Table of Contents

 Chapter 1:KPI concepts

1-1. KPI concepts................................................................................................................................................ 6
1-2. Relationship between raw data list and KPI................................................................................................. 7
1-3. Raw Data List .............................................................................................................................................. 8

 Chapter 2:Dealer KPI definitions

2-1. Market
NVS (New Vehicles Sold) ..........................................................................................................................20
UIO (Units In Operation) ............................................................................................................................21
2-2. Foundations
Availability..................................................................................................................................................23
Dealer staff certification rate......................................................................................................................25
Rate of workshops with certified dealer staff .............................................................................................27
TSM-FIR certification rate .........................................................................................................................29
B&P TSM Basic certification rate ..............................................................................................................30
Waterborne paint introduction rate ............................................................................................................31
Turnover rate .............................................................................................................................................32
ESI (Employee Satisfaction Index) ............................................................................................................33
2-3. Activities
Technician and B&P technician productivity .............................................................................................34
Technician efficiency .................................................................................................................................36
Labor utilization .........................................................................................................................................37
Overall productivity....................................................................................................................................38
On-time delivery rate .................................................................................................................................39
ROFR (Repair Order Fill Rate) .................................................................................................................40
Fix-It-Right rate..........................................................................................................................................41
B&P repeat repair rate ..............................................................................................................................43
DTR (Dealer Technical Report) .................................................................................................................44
Completion rate of SSCs (Special Service Campaigns) ...........................................................................45
Maintenance reminder activities ...............................................................................................................46
Appointment rate ......................................................................................................................................48
UIO penetration for major maintenance products by type .....................................................................49
Service product penetration rate ...............................................................................................................50
Insurance contract rate ..............................................................................................................................51

2
2-4. Results
CPUS/BPUS (Customer Paid Units Serviced/B&P Customer Paid Units Serviced) ................................. 52
CRt (Customer Retention) rate ................................................................................................................. 54
Service market share ................................................................................................................................ 57
B&P service market share ........................................................................................................................ 58
Number of customers ............................................................................................................................... 59
VIN CRt ..................................................................................................................................................... 60
CPS/BPS (Customer Paid Sales/B&P Customer Paid Sales) ................................................................. 62
Accessory sales per new vehicle .............................................................................................................. 64
Service gross profit rate ............................................................................................................................ 65
B&P gross profit rate................................................................................................................................. 67
Service absorption rate ............................................................................................................................. 69
CSI ................................................................................................................................................................... 71
Brand loyalty ............................................................................................................................................. 73
Service NPS (Net Promoter Score) .......................................................................................................... 74

 Chapter 3:Distributor KPI definitions

3-1.Foundations
Number of distributor instructors ............................................................................................................... 78
Number of technicians per instructor ........................................................................................................ 79
3-2. Activities
FTR (Field Technical Report).................................................................................................................... 80
TWC (Toyota Warranty Claims) travel time (Over 50-days rate) ............................................................ 81
TWC error rate.......................................................................................................................................... 82
Allocation Fill Rate .................................................................................................................................... 83
Stock months ............................................................................................................................................ 84
Response Rate (CAC*): Inquiry Handling ................................................................................................ 85
Customer Complaint Rate (Quality, Service, Sales): Complaint Handling............................................... 86
Fact Confirmation Rate: Complaint Handling ........................................................................................... 87
Rate of Resolution within 30 Days: Complaint Handling .......................................................................... 88
Customer Complaint Satisfaction: Complaint Handling............................................................................ 89
Repeat Contact Rate: Complaint Handling ............................................................................................... 90

 Appendix:
A1: Calculating labor hours sold ............................................................................................................... 92
A2: Calculating actual hours worked ........................................................................................................ 94
A3: Calculating annual average number of times serviced....................................................................... 95
A4: Diagrams ............................................................................................................................................ 96

List of KPI ......................................................................................................................................................... 100

3
 Purpose of this Guidebook

• Provide a guidebook that explains how to define and analyze the KPI which are necessary to create
service policies and evaluate initiatives in each country.
• Have the Distributor service managers and field managers (especially those newly-appointed) use
this guidebook together with the KPI Utilization Guide as a tool to deepen their understanding of KPI;
and support both Distributor guidance of dealer kaizen, as well as independent kaizen by
dealers.

4
 Chapter 1:
KPI concepts
 1-1. KPI concepts

The KPI tree is composed of the following KPI, which are used to realize the ideal state. Refer the KPI tree
shown below to consider your distributor's KPI tree.
(1) Evaluate the distributor organization and activities that support dealer activities
(2) Evaluate dealer organization, training and dealer operation (providing accurate and caring
service)
(3) Evaluate CS and CRt (achieving the satisfaction and trust of each customer)
(4) Evaluate increase of the number of loyal customers (as a result, increase the number of units
serviced, sales and profit)
Each KPI definition is organized as follows (with some exceptions): "Overview (details and meaning
shown by KPI)", "Calculation method (KPI denominator/numerator)", "Examples (a theoretical
situation is created to simulate the calculation method of the actual numbers)", "Description (specific
phenomenon that can be ascertained from the numerical size or trends used to evaluate the
results)"
Contribute to
building a stable Service profit
business foundation

Create more Toyota

brand advocates Loyal customers* Result KPI
Achieve the
satisfaction and
trust of each CS CRt
customer

Service activity KPI

DLR operations (delivery due date, quality,
maintenance reminders)
Provide accurate
and caring service

DLR organization/training Foundation KPI

Dist activities Activities

Dist organization Foundations

Please refer to "Service KPI Guidebook-Analysis for management" for an example of a tree based on
these concepts.

*How are "loyal customers" defined?

There are various indicators to define for loyal customers. The representative indicators are shown
below. It is crucial to define your distributor's loyal customers by considering these indicators.
Number and rate of
Intention to recommend
customers serviced within Repeat sales rate
Toyota to others
the past 12 months*

* The definition of a loyal customer is based on how many times a year they visit the dealer for service, but this
number varies according to the country.

6
1-2. Relationship between raw data list and KPI

Raw data
Raw data are the factors used to calculate KPI. In order to calculate KPI, it is first necessary to collect this
raw data.
In order to grasp which raw data is needed to calculate which KPI, section 1-3 provides a list of raw data.
The relationship between the raw data list and KPI is shown below.

7
 1-3. Raw Data List

 Market Data
KPI Where Utilized
NO. Raw Data Definition
Category KPI Page
NVS (New
Market P20
Vehicles Sold)
Service product
NVS (New Activities P50
1 penetration rate
Vehicles Sold) Toyota new vehicles sold
Activities Insurance contract rate P51
Accessory sales per
Results P64
new vehicle

Of the Toyota vehicles sold by authorized UIO (Units In

Market P21
dealers in the past, the total number Operation)
which are still in operation in the market
CRt rate (customers
There are three main methods of who visited a dealer
calculating UIO: Results P54
within the past 12
months)
Method 1:
Use the data for number of registered
UIO (Units in vehicles provided by a government
2 Operation) Results CRt rate (CPUS/UIO) P54
agency

Method 2:
Calculate the remaining rate for each Results Service market share P57
model year to calculate the total UIO

Method 3:
Use the number of new vehicles sold B&P service market
Results P58
share
for a preset number of years

CRt rate by vehicle

3 UIO by model year UIO broken down by model year Results
age
P54

8
 Foundation Data
KPI Where Utilized
NO. Raw Data Definition
Category KPI Page

Number of instructors employed by the Number of distributor

Foundations P78
distributor, calculated as the total of instructors
Number of distributor
4 instructors
TSA21, TEAM21, B&P TEAM, B&P
Estimation, B&P TSM instructors and Parts Number of technicians
Kaizen Promoters Foundations P79
per instructor

The number of personnel involved in

providing service to customers.
5 Total service personnel Please refer to the "Service personnel
Foundations Turnover rate P32
diagram"
Foundations Technician availability P23
Technician
Foundations P25
Certification Rate
General service Number of technicians working in general
6 technicians service No. of units serviced
Foundations P34
per technician
Number of technicians
Foundations P79
per instructor
Number of TEAM21 certified technicians,
calculated as the total of Toyota
Number of TEAM21 Technician certification
7 certified technicians
Technicians, Pro Technicians, Diagnosis Foundations
rate
P25
Technicians and Diagnosis Master
Technicians
Number of personnel engaged in customer Foundations SA availability P23
8 Service Advisors
reception for vehicles Foundations SA certification rate P25
Number of TSA21 Number of TSA21 certified Service
9 certified SAs Advisors
Foundations SA certification rate P25

B&P technician
Foundations P23
Number of technicians working in body and availability
10 B&P technicians
paint No. of units serviced
Foundations P34
per B&P technician
Number of B&P TEAM (Body) certified
Number of B&P
technicians, calculated as the total of Body B&P technician
11 TEAM (Body)
Toyota Technicians, Body Pro Technicians
Foundations
certification rate
P25
certified technicians
and Body Master Technicians
Number of B&P TEAM (Paint) certified
Number of B&P
technicians, calculated as the total of Body B&P technician
12 TEAM (Paint)
Toyota Technicians, Body Pro Technicians
Foundations
certification rate
P25
certified technicians
and Body Master Technicians
Number of employees who are no longer
Number of service
employed by the company, regardless of
13 personnel who left the
reasons (resigned/quit, fired, let go due to
Foundations Turnover rate P32
company
illness, etc.).

* For the breakdown of items 6-12, please refer to the Appendix

9
 KPI Where Utilized
NO. Raw Data Definition
Category KPI Page
Rate of workshops
Foundations P27
with certified SAs
14 Number of dealers Total number of dealers and branches
TSM-FIR
Foundations P29
certification rate
Total number of TSM-FIR certified
Number of TSM-FIR dealers and branches that have either been TSM-FIR
15 certified dealers newly certified or that are maintaining their
Foundations
certification rate
P29
level of performance

Number of dealers or branches that have

Number of B&P TSM been certified in the B&P TSM Basic B&P TSM Basic
16 Basic certified dealers program. Includes in-house B&P shops
Foundations
certification rate P30
only (not independent shops)
Number of workshops Rate of workshops
Number of general service workshops with
17 with Diagnosis Master
at least one Diagnosis Master Technician
Foundations with Diagnosis Master P27
Technicians Technicians
Number of workshops Number of workshops where 60% or more
Rate of workshops
18 whose certification of the Service Advisors have received Foundations
with certified SAs
P27
rate exceeds 60% TSA21 certification
Number of workshops
Rate of workshops
with B&P TEAM Number of B&P shops with at least one
19 Master Technicians B&P TEAM Master Technician (body)
Foundations with B&P Master P27
Technicians (body)
(body)

Number of workshops
Rate of workshops
with B&P TEAM Number of B&P shops with at least one
20 Master Technicians B&P TEAM Master Technician (paint)
Foundations with B&P Master P27
Technicians (paint)
(paint)

Number of dealers or Number of dealers or branches that report

Service absorption
21 branches reporting their service absorption rate results to the Results P69
rate
absorption rate distributor

Number of dealers or Number of dealers or branches which

Service absorption
22 branches less than 3 began business operations less than 3 Results
rate P69
years old years ago

Number of dealers or branches whose

Number of NPS target customers are targeted in the Service NPS Service NPS (Net
23 dealers survey (i.e. excluding those focused on
Results
Promoter Score) P74
fleet customers)

10
 KPI Where Utilized
NO. Raw Data Definition
Category KPI Page
Number of general service workshops, Ratio of workshops
Number of general calculated as the total number of facilities
24 Foundations with Diagnosis Master P27
service workshops where service work is performed, such as
Technicians
3S facilities or satellite shops
Rate of workshops
Foundations with B&P Master P27
Technicians (body)
Rate of workshops
Foundations with B&P Master P27
Number of B&P Number of B&P workshops, calculated as Technicians (paint)
25 the total number of workshops with an area
workshops for performing body and paint work B&P TSM Basic
Foundations P30
certification rate

Waterborne paint
Foundations P31
introduction rate

Number of B&P
Number of B&P workshops which use Waterborne paint
26 workshops using
waterborne paint in the painting process
Foundations
introduction rate
P31
waterborne paint

Number of stalls used for general service

jobs
Number of general Includes stalls with either a lift or pit General service stall
27 Multi-franchise dealers should calculate the
Foundations
availability
P23
service stalls
ratio of stalls used to service Toyota
vehicles, as shown below

Number of stalls used for B&P service jobs

Includes paint booths or stalls with a frame
correctors
28 Number of B&P stalls Since the is a high proportion of vehicles of Foundations B&P stall availability P23
other makes, stalls for other makes are
also counted

Example: Number of general service stalls at a multi-franchise dealer

Number of Toyota vehicles serviced: 100
Number of vehicles of other makes serviced: 50
Number of general service stalls: 15

Toyota vehicles (100)

Total stalls (15) × = Number of Toyota stalls (10)
Toyota vehicles (100) + Other makes (50)

* For the breakdown of items 27 and 28, please refer to the Appendix

11
  Activity Data
KPI Where Utilized
NO. Raw Data Definition
Category KPI Page
The number of units on which B&P repeat
repairs were made, calculated as the number
Number of B&P repeat of units which were repaired at branches, in-
29 repair units house or independent workshops and
Activities B&P repeat repair rate P43
delivered to the customer, but then required a
repeat repair of the same problem
Number of units subject Completion rate of SSCs
The total number of units subject to SSCs
30 to SSCs (Special (Special Service Campaigns)
Activities (Special Service P45
Service Campaign) Campaigns)
Completion rate of SSCs
Number of actually The total number of units subject to SSCs, for
31 service provided which the SSC has been completed
Activities (Special Service P45
Campaigns)
Number of valid responses received to the
32 Number of valid answers FIR survey Activities Fix-It-Right rate P41

Number of customers who were not satisfied

with their repairs, calculated as customers
who answered "No" to at least one of the
Number of customers
following questions:
answering "No" to at
Q1: Was your vehicle completely fixed by the
33 least one of the three
first repair (first repair after problem diagnosis
Activities Fix-It-Right rate P41
questions,
and ordering the necessary parts), Q2: Was
(Q1 – Q3)
the repair completed by the promised time?
Q3: Was the time needed for the repair
acceptable?
Total number of DTRs DTR (quantity) P44
34 (Dealer Technical Total number of DTRs submitted Activities DTR (quality) P44
Reports) DTR (speed) P44
Number of good DTRs
35 Number of good DTRs The criteria for "good" is set by each Activities DTR (quantity) P44
distributor

Number of DTRs Number of DTRs submitted quickly,

submitted by the date calculated as the number of DTRs submitted
36 set by the distributor, within a certain number of business days set
Activities DTR (speed) P44
from the date of repair by the distributor, from the date of repair

