benefit

from this organizational structure.
❖ Each Service Advisor becomes responsible for a work group.
❖ Each group must be carefully constructed in order to ensure
compatibility.
❖ This organization type may need outside assistance to be
implemented correctly.
❖ It relieves the Service Manager from many daily supervisorial
tasks.
❖ Delegated authority is more formal and better defined

Production Team or Lateral Support Team Flow

Production Teams Dispatch Flow

❖ The differences between the production team organization and

lateral support group organization are in the way wages are
decided.
❖ In the production team organization, the wages of the team
members are decided based on the results of all the team
members.
❖ In the lateral team organization, wages are based on individual
results.
❖ If there are many teams or groups, Service Advisors must
maintain an even workload for each group.

General Application
❖ Suitable for medium-large and larger dealerships
Promotes communication within the Difficult to implement because of
workgroup. possible changes in pay plans.
Gives closer supervisory support. Requires compatibility between
coworkers.
Natural process for training and Major reorganization may cause
promotions. disruption in production during
changes.
Customer needs are accommodated
easily, making it easy to increase
customer satisfaction and loyalty.

Parts Department Organization
❖ Depending on the size of the site , multiple functions could be
handled by one person.
General Parts Management Flow

Job Description Template
❖ A clear and objective breakdown of the qualifications,
responsibilities, authority and principal tasks for each position
is essential to ensure a good level of staff cooperation.
❖ Once these tasks have been established, they should be

monitored regularly.

Service Steps

Definitions
❖Time recording
The mechanics' clocked times are registered in the
form of a time recording system. In the beginning of
job order and in the end of it .
Time recording is used to record the personal working
hours of each mechanic and the time spent on each
order.
Definitions
❖Overtime
❖Paid overtime is normally for productive hours which
have to be added to the hours paid, to prevent a
negative influence on the productivity calculation.
Definitions
❖MU
❖Abbreviation for mechanic unit.
❖A mechanic unit is one member of staff whose entire
working time is devoted to productive mechanical
work.
❖Some time we can calculate some persons a part of
MU like under training technician.
Definitions
❖WB (work bay)
❖A work bay is a working area for one mechanic in the
workshop to which a car can be brought.
❖ Its area depends on the nature of the work bay.
Definitions
❖Indirect productive personnel
• Indirect productive personnel include all Service
employees who do not directly perform productive
work on vehicles and therefore do not contribute
directly towards generating turnover from labour
sales.
• These include such employees as Service advisors,
cashiers and secretaries, etc.
Time Analysis Factors
❖ Paid Hours = Normal Attendance Hours + Over Time

Hours
❖ Paid Hours = C Hours + H Hours + W1 + W2
❖ C Hours : Productive working hours spent on customer
orders, including warranty hours
❖ H Hours : in-house orders (like dealer transporting
vehicle repair , PDI( pre-delivery inspection new cars),
demonstration cars.
❖ W1 (variable): unproductive time loss in waiting for
next job, come back, waiting for parts and waiting for
customer authorizations.
❖ W2 (fixed) : reduce the hours the mechanics are
actually working in training, Vacations and Public
holidays
Efficiency
• Efficiency is the relationship between sold hours or
FRU (Flat Rate Unit) and total hours worked.
• The efficiency factor refers to one individual
mechanic is named Performance.
Efficiency (Performance) (%) = (Hours sold (C&H) х 100

(Hours worked)
Productivity
❖Productivity is the relation between hours worked
and hours paid for all productive employees in a
given period (year, month, day) disregarding
efficiency.
Productivity = Productive hours (C+ H) * 100

Available hours
Utilization
❖ Attendance Utilization
❖ The utilization figures always relate the actual performance to
the theoretical maximum performance.
❖ Here it is the productive time in relation to the time the
mechanic is in the workshop. It shows the efficiency of
management in using productively the mechanics hours
available.
Attendance utilization in % = Hours worked (C + H) * 100 (%)

Hours attended
Utilization
❖ Capacity Mechanic Utilization
• The utilization figures always relate the actual performance to

the theoretical maximum performance. Here you relate the
actual FRU turnover in a period to the maximal possible FRU
turnover in a period of all mechanics.
Utilization of MU capacity [%] = total hours sold * 100 (%)

total hours paid - fixed W hours
Utilization
❖Work-bay Utilization
❖ The utilization figures always relate the actual performance to the
theoretical maximum performance. Here you relate the actual FRU
turnover in a period to the maximum FRU turnover which is possible for all
work-bays in the same period.
Utilization of WB capacity [%] = total hours sold x MU / WB x 100 (%)

total hours worked + fixed W hours*)
Flat rate
manual
Flat Rate
❖ It’s the time of certain operation on certain vehicle
according to standard work shop condition and full
skills technician.
❖ Flat rate is a price a customer pays for a specific
service based on the amount of time considered
necessary to perform the service, which remains
constant regardless of the actual time a particular
worker needed to complete the service.
❖ Flat rate manuals are used throughout the service
industry and are based on timed studies of the time
it takes to perform a specific job. Flat rate helps to
provide a uniform pricing menu for service work and
helps to establish the value of the performance of a
particular job
Flat Rate Units.
❖Flat rate unit (FRU)is a part of time that we use

in our calculation.
❖It may be an hour or a minute or number of
minutes.
Flat rate manual
❖A manual that lists the various jobs that can be

done on vehicles, along with the estimated time.
❖ Depending on the kind of vehicle and if there is
another associated work.
Workshop Tools and
Equipment's
❖The purpose of the service tools and equipment
is to develop efficient Aftersales operations
through ensuring adequate tools and equipment
are always available and in good, safe working
order.
❖The intent is to increase customer satisfaction by

reducing vehicle repair time through efficient tool
and equipment supply.

Standards
❖Each workshop should have all the
recommended SST's and be in good working
order.
❖All tools and equipment should be located
conveniently to encourage efficient operations.
❖There should be a system in place to identify the
person using a required SST.

Standards
❖All Technicians should have an adequately
stocked mobile personal tool kit .
❖Each workshop should maintain a tool and
equipment register to record quantity and
maintenance records of tools and equipment.
❖The Service Manager is responsible for ensuring
that each technician has an adequate tool kit
and mobile work stand.
❖The service department must have adequate
general tools, Special Service Tools (SST) as
well as testers and equipment.

Standards
❖In a workshop with insufficient tools and equipment,
it is not unusual for Technicians to lose 30 minutes a
day waiting to use a specific item.
❖In a shop with three Technicians, assuming that the
gross profit on an hour’s work is $18.00, this will
result in the following losses:
❖3 technicians x 0.5 hr/day x $18.00 loss/hr =
$27.00 loss/day
❖$27.00 loss/day x 250 days/year = $6,750 lost

gross profits/year
Supply of Tools
❖There is a minimum set of tools that all

workshops are required to have.
❖Check this list annually and keep your workshop
properly stocked with the required tools.
❖Your tools must be:
✓ In good condition
✓ Easily accessible

Supply of Tools
❖ Secured against theft or misuse (attended or
supervised)
❖Conveniently located for technicians
❖The tool check-out system must be:
✓ Fast: technicians need to get the tools they need
without excessive waiting
✓ Convenient: it must be easy to administer and
use
✓ Visible: it must be easy to tell which tools are
checked out and to whom SSTs should be
placed based on frequency of use.

Supply of Tools
❖The most frequently used SSTs should be

placed in the most easily accessible positions in
the tool room.
❖Periodic maintenance tools should be kept in or

near the periodic maintenance stalls.
❖General repair tools should be kept in the

general repair area or unit repair room

Supply of Tools
❖The check-out system could be a check-out sheet
which is filled out by technicians when they borrow or
return tools.
❖It could also be a tag system where technicians are
given metal tags with their name on them. A tag is
hung in the tool’s designated storage space until the
technician returns it.
❖Special test equipment that cannot be hung on pegs
can be kept on a shelf.
❖Keep small precision tools in their protective
containers.

Supply of Tools
❖Each technician must maintain a personal set of

hand tools, including screwdrivers, wrenches,
socket wrenches, pliers, hammers, chisels,
punches and other tools needed to perform the
work for which the technician is trained and
which is not normally inventoried by the service
department.

Supply of Tools
❖Tool Storage Areas

Justifying Additional Equipment
❖Keep a record of the condition of all tools.

❖Before you replace any tools, determine your
requirements and calculate your return on
investment to find out how many years it will be
before the tool pays for itself.

Equipment ROI
1. Estimated of daily transactions x yearly of

working days x flat rate hours/transaction x
labor rate x gross profit as a percentage of
sales.
2. Price of the tool divided by the result of step

one above.
The result will give your ROI in years.

Computer System
❖The Objective is to promote good workshop

operations for the new & used vehicle sales,
parts and service departments by ensuring the
workshop has in place a suitable computer
system that enables good interdepartmental
communications, adequate controls and reports
to meet both the dealers and distributors daily
business requirements.

