A third of the bay hours earn nothing on paper

Warranty work arrives with a fixed reimbursement. It fills bays, occupies technicians and consumes parts, and the centre's own cost for it is usually not calculated.

Fixed rate, variable cost

Some warranty jobs are comfortably covered and some are not. Without costing at actual time the centre cannot tell them apart, and it plans capacity as though all warranty work is equivalent.

Rejections compound the problem

A rejected claim converts reimbursed work into unpaid work. Reasons recorded and aggregated usually show a small number of documentation causes, all of them preventable at the job card.

Why cost it at all

Not refusing warranty work, which is rarely an option. Knowing which job types are subsidised so that scheduling, staffing and any negotiation with the manufacturer rest on figures rather than impressions.