Torque Precision Auto Business Plan — Key Performance Indicators
The three ratios reported weekly — bay utilisation, technician efficiency and effective labour rate — with targets and why each matters.
Key Performance Indicators
Jump to section
- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market and Opportunity
- 3. How a Workshop Actually Makes Money
- 4. Accreditation and Compliance
- 5. SWOT and Competitive Position
- 6. Operations and the Bay Build
- 7. Route to Market
- 8. Management and Governance
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Sensitivity and Scenario Analysis
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital and Operating Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
The following are the operating measures on which this business should be managed. Three of them — bay utilisation, technician efficiency against book time and effective labour rate — carry more information about whether the plan is holding than any revenue figure, and they are reported weekly rather than monthly.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Bay utilisation |
Booked clock hours divided by available clock hours |
81% by Year 5 |
A function of marketing, reputation and fleet contracts, not of technician skill. Reported weekly |
|
Technician efficiency against book time |
Book hours invoiced divided by clock hours worked on jobs |
110% by Year 5 |
The lever most dependent on people. The difference between 104% and 117% is R1526018 of Year 5 EBITDA |
|
Effective labour rate after leakage |
Labour revenue divided by book hours invoiced |
R739 against a posted R795 |
Managed by the service manager, not the price list. Leakage from 7% to 13% costs R833032 |
|
Book hours sold as a share of clock hours paid |
Book hours divided by clock hours |
89% by Year 5 |
The three ratios compounded. 41% in Year 1 |
|
Labour gross margin |
Labour gross profit divided by labour revenue |
66% |
Where the profit is. Parts run at 27% |
|
Parts attachment ratio |
Parts revenue divided by labour revenue |
1.14 by Year 5 |
Measured as a ratio to labour, not as a target in its own right |
|
Rework rate |
Rework hours divided by book hours |
Below 1.2% of labour revenue |
Tracked by technician. Comebacks destroy both margin and reputation |
|
Fleet and contracted share of book hours |
Contracted book hours divided by total |
Around 20% at maturity |
Contracted work stabilises the diary and drives the exit multiple |
|
Debt service cover |
EBITDA divided by interest and capital |
Above 1.30x from Year 3 |
No principal falls before Year 3 under the two-year moratorium |
|
Debtor days |
Trade receivables divided by revenue times 365 |
Below 18 days |
Retail pays on collection; fleet and insurer accounts pay on terms |