Computer System Standards

Computer System

❖parts department should be managed to
maximize parts availability and profitability
❖A well managed parts inventory is needed to
promote sales opportunities through various
sales channels
❖every effort should be made to have all parts
available for customer repairs and/or
maintenance in one visit

Standards
❖Maintain accurate and up to date stock

information.
❖Replenish stocked parts frequently (at least
daily) and order according to the concept of
Max-Max inventory control.
❖Have a clearly defined stocking policy (phase-in
and phase-out criteria).
❖Have efficient standard procedures for receiving,
selling parts, and following up on back orders.

Standards
❖Maintain safe, and efficient working conditions in

the parts warehouse.
❖Work with customers to achieve stability in their
ordering.
❖Set appropriate targets and monitor
performance indices.
❖Be focused on improving customer satisfaction
and profitability.

Standards
❖ Properly trained parts department employees who
can use and maintain the parts system.
❖ Stocking parameters which are set to minimize
excess stock and maximize all order opportunities.
❖ Strict adherence to a clearly defined phase-in
phase-out policy

Standards
❖The parts department works continuously with

customers to improve stability in their ordering
behavior.
❖An annual or semi-annual physical inventory
check
❖Scheduled scrapping and/or return of obsolete
parts (dead-stock)

What is JIT Logistics?
Just-in-time logistics is based on the sell-one, buy-

one concept.
This means that parts flow through the logistics
chain at the same pace as customer demand

What is JIT Logistics?
❖The aim of JIT activity is to achieve both

improved suppliability and stock reduction.
❖Results in these areas contribute to sales
expansion and cost reduction which will allow to
achieve goals of increasing profit and being the
leader in customer satisfaction.

Order Taking
❖The ordering patterns have a large effect on
inventory levels and operations .
❖The companies should make efforts to analyze
customer ordering behavior and promote small
lot, high frequency ordering whenever possible.
❖The parts department should implement a
system which can be used to place accurate
orders to the workshop (i.e. parts system,
Electronics Parts Catalog, microfiche, service
bulletins, parts bulletins, etc.).

Order Taking
❖ Non-service customers (especially parts jobbers,
fleet owners) should be educated in the merits of
small lot high frequency ordering.
❖ The service department should have a standardized
method of ordering parts so that the order takes
place immediately when the need for a part is
identified.
❖ Volume purchasing discounts to dealership
customers should be eliminated and parts should be
priced competitively on an individual basis and
marketed through Parts and Service sales
campaigns.
❖ This should be done when the delivery costs will not
be more than the actual inventory costs Dr.
realized.
Walid Abdelghaffar
Carefully monitor lost sales data
❖Sales lost because of part non-availability
should be recorded so that changes in stock
range and depth can be made to correct the
situation.
❖Once a month, lost sales data should be
analyzed to decide (based on the stocking
policy) whether the relevant part numbers
should be taken into stock.
❖Lost sales data can be recorded using the
workshop parts system or by using a lost sales
sheet.

Stock Availability Check
❖ The workshop should have an accurate and quick

method of checking stock availability (on-line stock
availability check is ideal).
❖ Both the parts department and service advisors
should have the ability to check stock availability
at any time.
❖ If Service Advisors cannot check stock availability
using the computer system, there should be a
standardized method for relaying stock availability
and part

Stock Availability Check
❖All parts and service staff should be aware of

parts order cut-off times and the delivery
schedule, and a diagram with a delivery
schedule should be posted in both the parts and
service departments.

Stock Replenishment
❖Stock Replenishment Orders should be placed

automatically on a daily or more frequent basis
❖ The quantity of the order should be based on
the number of parts sold since the last order
❖It is important that the workshop use each order
opportunity to replenish all part numbers which
have been sold since the last order.

Stock Replenishment
❖Below is a comparison of Max-Max and Max-Min

Inventory control. With Max- Max inventory
control the maximum inventory position (MIP) or
best stocking level (BSL) is equal to the best
reorder point (BRP).

Back Order Handling and Follow-up
❖It is the responsibility of the service department

to follow up on unsold parts in the special order
bin for service customers.

Separate Orders for Created Demand
❖Part orders for created demand (irregular orders

because of lot orders, parts campaigns, etc.)
should be made separately from stock
replenishment orders in order to keep dealer
stock levels lean.
❖Separate ordering of created demand will also
allow to improve efficiency and suppliability by
stabilizing its order taking.