Total number of FTRs FTR (quantity) P80

37 (Field Technical Total number of FTRs submitted Activities FTR (quality) P80
Reports) FTR (speed) P80
Number of good FTRs, with the criteria for
38 Number of good FTRs Activities FTR (quality) P80
"good" set by TMC
Number of FTRs
Number of FTRs submitted quickly,
submitted within 10
39 working days from
calculated as the number of FTRs submitted Activities FTR (speed) P80
within 10 working days from repair date
repair date
Number of units Number of units for which a report of delivery
On-time delivery rate
40 delivered on time earlier than the time promised to the customer Activities
(General service)
P39
(general service) was made
Number of units for which a report of delivery
Number of units On-time delivery rate
41 delivered on time (B&P) earlier than the time promised to the customer Activities (B&P service)
P39
was made, for B&P units

12
 KPI Where Utilized
NO. Raw Data Definition
Category KPI Page
Number of available working hours,
42 Available hours calculated as the total of both normal Activities Labor utilization P37
working hours and overtime hours
Activities Technical efficiency P36
43 Actual hours worked Actual number of hours worked Activities Labor utilization P37
Activities Overall productivity P38
Number of hours which could be invoiced Activities Technical efficiency P36
44 Labor hours sold
as labor sales Activities Overall productivity P38

Maintenance reminder
Activities P46
implementation rate
Number of maintenance reminders
Number of conducted, calculated as the number of Maintenance reminder
Activities P46
45 maintenance reminders target customers that dealers or branches contact success rate
conducted tried to contact by DM, telephone, e-mail,
SMS or other method Service appointment
success rate from
Activities P46
maintenance
reminders
Number of successful
Number of customers successfully Maintenance reminder
46 maintenance
contacted by maintenance reminders
Activities
contact success rate
P46
reminder contacts

Number of Service appointment

Number of service reminders which
appointments made success rate from
47 from maintenance
resulted in service appointments being Activities
maintenance
P46
made
reminders reminders

Number of service Number of service products sold, such as Service product

48 products sold prepaid maintenance
Activities
penetration rate
P50

Number of each major Number of pieces sold for each major UIO penetration for
49 maintenance product maintenance product. Each distributor Activities major maintenance P49
sold decides which products to select products by type
Number of all R.O.'s Number of repair orders for which parts ROFR (Repair Order
50 that require parts were necessary
Activities
Fill Rate)
P40

Number of R.O.'s that

have all required The number of repairs which were able to
ROFR (Repair Order
51 parts prepared at the begin on time, because the necessary parts Activities
Fill Rate)
P40
original start time of were on hand
repairs
52 Number of order lines Number of lines ordered from inventory Activities Allocation fill rate P83
Number of back- Number of order lines which were partially
53 ordered lines or completely back-ordered
Activities Allocation fill rate P83

Number of Number of order lines that were cancelled

54 cancellation lines (excepting exports)
Activities Allocation fill rate P83

Closing on-hand stock Total amount of parts stock on-hand at the

55 amount end of the month, in local currency
Activities Stock months P84

MAD (Monthly average Monthly average demand for parts, in local

56 demand) amount currency
Activities Stock months P84

Number of new
Number of insurance policies sold at the Insurance contract
57 contracts for vehicle time of new-vehicle sales
Activities
rate
P51
insurance
Number of renewed Number of customers who renewed their
58 insurance contracts for insurance policies, of the total customers Activities Insurance renewal rate P51
vehicle insurance whose insurance expired
Number of vehicles reaching the end of the
Number of expired period covered by their insurance, of the
59 contracts total number of vehicles with insurance
Activities Insurance renewal rate P51
policies

13
 KPI Where Utilized
NO. Raw Data Definition
Category KPI Page
Total number of cases (customer contacts)
Number of contacts including inquires, general complaints and
60 received serious complaints that were received in
the month
Number of general and serious complaints
Number of complaint that were received this month and monitor
61 cases the trend on how frequently customers
have complained
Number of claims Number of warranty claims submitted to
62 processed Activities TWC error rate P82
TMC (incl. re-submissions)
Number of warranty Number of claims determined by TMC to
63 Activities TWC error rate P82
errors contain errors
TWC (Toyota
Number of over 50- Number of reports which are received by
Warranty Claims)
64 days submission TMC 50 days or more after the customer's Activities
travel time (Over 50-
P81
TWC service visit
days rate)

TWC (Toyota
Number of first Warranty Claims)
65 submission TWC
Number of first submissions Activities
travel time (Over 50-
P81
days rate)

* For the breakdown of items 60 and 61, please refer to the Appendix.

14
 Results data
KPI Where Utilized
NO. Raw Data Definition
Category KPI Page
Sales generated by service, calculated as Service gross profit
66 Service sales the total of parts, labor and external sales
Results
rate
P65

Sales generated by general service jobs on

67 General service sales
Toyota vehicles
CPS/BPS (Customer
Sales generated by general service jobs
68 Customer paid sales
that were paid for by the customer
Results Paid Sales/B&P P62
Customer Paid Sales)
Sales generated by general service jobs
that were performed under the Toyota
Warranty service
69 sales
Warranty Policy
Note: Warranty jobs paid for by the
customer are not included

Sales generated by general service jobs

that were paid for by the company (ex.
New or used vehicle sales divisions)
Internal service
70 sales
Examples: Pre-delivery service or
accessory installation on new or used
vehicles, or on vehicles owned by the
dealer
71 External parts sales External sales of parts
Accessory sales per
72 Accessory sales Sales of accessories Results
new vehicle
P64

Sales generated by B&P service,

73 B&P sales calculated as the total of labor, parts and Results B&P gross profit rate P67
sublet sales
CPS/BPS (Customer
B&P customer paid Sales generated by B&P service that were
74 sales paid for by the customer
Results Paid Sales/B&P P62
Customer Paid Sales)
The necessary costs of service sales,
Service gross profit
75 Service cost calculated as the total of labor, parts and Results
rate
P65
external costs
The necessary costs of B&P service sales,
76 B&P cost calculated as the total of labor, parts and Results B&P gross profit rate P67
sublet costs
Service absorption
77 Service gross profit Gross profit of the service department Results
rate
P69

Fixed costs of the dealer as a whole,

Administrative Service absorption
78 expenses (Fixed cost) including payroll, administrative, facility and Results
rate
P69
other costs

* For a breakdown of items 66-74, please refer to the Appendix.

15
 KPI Where Utilized
NO. Raw Data Definition
Category KPI Page

Foundations SA availability P23

The total number of units that visited a
Toyota dealer for service
Notes:
Foundations Technician availability P23
*Includes sublet jobs
*Does not include car wash only visits
*Vehicles which visit for more than one
type of service during a single visit should B&P technician
Foundations P23
79 Total units serviced not be double-counted. In order of priority, availability
they should be counted as customer-paid
general service, warranty service, internal
General service stall
service or B&P service Foundations P23
availability
(Ex.: A vehicle that visits for both warranty
repair and 10,000km periodic maintenance
should be counted as a customer-paid unit
serviced.) Foundations B&P stall availability P23

Number of units that visited for general

General units service, calculated as the total of Technician and B&P
80 serviced customer- paid, warranty and internal units
Activities
technician productivity
P34
serviced
UIO penetration for
Activities major maintenance P49
products by type
CPUS/BPUS
(Customer Paid Units
Number of units that visited for customer- Results Serviced/B&P P52
Customer paid units Customer Paid Units
81 serviced (CPUS)
paid jobs, including periodic maintenance,
general repair and other jobs Serviced)
Results Service market share P57
CRt (Customer
Results P54
Retention) rate

Activities On-time delivery rate P39

Number of Toyota units which visited for

Warranty units
82 serviced
inspections, repairs or parts replacement
covered by the Toyota Warranty Policy
Number of Toyota used vehicles or
vehicles owned by the company that were
Internal units
83 serviced
serviced for internal needs, including
inspections, repairs, parts replacement and
lubrication
Daily number of
Number of units serviced for general
84 units serviced for
service jobs per day
Activities Appointment Rate P48
general service
Daily number of Number of units serviced, where the
85 units serviced with customer made an appointment before Activities Appointment Rate P48
appointments visiting, per day

Topics: The difference between "units" and "jobs"

Units - The number of vehicles that were serviced for maintenance (repair orders)
(e.g. even if more than one job is performed on the vehicle, it is only counted one time)
Jobs - Each type of job done on the vehicle is counted separately
- In order to evaluate the service volume to the demand in the market, the number of "units" should be
analyzed. (The number of jobs can be used to accurately analyze the amount of work generated by
each product)
* For the breakdown of items 79-83, please refer to the Appendix.

16
 KPI Where Utilized
NO. Raw Data Definition
Category KPI Page
Technician and B&P
Activity P34
technician productivity
Number of units serviced for body and
86 B&P units serviced paint work Activity On-time delivery rate P39
Activity B&P repeat repair rate P43
CPUS/BPUS
(Customer Paid Units
B&P Customer Paid Number of units serviced for customer-paid Results Serviced/B&P P52
87 Units Serviced body and paint work, calculated as the total Customer Paid Units
(BPUS) of in-house and independent units serviced Serviced)
B&P service market
Results P58
share
The estimated average number of times a
customer will visit for maintenance or
Annual average
general repair work, assuming they are
88 number of times 100% loyal (i.e. they visit the dealer for
Results Service market share P57
serviced
every maintenance and general repair
needed)
The percentage of the UIO is involved in an
accident that requires B&P repair work
B&P collision repair B&P service market
89 rate each year. Use data provided by Results
share
P58
government agencies or insurance
companies
Number of units serviced for the first
Number of first service
service after new-vehicle delivery, including
90 units serviced free service. Calculation methods are set
Results First service CRt rate P54
(including free service)
by each distributor
Number of units that are eligible for their
Number of units due for first service, including free service.
91 first service Calculation methods are set by each
Results First service CRt rate P54
distributor
Number of general units serviced, broken
Number of paid units
down by vehicle age CRt rate by vehicle
92 serviced (CPUS by Calculated by breaking down Customer-
Results
age
P54
vehicle age)
Paid Units Serviced by age of the vehicle

17
 KPI Where Utilized
NO. Raw Data Definition
Category KPI Page

The total number of units that have been

registered in the DMS, and can be Results Number of customers P59
contacted for marketing activities
Calculated as the total number of
customers who bought a new Toyota
93 Number of customers vehicle, who bought a used vehicle of any
make, or who visited for service (for either
Toyota or another make)
e.g. A customer who owns 2 vehicles will Results VIN-CRt P60
be counted 2 times.

Number of customers who visited a dealer CRt rate (customers

for either maintenance or general service who visited a dealer
Results P54
work at least once in the last year within the past 12
Criteria: months)
Number of customers
1. The reason for the visit is limited to general
94 serviced within the
repair and periodic maintenance
past year
2. This does not include vehicles serviced for
free inspections or B&P work
3. Vehicles serviced multiple times are Results VIN-CRt P60
counted as one unit

Number of NPS Number of customers contacted for the Service NPS (Net
95 surveys conducted NPS survey
Results
Promoter Score)
P74

Number of survey respondents

Number of Service NPS (Net
96 valid responses
who agreed to give the dealer a numeric Results
Promoter Score)
P74
score on the NPS question

Number of survey respondents giving the

Number of Service NPS (Net
97 Promoters
dealer a score of 9 or 10 on the NPS Results
Promoter Score)
P74
question

Number of survey respondents giving the

Number of Service NPS (Net
98 Passives
dealer a score of 7 or 8 on the NPS Results
Promoter Score)
P74
question

Number of survey respondents giving

Number of Service NPS (Net
99 Detractors
the dealer a score of between 0 and 6 on Results
Promoter Score)
P74
the NPS question

18
 Chapter 2:
Dealer KPI definitions
 NVS (New Vehicles Sold)

Overview
New Vehicles Sold (NVS) indicates the number of sales of new vehicles.

Description
The method of counting new vehicles sold is determined by each Distributor.

20
 Dealer's Market
UIO (Units In Operation)

Overview

Foundations
"Units in Operation"*1 *2 (UIO) is the total number of Toyota units sold by dealers, which are registered as

Dealer's
being in operation in the market.

New Vehicles Sold UIO Scrapped Vehicles

*1 : New vehicles that have become used vehicles are included in the UIO as long as they are not scrapped.
*2 : Grey imports are not included in the UIO; however, depending on the market environment, inclusion into the UIO
will be studied separately.

Activities
Dealer's
Description
If the accurate number of registered units in operation as indicated in item 1 below cannot be obtained, use

Dealer's Results
the calculation method for units in operation indicated in items 2 or 3 below.

Accuracy Calculation method Remarks

Use the figures published by a government-

1. High Number of registered units related agency for the number of registered
units.
Alternative calculation method: number Dealer sales total × remaining rate, See the
2. ↕
of vehicles sold × remaining rate next page for the calculation method.
Alternative calculation method: number

Foundations
3. Low Dealer sales total

Distributor's
of vehicles sold

Distributor's
Activities
Appendix

21
 Reference

< Part 1: Alternative calculation method >

New vehicles sold for each vehicle age

UIO for the year 2013 = [980 × 100%] + [970 × 99.5%]... + [920 × 70.0%] + [An × Sn]

Rate of remaining UIO for each model year

Year 2013 2012 .... .... 2000 .... ....

Vehicle Age 0 1 ..... ..... 13 ..... .....

New Vehicles Sold A0 980 A1 970 ..... ..... A13 920 ..... .....

Rate of remaining
UIO S0 100% S1 99.5% ..... ..... S13 70.0% ..... .....
(UIO Remaining Rate)

< Part 2: Calculation method for UIO by vehicle age >

New vehicles sold

13 years ago
Current UIO of vehicles 13 years old: 920 × 70% = 644

Remaining rate of
vehicles 13 years old
Remaining rate →

Remaining rate = 70%

Vehicle age of 13 years Vehicle age →

22
 Dealer's Market
Availability

Overview

Foundations
KPI name Overview

Dealer's
1. SA availability Indicates the level of SA availability with respect to the total units serviced.

2. Technician availability Indicates the level of technician availability with respect to the total
units serviced.
B&P technician Indicates the level of B&P technician availability with respect to the
3.
availability total units serviced.
General service Indicates the level of general service stall availability with respect
4.

Activities
stall availability to the total units serviced.

Dealer's
Indicates the level of B&P stall availability with respect to the total
5. B&P stall availability
units serviced.
Because the number of total units serviced is relatively large with respect to the number of
available units, these are calculated in figures of 10,000 units.

Dealer's Results
Calculation method
KPI name Calculation method
Number of SAs*1
1. SA availability × 10,000
Total units serviced
Number of technicians* 2
2. Technician availability × 10,000

Foundations
Total units serviced

Distributor's
B&P technician Number of B&P technicians*3
3. × 10,000
availability Total units serviced

General service stall Number of general service stalls*4

4. × 10,000
availability Total units serviced
Number of B&P stalls*5
5. B&P stall availability × 10,000

Distributor's
Total units serviced

*1 : "Number of SAs" refers to the personnel indicated in item (3) in the service personnel chart on page 96.
Activities
*2 : "Number of technicians" refers to the personnel indicated in item (6) in the service personnel chart on page 96.
*3 : "Number of B&P technicians" refers to the personnel indicated in item (15) in the service personnel chart on page
96.
*4 : "Number of general service stalls" refers to the stalls indicated in item <1> in the service stall diagram on page
96.
*5 : "Number of B&P stalls" refers to the stalls indicated in item <2> in the service stall diagram on page 96.
Appendix

23
 Examples
The total units serviced of branch A is 5,000 units. Each value is as listed below.

KPI Number Calculation method Availability

1. SA availability 4 people 4 people ÷ 5,000 units × 10,000 units 8 people per 10K units
2. Technician availability 8 people 8 people ÷ 5,000 units × 10,000 units 16 people per 10K units
3. B&P technician
6 people 6 people ÷ 5,000 units × 10,000 units 12 people per 10K units
availability
4. General service stall
10 stalls 10 stalls ÷ 5,000 units × 10,000 units 20 stalls per 10K units
availability
5. B&P stall availability 6 stalls 6 stalls ÷ 5,000 units × 10,000 units 12 stalls per 10K units

Description
The availability numbers show whether stalls have been provided and personnel assigned appropriately
according to the actual workload.
As a general tendency, when each value is excessive, expenses may increase, and business becomes less
profitable. Also, when the values are excessively small, due to a lack of capacity customer waiting time may
increase and appointment times may be unavailable, which may have a detrimental effect on CS.

24
 Dealer's Market
Overview

Foundations
KPI name Overview

Dealer's
Technician Certification This indicates the ratio of TEAM 21 certified technicians, compared with
1.
Rate the total number of technicians at each dealer.
This indicates the ratio of TSA21 certified SAs, compared with the total
2. SA Certification Rate
number of service advisors at each dealer.
B&P Technician This indicates the ratio of B&P TEAM certified technicians, compared
3.
Certification Rate with the total number of technicians at each dealer.

Activities
Dealer's
Calculation method

KPI name Calculation method

Dealer's Results
Technician Certification Rate =
Technician Certification Number of TEAM 21 certified technicians*1
1.
Rate × 100
Total number of technicians*2
Number of TSA21 certified SAs
2. SA Certification Rate SA Certification Rate = × 100
Total number of SAs*3
B&P Technician Certification (Body) Rate =
Number of B&P-TEAM (Body) certified technicians*4

Foundations
Distributor's
× 100
B&P Technician Total number of Body technicians*5
3.
Certification Rate B&P Technician Certification (Paint) Rate =
Number of B&P-TEAM (Paint) certified technicians*6
× 100
Total number of Paint technicians*5

*1 : Total number of Toyota Technicians, Pro Technicians, Diagnosis Technicians, and Diagnosis Master
Technicians Distributor's
*2 : Total number of TEAM 21 certified technicians + uncertified technicians Activities
*3 : Total number of TSA21 certified SAs + uncertified SAs
*4 : Total number of Body-Toyota technicians, Body-Pro technicians, and Body-Master technicians
*5 : Total number of Body technicians or Paint technicians
*6 : Total number of Paint-Toyota technicians, Paint-Pro technician, Paint-Master technicians
Appendix

25
 Examples
1. Technician Certification Rate
The total number of certified technicians administered by Distributor A is 380.
In addition, the total number of technicians is 480.
Therefore, the Technician Certification Rate is 380 ÷ 480 = 79.2%
2. SA Certification Rate
The total number of certified SAs administered by Distributor A is 50.
In addition, the total number of SAs is 90.
Therefore, the SA Certification Rate is 50 ÷ 90 = 55.6%
3. B&P Technician Certification (Body) Rate
The total number of B&P-TEAM certified technicians (Body) administered by Distributor A is 160.
In addition, the total number of B&P technicians (Body) is 270.
Therefore, the B&P Technician Certification (Body) Rate is 160 ÷ 270 = 59.3%
4. B&P Technician Certification (Paint) Rate
The total number of B&P-TEAM certified technicians (Paint) administered by Distributor A is 55.
In addition, the total number of B&P technicians (Paint) is 90.
Therefore, the B&P Technician Certification (Paint) Rate is 55 ÷ 90 = 61.1%

Description
The dealer staff certification rate is a number that shows whether or not the technical expertise of and
customer care capability of dealers are improving.
If this number is low, it could have a negative impact on CS-related KPI, value chain-related KPI such as
maintenance reminder activities, or KPI related to the productivity of activities.
In addition, the mix of job types will vary from country to country, so based upon the volume of jobs at the
genba, it is necessary to study in detail what certification level of staff are needed and how many are
needed.

26
 Dealer's Market
Rate of workshops with certified dealer staff

Overview

Foundations
KPI name Overview

Dealer's
Rate of workshops with
This indicates what percentage of workshops have Diagnosis Master
1. Diagnosis Master
Technicians.
Technicians
Rate of workshops This indicates what percentage of workshops have TSA21 certified
2.
with certified SAs SAs.

Rate of workshops with

This indicates what percentage of workshops have B&P-TEAM Master

Activities
3. B&P Master

Dealer's
Technicians.
Technicians

Calculation method

Dealer's Results
KPI name Calculation method
Rate of workshops with Diagnosis Master Technicians =
Rate of workshops
1. with Diagnosis Master Number of workshops with Diagnosis Master Technicians
Technicians × 100
Number of general service workshops
Rate of workshops with TSA21 certified SAs =
Rate of workshops
2. Number of workshops whose certification rate exceeds 60%
with certified SAs × 100

Foundations
Distributor's
Number of general service workshops

Rate of workshops with B&P Master Technicians (Body) =

Number of workshops with B&P-TEAM Body-Master Technicians
× 100
Rate of workshops Number of B&P workshops*1
3. with B&P Master
Technicians Rate of workshops with B&P Master Technicians (Paint) =
Number of workshops with B&P-TEAM Paint-Master Technicians
Distributor's
× 100
Number of B&P workshops*1
Activities
*1 : Number of B&P workshops administered by dealer, not counting 1S (spare parts or sales-only) or sublet shops
Appendix

27
 Examples
1. Rate of workshops with Diagnosis Master Technicians
The total number of general service workshops administered by distributor A is 90.
The number of general service workshops among these having at least one Diagnosis Master Technician
is 80.
Thus, the rate of workshops with diagnosis master technicians is 80 ÷ 90 = 88.9%.
2. Rate of workshops with certified SAs
The total number of workshops administered by distributor A is 60.
The number of workshops among these having at least 60% TSA21 certified SAs is 48.
Thus, the rate of workshops with certified SAs is 48 ÷ 60 = 80.0%.
3. Rate of workshops with B&P Master Technicians (Body)
The total number of B&P workshops administered by distributor A is 35.
The number of B&P workshops among these having at least one B&P-TEAM Body-Master Technician is
15.
Thus, the rate of B&P workshops with B&P Master Technicians (Body) is 15 ÷ 35 = 42.9%.
4. Rate of workshops with B&P Master Technicians (Paint)
The total number of B&P workshops administered by distributor A is 35.
The number of B&P workshops among these having at least one B&P-TEAM Paint-Master Technician is
10.
Thus, the rate of B&P workshops with B&P Master Technicians (Paint) is 10 ÷ 35 = 28.6%.

Description
The existence of Diagnosis Master Technician, TSA21 certified SAs and/or B&P-TEAM Master Technician
means that the dealer has achieved a certain level of technical expertise and customer care capability.
This KPI (rate of workshops with certified dealer staff) shows whether there are any dealers which do not
have, or do not have enough, of these skilled staff.
If this number is low, it could be due the negative impact on CS-related KPI, value chain-related KPI that are
represented by maintenance reminder activities, such as number of vehicles and retention, or KPI related
to the productivity of activities.

28
 Dealer's Market
Overview

Foundations
This indicates the level of TSM-FIR Program certification.

Dealer's
Calculation method
TSM-FIR certification rate =
Number of TSM-FIR certified dealers*1
× 100
Number of dealers

Activities
*1 : Total number of dealers that have been certified for the TSM-FIR Program and are maintaining their level

Dealer's
of performance

Examples

Dealer's Results
Distributor A had 60 dealers. Out of these dealers, 35 dealers were TSM-FIR certified dealers. Thus,
the TSM-FIR certification rate is 35 ÷ 60 = 58.3%.

Description
If the TSM-FIR certification rate is low, it may not guarantee Toyota Customer Service Philosophy 3S:
Accuracy, Caring and Trust, which could have a negative impact on Fix-It-Right/Do-It-Right. There may be
some issues, such as SOP, TA development, RCA activities, etc.

Foundations
Distributor's
Distributor's
Activities
Appendix

29
 Overview
This indicates to what extent the B&P TSM Basic program is certified.

Calculation method
Number of B&P TSM Basic certified dealers
B&P TSM Basic certification rate = × 100
Number of B&P shops*1
*1 : Total number of B&P workshops administered by dealer, not counting sublet shops.

Examples
The number of B&P workshops owned by dealers administered by Distributor A is 50. The number of
dealers with B&P TSM Basic certification among them is 30. B&P TSM Basic certification rate is 30 ÷ 50
= 60.0%.

Description
The B&P TSM Basic certification rate is the number that shows whether or not the entity is prepared for B&P
TSM implementation.
If the certification rate is low, there may be some issues with the organization for B&P TSM Basic support
at the Distributor.

30
 Dealer's Market
Waterborne paint introduction rate

Overview

Foundations
This indicates the percentage of branches and in-house B&P shops that use waterborne paint,

Dealer's
as a means of protecting the health and safety of all B&P technicians.

Calculation method
Waterborne paint introduction rate =
*1
Number of branches & in-house B&P shops using waterborne paint

Activities
× 100

Dealer's
*2
Number of branches & in-house B&P shops
*1
"Number of branches & in-house B&P shops using waterborne paint" is the number of
B&P shops administered by the dealer which use waterborne paint in the painting process.

Dealer's Results
*2
"Number of branches & in-house B&P shops” is the number of B&P shops administered by the
dealer, not counting 1S (spare parts or sales-only) or sublet shops

Examples
Dealer A administers 2 B&P shops at its branches. One of the branches uses waterborne
paint. The Waterborne paint introduction rate is 1 ÷ 2 × 100 = 50.0%.

Foundations
Distributor's
Description
Promoting the introduction of waterborne paint is an important activity to protect the health and
safety of all B&P technicians, as well as the image of Toyota.

Distributor's
Activities
Appendix

31
 Turnover rate

Overview
This indicates the percentage of service personnel who left the company during the
reporting period.

Calculation method
*1
Number service personnel who left the company
Turnover rate = × 100
*2
Total service personnel
*1
“Number of service personnel who left the company” includes all employees who are no longer employed
by the company, regardless of reasons (resigned/quit, fired, let go due to illness, etc.).
*2
"Total service personnel” is the number of staff represented by item (1) in the service personnel diagram on
page 96.

Examples
If the Dealer or Branch employs 30 service personnel at the beginning of the reporting period,
and 3 of those personnel left the company during the period, then the turnover rate is 3 ÷ 30
× 100 = 10.0%

Description
The turnover rate is an important KPI in evaluating the Dealer or Branch’s human resources
development activities, and can seriously impact a range of other metrics:
 A high turnover rate can indicate the loss of highly-trained, experienced and skilled
employees (and lower certification rates), leading to a lower quality of service and
increased customer dissatisfaction
 A high turnover rate will lead to higher costs for the recruitment and training of new staff,
putting a strain on the Dealer or Branch profitability.
If the turnover rate is high, break down the numbers to see which departments are most
affected (technician, SA, parts, etc.).
Check the ESI to see if employees are happy with their work, or where they have concerns, and
introduce appropriate countermeasures. It can also be useful to survey employment
conditions at other companies in the market (salary, working hours, benefits, training, etc.) to
ensure that conditions at the Dealer or Branch are competitive.

32
 Dealer's Market
Overview

Foundations
Identify Dealer or Branch strengths and weaknesses for human resources development from the

Dealer's
employee’s perspective, by utilizing an internal Employee Satisfaction survey*

Description and Examples

Employee satisfaction is the cornerstone of great customer service and the key to achieving customer
delight. Only highly motivated and engaged employees will care enough about their customers to

Activities
try to understand them and create experiences to delight them.

Dealer's
Accordingly, TMC suggests using regular ESI surveys to understand what employees expect,
and what the Dealers or Branches strengths and weaknesses are.
It is recommended that the results of this survey be shared with employees, and issues publically

Dealer's Results
addressed, otherwise it will appear that management is only “going through the motions” and does
not really care about employees’ feelings.

Foundations
Distributor's
Distributor's
Activities
Appendix

33
 Technician and B&P technician productivity

Overview

KPI name Overview

No. of units serviced The productivity per technician is indicated by the number of units
1.
per technician serviced.
No. of units serviced The productivity per B&P technician is indicated by the number of units
2.
per B&P technician serviced.

Calculation method

KPI name Calculation method

No. of units serviced Number of general units serviced*1

1. × 100
per technician Number of technicians*2

No. of units serviced Number of B&P units serviced

2. × 100
per B&P technician Number of B&P technicians*3

*1 : "Number of general units serviced" is the number of vehicles (excepting B&P work) as follows: paid service
(CPUS) + warranty service + internal work (service).
*2 : "Number of technicians" refers to the personnel indicated in item (6) in the service personnel chart on page 96.
*3 : "Number of B&P technicians" refers to the personnel indicated in item (15) in the service personnel chart on page
96.

34
 Dealer's Market
Examples
1. No. of units serviced per technician:
The number of vehicles serviced at branch A was 800. There were 8 technicians.
Thus, the no. of units serviced per technician is 800 ÷ 8 = 100.0.

Foundations
2. No. of units serviced per B&P technician:

Dealer's
The number of B&P-related service visits for branch A was 40. There were 6 B&P technicians.
Thus, the no. of units serviced per B&P technician is 40 ÷ 6 = 6.7.

Description
This indicates whether the number of units serviced per technician is appropriate or not, and is used

Activities
to plan capacity expansion.

Dealer's
It is necessary to secure sufficient capacity, in line with the predicted growth of the market, service
traffic volume and impact of technician skill-training to raise productivity.

Dealer's Results
Foundations
Distributor's
Distributor's
Activities
Appendix

35
 Overview
This indicates the portion of service (labor) sales (time) of a technician that was achieved during the
standard work times established for each job.

Calculation method
Labor Hours Sold*1
Technician Efficiency = × 100
Actual Hours Worked*2
*1 : For the calculation method of Labor Hours Sold, see "Appendix A1: Labor Hours Sold".
*2 : For the calculation method of Actual Hours Worked, see "Appendix A2: Actual Hours Worked".

Examples
The total Labor Hours Sold for branch A in a month was 1,400 hours. The total Actual Hours
Worked for all technicians in that month was 1,750 hours.
Thus, the Technician Efficiency is 1,400 ÷ 1,750 × 100 = 80.0%.

Description
Technician Efficiency is believed to be greatly affected by the technical expertise and work method
(muda) of technicians.
A low value can adversely affect the service gross profit rate (service (labor) sales profit rate).

36
 Dealer's Market
Overview

Foundations
This indicates how many hours of actual work there are with respect to the business hours of one day

Dealer's
(Labor Utilization).

Calculation method
Actual Hours Worked*1
Labor Utilization = × 100
Available Hours*2
*1 : For the calculation method of Actual Hours Worked, see "Appendix A2: Actual Hours Worked".

Activities
Dealer's
*2 : Available Hours are the hours available for work and is the total of the regular working hours and overtime.

Examples

Dealer's Results
The total Actual Hours Worked for all technicians in a month was 1,750 hours. The total Available Hours for
all technicians in that month was 2,000 hours.
Thus, the labor utilization is 1,750 ÷ 2,000 × 100 = 87.5%.

Description
A low value indicates that the technicians are not being utilized fully.
In this case, it is necessary to enhance maintenance reminder activities and raise the appointment rate, in
order to increase the number of units serviced.

Foundations
Distributor's
In addition, if this value is low even though there is sufficient service traffic compared to the UIO (i.e. high
customer retention), it is possible there is over-capacity, and it is necessary to review the capacity plan after
studying the current situation.

Lunch
Distributor's
Training
Activities
Periodic
maintenance 12

9
Appendix

Repair work

17

37
 Overview
This indicates how many regular working hours of a business day were spent doing actual work.

Calculation method
Labor Hours Sold*1
Overall productivity = × 100
Available Hours*2

*1 : For the calculation method of Labor Hours Sold, see "Appendix A1: Labor Hours Sold".
*2 : Available Hours are the hours available for work and is the total of the regular working hours and overtime.

Examples
The total Labor Hours Sold for branch A in a month was 1,400 hours. The total Available Hours for all
technicians in that month was 2,000 hours.
Thus, the Overall Productivity is 1,400 ÷ 2,000 × 100 = 70.0%.

Description
A low value means there is a need to ensure that technicians are working efficiently.
In addition, Overall Productivity can be broken down into Technician Efficiency and Labor Utilization as
shown below, allowing a more detailed analysis of the problem.
Labor Hours Sold Actual Hours Worked
Overall Productivity = ×
Actual Hours Worked Available Hours
(Technician Efficiency) (Labor Utilization)

38
 Dealer's Market
On-time delivery rate

Overview

Foundations
KPI name Overview

Dealer's
On-time delivery rate This indicates to what degree the promised repair delivery due dates are
1.
(General service) being met, for vehicles requiring repair.
On-time delivery rate This indicates to what degree the promised repair delivery due dates are
2.
(B&P service) being met, for vehicles requiring B&P work.

Calculation method

Activities
Dealer's
KPI name Calculation method

On-time delivery rate Number of unit on-time deliveries*1

1. × 100
(General service)

Dealer's Results
Number of general units serviced*2

On-time delivery rate Number of unit on-time deliveries*3

2. × 100
(B&P service) Number of B&P units serviced*4

*1 : "No. of unit on-time deliveries" refers to the number of units for which a report of delivery earlier than the time
promised to the customer was made.
*2 : "Total number of general units serviced" is the total number of units (excepting B&P work) as follows: paid
service (CPUS) + warranty service + internal work (service).
*3 : "No. of unit on-time deliveries" refers to the number of units for which a report of delivery earlier than the time

Foundations
Distributor's
promised to the customer was made, for B&P service.
*4 : "Number of B&P units serviced" refers to the number of units serviced for B&P jobs.

Examples
1. The total number of general units serviced for branch A was 9,000. Out of this total, the number of unit
on-time deliveries was 8,200. Thus, the on-time delivery rate is 8,200 ÷ 9,000 × 100 = 91.1%.

Distributor's
2. The total number of B&P units serviced at branch A was 500. Out of this total, the number of unit on-time
deliveries was 470. Thus, the on-time delivery rate is 470 ÷ 500 × 100 = 94.0%.
Activities

Description
If the delivery date is frequently not met, this may result in
a drop in CS.
It is also possible there is an issue with productivity or
operations, if this number is low.
Appendix

39
 Overview
This indicates parts suppliability according to the service workshop repair schedule.

Calculation method
ROFR =
Number of R.O.'s that have all required parts prepared at the original start time of repairs
× 100
No. of all R.O.'s that require parts

Examples
Branch A had 1,060 repair orders that require parts in one month. The number of repair orders that had all
required parts prepared at the original start time of repairs was 1,060.
Thus, the repair order fill rate (ROFR) is 1,060 ÷ 1,060 × 100 = 100.0%.

Description
This number evaluates not only suppliability of parts, but also the operational linkage between parts and
service.
The appointment date/time that was promised in the customer's initial service visit is used for repair.
If this value is low, it will have an impact on the Fix-It-Right rate.

40
 Dealer's Market
Fix-It-Right rate

Overview

Foundations
The Fix-It-Right rate is an indicator used to confirm the results of Fix-It-Right activities.

Dealer's
*1 : Fix-It-Right activities are implemented to understand Not Fixed Right cases from customer's viewpoint and
prevent the occurrence of the cases. The targets of these activities are customers whose vehicles underwent
General Repair.
*2 : Periodic Maintenance and Body & Paint are not included.

Calculation method

Activities
Dealer's
Number of customers answering "No" to at least one of three
questions Q1 – Q3
Fix-It-Right Rate = 1 − × 100
Number of valid answers

Dealer's Results
Q1: Was your vehicle completely fixed after the first repair?
(First repair means the first attempt to repair a customer's vehicle after diagnosis of the problem and
arrangement of required parts.)
Q2: Was the repair completed by the promised time?
Q3: Was the time taken to repair your vehicle reasonable?

Examples

Foundations
Distributor's
1. Extract answers of customers whose vehicles underwent General Repair from the customer survey
results, and then exclude the invalid answers.
2. Make a table of valid answers and count the number of "No" answers. If a customer answers "No" to at
least one of three questions (Q1 - Q3), as shown in the following table, count it as one case.
Answer
Customer Name Q1 Q2 Q3 Results
1 Mr. AAAAAAA Yes Yes Yes OK
2 Mr. BBBBBBB Yes No - Q2. "No"

Distributor's
3 Mrs.CCCCCCC No - - Q1. "No"
4 Mr. DDDDDDD Yes Yes Yes OK
5 Mr. EEEEEEE Yes Yes Yes OK Activities
6 Ms. FFFFFFF No No No Q1. "No"
7 Ms. GGGGGGG Yes Yes Yes OK
8 Mr. HHHHHHH Yes Yes Yes OK
9 Mr. IIIIIII Yes Yes No Q3. "No"
10 Mr. JJJJJJJ Yes Yes Yes OK Q1. "No" 2
Q2. "No" 1
None of "No" answers were given by customers No.11 - 19. OK
Q3. "No" 1
20 Mrs. UUUUUUU Yes Yes Yes OK Total Number of "No"
4
21 Ms. VVVVVVV Yes Yes Yes OK (Numerator)
Appendix

Number of customers answering "No" to at least one of three

questions Q1 - Q3 (Total: 4)
= 1- × 100 = 80.9523.... = 81.0 %
21

41
 Description
Even if a customer is satisfied with the repair itself, some customers might be dissatisfied about "the repair
is completed by the promised time" and "the repair time is reasonable". So, we work on resolving the
dissatisfaction of such customers in Fix-It-Right activities.

The trouble was

How was our
fixed by the due
last maintenance
date. I was
service?
quite satisfied.

42
 Dealer's Market
Overview

Foundations
This indicates how often B&P repeat repairs are being made.

Dealer's
Calculation method
Number of B&P repeat repair units*1
B&P repeat repair rate = × 100
Number of units repaired*2
*1 : Number of units that were repaired again after initial repairs were completed and the vehicle was delivered to the
customer

Activities
Dealer's
*2 : Number of in-house and sublet unit B&P repairs

Examples

Dealer's Results
The total number of B&P-related service visits for branch A during the previous month was 40. There were
2 units that required repeat repairs during the previous month.
Thus, the B&P repeat repair rate is 2 ÷ 40 × 100 = 5.0%.

Description
A high B&P repeat repair rate indicates a low level of B&P repair skill. If this rate is high, the level of CS may
fall.

Foundations
Distributor's
Distributor's
Activities
Appendix

43
 Overview

KPI name Overview

This indicates how many DTR (Dealer Technical Reports) were
1. DTR (quantity)
published.
2. DTR (quality) This indicates the ratio of reports that are of good quality.
This indicates the ratio of reports that were submitted by the date that was
3. DTR (speed)
set by the Distributor.

Calculation method

KPI name Calculation method

Number of good DTRs*1
1. DTR (quality) × 100
Number of DTRs
Number of DTRs submitted by the date that was set by the
2. DTR (speed) Distributor, from the date of repair*2 × 100
Number of DTRs

*1 : "Good DTRs" are based on the operating standards of each Distributor.

*2 : "Date of repair" is the date on which repairs were completed.

Examples
Dealer A made 50 DTRs within the past 2 years. Out of these, 18 FTRs were deemed to be good-quality
reports. There were 25 reports that were submitted by the due date.
1. The DTR (quantity) is 50.
2. The DTR (quality) is 18 ÷ 50 × 100 = 36.0%.
3. The DTR (speed) is 25 ÷ 50 × 100 = 50.0%.

Description
In order to rapidly identify vehicle defects, reports must be made with a sufficient quantity of information,
with excellent quality and in a timely manner.
The DTR is a number that shows the quantity,
quality, and speed of information that should be
reported. Distributor
When these numbers are good, we can predict
that vehicle defects are being detected and
resolved at an early time; and we can also
predict that a high level of service and technical
quality is being maintained.

44
 Dealer's Market
Overview

Foundations
This indicates how thoroughly SSCs are completed for each campaign.

Dealer's
Calculation method
Number of actually service provided
Completion rate of SSC = × 100
Number of units subject to SSCs

Activities
Examples

Dealer's
The SSC currently held by branch T is targeting model A vehicles. The number of units subject to SSCs was
300. Amongst these vehicles, the number of service actually provided is 140.
Thus, the completion rate of SSCs is 140 ÷ 300 × 100 = 46.7%.

Dealer's Results
Description
The fact that the SSC completion rate is low indicates that the problems that occurred with the customers'
vehicles were not handled with care. It is crucial to understand the progress of how problems are handled
on a monthly basis. In doing so, it is also necessary to consider whatever guidance has been provided by
local government for making progress on customer problem handling.

Foundations
Distributor's
What can be done to
increase the completion
rate of Special Service
Campaign?

Distributor's
Activities
Appendix

45
 Maintenance reminder activities

Overview

KPI name Overview

Maintenance reminder This indicates the ratio of customers with whom contact was attempted,
1. out of the number of vehicles targeted for maintenance reminder
implementation rate
activities.

2. Maintenance reminder This indicates the ratio of customers successfully contacted, out of the
contact success rate total number of customers with whom contact was attempted.
Service appointment This indicates the ratio of customers who were successfully contacted,
3. success rate from booked an appointment as a result of maintenance reminder activities, out
maintenance of the total number of customers with whom contact was attempted.
reminders

Calculation method

KPI name Calculation method

Maintenance reminder Number of vehicles targeted

1. × 100
implementation rate Number of maintenance reminders conducted*1

Maintenance reminder Number of successful maintenance reminder contacts*2

2. × 100
contact success rate Number of maintenance reminders conducted*1
Service appointment Number of service appointments made from
success rate from maintenance reminders*3
3. × 100
maintenance
reminders Number of maintenance reminders conducted*1

*1 : "Number of maintenance reminders conducted" indicates:

Using the contact results of regular periodic maintenance reminder activities, other service promotion activities
(e.g., seasonal campaigns), and contacting of customers for special service campaigns, etc., use the number of
target customers' vehicles for which the dealer actually conducted maintenance reminders.
*2 : "Number of successful maintenance reminder contacts" :
This is the number of service reminders in " Number of maintenance reminders conducted" where the customer
was successfully contacted.
*3 : "Number of service appointments made from maintenance reminders":
This is the number of service reminders in "Number of maintenance reminders conducted" which resulted in a
service appointment being made.

Examples
1. Branch A attempted to contact 6,000 customers, and successfully made contact with 5,000.
Thus, the maintenance reminder contact success rate is 5,000 ÷ 6,000 × 100 = 83.3%.
2. As a result of maintenance reminder activities, 4,000 customers made appointments for service visits
Thus, the service appointment success rate from maintenance reminders is 4,000 ÷ 6,000 × 100 =
66.7%.

46
 Dealer's Market
Description
Maintenance reminder activities include
Number of vehicles targeted
the following steps: reminders, customer
contact, and making an appointment. To

Foundations
properly carry out maintenance reminder
Number of maintenance reminders conducted
activities, it's important to ensure that the

Dealer's
basic customer information (such as their
phone number, postal address and e-mail
Number of successful maintenance reminder contacts
address) is complete and free from
omissions.
Also, it is necessary to accurately Number of service appointments made
from service reminders
understand what method of contact the
customer prefers, as well as what times of
the day they prefer to be contacted.

Activities
Customer Paid

Dealer's
In order to get the customer to make an Units Serviced
appointment, it is crucial to implement
maintenance reminder activities at the proper timing and with the appropriate content, by making sure to
thoroughly manage customer data such as service visit histories and service product information. If these
numbers are low, you may need to check the points listed above.

Dealer's Results
Depending on what needs to be evaluated, you can change the denominator and numerator in order to
understand the actual situation regarding maintenance reminder activities.

Foundations
Distributor's
Distributor's
Activities
Appendix

47
 Appointment rate

Overview
This indicates what percentage of customers have made appointments, of the total number of customers
visiting each day.

Calculation method
Daily number of units serviced with appointments
Appointment rate = × 100
Daily number of units serviced for general service*1

*1 : Number of units that visited for general service, calculated as the total of customer-paid, warranty and internal
units serviced.

Examples
50 customers visited for service in one day (50 units). Of these, 40 had made appointments (40 units).
Thus, the appointment rate is 40 ÷ 50 = 80.0%.

Description
Raising the appointment rate helps to level the number of units serviced in the workshop and makes it
easier to plan technician's schedules, thereby improving daily productivity and parts management (stock
quantity, ordering).

48
 Dealer's Market
Foundations
Overview

Dealer's
This indicates how many major maintenance products*1 are being sold in comparison to the UIO.
*1 : Some examples of major maintenance products are tires, engine oil, oil filters, and air filters. Each Distributor
decides which major maintenance product to select and use the data for.

