Torque Precision Auto Business Plan — Appendix E: Glossary
Glossary of workshop, book-hour, accreditation and financial terms used throughout the Torque Precision Auto business plan.
Appendix E: Glossary
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
|
Term |
Meaning |
|---|---|
|
Book hours |
The standardised time a job should take, quoted from repair-time databases and invoiced regardless of how long the technician actually takes. What the workshop sells. |
|
Clock hours |
The hours a technician is present and paid. What the workshop buys. 1 960 a bay a year in this plan. |
|
Bay utilisation |
Booked clock hours as a share of available clock hours. A diary outcome driven by marketing, reputation and fleet contracts. 46% in Year 1, 81% by Year 5. |
|
Efficiency against book time |
Book hours invoiced divided by clock hours worked on jobs. A technician who beats book time runs above 100%. 90% in Year 1, 110% by Year 5. |
|
Effective labour rate |
Labour revenue divided by book hours invoiced — the rate actually collected after goodwill, quote variance and rework. R739 against a posted R795. |
|
Discount leakage |
The gap between posted and effective rate, 7% in the plan. Invisible on the price list; drifting to 13% costs R833 032 of Year 5 EBITDA. |
|
Guidelines for Competition in the South African Automotive Aftermarket |
Non-binding guidance published by the Competition Commission in December 2020 and effective from 1 July 2021, releasing in-warranty servicing to independents and requiring manufacturer data access. |
|
MIBCO |
The Motor Industry Bargaining Council, which sets wages, provident fund, leave and sick pay for the sector collectively. |
|
merSETA |
The Manufacturing, Engineering and Related Services SETA, through which apprentices are registered against the motor mechanic qualification. |
|
Parts attachment ratio |
Parts revenue divided by labour revenue. Measured as a ratio rather than a target, because chasing parts turnover without filling bays buys revenue rather than profit. |
|
RMI and MIWA |
The Retail Motor Industry Organisation and its largest association, the Motor Industry Workshop Association, representing more than 2 500 accredited workshops. Membership with a star grading is the visible mark of an accredited independent. |
|
Section 20 limitation |
The South African rule capping the set-off of assessed losses at the higher of R1 million or 80% of taxable income in any year. |
Torque Precision Auto (Pty) Ltd · Business Plan and Investment Proposal · August 2026 · Strictly Confidential