1. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 1 BMW Group Thailand Management and Service Report Seminar for Service Manager BMW Group Thailand

2. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 2 BMW Group Thailand Who am I? Ingo Reitz Service Consultant BMW Group Thailand Management and Service Report Seminar for Service Manager

3. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 3 BMW Group Thailand Management and Service Report Seminar for Service Manager - What do I expect from this seminar? - What does my Dealership expect from me? - What does BMW Thailand expect from me? Why are we here?

4. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 4 BMW Group Thailand Management and Service Report Seminar for Service Manager

5. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 5 BMW Group Thailand Management and Service Report Seminar for Service Manager Ready for take off?

6. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 6 BMW Group Thailand Time Analysis Reasons - Time is the most important factor in the Workshop - Foundation for the Service Report - Service Report (the mirror of your workshop) - Only accurate time recording allows improvements

7. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 7 BMW Group Thailand Time Analysis Benefits - Control instrument for the workshop - Target settings according to the Dealership - Substantiate for all repairs in the Workshop - Adjustment tool for turnover improvement - Workshop results in the Service Report - Control instrument for individual mechanics - Target settings according to BMW Standard

8. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 8 BMW Group Thailand Time Analysis Basics > Paid time < Available time W – Variable time K and H Productive time W – Fixed time

9. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 9 BMW Group Thailand Time Analysis Productivity Productivity is the relationship between the productive labor hours (used) for the reference period, to the total hours Available by the productive mechanics. Formula: * 100 Hours worked (used) Available Hours (clocked) = Productivity (%)

10. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 10 BMW Group Thailand Time Analysis Availability The Availability is the relation between the available hours of all productive personnel to the Paid time in a given period in Percent. Available Hours (clocked) * 100 Formula: Paid time = Availability %

11. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 11 BMW Group Thailand Time Analysis Efficiency Efficiency is the relationship between the labour hours sold (charged) to the total productive hours (used). Formula: Hours sold (charged) Hours worked (used) FRU sold (charged) = Efficiency (%) Hours worked (used) = Efficiency (FRU/hr) * 100

12. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 12 BMW Group Thailand Time Analysis W Fix time * 100 Formula: Training days + Public Holidays + Vacation Number of paid days in the year = W fixed time target (2003) Fixed W-Time will reduce the hours the mechanics are actually at their work bays. During this times the mechanic is not working productively. W-Fix time is planable. 10 + 10 + 15 313 * 100

13. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 13 BMW Group Thailand Time Analysis W Fix time Times clocked for: W5 - Public Holiday - Training - Vacation figure from time records. (Time cards)

14. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 14 BMW Group Thailand Time Analysis W Variable time Of course, just because mechanics are employed by the dealership does not mean they will be in the dealership working for every available hour. A mechanic rarely spends every available hour producing work. He loses many hours per week due to the time spent waiting for the next job, waiting for parts, waiting for customer authorizations, etc. This unproductive time spent while the mechanic is at the dealership is called “ Variable W-Time ”.

15. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 15 BMW Group Thailand Time Analysis W Variable times Times clocked for: W2 Idle time W3 Repairs to workshop cars and mobile service W4 Rework W51 Sick leave figure from time records. (Time cards) W1 General Workshop maintenance W21 Waiting for parts (delay at the workshop parts counter i.e. queue, etc.) W22 Waiting for Customer Authorization W23 (open)

16. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 16 BMW Group Thailand Time Analysis Setup Input sheet February 24 1 55 Test 2003 77.5 70 8 55 45

17. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 17 BMW Group Thailand Time Analysis Setup Example MU and FRU target setting: 1 Junior Mechanic: Khun Ingo 1 Mechanic: Khun Andi 1 Foreman: Khun Banchop

18. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 18 BMW Group Thailand Time Analysis Setup of MU MUFRU/hr Target Efficiency Junior Mechanic Level 10.000% Junior Mechanic Level 20.5650% Mechanic Level 1-3112100% BMW Service Technician112100% Workshop Supervisor / Foreman0 - 112100%

19. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 19 BMW Group Thailand Name Example Position FRU Target/hr Target Efficiency MU Value ME Value Ingo Andreas Banchop JM L26 FRU / Hr50% 0.51 M L3 12 FRU / Hr 100% 11 WSV12 FRU / Hr 1 0.3100% Time Analysis Setup of MU

20. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 20 BMW Group Thailand Time Analysis Setup of FRU target Formula: MU * Working Hours per Day * 12 FRU per Hour * Number of Paid Days * Efficiency Target * Productivity Target

21. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 21 BMW Group Thailand Time Analysis Setup of FRU target February 2003: Junior Mechanic Khun Ingo 0.5 * 8 * 12 * 24 * 70% * 77.5% = 625 FRU

22. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 22 BMW Group Thailand Time Analysis Setup of FRU target February 2003: Mechanic Khun Andi: 1 * 8 * 12 * 24 * 70% * 77.5% = 1250 FRU

23. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 23 BMW Group Thailand Time Analysis Setup of FRU target February 2003: Foreman Khun Banchop: 0.3 * 8 * 12 * 24 * 70% * 77.5% = 375 FRU

24. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 24 BMW Group Thailand Time Analysis Setup of FRU target February 2003: Workshop target: 1.8 * 8 * 12 * 24 * 70% * 77.5% = 2250 FRU

25. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 25 BMW Group Thailand Time Analysis Setup Input sheet 0.5 1 1.5 1.8 3 0.3 Ingo (Junior Mechanic L2) Andi (Mechanic L3) Banchop 2 1

26. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 26 BMW Group Thailand

27. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 27 BMW Group Thailand FCS Field Communication System The Input for the Service Report

28. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 28 BMW Group Thailand FCS Field Communication System

29. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 29 BMW Group Thailand FCS Field Communication System The Service Report Output

30. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 30 BMW Group Thailand FCS Service Report Output

31. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 31 BMW Group Thailand FCS Service Report Output

32. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 32 BMW Group Thailand FCS K Hours Hours clocked for customer and warranty work figure from time records. (Time cards)

33. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 33 BMW Group Thailand FCS H Hours Hours clocked for Internal work figure from time records. (Time cards)

34. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 34 BMW Group Thailand FCS Staff in parts department Number of all employees in the Parts department.

35. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 35 BMW Group Thailand FCS Indirect productive Personnel The PU Value (Personnel Unit) is the number of all employes in the Service Department. PositionPU ValuePU EfficiencyMU Efficiency Service Manager1100%0% Service Advisor1100%0% Controller1100%0% Service Assistant1100%0% Foreman (according to productive target) 180%20% Warranty Clerk1100%0% If part time, then percentage vise.

36. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 36 BMW Group Thailand FCS Throughput Regular Customers Enter here all External and Warranty Customers throughputs of the report month, with at least one history throughput within the past15 month. (including PMP customers)

37. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 37 BMW Group Thailand FCS Throughput Transient Customers Enter here all External and Warranty Customers throughput of the report month without any history throughputs within the past 15 month. (and External and Warranty Customers throughput who visited the workshop for the first time).

38. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 38 BMW Group Thailand FCS Throughput Internal Enter here all throughputs of internal orders (H orders) of the report month. Example: Pre-delivery check, preparation of used cars, inspections and repairs of demonstration cars, …

39. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 39 BMW Group Thailand FCS Regular Customers on file Enter here all External and Warranty Customers from your customer file with at least one history record within 15 month.

40. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 40 BMW Group Thailand FCS Labor turnover sub-contractor Enter here the sum of all sub-contracted labor sales for all contracted franchises within the dealership, excluding any taxes.

41. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 41 BMW Group Thailand FCS Parts turnover workshop Enter here the sum of all parts turnover sales to the workshop (External/Warranty/Internal) within the dealer ship excluding any taxes.

42. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 42 BMW Group Thailand FCS Parts turnover other Enter here the sum of all parts turnover sold to others (Counter sales)excluding any taxes.

43. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 43 BMW Group Thailand FCS Number of Work bays Enter here the sum of all Work bays in your shop, separated in mechanical, body, and paint work bays.

44. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 44 BMW Group Thailand FCS Vehicle Parc This term refers to all BMW vehicles registered in a country, a region, a district or in a dealer's area of market responsibility. Establishing the vehicle parc: The number of vehicles legally registered with the authorities in the dealer's area of market responsibility or in a particular country. By adding together units sold officially, dating back up to 10 years, including acquired customers ("grey market" etc.). If a country's "grey" imports were recorded by a state body, this figure should also be added to normal dealer sales.

45. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 45 BMW Group Thailand FCS Service Market Potential (SMP) The service market potential is the maximum possible Service turnover for a dealer in a special period related to an allocated vehicle parc. Formula: Vehicle parc * Maintenance & repair requirements / vehicle / year in FRU * Seasonal factor of the month * Weighted FRU price

46. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 46 BMW Group Thailand FCS Service Market Achievement The SMA shows the coverage of the Service market potential by the Service turnover achieved. Formula: Labor turnover external + Labor turnover warranty + Labor turnover sub-contractors

47. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 47 BMW Group Thailand FCS Seasonal factor Service

48. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 48 BMW Group Thailand FCS Service Market Achievement % The SMA shows the coverage of the Service market potential by the Service turnover achieved in percentage. Formula: Service Market Achievement Service Market Potential * 100 = SMA %

49. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 49 BMW Group Thailand FCS Workshop Efficiency in FRU/h Formula: Total labor turnover (month) FRU price * (K + H hrs) = Workshop Efficiency in FRU/hr

50. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 50 BMW Group Thailand FCS K Hours % Formula: All clocked K hours Total clocked hours * 100 = K hrs %

51. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 51 BMW Group Thailand FCS H Hours % Formula: All clocked H hours Total clocked hours * 100 = H hrs %

52. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 52 BMW Group Thailand FCS W variable Hours % Formula: Clocked W variable hours Total clocked hours * 100 = W variable hrs %

53. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 53 BMW Group Thailand FCS W fixed Hours % Formula: Clocked W fixed hours Total clocked hours * 100 = W fixed hrs %

54. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 54 BMW Group Thailand FCS BMW Retention (%) Percentage of BMW vehicles in the dealer market area which are serviced by the dealer. Formula: Regular Customers on file Vehicle Parc * 100= BMW Retention (%) Guide figure:

55. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 55 BMW Group Thailand FCS BMW annual visit Average visits of the Regular Service customer per year. Formula: Throughput Regular Customers (month) * Working days (year) Working days (month) * Regular Customers on file = BMW annual visit Guide figure:

56. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 56 BMW Group Thailand FCS FRU / throughput Average FRU ‘ s of the Regular and Transient Customers in the month. Formula: Labor turnover external + Labor turnover warranty FRU price (weighted) * (Throughput “ Regular + Transient ” Customers) = FRU/throughput (m/b/p) in FRU

57. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 57 BMW Group Thailand FCS Turnover per vehicle throughput Average Labor Turnover per Vehicle of Regular, Transient and Internal Throughputs in the month. Formula: Labor turnover (external + warranty + internal) Throughput (Regular + Transient + internal) Customers = Turnover / veh. thru ’ put (THB)

58. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 58 BMW Group Thailand FCS Workshop parts turnover per vehicle throughput Average Parts Turnover per Vehicle of Regular, Transient and Internal Throughputs in the month. Formula: Workshop parts turnover Throughput (Regular + Transient + internal) Customers = W.shop parts t/o / veh. thru ’ put THB

59. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 59 BMW Group Thailand FCS Staff in parts department Number of all employees in the Parts department.

60. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 60 BMW Group Thailand FCS Productive Personnel (MU) Summary of all Mechanical Units working productive in the workshop. MU Values Junior Mechanics + MU Values Mechanics + MU Values BMW Service Technician + MU Values Workshop Supervisor / Foreman Formula:

61. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 61 BMW Group Thailand FCS Ratio prod. to indirect prod. The relation between the productive personnel to the indirect productive personnel. Formula: Number of all MU ’ s Number of all PU ’ s = Ratio prod / ind. prod Guide figure:

62. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 62 BMW Group Thailand FCS Capacity Utilization of MU (%) 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. Guide figure:

63. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 63 BMW Group Thailand FCS Capacity Utilization of MU (%) FRU per MU per year Formula 1: Paid days (year) * Working Hours per day * 12 FRU per Hour * Efficiency target = FRU/MU/year Guide figure: * Productivity target

64. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 64 BMW Group Thailand FCS Capacity Utilization of MU (%) Formula 2: MU Value * FRU/MU/year * Working days (month) Working days (year) FRU Labor turnover (month) in FRU MU Capacity (month) in FRU = MU Capacity (month) in FRU Formula 3: * 100 = Capacity Utilization of MU (%)

65. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 65 BMW Group Thailand FCS Capacity Utilization of WB (%) 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. Guide figure:

66. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 66 BMW Group Thailand = [313-15-(313x18.82%)] x 8 x 12 = [313-15-58.9] x 8 x 12 = 239.1 x 8 x 12 = 22,953 FRU/WB/Year FCS Capacity Utilization of WB (%) Formula 1: [ Paid days (year) - Public holidays - (Paid days (year) * W Variable%) ] * 8 Hours / day = FRU/WB/year Guide figure: 22,953 FRU/WB/Year * 12 FRU / Hour

67. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 67 BMW Group Thailand FCS Capacity Utilization of WB (%) Formula 2: No of WB * FRU/WB/year * Working days (month) Working days (year) FRU Labor turnover (month) in FRU WB Capacity (month) in FRU = WB Capacity (month) in FRU Formula 3: * 100 = Capacity Utilization of MU (%)

68. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 68 BMW Group Thailand FCS Ratio labor to parts% Formula 1: Labor turnover (External + Warranty + Internal) Total turnover for Labor and Workshop parts Parts turnover Workshop Total turnover for Labor and Workshop parts = Labor share Formula 2: * 100 = Parts share The ratio from labor to parts shows the relationship between parts sold to the workshop and labor turnover * 100

69. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 69 BMW Group Thailand FCS Parts turnover per pers. in Parts Formula 1: Parts turnover workshop + Parts turnover other Number of staff in parts department = Parts turnover per person in parts department

70. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 70 BMW Group Thailand FCS Throughput Regular Customers External and Warranty Customers throughput With at least one history throughput within the past15 month. (including PMP customers)

71. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 71 BMW Group Thailand FCS Regular Customers on file which are own sale External and Warranty Customers Only those customers from two history records within 15 month are sold by the same dealer ship.

72. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 72 BMW Group Thailand Time Analysis Setup of Workshop Calendar 1 Public Holiday 24 Paid days

73. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 73 BMW Group Thailand Time Analysis Key figures (Efficiency/Productivity)

74. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 74 BMW Group Thailand Time Analysis Key figures (W-Fixed)

75. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 75 BMW Group Thailand Time Analysis Key figures (W-Variable)

76. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 76 BMW Group Thailand Time Analysis Key figures (FRU/Vehicle/Year)

77. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 77 BMW Group Thailand Time Analysis Key figures (Retention Rate)

78. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 78 BMW Group Thailand Time Analysis Key figures (Annual visits)

79. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 79 BMW Group Thailand Time Analysis Key figures (Ratio ind prod / prod)

80. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 80 BMW Group Thailand Time Analysis Key figures (FRU/MU/Year)

81. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 81 BMW Group Thailand Time Analysis Key figures (MU Utilization)

82. BMW Thailand V5-JT-1/ Ingo Reitz Seminar Service Manager Feb. 2003 Page 82 BMW Group Thailand Time Analysis Key figures (WB Utilization)