The Shop Efficiency Report provides a shop-wide view of how effectively the business is converting technician time into billable labor. While the Technician Efficiency Report focuses on individual technicians, the Shop Efficiency Report measures the overall health of the shop’s billing practices.
This report is primarily used by shop managers and owners to monitor productivity and ensure that billed labor hours remain aligned with actual worked hours.
What Billing Efficiency Shows
The report displays two key numbers for the selected date range:
1. Total Clocked Hours (Billable)
This includes all hours clocked by users marked as “billable” in the Administration → Staff settings.
2. Total Invoiced Hours
These are the labor hours billed to customers on work orders that were invoiced within the selected timeframe.
3. Difference
The Difference is calculated as:
Invoiced Hours - Clocked Hours
4. Efficiency Percentage
The Efficiency is calculated as:
Invoiced Hours ÷ Clocked Billable Hours × 100
A shop’s Billing Efficiency indicates:
The accuracy of estimating
The consistency of service advisor billing
The shop’s ability to capture and bill technician time
Who Appears in Shop Efficiency
All users marked as billable contribute to this report.
Billable status is controlled in:
Administration → Staff → Billable (Yes/No)
This ensures:
Admin staff, service advisors, and non-labor roles do not affect efficiency
Only true billable labor is included
Using Date Filters
The Shop Efficiency Report supports the same date filters as other reports (Today, This Week, This Month, Custom, etc.).
Changing the date range recalculates:
Total clocked billable hours
Total invoiced hours
Shop-wide efficiency percentage
How Shop Efficiency Is Used
Shop Efficiency is one of the most important high-level performance indicators in the shop. It helps managers and owners evaluate:
Overall Shop Productivity: High billing efficiency = strong estimating + good technician performance + consistent billing.
Estimating Accuracy: If billed hours are consistently lower than clocked hours, estimates may be too low.
Service Advisor Performance: If advisors fail to bill approved work or adjust labor values appropriately, efficiency drops.
Technician Utilization: If technicians frequently go over time, efficiency will trend downward.
Pricing Alignment: Because invoiced hours directly affect labor revenue, this is a revenue health metric.
Difference Between Technician Efficiency and Billing Efficiency
Report | Measures | Focus |
Technician Efficiency | Tech’s clocked hours vs Tech Time expection hours for their own work | Individual performance |
Shop Efficiency | Total shop billed hours vs total shop clocked billable hours | Entire shop’s performance |
Shop Efficiency = “whole shop view.”
Technician Efficiency = “individual view.”
Summary
The Shop Efficiency Report is a vital strategic tool that helps shops understand how effectively technician labor is being converted into billable revenue. It summarizes:
Total billable hours worked
Total labor hours billed
Shop-wide billing efficiency percentage
Performance of estimating, advisors, and technician workflow
This high-level view helps managers tune productivity, adjust processes, and strengthen the financial health of the shop.