make20 mcq qustions withs this contant (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:
Calculations determining the number of technicians may vary 
from country to country, as some use a ratio or percentage for 
apprentice technicians.
Total technician hours available x Current overall productivity (%)
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.
Case 1 – Direct Reporting Management Flow
Direct Dispatch Production Flow
Case 1 – Direct Reporting Management Flow
General Application
Suitable for small dealerships.
Advantages Disadvantages
Direct control and knowledge of all
operations.
Too difficult to control beyond a 
certain size.
Communication level within 
department is enhanced.
May be too dependent on a single
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
❖ Suitable for small to medium dealerships.
General Application
Advantages Disadvantages
One central control point for job 
flow
If productive staff exceed 14 
Technicians, job flow and control can 
be difficult for one Controller.
Improved time management 
control
Communication difficulties between
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
Case 3 – Management Flow Production 
Teams/Dispatch Operation Lateral Support Groups
Production Team or Lateral Support Team Flow
Case 3 – Management Flow Production 
Teams/Dispatch Operation Lateral Support Groups
Production Teams Dispatch Flow
Case 3 – Management Flow Production 
Teams/Dispatch Operation Lateral Support Groups
❖ 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

Advantages Disadvantages
Promotes communication within the
workgroup.
Difficult to implement because of 
possible changes in pay plans.
Gives closer supervisory support. Requires compatibility between 
coworkers.
Natural process for training and
promotions.
Major reorganization may cause
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
❖ PaidHours =Normal AttendanceHours +Over TimeHours
❖ Paid Hours = C Hours + H Hours + W1 + W2
❖ C Hours : Productive working hours spent on customer
, including warranty hours.
❖ H Hours : in-house orders (like dealer transporting
vehicle repair , PDI (pre-delivery inspection new cars),
demonstration cars.
orders
❖ 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.)