Calculation method

Activities
UIO penetration for major maintenance products by type =

Dealer's
Number of each major maintenance product sold
× 100
CPUS

Examples

Dealer's Results
Branch A sold 2,000 air filters in the past year. The branch's CPUS is 9,000 units.
Thus, the UIO penetration for major maintenance products by type (air filters) for branch A is 2,000 ÷ 9,000
× 100 = 22.2%.

Description
A high sales rate for major maintenance products by type indicates that the parts and labor sales per CPUS

Foundations
will increase.

Distributor's
This number is understood to show whether product proposals are being made at the service genba, and is
influenced by the inventory status of major maintenance products.

Distributor's
Activities
Appendix

49
 Overview
This indicates how successfully service products*1 that are being sold.
*1 : Examples of service products include prepaid maintenance and extended warranties.

Calculation method
(When the vehicle is new) Service product penetration rate =
Number of service products sold*2
× 100
Number of new vehicles sold*3

(For service customers) Service product penetration rate =

Number of service products sold*2
× 100
Number of units serviced for periodic maintenance*3

*2 : The penetration rate is calculated separately for each service product.

*3 : Excluding customers who have already purchased a service product

Examples
Last year at branch A, 200 customers purchased prepaid maintenance.
The number of new vehicles sold during that period was 500.
Thus, the retainment product penetration rate (for prepaid maintenance) is 200 ÷ 500 × 100 = 40.0%.

Description
By increasing sales of these products, more customers will make repeat visits, which will increase the
number of contact points with the customers.

50
 Dealer's Market
Insurance contract rate

Overview

Foundations
KPI name Overview

Dealer's
New insurance This indicates the status of insurance sales at the time of new vehicle
1.
contract rate sales
This indicates whether customers are being successfully retained by
2. Insurance renewal rate
getting them to renew their insurance in the second and later years

Calculation method

Activities
Dealer's
KPI name Calculation method

New insurance Number of new contracts for vehicle insurance*1

1.
contract rate

Dealer's Results
Number of new vehicles sold
Number of renewed insurance contracts for vehicle insurance*2
2. Insurance renewal rate
Number of expired contracts*3

*1 : "Number of new contracts for vehicle insurance" indicates the number of insurance policies sold at the time of
new vehicle sales.
*2 : "Number of renewed insurance contracts for vehicle insurance" indicates the number of customers who renewed
their insurance policies, of the total customers whose insurance expired.
*3 : "Number of expired contracts" indicates the number of vehicles reaching the end of the period covered by their

Foundations
Distributor's
insurance, of the total number of vehicles with insurance policies.

Examples
1. New insurance contract rate
Branch A sold 6,400 new vehicles. Of these, 1,620 were sold with a new insurance policy.
Thus, the New Insurance Contract Rate for branch A is 1,620 ÷ 6,400 = 25.3%.
2. Insurance renewal rate
At branch A, the insurance on 4,000 of their customers' vehicles expired. Of these, the insurance policy Distributor's
was renewed on 1,200 vehicles. Activities
Thus, the Insurance Renewal Rate for branch A is 1,200 ÷ 4,000 = 30.0%.

Description
If the New Insurance Contract Rate is high, not only will it contribute to revenues through sales commissions,
but also when vehicles covered by insurance are involved in accidents, it will contribute to higher B&P units
Appendix

serviced.
In addition, by contacting customers when it is time to renew their insurance, not only is it possible to
propose a new insurance policy, but staff can also propose a repeat vehicle purchase or periodic maintenance.
Accordingly, it is important to proactively offer insurance coverage to customers.

51
 CPUS/BPUS (Customer Paid Units Serviced/B&P Customer Paid Units Serviced)

Overview

KPI name Overview

Customer Paid Units This indicates the number of paid service units for repair and periodic
1.
Serviced (CPUS) maintenance and repair.
B&P Customer Paid
2. This indicates the number of paid service units for B&P work.
Units Serviced (BPUS)

Description
The items listed above have the values of the range shown below.
(For a description of each unit, see Appendix A4.)
Customer Paid Units Serviced (CPUS)

Customer-Paid
General Units Periodic
Total Units Serviced Units Serviced
Serviced Maintenance
(CPUS)

Warranty Units
Repairs
Service

Internal Units
Others
Serviced

B&P customer-Paid
In-house B&P Shop
B&P Units Serviced Units Serviced
Units Serviced
(BPUS)

Warranty Units
Service

Internal Units
Serviced

B&P customer-Paid
Independent B&P
Units Serviced
Shop Units Serviced
(BPUS)

Warranty Units
Service

Internal Units
Serviced

52
 Dealer's Market
*1 : BPUS classification
In order to manage the details in a more thorough manner, it is crucial to manage the results by damage scale and
by cost burden.
"Major damage" refers to repair work that requires welding. "Minor damage" refers to all other work.

B&P Paid by
Minor

Foundations
Customer-Paid Vehicle
Damage
Units Serviced Owner

Dealer's
Major
Damage

Paid by
Insurance Minor
Company Damage

Major

Activities
Dealer's
Damage

*2 : CPUS by others:
• CPUS for maintenance work done on vehicles other than cars (motorcycles, tractors, etc.)
• CPUS that include repair work on parts brought in to the dealer, when the vehicle itself was not brought in.

Dealer's Results
Foundations
Distributor's
Distributor's
Activities
Appendix

53
 CRt (Customer Retention) rate

Overview

KPI name Overview

This indicates the number of units in operation that have been brought into
1. CRt rate (CPUS/UIO)
the dealer for paid service.

CRt rate (customers

who visited a dealer Indicates how many customers made one or more paid visits to the dealer
2.
within the past 12 out of the total UIO within the past 12 months.
months)

This indicates the number of customers that have had their vehicle
3. First service CRt rate
serviced, with respect to the total number of units due for first service.
CRt rate by vehicle
4. This indicates the retention of customers by vehicle age.
age

Calculation method

KPI name Calculation formula

CPUS*1
1. CRt rate (CPUS/UIO) × 100
UIO*2

CRt rate (customers

who visited a dealer Number of customers serviced within the past 12 months*3
2. × 100
within the past 12 UIO*2
months)

Number of first service units serviced (including free service)

3. First service CRt rate × 100
Number of units due for first service
Number of paid units serviced
CRt rate by vehicle (CPUS by vehicle year; general service)*4
4. × 100
age
UIO by model year*5

*1 : For CPUS, see page 52.

*2 : For UIO, see page 21.
*3 : Number of customers serviced within the past 12 months:
>The reason for the service visit is limited to general maintenance and periodic maintenance.
>This does not include vehicles serviced for free inspection or B&P work.
>Vehicles serviced multiple times count as one unit.
*4 : The number of paid units serviced (CPUS by vehicle age; general service) is the Customer Paid Units Serviced
(CPUS) (see page 52) broken down by model year.
*5 : The UIO by model year is the UIO (see page 21) broken down by vehicle age.

54
 Dealer's Market
Examples
1. The UIO from the opening of branch A to the present is 5,000 units. The CPUS in 2012 was 9,000
units.
Thus, the CRt rate (CPUS/UIO) is 9,000 ÷ 5,000 × 100 = 180.0%.

Foundations
2. The UIO from the opening of branch A to the present is 5,000 units. The number of customers who visited
a dealer within past 12 months for 2012 was 3,500. Thus, the CRt rate (customers who visited a dealer

Dealer's
within past 12 months) is 3,500 ÷ 5,000 × 100 = 70.0%.
3. Below, an example of Japan's first service CRt rate is shown. In Japan, the first service CRt rates for the
current month and year are looked at.
Example of calculation for the current month:
There were 450 new vehicles that were first brought in for a service visit since being sold in the 3 months
between the current month (N, ex: September) and the previous 2 months (N-2, ex: July).

Activities
Dealer's
On the other hand, in the 3 months between N-1 (ex: August) and N-3 (June), there were 510 new
vehicles sold.
* For Japan,

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Dealer's Results
No. of first service
... ... ... ... ... ... ... 200 150 100 ... ... ... ...
units serviced

New vehicles sold ... ... ... ... ... ... 210 180 120 ... ... ... ... ...

The first service CRt rate for the current month (September) is 450 ÷ 510 = 88.2%.
Reference:
In Japan, TMC sells new vehicles with a free inspection 1 month after the new vehicle is sold. However,
depending on the customer the service visit may be delayed, so the number of first service units serviced
count and the new vehicles sold count are off by 1 month. In order to reflect this delay in the service visit

Foundations
Distributor's
month depending on the customer in the actual results, efforts are made to achieve a higher precision by
taking the average over 3 months.

Example of calculation for the year:

There were 1,250 new vehicles that were first brought in for a service visit since being sold in the year
up until the current month (N, ex: December). On the other hand, in the year up until N-1 (ex: November)
there were 1,440 new vehicles sold.

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Distributor's
No. of first service
... 90 100 90 110 100 100 110 150 100 100 100 100 ... Activities
units serviced

New vehicles sold 120 130 120 120 120 110 120 120 120 110 120 130 ... ...

The first service CRt rate for the year is 1,250 ÷ 1,440 = 86.8%.

4. The CPUS for 2008 models over the past year for branch A was 250 units. The UIO for 2008 models is
Appendix

450 units. The CRt rate by model year is 250 ÷ 450 x 100 = 55.6%.

55
 Description
The CRt rate (CPUS/UIO) is the
High Strategies
most general indicator that shows
how much service demand has Build stronger
been captured by the dealer, and relationships with new
vehicle customers

Retention rate
is an indicator of the results of
service sales activities. However, Turn "at risk"
customers who return for service customers into loyal
customers
several times will be counted each
time, so it is impossible to evaluate Build stronger
what percentage of customers relationships with both
inactive customers and
are returning to the dealer. In warranty Out of warranty
aged-vehicle owners
Low
Accordingly, using the number of New Age
customers serviced in the last
year allows us to analyze if there is a need to increase the number of loyal customers, or the frequency of
service visits.
The first service CRt rate indicates the number of customers that came in to the dealer for their first service
after purchasing a vehicle, and it indicates the degree to which the first connection was made with the
customer.
If this value is low, it may adversely affect future retention activities.
Generally speaking, the older the vehicle, the lower the CRt rate by vehicle age (retention). This allows us
to see at what point customers are leaving the dealer, and makes it possible to deploy highly focused
activities to improve customer retention.

56
 Dealer's Market
Overview

Foundations
This indicates the percentage of the total demand for service from the Toyota UIO that is held by the

Dealer's
authorized Toyota network.

Calculation method
CPUS*1
Service market share = × 100
Annual average number of times serviced*2 × UIO

*1 : For CPUS, see page 52.

Activities
Dealer's
*2 : For the annual average number of times serviced, calculate while referring to Appendix A3.

Examples

Dealer's Results
The UIO from the opening of branch A to the present is 5,000 units. The CPUS in 2012 was 9,000 units.
The annual average number of times serviced was 2.2.
Thus, the service market share is 9,000 ÷ (5,000 x 2.2) × 100 = 81.8%.

Description
The service market share is a number that shows what percentage of the service demand from your Toyota
vehicle share that you have captured; and shows customer retention from the standpoint of the share of all

Foundations
service demand.

Distributor's
A low value means low customer retention.

Distributor's
Activities
Appendix

57
 Overview
This indicates the B&P service share that is held by your own company, out of the B&P service demand
generated by the Toyota UIO.

Calculation method
BPUS*1
B&P service market share = × 100
UIO x B&P collision repair rate*2

*1 : For BPUS, see page 52.

*2 : The number used for the collision repair rate is the number announced by insurance companies, governmental
branches of each country, and related sources.
(This number does not include vehicles that were involved in an accident but were not repaired.)

Examples
The UIO from the opening of branch A to the present is 5,000 units. The total number of BPUS at branch A
in the year 2012 was 500.
The B&P collision repair rate was 25%.
Thus, the B&P service market share is 500 ÷ (5,000 x 25%) × 100 = 40.0%.

Description
The B&P service market share is a number that shows what percentage of the B&P service demand from
the Toyota UIO that you have captured, and shows customer retention from the standpoint of the share of
all B&P service demand.
This is the same as service market share (see page 57), when considered from the standpoint
of retention.

58
 Dealer's Market
Overview

Foundations
The number of customers indicates the total number of units that have been registered in the DMS.

Dealer's
Description
The number of customers is used to evaluate how much customer information is available that can be used
as a basis for marketing activities.
This number includes new vehicles sold, used vehicles sold from all manufacturers, non-Toyota vehicles,
and customers coming in for service only.

Activities
Dealer's
If a customer owns more than one vehicle, then each vehicle is counted as one "customer" (for instance,
two vehicles equal two "customers").
It is desirable to classify and manage customers by their frequency of service visits.
The table below shows the definitions for customer segments at dealers in Japan. Each distributor must

Dealer's Results
decide on the appropriate customer classifications after considering the average mileage and maintenance
intervals of your respective countries.

Customer segment Frequency of service visits

SS segment Visits the dealer for service 4 times per year or more.
S segment Visits the dealer for service 2 times per year or more.
A segment Visits the dealer for service once per year.
B segment Has not visited the dealer for service within the past 13-18 months.

Foundations
Distributor's
C segment Has not visited the dealer for service within the past 19-24 months.
D segment Has not visited the dealer for service for 25 months or more.

Topics: Difference between number of customers and UIO

New service
UIO customers
No. of customers Distributor's
Activities

Customer information
is not registered
Appendix

Market scale Base for marketing activity

59
 VIN CRt

Overview
This indicates the percentage of customers with a service history within the past 12 months in proportion
to the number of customers registered in the DMS. Each unique vehicle identification number (VIN) is
counted a maximum of one time only.

Calculation method
VIN CRt =
Number of customers serviced within the past 12 months*1
× 100
Number of customers*2
*1 : Definition of the number of customers serviced within the past 12 months:
>The reason for the service visit is limited to general maintenance and periodic maintenance.
>This does not include vehicles serviced for free inspection or B&P work (However, some countries may choose
to include B&P jobs).
>Vehicles serviced multiple times count as one unit.
*2 : For the definition of number of customers, see page 59.

Examples
The number of customers in branch A's customer database is 5,000 people. The number of customers
serviced within the past 12 months was 3,500. Thus, VIN CRt is 3,500 ÷ 5,000 × 100 = 70.0%.

Description
VIN CRt is used to evaluate how many customers that the dealer maintains contact with as a result
of maintenance reminder activities.
When analyzing the VIN CRt, it is important to look not only at changes in the percentage, but also in
the raw, absolute number of customers serviced (the numerator).

60
 Dealer's Market
Case VIN No. customers No.
Situation and example actions
(Eval.) CRt serviced customers
A (◎) ↑ ↑ →／↑ Growth in no. customer serviced higher than no.

