How To Avoid Physical Parts Inventory Nightmares - DealersEdge
How To Avoid Physical Parts Inventory Nightmares - DealersEdge How To Avoid Physical Parts Inventory Nightmares - DealersEdge
fill to technicians, on demand, in the service department. This guideline varies a bit, but thebasic formula is:Flagged or billed Flat Rate Hours (varies by month)Clock Hours for the TechniciansThe goal is to exceed 100% (125+% is achievable). Other factors such as stalls/technicianratios can also affect this guide. Parts availability, the availability of customers and the space torepair the vehicles all play a role in this most important measurement.[SERVICE PROFICIENCY IS A PRIME NUMBER FOR EVALUATION]Note: Other measurements can be added to the checklist as the dealership becomes moreskilled in the measurement process. The most important thing is to realize that one month is a‘Polaroid’ snapshot of a horse race. The monthly checklist, while valuable, only tells us wherewe are right now. When the monthly data is taken and trended on an Excel spreadsheet, thedirection of the trend is infinitely more important than a single month.When we deal in generalities we will never succeed.When we deal is specifics we will seldom fail.Where performance is measured, performance improves.Where performance is measured and reported, the rateOf improvement accelerates.Thomas Monson11
Monthly Parts Inventory ReconciliationMonth____________________________ Date_________________________________1. Dollar Value per DMS (replacement Value) $_________________2. Dollar value of non-computer controlled parts $_________________3. Dollar value of parts on Repair Orders $_________________4. Dollar value of core charges (DMS system) $_________________5. Dollar value of defective core charges $_________________6. Dollar value of damaged parts claims $_________________7. Dollar value of pending credits (returns, cores, etc.) $_________________8. Adjusted dollar value of parts department Inventory $_________________9. Dollar value of general ledger (actual case value) $_________________10. Dollar value of appreciation/depreciation due toprice changes$_________________11. Dollar value of handling charges, C.O.D., specialdiscounts, etc.$_________________12. Negative on hand and plus/minus adjustments $_________________13. Items invoiced not received, dollar amount ofunrecorded payables, etc.$_________________14. Dollar amount of accounts payable reconciling items $_________________15. Adjusted dollar value of parts general ledgerinventory$_________________16. Dollar value of parts difference – Over+/(Short) $_________________17. Revised dollar value of parts general ledger inventory $_________________In practice, Line 8 should equal line 15 or be within +/- 2%
- Page 1 and 2: How To Avoid Physical PartsInventor
- Page 3 and 4: Mark Payne Presents:HOW TO AVOIDPHY
- Page 5 and 6: WHY DO WEDREAD IT?• What do I do?
- Page 7 and 8: Create Your Strategy• Identify yo
- Page 9 and 10: Samples of Pre-Inventory Checklists
- Page 11 and 12: Print Count Sheets2302
- Page 13 and 14: Print Count Sheets INS
- Page 15 and 16: Samples of Pre-Inventory Checklists
- Page 17 and 18: Samples of Pre-Inventory Checklists
- Page 19 and 20: Samples of Pre-Inventory Checklists
- Page 21 and 22: Value by Source PH7
- Page 23 and 24: Samples of Pre-Inventory Checklists
- Page 25 and 26: Phase 2… The Inventory• Establi
- Page 27 and 28: Is Outsourcing My PhysicalInventory
- Page 29 and 30: Closing Comments andQuestionsThank
- Page 31 and 32: MONTHDEALERSHIPDATEThis checklist i
- Page 33 and 34: INTERPRETIVE KEY TO v. 2010 MONTHLY
- Page 35 and 36: 9. Gross Profit Margin is expressed
- Page 37 and 38: 18. True Turn [A PRIME NUMBER FOR E
- Page 39 and 40: 27. Emergency Purchases or Receipts
- Page 41: 1. The parts department does not ha
fill to technicians, on demand, in the service department. This guideline varies a bit, but thebasic formula is:Flagged or billed Flat Rate Hours (varies by month)Clock Hours for the TechniciansThe goal is to exceed 100% (125+% is achievable). Other factors such as stalls/technicianratios can also affect this guide. <strong>Parts</strong> availability, the availability of customers and the space torepair the vehicles all play a role in this most important measurement.[SERVICE PROFICIENCY IS A PRIME NUMBER FOR EVALUATION]Note: Other measurements can be added to the checklist as the dealership becomes moreskilled in the measurement process. The most important thing is to realize that one month is a‘Polaroid’ snapshot of a horse race. The monthly checklist, while valuable, only tells us wherewe are right now. When the monthly data is taken and trended on an Excel spreadsheet, thedirection of the trend is infinitely more important than a single month.When we deal in generalities we will never succeed.When we deal is specifics we will seldom fail.Where performance is measured, performance improves.Where performance is measured and reported, the rateOf improvement accelerates.Thomas Monson11