Defining the optimal set of performance metrics for a car shop

This case explores the operating model of an auto repair shop to identify where, within standard workflows, a shop can lose or earn additional margin. We developed a system of interdependent metrics that explain fluctuations in revenue and profit and trace them back to their root causes. While shop management must collect and analyze this data, owners can still assess the "health" of the business remotely and understand deviations from the norm. For illustration, we provide 2024 benchmark figures for California.