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Flat Rate / Commission Tracking
Hello, I was wondering what the easiest way to track mechanic commission times. Our program tracks tech time vs. billed time but sometimes the mechanics don’t finish a particular job that work week. We pay the tech what he has in the job for that week and carry the remaining time over into the next work week. Is this something we should not do and wait to pay them until the job is complete? We currently use Excel to track the time they have in the job, the labor time billed for the job vs. the hours they have left to complete that job if it is not done in the work week. Any insight would be extremely helpful!
Thanks so much!
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12 Replies
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Easiest way to track is with management software that does it fully.
Always pay the techs for what they have completed so far as much as you possibly can.
Can you post a math example of what you are referring to? I’m not sure I understand it.
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What we do is this . . . just an example. We use notebooks for them to write their time down everyday then they fill out the work order with what they did and what they used. They turn their books into me on Friday morning, they turn their work orders in after they finish each job.
Tech A:
09/05/17
8:00-10:00 – RO#15489
10:00-12:00 – RO#15492
1:00-4:00 – RO#15492
4:00-5:00 – RO#15492#15489 calls for 3 hours – tech did it in 2
#15492 calls for 12 hours – tech has 8 in it this weekRemaining 4 hours will be put on next weeks check but tech goes over next week by 2 hours so he still only gets the 4 remaining hours the job calls for because there were no problems tech just took too long.
How can I show my techs if they are over or under on the hours so I can show them if they are making money or loosing money with what they are doing. I use Excel – I put the date, their time and each work order number they have listed. Then I go through what work orders they turned in that are completed check their time vs. billed time and list out to the side what they had in it, what the billed time is and how much they are over or under. I then look at what’s not completed and do the same thing. I figure all that out, print it out and give a copy to the guys in their paycheck.
I only have 2 technicians that I do this for, I start around 8:30 and I usually don’t finish until 11:00 or so, it just seems like it takes way to long and it has to be an easier way.
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The cost of upgrading your software will likely by offset just by the time you and your techs can spend making money instead of the time wasted now doing the paperwork and math. Nothing wrong with the concept of your system, but the result you want can occur with a few mouse clicks with good software. Go the the software demos page on this site – lots of companies to check out. Good luck!
Demos
https://www.automotivemanagementnetwork.com/demos/software-demos/
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Thank you Tom. I will definitely check these out!! I appreciate all your help.
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With our software there are 2 parts. Each labor item (multiple labor items per RO), would have the billing time, and the actual time. The actual time can be derived from the labor logger that logs each techs hours that works on that item. A tech can login and out multiple times by clicking on a button, so if he takes a break or goes to work on something else it is tracking the time exactly. He does have to push the button.
On the RO screen there are ‘lights’ that show how close the billed time is to the actual time spent on the job. This lets you warn the techs that they are out of time or running out of time.
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rayrippey – What software do you use? Our software doesn’t have any features like that, sounds like something that might work for our guys. They are always so worried about how much money they are making and if they are over billed time instead of focusing on the job. I’d like to look into the software you have.
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OH, and another problem I have is with the guys keeping track of what they use. I understand it is the service manager’s job to over see what they techs need and what is ordered for the cars but for an example, say during a service the coolant needs to be filled and they use a gallon of coolant to top it off. Obviously that gallon of coolant should be charged for instead of charging it in the shop supply charge, but if the tech doesn’t write down that he used that gallon of coolant, how is the service advisor supposed to know to charge for it? And there our company just lost $8 for a gallon of coolant!
The system we have used to work well but with a new group of techs and the younger generation that they are, the ways we have in place just don’t seem to work anymore for them. Seems like it’s too hard for them to understand that they have to give us their time they are on a job and the materials that they use. It’s like we have to spell out everything to them instead of them using a little of their brain!
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If there is anything at all that you want the techs to handle when the car is completed, put it on a checklist. Ideally, the checklist is a job kit/canned job in your software that is applied to every RO every time. Tech does not get next car until checklist is done. In some software the checklist can be mandatory, so if all lines are not checked off, the RO does not move to the “work completed” status. One line says: “Any additional parts used?” Another line says: “Any parts that were on RO NOT used?” If no, that line is done. If yes, a field opens to record details. You can have one list for the tech and another for the shop foreman who does the final quality check. It will work if you make it non-optional – period, end of story. Techs can suggest editing, come up with ideas, etc., but list must be done.
Software is the most important piece of equipment in a shop. It is the center of the hub with all spokes going out from it. Great software – if fully utilized – can massively change the efficiency in a shop.
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That is also a wonderful idea Tom! But which software has those capabilities. The software we have now has no options like Ray or yourself is mentioning to me. I looked through a few of the options you listed the link to before but I didn’t see either of those options you all speak of with the software listed!
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I am the programmer for VMT Software. We make Digital Wrench. Sorry but my signature on the forum didn’t work yesterday. You can download a demo and try it out.
Of course we can’t make your technicians enter the information, but perhaps make it easier, so maybe then they will keep track better. For tracking time it doesn’t get much easier than pushing a button.
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QuickTrac Software is a patented product designed specifically to resolve your issues. It is a quick and easy way to know the status of every job in the shop in real time. It automatically deducts work as the tech finishes it with a simple click. It updates and shows the progress of every job that is sold, what is dispatched, what is completed and how the shop and each employee is doing towards reaching their goals on an easy to understand dashboard. Users report an immediate improvement in productivity and shop moral.
Got to http://www.quicktracsw.com to learn more. I would be happy to do an online demo for you. larry@quicktracsw.com
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Use a management software program like Mitchell manager SE. With two clicks of a button you will have the information you need to pay your text accordingly. The cost of the software will be more than recouped not only in time saved on this task but on other tasks as well. Using the right tool to do the job will make you money every time.
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