Stocking Policy
❖ A strictly defined stocking policy should be established

which allows to reach the service targets for internal
and external sales.
❖ The following parameters are vital to successful
inventory management:
➢ What to buy
➢ When to buy
➢ How much to buy
➢ How long to keep
➢ When to scrap or return

What to buy
❖ determine what parts should be in your inventory by
phasing in stock according to fixed standards (non-stock
testing).
❖ The parts manager can consider altering the stocking

policy for specific parts from non-stock to stock
according to the needs of the service department and
other customers or in order to improve service rate so
that it will meet the targeted level.

When to buy?
❖Frequent (at least daily)

❖It is important that the workshops use each order
opportunity to replenish all parts which have
been sold since the last order.

How much to buy?
❖Stock depth (the quantity for each part number)

should be such that it covers the order cycle, the
lead-time and additionally some safety stock on
a part number (or part group) basis.
❖The formula for Maximum Inventory Position
(MIP) should be used to determine standard
stock quantity.

Lead - Time
How many failures will occur during the

lead time?
Part
requested
Part arrives
Failures
Lead time
Time
How much to buy?
MIP = MAD x (O/C + L/T + S/S)
❖MAD = Monthly Average Demand

❖O/C = Order Cycle
❖L/T = Lead Time
❖S/S = Safety Stock (to cover lead-time and
demand fluctuation)

Example
Order Cycle (O/C) = 1 day, L/T = 1 day, S/S = 5

days
MIP = MAD x 7 days
OR
MIP = MAD x 0.25 months
1. Safety stock is set in terms of working days
2. Safety stock should be determined considering
fluctuation in the lead time.

How much to buy?
❖The following formula for Suggested Order

Quantity (SOQ) will bring the on hand stock level
back to the original Maximum Inventory Position
(MIP):
SOQ = MIP - (O/H + O/O) + B/O
O/H = On Hand Quantity
O/O = On Order Quantity
B/O = Back Order Quantity

How Long to Keep Parts?
❖Allow to determine what parts should be taken

out of your inventory according to fixed
standards.
❖Parts which do not meet the minimum demand
criteria should be not replenished after a sale.

When to scrap or return?
❖If there is a return policy, parts should always be

returned within the limits of this policy.
❖In order to maximize binning and picking
efficiency, dead (non-moving) stock should be
separated from the primary parts storage area.
❖To maximize space efficiency, standards must
be created to determine which parts will be
scrapped (i.e. 0 movements in 24 months for
non-new-model parts)

Working Environment
Safety
❖ The parts manager should create a parts work
area in which safe, high quality (accurate) and
efficient operations are possible.
❖ Set up a storage area for dangerous combustibles
according to local legal requirements.
❖ There should be good lighting in all parts of the
parts department and parts warehouse.
❖ All members of the parts staff should be trained in
safety standards

Parts Storage
❖Seven Storage Techniques were developed to

improve safety, quality, and operations
efficiency, and should be introduced in the parts
warehouse.
1. Vertical Storage
2. Storage by Product
3. Heavy Parts Stored Down Low
4. Separate Location for Each P/N
5. Store Within Easy Reach
6. Irregularity Control
7. Storage by Movement
Parts Storage Bins, Recommended Size
Examples

1. Vertical Storage

2. Storage by Product

3. Heavy Parts Stored Down Low

4. Separate Location for Each P/N

5. Store Within Easy Reach 6. Irregularity Control

7. Storage by Movement

Efficient Layout to Support the
Service Department
❖Organize the parts department so that walking

distance by the parts staff and technicians is
minimized.

Before Improvement

After Improvement

Effects of improvment
1. Minimize Technician walking distance.

2. Have one parts staff member maintain both
counters.
3. Have parts for the service department pre-
picked by the parts staff and placed in the pre-
pull bin (to reduce technician waiting time).

Dynamometer
• The main purpose of
an engine
dynamometer is to
resist the rotation of
the engine shaft
• The casing of the
dynamometer is
stopped from rotation
by means of the arm,
and the force required
to stop the arm
rotating is measured
by means of a load
cell
Schematic diagram of dynamometer installation
Engine Test and Instrumentation Dr. Walid Abdelghaffar
Friction brake
T=Fr
Where:
T = torque
R = radius of moment
arm
F = restraining force
required to stop the
moment arm rotating
P=T
P = power developed by the engine and absorbed by the dynamometer
 = 2N angular speed of the dynamometer shaft
N= engine rotational speed (in rev/s)
Method of coupling the engine and the
dynamometer
❖ Friction (figure) is nowadays obsolete
❖ Electromagnetic field: the commonest form

(Electrical dynamometers : most modern dynamometers)
❖ Water dynamometers: still in use
Torque-measuring transducers are available commercially,

which can incorporated into the transmission shaft coupling
the engine to the dynamometer. Their cost is significantly
higher than that for a moment arm and load cell system
combinations.

