Precision Coachworks Business Plan — Key Performance Indicators
The cycle time, utilisation, estimate accuracy and rework indicators reported weekly, 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 Structure
- 3. Accreditation and Compliance
- 4. How a Panel Shop Actually Makes Money
- 5. SWOT and Competitive Position
- 6. Operations and the Capacity 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 Capacity Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
The following are the operating measures on which this business should be managed. Four of them — key-to-key cycle time by stage, utilisation against the binding constraint, rework rate by technician and debtor days by insurer — are reported weekly rather than monthly, and they are the same four metrics insurers monitor when they assess a panel listing.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Key-to-key cycle time by stage |
Days from vehicle in to vehicle released, broken down by assessment, parts, strip, panel, paint, assembly and quality control |
9.0 days by Year 5 |
The most valuable lever in the business. From 13.0 to 9.0 days adds 258 vehicles and R3562475 of EBITDA on identical capital |
|
Floor and booth utilisation |
Vehicles repaired divided by the binding capacity constraint |
81% by Year 5 |
The floor binds in every year of this plan; below about 8.5 days the booth becomes the constraint |
|
Debtor days by insurer |
Trade receivables divided by revenue times 365, tracked per insurer |
Below 52 days |
R4175529 is tied up in the Year 5 debtor book — more than the second spray booth cost |
|
Rework rate by technician |
Rework hours divided by production hours, tracked by technician and job type |
Below the 2.2% provision |
Insurers monitor it. Comebacks cost cycle time twice: once on the rework and once on the reputation |
|
Estimate accuracy |
Final invoice divided by first estimate |
Within tolerance |
Supplementary claims are the single largest source of delay. Strip-and-assess-early is what controls it |
|
Average repair value |
Revenue divided by vehicles repaired |
About R35 000 |
Driven by the structural to non-structural mix and the share of manufacturer-approved warranty work |
|
Non-insurer share of volume |
Private and fleet vehicles divided by total |
About 16% at maturity |
At premium rates. The margin defence against insurer rate pressure |
|
Parts gross margin |
Parts gross profit divided by parts revenue |
23% |
The variable management controls least. A six-point compression costs R914460 of Year 5 EBITDA |
|
Debt service cover |
EBITDA divided by interest and capital |
Above 1.30x from Year 3 |
No principal falls before Year 4 under the three-year moratorium |
|
Accreditation currency |
SAMBRA grading, insurer listings and manufacturer approvals current |
100% |
A two-year Bureau Veritas certification cycle. A lapsed grading closes the panels |