Foundations
customers. Check what retention activities are

Dealer's
being implemented, whether those activities are
meeting targets and identify opportunities for
improvement in each activity
B (〇) ↓ ↑ ＜↑ Growth in no. customers higher than no. customers
serviced (growth in retention has not matched
growth in number of customers). Analyze which

Activities
Dealer's
segments have low or decreasing VIN CRt and
consider activities to increase retention among
those segments.

Dealer's Results
C (△) ↑ →／↓ ／↓≥ No. customers serviced was stable or declined, but
no. customers declined even more. Difficult
problem to identify just by VIN CRt, as the rate
appears to increase. Hides a potentially serious
problem. Check the reasons for the decrease in no.
customers, and the status of retention promotion
activities.

Foundations
Distributor's
D (☓) ↓ ↓ ＜→／↓ No. of customers serviced has declined. Indicates
retention activities are weak, which is a serious
problem. Consider how to strengthen those
activities or attract new customers (see Case E,
below).
E N/A N/A N/A Create touch points with customers who have
never visited for service (i.e. never included in no. Distributor's
of customers) Activities
Appendix

61
 CPS/BPS (Customer Paid Sales/B&P Customer Paid Sales)

Overview

KPI name Overview

Customer Paid Sales
1. This is the total sales of paid periodic maintenance and repair work.
(CPS)
B&P Customer Paid This is the sales of paid B&P work done and is the total of both in-house
2.
Sales (BPS) and sublet sales.

Description
The items listed above have the values of the range shown below.
If sales are low, it is possible the number of units serviced is low, or the average customer paid sales per
service visit is low. It is necessary to grasp the activity process, such as whether maintenance reminders
are being thoroughly implemented, whether attractive products are being offered to customers, or whether
service products that lead to reliable service visits are being sold.
In addition, if the average sales per unit is too high, in some cases this will lead to customer dissatisfaction
due to over-selling, so it is necessary to also confirm CSI.
Finally, look at the average sales per service staff (technicians and SAs). Sufficient sales per service staff
must be generated in order to cover the cost of salaries and generate service profit.
Customer Paid Sales (CPS)

Total Dealer General Service Customer Paid

Service Sales Sales by Repair
Sales Sales Sales (CPS)
Sales by others*1
Warranty Service
Sales

Internal Service
Sales

New Vehicle Body & Paint In-house B&P

Sales by Warranty
Sales Sales Shop Sales
Sales by Internal

Used Vehicle Parts External Independent B&P

Sales by Warranty
Sales Sales Shop Sales
Sales by Internal

Accessories B&P Customer Paid Sales (BPS)

External Sales

*1 : Sales by others:
>Service sales for maintenance work done on vehicles other than cars (motorcycles, tractors, etc.)
>Service sales that include repair work for parts that were brought in without the vehicle for repairs

62
 Dealer's Market
*2 : CPS classifications
In order to manage the details in a more thorough manner, it is crucial to manage the results by labor costs, sublet
costs, and parts sales amount.

Customer
Labor
Paid Sales
Sales

Foundations
(CPS)*2

Dealer's
Sublet
Sales

Parts
Sales

*3 : BPS classification

Activities
Dealer's
In order to manage the details in a more thorough manner, it is crucial to manage the results by damage scale and
by cost burden.
"Major damage" refers to repair work that requires welding. "Minor damage" refers to all other work.

Classifications by sales Classifications by damage scale and cost burden

Dealer's Results
B&P B&P Paid by
Labor Minor
Customer Customer Vehicle
Sales Damage
Paid Sales Paid Sales Owner
(BPS)*3 (BPS)*3
Sublet Major
Sales Damage

Paid by
Parts Minor

Foundations
Distributor's
Insurance Damage
Sales
Company

Major
Damage

Distributor's
Activities
Appendix

63
 Accessory sales per new vehicle

Overview
This indicates the amount of accessory sales per new vehicle.

Calculation method
Accessory sales
Accessory sales per new vehicle = × 100
New vehicles sold

Examples
Branch A sold $126,000 in accessories over the past year. 6,400 new vehicles were sold. Thus, the

accessory sales per new vehicle is $126,000 ÷ 6,400 = $19.70/vehicle.

Description
If this number is unsatisfactory, it could mean that proposals for accessories may be insufficient, or that
there are not enough opportunities to propose accessories to the customers.

64
 Dealer's Market
Overview

Foundations
This indicates the profit ratio for service jobs.

Dealer's
Calculation method
(Service sales - Service cost*2)
Service gross profit rate*1 = × 100
Service sales

*1 : Calculation by sales and costs from labor, parts, and sublet repairs.
*2 : Service gross profit (service sales – service cost) includes the areas shown in the diagram below.

Activities
Dealer's
Service Profit*3

Total Dealer Service Profit General Service Customer Paid Periodic

(Gross Profit =

Dealer's Results
Profit Profit Sales (CPS) Maintenance
Sales - Cost)
Repair
Warranty
Service

Internal Service

Foundations
New Vehicle Body & Paint In-house B&P Customer Paid

Distributor's
Profit Profit Shop Service
Warranty
Used Vehicle Parts External Internal
Profit Profit

Accessories Independent Customer Paid

Profit by Others
External Profit B&P Shop Service
Distributor's
Warranty
Activities
Internal

*3 : Service job rate classification

In order to manage the details in a more thorough manner, it is crucial to manage the results by labor costs, sublet
costs, and parts sales amount.
Classifications by sales
Appendix

Service Profit Labor

(Gross Profit = Sales - Cost) Profit

Sublet
Profit

Profit

65
 Examples
The total service sales of branch A was $225,000. The total service cost was $135,000.
Thus, the service gross profit rate is ($225,000 - $135,000) ÷ $225,000 × 100 = 40.0%.

Description
Service gross profit rate indicates the level of profit that the service department makes, and shows how
much added value is in service sales.
If there is a drop in sales or if costs rise, the service gross profit rate will become worse.
If sales are poor, it is important to first increase customer retention by implementing maintenance reminder
activities, and also to increase the average customer paid sales per service visit by promoting sales of major
maintenance products.
In addition, if costs are too high, it is also important to raise the efficiency of technicians and service
advisors.

66
 Dealer's Market
B&P gross profit rate

Overview

Foundations
This indicates the profit ratio for B&P jobs as part of B&P activities.

Dealer's
Calculation method
(B&P sales - B&P cost)
B&P gross profit rate*1 = × 100
B&P sales

*1 : Calculation by sales and costs from labor, parts, and sublet repairs.
B&P gross profit (B&P sales – B&P cost) includes the items shown in the areas below.

Activities
Dealer's
Total Dealer General Service Customer Paid Periodic
Service Profit
Profit Profit Sales (CPS) Maintenance
Repair

Dealer's Results
Warranty
Service

Internal Service

New Vehicle Body & Paint In-house B&P Customer Paid

Profit Profit Shop Service
Warranty

Foundations
Distributor's
Used Vehicle Parts External Internal
Profit Profit

Accessories Independent Customer Paid

Profit by Others
External Profit B&P Shop Service
Warranty
Internal
Distributor's
Activities
B&P gross profit*2
Appendix

67
 *2 : B&P gross profit classification
In order to manage the details in a more thorough manner, it is crucial to manage the results by damage scale and
by cost burden.
"Major damage" refers to repair work that requires welding. "Minor damage" refers to all other work.
Classifications by sales Classifications by damage scale and cost burden

Paid by
Body and Labor Body and Minor
Vehicle
Paint Profit Sales Paint Profit Damage
Owner

Sublet Major
Sales Damage

Parts Paid by
Minor
Sales Insurance
Damage
Company

Major
Damage

Examples
The B&P sales of in-house and sublet work for branch A was $67,500.
The total cost related to this work was $45,800.
Thus, the B&P gross profit rate is ($67,500 - $45,800) ÷ $67,500 × 100 = 32.1%.

Description
"B&P gross profit rate" refers to the level of profit for B&P work, and shows how much added value is in B&P
work.
If there is a drop in sales or if costs rise, the B&P gross profit rate will become worse.
If sales are poor, it is important to increase the number of B&P service visits and B&P sales through daily
customer retention activities.
If costs are high, it is vital to consider how to improve the technical efficiency of internal work done at the
genba, while reducing parts costs and sublet costs.

68
 Dealer's Market
Overview

Foundations
KPI name Overview

Dealer's
This indicates the degree to which costs required to run the dealer
1. Absorption rate
and fixed costs (administrative expenses) are covered by service profit.
Number of Dealers or
This indicates the number of Dealers or Branches that report
2. Branches reporting
their absorption rate results to the Distributor
absorption rate
Dealers or Branches This indicates the number of Dealers or Branches which began
3.

Activities
Dealer's
less than 3 years old business operations less than 3 years ago
Items included in the
A list of specific items included in each Distributors’ calculation of
4. calculation of
service absorption rate
absorption rate
 The precise definition of service absorption may differ from dealer to dealer, or from country to

Dealer's Results
country. Accordingly, it is important to clearly define which specific sources of profit are included in
Service Gross Profit, and which specific expenses are included in Administrative Expenses, so that
a fair and even comparison can be made among them.

Calculation method
Service Gross Profit
Service Absorption Rate = × 100
Administrative Expenses (fixed cost)

Foundations
Distributor's
Distributor's
Activities

*1
Total labor costs include directors' fees, salaries, bonuses, retirement allowances, welfare expenses,
recruitment expenses, education and training costs, and other costs. (It does not include labor costs for the
Appendix

service department, as these costs are already included in the unit cost and would be counted twice.)
*2
Office costs include office supplies expenses, information and communication transportation expenses, and
other costs.
*3
Facility costs include furniture and fixture costs and rental charges, repair and maintenance costs,
contribution asset taxes, light, heat and water expenses, company car expenses, depreciation expenses, and
other costs.

69
 *4
Miscellaneous costs are administrative costs that include travel expenses, social expenses, contributions
and other costs.
*5
The base labor cost includes the personnel costs for managers at the service department, and all staff (such
as technicians and SAs).
*6
General administrative costs (fixed costs) may vary with each Distributor. Set the costs by referring to the
above and considering the situation in each country.

Examples
If the service gross profit of branch A is $48,000 and administrative costs are $50,000, then the
service absorption rate is $48,000 ÷ $50,000 × 100 = 96%.

Description
 The service absorption rate is an index measuring the contribution of after sales profit to the
sustainability of the dealer. Because service demand is not affected as strongly by the economy
as new vehicle sales, the higher the ratio, the greater the earnings by service sales and the more
sustainable the business.
To raise the absorption rate, there are three fundamental strategies:
Strategy Example activities
Increase  Thoroughly implement product proposal activities during service visits to raise
profit sales per unit serviced and per service staff
 Expand the range of products offered and develop new products to
 encourage repeat service visits, to increase customer retention
Reduce  Increase technician productivity
costs  Eliminate repeat repairs through Fix-It-Right activities
 Improve collaboration between Parts and Service to minimize parts inventory
Expand the  Offer financial products, such as insurance and extended warranties
value chain  Increase the penetration of loans and leasing
 Increase gross profit from used car sales through reconditioning, more
efficient inventory management, etc.
 The number of dealers or branches reporting absorption rate is used to grasp the number of
dealers or branches that understand the concept of absorption rate and manage their KPI.
 The number of dealers or branches less than 3 years old is used to grasp the number of dealers or
branches which have not been in business long enough to establish a customer base and obtain
sufficient profit to cover their expenses. It is recommended that such dealers or branches be
excluded when calculating the national absorption rate, as it will tend to artificially lower the
average.

70
 Dealer's Market
Overview

Foundations
Identify Distributor and dealer strengths and weaknesses for service from the customer's perspective, by

Dealer's
utilizing an internal Customer Satisfaction survey*
The purpose is to measure the satisfaction, expectation and implementation ratio, and then take action as
a part of Kaizen PDCA (The objective is not just to achieve a higher score)
* Please refer to the 'CS Survey Guide' for more details.

Description and Examples

Activities
Dealer's
<Major items>
Asks whether the overall service experiences was satisfactory.
Since the weight of the items in the question varies depending on the
Overall respondent, understand the absolute evaluation
satisfaction

Dealer's Results
Example: How did your overall service experience at this dealer compare
to your expectations?

Asks whether the customer wants to recommend the purchased product or

service used to someone else
Intention to Identify the customer's level of trust at the time of the survey
recommend
Example: Would you recommend the dealer where you serviced your
vehicle to somebody else?

Foundations
Asks whether the customer wants to repurchase the product, or use the service

Distributor's
again.
Intention to
Identify the customer's loyalty at the time of the survey
repurchase or use
the service again Example: Will you continue to have your vehicle serviced at the same
dealer?

Understand what the Take appropriate

customer expects --grasp countermeasures based Distributor's
your company's strengths on customer comments Activities
and weaknesses and improve CS further
Appendix

71
 <Indicators used to evaluate overall satisfaction>

Indicator Major characteristics

- Can check whether the service was implemented on a satisfactory
level.
- Can identify "dissatisfied" customers.
Satisfaction Sample question:
Satisfied or not? Were you completely satisfied with the explanation of the work
(Service was appropriate or not) details?
Sample answer:
Very satisfied/Mostly satisfied/Somewhat dissatisfied/Dissatisfied
- Easy to find out which items strongly affect customer satisfaction,
Expectation or which items have little influence.
(Level at which expectations are Sample question:
realized) Do you want the dealer to contact you soon after vehicle delivery,
- Is it desired or not? to ask you about the condition of your vehicle?
(Service was above customer's Sample answer:
expectation or not)
1. Yes 2. Doesn't matter 3. No
- Can check whether the measure was implemented from the
customer's viewpoint.
- How does the service provided according to Distributor or dealer's
Implementation Hoshin influence satisfaction?
- Implemented or not? Sample question:
(The operation was Did the dealer ask about your specific service needs prior to
implemented or not) starting work on your vehicle?
Sample answer:
Yes/No

You can find hints or priorities for Kaizen by matching up two indicators.

For example: Low satisfaction with For example: Make immediate

explanations of work details improvements to the explanations given
before work is done (for which expectations
Time taken to service
are high but satisfaction is low)
Reasonableness of
charges Expectations
Explanation of charges
Most important
Explanation of work
Knowing the
details
Explanations customer's
given before service history
work is done

Confirm related implementation levels

Greetings Contact after
vehicle delivery
Yes

High level of satisfaction

No

- Did the dealer explain the details of the work

needed on your vehicle?

72
 Dealer's Market
Brand loyalty

Overview

Foundations
This indicates the percentage of current Toyota owners that choose to purchase a Toyota again for their next

Dealer's
vehicle.

