Precision Coachworks Business Plan — Management and Governance
The team at maturity, why estimating and workflow control decide the outcome, and the governance an accredited repairer must demonstrate.
Management and Governance
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
|
Role |
Number at maturity |
Responsibility |
Timing |
|---|---|---|---|
|
Managing director |
1 |
Strategy, funding, insurer and manufacturer relationships, accreditation |
From inception |
|
Production manager |
1 |
Workflow, cycle time by stage, quality control, capacity planning |
Month 1 — the hire that determines whether the plan works |
|
Estimators |
3 |
Assessment liaison, estimates, supplementary authorisations, parts ordering |
From opening; the role that most directly controls cycle time |
|
Qualified panel beaters and spray painters |
14 |
Strip, panel, prep, paint and assembly |
Phased with floor positions |
|
Apprentices |
4 |
Assisted production under supervision |
From Year 2, against the occupational qualifications |
|
Parts controller |
1 |
Supplier terms, ordering discipline, stocked consumables |
Year 2 |
|
Quality controller and debtors clerk |
2 |
Pre-release inspection; insurer invoicing and settlement follow-up |
From Year 1 |
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Overhead, R |
3 671 000 |
4 261 000 |
6 294 000 |
6 975 000 |
7 470 000 |
|
Overhead as a share of revenue |
76.5% |
44.7% |
34.3% |
27.8% |
25.5% |
|
Gross profit, R |
1 895 000 |
3 761 000 |
7 243 000 |
9 890 000 |
11 571 000 |
|
Gross profit as a multiple of overhead |
0.52x |
0.88x |
1.15x |
1.42x |
1.55x |
|
Revenue per floor position, R |
300 000 |
476 250 |
573 313 |
695 833 |
771 289 |
Overhead falls from 76 per cent of revenue in Year 1 to 25 per cent by Year 5, and gross profit moves from 0.52 times overhead to 1.55 times. Revenue per floor position rises from R300 000 to R771 289. That is the operating leverage the whole plan depends on, and it comes from throughput absorbing a cost base that was already carried.
Four numbers govern this business and should be reported weekly: key-to-key cycle time broken down by stage, booth and floor utilisation, rework rate by technician, and debtor days by insurer. A shop that reports only monthly turnover will discover a cycle-time problem two months after it starts costing money.