Service Center Management System

Dr.
Walid Abdelghaffar
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 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 dealership’s 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.
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.
Example Survey of Parked Vehicles

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.
Survey Movement of Staff & Vehicles
Use this survey to identify
the causes of bottlenecks
and delays, develop
countermeasures to
improve the overall
efficiency.

Cashier
The cashier should be located 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

Operating Standards
Service:
 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.

Standards
Operating Standards
Service:
 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.
Operating Standards
Service:
 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).

Operating Standards
Service:
 The service shop should have adequate ventilation
which may include some form of powered exhaust
system.
 There should be a 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.
Operating Standards
Parts:
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

Operating Standards
Parts:
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.

Capacity Standards
Service:
 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 dealer should provide adequate customer parking

stalls to meet market demands.

General Customer Service
Area Design
Signs:
Around Entrance
Service sign on rooftop
Service reception directional sign
Stop sign
Signs painted on road surface
Speed limit signs
Entrance sign (Welcome)
Employees only signs
Hours of operation

Area Design
Signs:
Service Reception
Service reception hanging sign
Standard charges sign
Signs promoting periodic inspection
Service reception counter signs
Cashier counter sign
Customer lounge sign
Directional sign for rest room

Area Design
Signs:
Parts Department
Parts Delivery Counter Sign
Parts Cashier Counter Sign
Parts Department
Genuine Parts Sign
Parts Promotion Campaign Sign

Signs:
Area Design
Inside Service Shop
Stall number signs
“Engine Repair” sign
“Electrical Repair” sign
“Safety First” sign
“Fire Extinguisher”, “No Smoking”, “Danger” signs
Self-standing “Employees Only” sign
“Handle with Care” sign

Signs:
Area Design
 These signs should have a standard design and color
scheme
 In addition to helping control traffic flow and acting as
directional indicators, signs should promote service shop
safety standards.

Service Reception
A list of service charges must be displayed clearly at the
reception counter.
Traffic flow should be designed to minimize bottlenecks
and traffic congestion.
Where possible, traffic flow should be one-directional to
reduce the chance of collisions.

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
Service shop should be zoned for efficient operations
with periodic maintenance bays close to the service shop
control area and parts counter, and with general repair
bays located close to the unit repair and SST rooms to
reduce unnecessary technician movement.
Periodic maintenance stalls should be fully equipped

with the tools and equipment required to carry out
periodic maintenance in an efficient manner: SSTs for
periodic maintenance, overhead oil, water, air supplies,
sufficient lighting.

Service Shop
Efficient Stall Layout

Service Shop
Efficient Toolstand
Employee facilities—lunch rooms, 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. 27 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, Dealer

Commendations
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

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

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.

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

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.

Case 1 –

Case 1 –
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.
 Also 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 dealerships 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 –
Production Team or Lateral Support Team Flow

Case 3 –
Production Teams Dispatch Flow

Case 3 –
 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 principle 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

Dr. Walid Abdelghaffar

Service Center Management System

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3 Dr. Walid Abdelghaffar

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

 If a dealership’s average work-mix is 60% periodic maintenance and

Minimize Staff and Vehicle Movements

7 Dr. Walid Abdelghaffar

8 Dr. Walid Abdelghaffar

Security measures such as barriers or partitions should be

9 Dr. Walid Abdelghaffar

10 Dr. Walid Abdelghaffar

12 Dr. Walid Abdelghaffar

14 Dr. Walid Abdelghaffar

A special order parts bin (for dealer non-stock) parts

15 Dr. Walid Abdelghaffar

 Each parking stall should be about 3 m x 6 m, with a

 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

 The dealer should provide adequate customer parking

16 Dr. Walid Abdelghaffar

Service sign on rooftop

Service reception directional sign

Signs painted on road surface

Speed limit signs

Entrance sign (Welcome)

Employees only signs

17 Dr. Walid Abdelghaffar

Service reception hanging sign

Standard charges sign

Signs promoting periodic inspection

Service reception counter signs

Cashier counter sign

Customer lounge sign

Directional sign for rest room

18 Dr. Walid Abdelghaffar

Parts Delivery Counter Sign

Parts Cashier Counter Sign

Genuine Parts Sign

Parts Promotion Campaign Sign

19 Dr. Walid Abdelghaffar

Stall number signs

“Engine Repair” sign

“Electrical Repair” sign

“Safety First” sign

“Fire Extinguisher”, “No Smoking”, “Danger” signs

Self-standing “Employees Only” sign

“Handle with Care” sign

20 Dr. Walid Abdelghaffar

21 Dr. Walid Abdelghaffar

Traffic flow should be designed to minimize bottlenecks

and traffic congestion.

Where possible, traffic flow should be one-directional to

reduce the chance of collisions.

22 Dr. Walid Abdelghaffar

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

23 Dr. Walid Abdelghaffar

Periodic maintenance stalls should be fully equipped

24 Dr. Walid Abdelghaffar

25 Dr. Walid Abdelghaffar

Employee facilities—lunch rooms, training rooms, changing rooms

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

28 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