Electrical dynamometers
❖ The engine power is converted to Electrical Energy which
can be transferred by cables or dissipated within the
dynamometer as heat and carried out by coolant
❖ The shaft rotation derives an electrical generator
❖ The strength of the electromagnetic field coupling the rotating

and stationary parts of the dynamometer can be adjusted in
order to increase or decrease the resistance offered to the
engine rotation
❖ Instantly altered in the electromagnetic coupling (within a

fraction of a second).

Types of electrical dynamometers
Direct-Current (DC) Eddy-current Alternating-current (AC)

dynamometers
•Comprise a DC generator (fig 1)

Comprise AC generator
•In small DC dynamometers the electrical
power is dissipated in air-cooled electrical •The function can be reversed
resistance heaters. and the dynamometer can be
used as an electrical motor to
• the function of the generator can be
motor the engine
reversed and the dynamometers can be
used as an electric motor. •Capable of very rapid changes in
resisting torque and amenable to
•Capable of very rapid changes in the
computer control
resisting torque offered to the engine and
are amenable to computer control •Fast speed changes are
constrained by the inertia of their
•Not capable of rapid speed changes
rotating parts
because their rotating parts have high
inertia
Eddy-current dynamometers
•The electrical power generated is dissipated as heat within

the dynamometer and carried away by coolant water
•It is simple and robust construction
•They can not be used to motor the engine
•They are controlled by a computer
•The resisting torque can be altered instantly.
•Fast speed changes than those for DC and AC machines
are possible due to lower rotor inertia

Eddy current for Gasoline and Diesel
engines

Water dynamometers
❖ The rotating and stationary parts are coupled
by means of water that continuously transfers
momentum from moving to the stationary parts.
❖ Altering the resistance offered to the shaft

rotation is slow (several seconds)
❖ This type can not be used to motor the engine
❖ A significant number of hydro-kinetic and

hydraulic dynamometers are still in common
use

Water Brake Style Engine
Dynamometers
❖ Taylor's water brake
dynamometer is allowing
to quickly troubleshoot
problems such as low
horsepower, insufficient
torque, and leaks.
❖ Engine dynamometers will

verify that the repair is
completed, that the engine
is operating according to
specifications and can be
used to break-in engines
before installation.

Dynamometer Operating envelope
(Eddy current dynamometers)
The operating characteristics of

the dynamometer Engine
envelop
(i) Toque line at low speed
(maximum eddy current)
(ii) Maximum torque line
(iii)Maximum power line
(iv)Maximum speed line
(v) Residual torque line
If the engine envelop lies entirely within the
dynamometer envelop (as in the figure) the
engine could be tested with this dynamometer Dynamometer
throughout all the running conditions that the envelop
engine is capable of .
Dynamometer Operating Modes
Constant Constant Torque

Engine speed mode
mode
Constant throttle
opening or fueling
mode

Air flow rate measurements
Instantaneous
•Corona discharge flow meter
•Hot wire flow meter
Quasi-steady
•Air box with sharp-edged
orifice plate
•Viscous flow meter
•Positive displacement flow
meter
•Air flow measurement from
exhaust gas analysis
Air box with sharp-edged orifice plate
.
m = Cd A 2p kg / s
Cd = orifice discharge coefficient (0.6 accurate for most
purposes)
A = orifice area (m2)
p = pressure drop across the orifice plate (Pa)=igh
h = height difference in the manometer liquid columns
(m)
g = acceleration due to gravity (9.81 m/s2)
I = density of manometer liquiud (kg/m3)
 = air density (kg/m3)=po/(RTa)

po= atmospheric absolute pressure (Pa)
Ta = atmospheric temperature (K)
R =specific gas constant for air (J/kgK)
The volume of air box for steady flow
417 10 n d
6 2 4
Vb = 2
s
ncVs N m
ns = constant (=1 for 2 stroke and = Larger box volume is
2 for 4 stroke
required when:
d = orifice plate diameter (m)
•The engine is 4 stroke
nc = number of engine cylinder
Vs = engine total swept volume •Small displacement
(m3)
•Low engine speed
Nm = minimum engine speed at
which measurements are required

Example
❖ An orifice has a diameter of 0.025 m and used

to measure the air flow to a single-cylinder,
four stroke engine having a displacement of
0.5 liters and running at 1500 rpm.
❖ Calculate the required volume of an air box to

damp down the air flow pulsation. What is the
percentage increase in this volume if the orifice
diameter is increased by 20 %.

