Normal mechanic hours are posted directly to work orders and reflect the actual working time of the mechanic. But mechanics also spend time working on indirect jobs that aren't necessarily billed to work orders. Such tasks include time spent running for parts, cleaning the bay, and road testing among other things. Tracking indirect labor keeps you informed on where time is spent when mechanics aren't working on vehicles. This data can be very useful and should be taken into consideration when evaluating the shop or flat labor rate.
The Setup:
The only thing that needs to be done is to review the Indirect Labor Codes in System Codes and make changes as needed (SSY). Refer to "Indirect Labor Codes."
The Procedure:
NOTE: If you're using Paperless Shop, refer to the Paperless Shop User's Manual for instructions on tracking indirect labor hours.
To record or edit the time spent working on indirect tasks, do the following:
When in the add mode, the hours entered are added to the existing weekly hours shown on the screen. When in the edit mode, the hours entered replace the existing hours.
The Indirect Labor report shows the amount of time spent working on indirect jobs, direct jobs (time posted to work orders), and the indirect/direct hours ratio (the percentage of time spent on non-vehicle related tasks). This information is provided for the current week, current month, and last month. To print a mechanic productivity report, do the following: