How it is computed
Add the flagged (billed) hours for the period. Divide by the count of repair orders in the same period. Run it for customer-pay repair orders on their own, because a warranty-heavy month moves the blended number for reasons the advisor did not cause.
Why it matters
It moves before the gross does. An advisor who starts walking the car, presenting the inspection, and asking for the work will show it in hours per RO weeks before it shows in labor sales.
It is the capacity question in one number. A shop that cannot add technicians or stalls can still grow by selling more hours on the cars already in the drive.
How operators read it
- Read it by advisor with the repair-order count beside it. A high figure on a handful of tickets is a small sample; a steady figure on a heavy load is a skill.
- Separate customer pay from warranty and internal. Warranty hours are set by the manufacturer's time guide; customer-pay hours are what the advisor sold.
- Pair it with effective labor rate. More hours at a falling rate can mean the desk is discounting to sell the work; the two have to move together.
Questions people ask
What is a good hours per RO?
It depends on the franchise, the mix of maintenance and repair, and the age of the vehicles in the drive, so compare an advisor to the advisor at the next desk and to their own last quarter before comparing to anyone outside the building.
Does a multi-point inspection raise hours per RO?
A presented inspection does. An inspection that is performed and never presented to the customer raises the technician's workload and nothing else.
How A.D.A.M. reads it
A.D.A.M. computes hours per repair order by advisor from the repair-order detail, rounded to one decimal, and reads it beside gross per RO, effective labor rate, and customer-pay mix. He reads it beside the numbers it trades against, names what the gap is worth, and leaves the decision where it belongs. What an AI advisor should do, and refuse to do.