Example
•ns = 2
•d = 0.025 m
•nc = 1
•Vs = 0.5 *10-3 m3
•Nm = 1500 rpm
•Vb = 600 liters
•If d= 1.2 * 0.025 m
•Vb = 1200 liters
•% increase in the air box volume = 100 % ( double volume)

Fuel consumption measurements
Average fuel consumption

rate (a)
• Burette method -Weighting method-force
transducer
Instantaneous fuel
consumption rate (d)
•Flo-Tron system-rotameter
Fuel spill-back
Average Fuel Consumption Rate
•Simple method
•Measure direct volume flow rate with using a
stopwatch
•Can measure the mass flow rate with
measuring the density separately
•The accuracy is around 1 %
•2 to 3 minutes are required to complete a
measurement of the average fuel consumption
rate
•It can be automated by installing:
✓Liquid level sensor
✓Electronic control system to open and close
valves A and B and to start and stop an
electronic timer.
In-cylinder pressure measurements

30
25
Experimental Data
20
b
Pressure (bar)
15
10
0
-90 -45 0 45 90
Crank Angle (deg)

Engine tests (friction measurements)
Motoring engine Firing engine
•Measurement of fmep
•Willans line: direct motoring
from imep
test for Diesel engine.
N=const
The extrapolation of the fiting
line determine the fmep
•Morse test: (SI engine)
Individual cylinders in a
multicylimder engine are cut out
from firing, and the reduction in
brake torque is determined at
N = constant

Prof. Dr. Walid Abdelghaffar

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Prof. Dr.

Dr. Walid Abdelghaffar

3 Dr. Walid Abdelghaffar

❖ Parking bays should be clearly defined and marked by purpose: reception,

4 Dr. Walid Abdelghaffar

5 Dr. Walid Abdelghaffar

Employee facilities—lunchrooms, training rooms, changing rooms

The Service Advisor’s counter should be as close as possible to reception

8 Dr. Walid Abdelghaffar

Reception stalls should be positioned near the entrance

Reception stalls should have enough space for both the

Reception stalls should have the quality service sign

9 Dr. Walid Abdelghaffar

10 Dr. Walid Abdelghaffar

The lounge should be adjacent to service reception,

preferably with an unobstructed view of the service shop.

The lounge should be designed to maximize

merchandising opportunities for the parts, accessories, ….

11 Dr. Walid Abdelghaffar

Parts and Accessories

12 Dr. Walid Abdelghaffar

Advertising Parts and Accessories

If the showroom, parts sales counter or cashier are not

13 Dr. Walid Abdelghaffar

Customer washrooms should be clean.

14 Dr. Walid Abdelghaffar

Parts Retail Area

15 Dr. Walid Abdelghaffar

17 Dr. Walid Abdelghaffar

Parts Warehouse Layout

18 Dr. Walid Abdelghaffar

Necessary Space = Storage Space + Receiving and Shipping Area +

Storage Space = Estimated Inventory Value

Receiving and Shipping Area + Temporary Space for Receiving and

19 Dr. Walid Abdelghaffar

Estimated Inventory Value =

1. Estimated Monthly Sales Value = Estimated unit in operation

2. On-hand Stock Months and Target Immediate Service Rate

20 Dr. Walid Abdelghaffar

Stall utilization is a measure including vehicles in stalls but not being

21 Dr. Walid Abdelghaffar

The service facility capacity must always be equal

22 Dr. Walid Abdelghaffar

❖The Service Manager must determine when the

23 Dr. Walid Abdelghaffar

❖ By allocating working stalls based on work type, General Repair and

❖ If a shop average work-mix is 60% periodic maintenance and 40%

24 Dr. Walid Abdelghaffar

Minimize Staff and Vehicle Movements

27 Dr. Walid Abdelghaffar

Use this survey to identify

28 Dr. Walid Abdelghaffar

Security measures such as barriers or partitions should be

29 Dr. Walid Abdelghaffar

30 Dr. Walid Abdelghaffar

31 Dr. Walid Abdelghaffar

32 Dr. Walid Abdelghaffar

33 Dr. Walid Abdelghaffar

34 Dr. Walid Abdelghaffar