Calculation method

Accuracy Calculation method

Number of Toyota new-vehicle owners replacing a Toyota with a Toyota*1

Activities
High Total number of Toyota new-vehicle owners replacing their vehicle*2 × 100

Dealer's
(Toyota to Toyota + Toyota to a competitor*3)
Number of Toyota new-vehicle owners replacing a Toyota with a Toyota*1
Low × 100
UIO

Dealer's Results
*1 : Number of customers who previously purchased a new Toyota vehicle, and are now replacing it with another new
Toyota
*2 : Number of customers who previously purchased a new Toyota vehicle, and are replacing it in the reporting
period
*3 : Collect this data through third-party surveys

Example

Foundations
At branch A, 2,100 Toyota new-vehicle owners replaced their Toyota with a Toyota. The total number of

Distributor's
Toyota new-vehicle owners replacing their vehicle is 5,000. Thus, the Brand Loyalty for branch A is 2,100 ÷
5,000 = 42.0%.

Description
The higher this KPI is, the more loyal customers are to the Toyota brand, and this will lead to higher profit
from new-vehicle sales and a more stable business base for the dealer.

Distributor's
Activities
Appendix

73
 Service Net Promoter Score (NPS)

Overview
KPI name Overview

This indicates the difference between the percentage of NPS survey

respondents who are ‘Promoters’ (gave the dealer or branch a score of
1. Net Promoter Score
9 or 10 on the NPS question) and the percentage who are
‘Detractors’ (gave the dealer or branch a score of between 0 and 6).

NPS introduction This indicates the percentage of the dealer or branch network that
2.
rate has introduced the NPS survey
Average number of
This indicates the average number of valid responses received by
3. valid responses per
each dealer or branch that is conducting the NPS survey
dealer or branch
This indicates the percentage of surveys conducted which received
4. NPS response rate
a valid response

Calculation method
KPI name Calculation formula
*1 *3
Number of Promoters Number of Detractors
1. Net Promoter Score × 100 – × 100
*2 *2
Number of valid responses Number of valid responses

NPS introduction Number of dealers implementing the NPS survey

2. × 100
rate *5
Total number of target dealers or branches

Average number of *2
Number of valid responses
3. valid responses per
*5
dealer or branch Total number of target dealers or branches
*2
Number of valid responses
4. NPS response rate × 100
*4
Total number of surveys conducted
*1
Number of survey respondents giving the dealer or branch a score of 9 or 10 on the NPS question.
*2
Number of survey respondents who agreed to give the dealer or branch a numeric score on the NPS
question.
*3
Number of survey respondents giving the dealer or branch a score of between 0 and 6 on the NPS question.
*4
Number of customers contacted for the NPS survey.
*5
“Total number of target dealers or branches” refers to the number of dealers or branches whose customers are
the target for the Service NPS survey (i.e. excluding dealers or branches that serve only fleet customers,
who are not the target of the survey).

Examples
1. In the Net Promoter Score survey, 60% of respondents gave branch A a score of 9 or 10 (=
Promoters), while 10% of respondents gave branch A a score of anywhere from 0 to 6 (=

74
 Dealer's Market
Detractors). The NPS of branch A is 60% - 10% = 50.0%.
2. There are 20 dealers in country A. Of those dealers, 15 are implementing the NPS survey. The
NPS introduction rate is 15 ÷ 20 × 100 = 75.0%.
3. An NPS survey in country A received 2,000 valid responses. There are 20 dealers in the country.

Foundations
The Average number of valid responses per dealer or branch is 2,000 ÷ 20 = 100.0.

Dealer's
4. An NPS survey in country A received 2,000 valid responses, out of a total of 2,500 surveys
conducted. The NPS response rate is 2,000 ÷ 2,500 × 100 = 80.0%.

Description
The Net Promoter Score (NPS) survey provides a way to measure customer loyalty using only
two simple questions:

Activities
 How likely is it that you would recommend our dealer to your friends or family?

Dealer's
 Please tell us why you gave that score
Customers answer the first question on a score from 0 to 10. 0 means the customer is not likely
to recommend the dealer at all and 10 means the customer is extremely likely to recommend the

Dealer's Results
dealer. Customers who give scores of 10 and 9 are considered Promoters, customers who give
scores of 8 and 7 are Passives, who have some possibility to become Promoters, and customers
who give a score of 6 or below are considered Detractors, with no possibility of recommending
us. The NPS score is calculated by subtracting the percentage of Detractors from the percentage of
Promoters.

Foundations
Distributor's
Distributor's
Activities

The follow-up question, about the reason for the score, provides an opportunity to gather the Voice of
the Customer (VOC), which is often hard to grasp or only received when customers call to complain.
In this way, a more accurate picture of customers’ expectations and experiences can be gathered.
In addition to looking at the NPS itself, it is also important to look at the percentages of Promoters,
Appendix

Passives and Detractors when setting priorities.

Case Countermeasures
High percentage (1) Quickly respond to dissatisfied customers
of Detractors (2) Thoroughly implement SOPs to eliminate complaints
Low percentage (1) Use VOC to grasp customers’ real expectations
of Detractors (2) Understand the entire customer experience
(3) Provide personalized service to each and every customer

75
 Memo

76
 Chapter 3:
Distributor KPI definitions
 Number of distributor instructors

Overview

KPI name Overview

1. TSA21 instructors
2. TEAM21 instructors
3. B&P TEAM (Body and Paint) instructors This indicates the number of instructors employed by the
Distributor who can give instruction in the respective
4. B&P Estimation instructors program(s).
5. B&P TSM instructors
6. Parts Kaizen promoters

Description

KPI name Description

1. TSA21 instructors
2. TEAM21 instructors This number indicates whether there is a sufficient
number of instructors available who can give instruction
3. B&P TEAM (Body and Paint) instructors in the respective program(s). In addition, at the same
4. B&P Estimation instructors time by understanding the number of technicians per
instructor, you can check the instructor workload and
5. B&P TSM instructors know whether there are enough instructors.
6. Parts Kaizen promoters

Annual Assembly of International

Customer Service Champions

National Skills
Contests
B&P
TEAM21 TSA21
TEAM

T-TEP

78
 Dealer's Market
Overview

Foundations
This indicates the number of technicians per instructor.

Dealer's
Calculation method
Number of technicians*1
Number of technicians per instructor =
Number of instructors*2

*1 : Total number of general maintenance technicians at dealers who are administered by the Distributor.

Activities
*2 : Total number of instructors who work for the Distributor

Dealer's
Examples
The total number of technicians working for the dealers administered by Distributor A is 480. There are a

Dealer's Results
total of 4 instructors who work for Distributor A.
Thus, the number of technicians per instructor is 480 ÷ 4 = 120.

Description
The KPI for the number of technicians per instructor is used to determine whether the number of available
instructors is appropriate for the scale of the market in question.
Not having enough instructors may cause excessive instructor workload or have a negative effect on

Foundations
human resources development activities in dealer.

Distributor's
Distributor's
Activities
Appendix

79
 Overview

KPI name Overview

1. FTR (quantity) This indicates how many FTR (Field Technical Reports) were published.
2. FTR (quality) This indicates the ratio of reports that are of good quality.
This indicates the ratio of reports that were made within 10 working days
3. FTR (speed)
from the repair date.

Calculation method

KPI name Calculation method

Number of good FTRs*1
1. FTR (quality) × 100
Total number of FTRs
Number of FTRs submitted within 10 working days
from the repair date*2 × 100
2. FTR (speed)
Total number of FTRs

*1 : Number of good FTRs, with the criteria for "good" set by TMC.
*2 : "Repair date" is the date on which repairs were completed.

Examples
Distributor A made 250 FTRs within the past 2 years. Out of these, 180 FTRs were deemed to be good-
quality reports. There were 200 reports that were submitted within 10 working days from the repair date.
1. The FTR (quantity) is 250.
2. The FTR (quality) is 180 ÷ 250 = 72.0%.
3. The FTR (speed) is 200 ÷ 250 = 80.0%.

Description
In order to rapidly identify vehicle defects, reports must be made with a sufficient quantity of information,
with excellent quality and in a timely manner.
The FTR is a number that shows the quantity, quality, and speed of information that should be reported.
When these numbers are good, we can predict that vehicle defects are being detected and resolved at an
early stage; and we can also predict that a high level of service and technical quality is being maintained.

80
 Dealer's Market
Overview

Foundations
This indicated whether warranty claims are being reliably submitted without delay.

Dealer's
Calculation method
Number of over 50-days submission TWC*1
TWC travel time (Over 50-days rate) = × 100
Number of first submission TWC

*1 : Number of reports that reached TMC 50 days or more after the customer's service visit

Activities
Dealer's
Examples
In one year, distributor A submitted 1,000 warranty claims. However, it was determined that 28 of these
claims did not reach TMC within 50 days.

Dealer's Results
Thus, the TWC travel time (Over 50-days rate) would be: 28 ÷ 1,000 × 100 = 2.8%.

Description
If this value is not good, it means there will be more delays for the customer, which will have a negative
impact on CS.

Foundations
Distributor's
Distributor's
Activities
Appendix

81
 Overview
This indicates whether warranty claims are being reliably processed without error.

Calculation method
Number of warranty errors*1
TWC error rate = × 100
Number of TWC claims processed*2

*1 : Number of warranty claims determined by TMC to contain errors.

*2 : Total number of claims submitted to TMC, including re-submissions.

Examples
In one year, distributor A submitted 1,000 warranty claims. TMC determined that 25 of these contained
errors.
Thus, the TWC error rate would be: 25 ÷ 1,000 × 100 = 2.5%.

Description
Correctly carrying out warranty work can decrease customer dissatisfaction.

82
 Dealer's Market
Overview

Foundations
This indicates the ratio of parts supplied vs. customer parts orders.

Dealer's
Calculation method
Allocated line*1
Allocation fill rate = × 100
(Allocated line*1 + B.O. Line*2 + Cancelled line*3)

*1 : Number of allocated order lines in order process day, B/O release line is not included

Activities
*2 : No. of B/O lines in order process day regardless of partial B/O and full B/O

Dealer's
*3 : No. of canceled order lines in order process day

Examples

Dealer's Results
The number of allocated lines for Distributor A in the 4th quarter was 120,000 lines. There were 35,000
back-ordered lines. There were 5,000 canceled lines.
Thus, the allocation fill rate is 120,000 ÷ (120,000 + 35,000 lines + 5,000) = 75.0%.

Description
The allocation fill rate is a number that shows whether the necessary parts are being rapidly supplied to
customers.

Foundations
Distributor's
If this number is low, it means that there is stagnation, which has a negative influence on the CSI score.

Distributor's
Activities
Appendix

83
 Overview
This indicates the stock efficiency.

Calculation method
Closing on-hand stock amount*1
Stock months = × 100
Monthly average demand (MAD) amount*2

*1 : Total amount of parts stock on-hand at the end of the month, in local currency
*2 : Monthly average demand for parts, in local currency

Examples

Description
If this KPI is high, it indicates that more than the necessary stock is on-hand and the warehouse is not
efficient. In order to appropriately increase efficiency by managing this KPI, it is important monitor what level
of stock is required in the warehouse so that the warehouse can cover demand, fluctuations in the purchasing
lead time and the order cycle.
In addition, at the same time it is important to also monitor increasing or decreasing trends in stock, while
taking into account stock increase or reduction plans.

84
 Dealer's Market
* Customer Assistance Center
Overview

Foundations
This indicates the ratio of customer calls to the service center that actually got through.

Dealer's
Calculation method
100% - abandon rate* (%)
* Abandon rate formula =
Number of customers calling the CAC who hang up before the call is answered
× 100
Number of calls from customers

Activities
Dealer's
<Target> (sample figure) 90% or above
Examples

Dealer's Results
1. Management by time of day
- The trends for calls received in terms of time of day are analyzed and used to allocate staff more
appropriately.
2. Management by daily/monthly average
- Used to allocate staff more appropriately, and used as materials to create CR activity reports.

Description

Foundations
When customers make a telephone call, they will grow even more dissatisfied if they can't get through. By

Distributor's
managing the response rate, the Distributor can ascertain how many customer calls that come in are actually
being answered. If the response rate is poor, customer satisfaction will decrease.

Distributor's
Activities
Appendix

85
 Overview
Indicates the number of quality, service, and sales-related complaints.

Calculation method
Number of quality complaint cases for the current month
Quality complaint rate = × 100
5-year new-vehicle sales UIO*1

Number of service complaint cases for the current month

Service complaint rate = × 100
5-year new-vehicle sales UIO*1

Number of sales complaint cases for the current month

Sales complaint rate = × 100
Average monthly new vehicles sold for the last 3 months*2
*1 : 5-year new vehicle sales UIO = total number of vehicles sold in the last 5 years.
*2 : Average new vehicles sold for the last 3 months, including the current month (i.e. To calculate the figure for
March 2014, use the average monthly sales from January to March)

Examples
1. Monthly management
- Monitor any changes that occur. If the rate is increasing, investigate the cause and link this into kaizen
activities.

Description
Continually observing the complaint rate helps to identify changes and/or issues that require kaizen. If the
complaint rate is increasing, it is necessary to investigate the cause and move forward with kaizen
activities.

86
 Dealer's Market
Overview

Foundations
Indicates the number of cases in which the facts were either confirmed, or judged to not require confirmation,

Dealer's
in the current month out of the total number of serious complaint cases in that month.

Calculation method
Fact Confirmation Rate =
Number of serious complaint cases*1 where fact confirmation was conducted in
the current month + number of cases judged not to need fact confirmation*2

Activities
× 100

Dealer's
Number of serious complaint cases for the current month

*1 : Includes the number of cases in which the fact confirmation is scheduled within one month.

Dealer's Results
*2 : Includes cases in which the customer refused confirmation of the actual vehicle, a third party is involved and
cannot confirm the actual vehicle, or the Distributor/region/branch office has decided not to confirm the actual
vehicle.
<Target> (sample figure) 100%

Examples
1. Monthly management
- Manage the fact confirmation rate, and confirm how the Distributor is handling their customers.

Foundations
Distributor's
If the targets have not been achieved, it may be necessary to review the framework and/or processes
used to confirm the actual vehicle in each case.
2. Management of each staff member
- By managing the fact confirmation rate for each staff member, progress control can be visualized,
making it possible to study whether the staff-in-charge need more training to improve their skills.

Description
Distributor's
It is necessary to thoroughly confirm the facts, such as the actual situation of the issue and the vehicle Activities
condition, as serious complaint cases may escalate or get blown out of proportion.
Appendix

87
 Overview
This indicates the ratio of customer complaint cases in the current month that were resolved within 30 days,
out of all new customer complaint cases received.

Calculation method
Rate of Resolution within 30 Days =
Of the complaints received the previous month, the
number of complaints resolved within 30 days
× 100
Number of cases received the previous month
<Target> (sample figure) 80% or above

Examples
1. Monthly management
- Confirm the speed of customer complaint handling and manage the performance of complaint handling
operation. If the targets have not been achieved, it may be necessary to review the skill improvement
training for the staff-in-charge and of the organization that handles customer complaints.
2. Management of each staff member
- By confirming the performance for each staff member, progress control and the evaluation of individual
abilities can be visualized, making it possible to study whether the staff-in-charge need more training
to improve their skills.

