Tame the Beast! Change Your Work in Process from a Headache to a Cash Cow-Tame the Beast! Change Your Work in Process from a Headache to a Cash Cow

Video Transcription

Video Summary

In this webinar, the speaker discusses the concept of working process (WIP) in service shops and factories and why it is important to manage it effectively. WIP refers to the value of parts and service labor that has been applied to open work orders that are yet to be closed. The speaker emphasizes that a high level of WIP is not necessarily bad, as it may indicate a high level of sales and business. However, it becomes a problem when work orders remain open even after the work is completed. This happens due to various reasons such as the service manager's need for accuracy and reviewing work orders before closing them, waiting for outside invoices, waiting for write-ups from technicians, and waiting for parts to be posted. <br />To address these challenges, the speaker suggests implementing standard charge billing, where work orders are billed based on a standard number of hours rather than the actual time taken. This helps streamline the billing process and ensures consistency. The speaker also highlights the importance of communication and teamwork among different departments, such as service, parts, and accounting, to ensure timely closure of work orders. Additionally, the speaker recommends measuring and monitoring WIP regularly and setting goals to reduce the number of days it takes to close work orders. By effectively managing WIP, businesses can improve cash flow, profitability, and customer satisfaction.

Keywords

working process

WIP

open work orders

service manager

standard charge billing

communication

timely closure

customer satisfaction