Description
For the customers, the early resolution of complaints is a crucial factor.
After gaining an understanding the rate of resolution within 30 days, and evaluating whether early resolution
was achieved from the customer's point of view, it may be necessary to perform kaizen activities after
investigating the cause if the targets have not been achieved.

88
 Dealer's Market
Foundations
Overview

Dealer's
Indicates the number of cases in which the customer was satisfied with how the case was handled, out of
the total number of closed customer complaint cases for the current month.

Calculation method
Customer Complaint Satisfaction =

Activities
Dealer's
Number of customer complaint cases closed in the current month
(satisfied or understood)
× 100
Number of customer complaint cases closed in the current month

For customer satisfaction level, choose either (1) satisfied/accepted, (2) understood, (3) dissatisfied, or (4)

Dealer's Results
unknown.
Distributors who are inquiring with customers as to their satisfaction can use the results of what they have
confirmed with the customers. Distributors who are not directly inquiring with customers’ needs to judge
the satisfaction level by hearing from the dealer, or by using the Distributor's own evaluation.
<Target> (sample figure) Improve on the achievement from the previous year

Examples
1. Monthly management

Foundations
Distributor's
- Continually observe the customer satisfaction level with complaint handling. If there are any changes,
investigate the cause and implement kaizen.
2. Management of cases "dissatisfied or unknown"
- Thoroughly understanding why customers are dissatisfied or the status is unknown will lead to kaizen
activities.
3. Management of each staff member
- By managing the customer satisfaction level with complaint handling for each staff member, the Distributor's
Activities
evaluation of individual abilities can be visualized, making it possible to study whether the staff-in-
charge need more training to improve their skills.

Description
Customer satisfaction with complaint handling is linked to CS improvement, customer retention improvement,
and sales promotion.
Appendix

Manage KPI in order to improve customer satisfaction, leading to strengthened customer

handling ability at the Distributor.

89
 Overview
This indicates the ratio of complaints received a second time for reasons due to the Distributor or other
Toyota-related organization, out of all customer complaint cases received during the current month.

Calculation method
Repeat Contact Rate =
Number of cases with repeat contact for reason due to Toyota
× 100
Number of contacts received each month
Count the number of cases which received repeat contact(s) about the same complaint, among ongoing or
closed cases.
As this is the number of "repeat contact cases", if 2, 3, or 4 contacts were received in the month, count them
as one (1) case.

Example of a second-time complaint

1. The Distributor did not contact the customer quickly enough, and the Distributor received a reminder.
2. Although an explanation was made to the customer, the customer didn't feel satisfied with the dealer's
response, and the Distributor received a second complaint.
<Target> (sample figure) 10% or below

Examples
1. Monthly management
- When managing the quality of customer complaint handling, if the targets have not been achieved, it
may be necessary to review skill improvement training or the customer handling framework and/or
processes.
2. Confirmation of the details of the repeat complaint
- If there is a frequently occurring problem, investigate the cause and implement kaizen.
3. Management of each staff member
- By managing the ratio of repeat complaints for each staff member, the evaluation of individual abilities
can be visualized, making it possible to study whether the staff-in-charge need more training to
improve their skills.

Description
Customers want their complaints to be resolved on their first telephone call.
In order to improve the quality of customer handling, it is up to the Distributors and
dealers to make sure that the customer does not have to call again about the same
issue.

90
 Appendix:
 A1: Calculating labor hours sold
Method A:
This applies to countries where Labor Hours Sold (flat rate time) can be calculated and determined by the
total number of accumulated technician Labor Hours Sold.

•e.g., Labor Hours Sold

Maintenance Labor Hours Sold: 500h
Warranty Service Labor Hours Sold: 350h
Internal Service Labor Hours Sold: 350h
Other General Service (e.g., muffler replacement, tire change,
electrical repair, etc.) Labor Hours Sold: 450h

Labor Maintenance Warranty Service Internal Service Other General

Hours Sold Labor Hours Sold Labor Hours Sold Labor Hours Sold Service Labor Hours
(1650) (500)
+ (350) (350) Sold (450)

Method B:
For countries that cannot use method A, calculate the Labor Hours Sold from the technician service (labor)
sales (including normal discount) and service (labor) rate.
B-1 method: When the service (labor) sales and wage rate by work type can be categorized:
Use the sales and rate based on the field (e.g., periodic maintenance, warranty, internal service).

Periodic Maintenance Warranty Service Labor Internal Service Labor

Labor Sales Sales Sales
Labor
Hours
Sold Periodic Maintenance Warranty Hourly Labor Internal Service Hourly
Hourly Labor Rate Rate Rate

92
 Dealer's Market
*e.g., Labor Hours Sold
Periodic Maintenance Labor Sales: $25,000
Warranty Service Labor Sales: $18,200
Internal Service Labor Sales: $16,800

Foundations
Other General Service (e.g., muffler replacement, tire change,
electrical repair, etc.) Sales: $27,000

Dealer's
Periodic Maintenance Hourly Labor Rate: $50/h
Warranty Service Hourly Labor Rate: $52/h
Internal Service Hourly Labor Rate: $48/h
Other General Service (e.g., muffler replacement, tire change,
electrical repair, etc.) Hourly Labor Rate: $60/h

Periodic Maintenance Labor Sales (25,000)

Periodic Maintenance Hourly Labor Rate (50)

Activities
Dealer's
Warranty Service Labor Sales (18,200)

Warranty Service Hourly Labor Rate (52)

Labor Hours Sold
(1650)
Internal Service Labor Sales (16,800)

Dealer's Results
Internal Service Hourly Labor Rate (48)

Other General Service Sales (27,000)

Other General Service Hourly Labor Rate (60)

B-2 method: When the service (labor) sales and wage rate by work type cannot be categorized:
Calculate from the General Service Technician Labor Sales and Overall Effective Labor Rate.

Foundations
General Service Technician Labor Sales

Distributor's
Labor Hours Sold
Overall Effective Labor Rate

NOTE

* Overall effective labor rate is determined by dividing total labor sales with total flat rate hours from randomly
selected repair orders (e.g., 100).
Distributor's
Activities
*e.g., Labor Hours Sold
General Service Technician Labor Sales: $87,000
Overall Effective Labor Rate: $53

Labor Hours Sold General Service Technician Labor Sales (87,000)

(1642) Overall Effective Labor Rate (53)
Appendix

93
 A2: Calculating actual hours worked

This is the total number of hours that can be provided for actual work from the business hours, as shown in
chart below.

This does not include lunch time, preset break times, training, arriving to work late, leaving work early, and
vacation time.

* e.g., For Trainees

1 2 3

Preparation Idle Actual Work Actual Work Cleanup

Actual Work Time Lunch Training
Time Time Time Time Time

8:30 12:00 13:00 14:00 15:30 17:30

(Begin Work) (End Work)
In the example where a trainee undergoes training from 14:00 to 15:30,
Available Hours are 1 + 2 + 3 for a total of 6.5 hours.

94
 Dealer's Market
A3: Calculating annual average number of times
serviced

Foundations
Annual average number of times serviced = (A) number of times serviced for periodic inspection + (B) number

Dealer's
of times serviced for repair

(A) Number of times serviced for periodic inspection =

Average mileage*1
Mileage driven before periodic inspection*2

*1 : If an official average mileage figure can be obtained from an analysis of the customer database, use this figure. If
such a figure cannot be used, calculate and use the average mileage from the latest customer service visit.

Activities
Dealer's
*2 : Use the inspection mileage established by the Distributors in each country.
(B) Number of times serviced for repairs = (A) average yearly number of service visits for periodic
inspection ×
Number of vehicles repaired*3

Dealer's Results
Number of vehicles for which periodic inspections were made*4

*3 : Number of units for which periodic inspection was made, subtracted from the CPUS
*4 : Number of periodic inspections made

Foundations
Distributor's
Distributor's
Activities
Appendix

95
 A4: Diagrams
Service Personnel Diagram

Service Stall Diagram: Raw data relating to service stalls

<1> General Service Stalls

<2> B&P Stalls

Stalls for Vehicle Reception, Diagnosis & Inspection

Total stalls Work Space for Parts Repair and Machining Work

PDS Stalls

Vehicle Washing Stalls

96
 Dealer's Market
Customer Relations Diagram

Number of calls from Number of customer

Quality
customers complaint cases

Foundations
Dealer's
Service

Number of enquiries Sales

Activities
Dealer's
Revenue Diagram

Dealer's Results
Sales by Periodic
Total Dealer General Customer Paid Maintenance
Service Sales
Sales Service Sales Sales (CPS)
Sales by Repair

Sales by others
Warranty
Service Sales

Foundations
Distributor's
Internal Service
Sales Sales by Customer
Paid Service

Sales by Warranty
New Vehicle Body & Paint In-house B&P
Sales by Internal
Sales Sales Shop Sales

Sales by Customer Distributor's

Paid Service Activities
Used Vehicle Parts External Independent Sales by Warranty
Sales Sales B&P Shop Sales
Sales by Internal

Accessories
External Sales
Appendix

97
 Customer Traffic Diagram

General Units Customer Paid Units

Total Units Serviced Periodic Maintenance
Serviced Serviced (CPUS)

Warranty Units
Serviced Repairs

Internal Units
Serviced

In-house B&P Shop B&P Customer Paid

B&P Units Serviced
Units Serviced Units Serviced (BPUS)

Warranty Units
Serviced

Internal Units Serviced

Independent B&P B&P Customer Paid

Shop Units Serviced Units Serviced (BPUS)

Warranty Units
Serviced

Internal Units Serviced

98
 Memo

99
Distributor's Distributor's Dealer's Dealer's
Appendix Dealer's Results Dealer's Market
Activities Foundations Activities Foundations
 List of KPI
No. Name Categories Page
1 Accessory sales per new vehicle Dealer KPI Results 64
2 Allocation Fill Rate Distributor KPI Activities 83
3 Appointment rate Dealer KPI Activities 48
Availability
SA availability
Technician availability
4 Dealer KPI Foundations 23
B&P technician availability
General service stall availability
B&P stall availability
5 B&P gross profit rate Dealer KPI Results 67
6 B&P repeat repair rate Dealer KPI Activities 43
7 B&P service market share Dealer KPI Results 58
8 B&P TSM Basic certification rate Dealer KPI Foundations 30
9 Brand loyalty Dealer KPI Results 73
10 Completion rate of SSCs (Special Service Campaigns) Dealer KPI Activities 45
CPS/BPS (Customer Paid Sales/B&P Customer Paid Sales)
11 Customer Paid Sales (CPS) Dealer KPI Results 62
B&P Customer Paid Sales (BPS)
CPUS/BPUS (Customer Paid Units Serviced/B&P Customer Paid Units Serviced)
12 Customer Paid Units Serviced (CPUS) Dealer KPI Results 52
B&P Customer Paid Units Serviced (BPUS)
CRt (Customer Retention) rate
CRt rate (CPUS/UIO)
13 CRt rate (customers who visited a dealer within the past 12 months) Dealer KPI Results 54
First service CRt rate
CRt rate by vehicle age
14 CSI Dealer KPI Results 71
Customer Complaint Rate (Quality, Service, Sales): Complaint Handling
Quality complaint rate
15 Distributor KPI Activities 86
Service complaint rate
Sales complaint rate
16 Customer Complaint Satisfaction: Complaint Handling Distributor KPI Activities 89
Dealer staff certification rate
Technician Certification Rate
17 Dealer KPI Foundations 25
SA Certification Rate
B&P Technician Certification Rate
DTR (Dealer Technical Report)
DTR (quantity)
18 Dealer KPI Activities 44
DTR (quality)
DTR (speed)

19 ESI (Employee Satisfaction Index) Dealer KPI Foundations 33

20 Fact Confirmation Rate: Complaint Handling Distributor KPI Activities 87

21 Fix-It-Right rate Dealer KPI Activities 41
FTR (Field Technical Report)
FTR (quantity)
22 Distributor KPI Activities 80
FTR (quality)
FTR (speed)

100
 Dealer's Market
No. Name Categories Page
Insurance contract rate
23 New insurance contract rate Dealer KPI Activities 51
Insurance renewal rate
24 Labor utilization Dealer KPI Activities 37

Foundations
Maintenance reminder activities
Maintenance reminder implementation rate

Dealer's
25 Dealer KPI Activities 46
Maintenance reminder contact success rate
Service appointment success rate from maintenance reminders
26 Number of customers Dealer KPI Results 59
Number of distributor instructors
TSA21 instructors
TEAM21 instructors
27 B&P TEAM (Body and Paint) instructors Distributor KPI Foundations 78

Activities
Dealer's
B&P Estimation instructors
B&P TSM instructors
Parts Kaizen promoters
28 Number of technicians per instructor Distributor KPI Foundations 79
29 NVS (New Vehicles Sold) Dealer KPI Market 20

Dealer's Results
On-time delivery rate
30 On-time delivery rate (General service) Dealer KPI Activities 39
On-time delivery rate (B&P service)
31 Overall productivity Dealer KPI Activities 38
32 Rate of Resolution within 30 Days: Complaint Distributor KPI Activities 88
Handling Rate of workshops with certified dealer staff
Rate of workshops with Diagnosis Master Technicians
33 Dealer KPI Foundations 27
Rate of workshops with certified SAs
Rate of workshops with B&P Master Technicians

Foundations
Distributor's
34 Repeat Contact Rate: Complaint Handling Distributor KPI Activities 90
35 Response Rate (CAC*): Inquiry Handling Distributor KPI Activities 85
36 ROFR (Repair Order Fill Rate) Dealer KPI Activities 40
37 Service absorption rate Dealer KPI Results 69
38 Service gross profit rate Dealer KPI Results 65
39 Service market share Dealer KPI Results 57
40 Service NPS (Net Promoter Score) Dealer KPI Results 74
41 Dealer KPI Activities 50
Distributor's
Service product penetration rate
42 Stock months Distributor KPI Activities 84
Technician and B&P technician productivity Activities
43 No. of units serviced per technician Dealer KPI Activities 34
No. of units serviced per B&P technician
44 Technician efficiency Dealer KPI Activities 36
45 TSM-FIR certification rate Dealer KPI Foundations 29
46 Turnover rate Dealer KPI Foundations 32
47 TWC error rate Distributor KPI Activities 82
Appendix

48 TWC (Toyota Warranty Claims) travel time (Over 50-days rate) Distributor KPI Activities 81
49 UIO (Units In Operation) Dealer KPI Market 21
50 UIO penetration for major maintenance products by type Dealer KPI Activities 49
51 VIN CRt Dealer KPI Results 60
52 Waterborne paint introduction rate Dealer KPI Foundations 31

101