It’s no secret that right now organizations that will be around for the next decade are prioritizing their back-end and the role it plays in dealership profitability, sustainability, and overall experience for both customers and employees.
Optimizing service department efficiency is the first place you should look if you want to figure out where things may be awry in your business. One critical component that gets overlooked is the proper use and management of OpCodes (operation codes). In this guide, we’ll explore what OpCodes are, their importance, how to build and deploy them effectively, and a detailed step-by-step process for auditing them in the widely used CDK Global Dealer Management System (DMS).
What is an OpCode and Why is it Important?
An OpCode is a shorthand code that represents a specific operation or job in the dealership’s service department. For instance, a simple oil change with a treatment might have the OpCode “OCT,” while a more complex transmission repair could be “TRP10.”
So, how important are these things?
Training: Provide thorough training to all service advisors, technicians, and billing personnel. Every team member should understand the importance of using the correct OpCode for each service and that it is a non-negotiable to use these moving forward.
Create a Reference Library: Set up an easily accessible digital or physical reference library where the team can quickly look up the correct OpCodes for any job. For example, we typically provide our customers with a nice print piece for their team to also put on their desks that is customer-friendly and mitigates errors during launch.
Tip: This should be followed by everyone on your team. We always recommend that this be introduced to everyone at once to mitigate confusion and with team leads trained to help their colleagues.
Monitor Usage: Use reporting tools within your DMS (scroll down to see which ones) to monitor how frequently OpCodes are used. Incorrect or inconsistent usage can indicate areas where there are challenges causing the team – such as using old OpCodes so they can discount, result in tens of thousands in lost revenue every quarter. Stop letting it happen to your team – it eats at your profits.
Hold Teams Accountable: Regularly audit OpCodes (weekly to start), and hold the team accountable for accuracy. Introduce incentives for error-free usage and implement corrective measures for repeated mistakes. Consider setting up a contest that will help your team put some excitement behind the new initiative. We commonly help folks do this through our rewards program.
Regularly recognize and reward employees who consistently use OpCodes correctly. Small incentives, such as gift cards or public acknowledgment, can motivate the team and reinforce the importance of accurate coding.
Setting Up OpCodes
OK! Time to dive into the weeds. In CDK, several functions, like UOC (User OpCode) and USPS (User Parts Search), are integral to creating, modifying, and managing OpCodes. These functions provide flexibility and efficiency, ensuring that dealerships can customize their service operations to match their workflow. Here’s an overview of the most commonly used functions related to OpCodes and their roles in the DMS:
UOC (User OpCode)
- What It Is: UOC stands for User OpCode, which allows the creation and customization of OpCodes specific to a dealership’s needs. This function is used when a dealership needs to create a new OpCode not provided by default in CDK’s library or modify an existing one to fit the dealership’s unique service structure.
- Example: A dealership might use UOC to create a specific OpCode for a localized service, such as detailing or a tire rotation promotion that is unique to their region.
USPS (User Parts Search)
- What It Is: USPS allows users to search for specific parts within the CDK system when creating or modifying OpCodes. When associating parts with an OpCode, you can use USPS to search for and link the relevant parts to the OpCode. This ensures that the correct parts are billed when the OpCode is applied to a repair order.
- Example: If creating a brake repair OpCode, USPS will help find the correct part numbers for brake pads, rotors, or other components associated with the job.
UMO (User Maintenance OpCode)
- What It Is: UMO stands for User Maintenance OpCode and is used to create or maintain service maintenance OpCodes. This function helps in managing the recurring maintenance tasks for vehicles, such as oil changes or inspections, that occur at regular intervals. UMO provides options to include manufacturer-recommended maintenance schedules, making it easier for the service department to stay on top of routine services.
- Example: Creating an OpCode for a 10,000-mile inspection, which includes oil change, tire rotation, and brake inspection.
UOS (User OpCode Search)
- What It Is: UOS allows users to search through a list of OpCodes that are either already in use or available for creation/modification. It provides an easy way to find and apply the correct OpCode for a service, reducing the time service advisors spend searching manually through lengthy lists.
- Example: If a service advisor is entering a repair order and needs to quickly find the OpCode for an engine tune-up, UOS will help pull up the correct code without having to go through multiple screens.
OCN (OpCode Number Lookup)
- What It Is: OCN is a lookup tool for finding existing OpCode numbers quickly within the system. Usage: When a technician or service advisor needs to verify or reference an OpCode number, OCN allows them to search by description or partial OpCode to retrieve the full code.
- Example: A technician working on a transmission service can use OCN to look up the specific OpCode for the service instead of entering the entire number.
UPR (User Pricing)
- What It Is: UPR is used to assign or update pricing for OpCodes based on labor hours, parts used, or flat-rate pricing. Dealerships can create different pricing structures for OpCodes depending on the service type, location, or labor rate.
- Example: A dealership might use UPR to assign a different price for labor rates during weekend hours or to offer a promotional discount for certain services.
Step-by-Step Guide to Auditing OpCodes in CDK
Auditing OpCodes is where most people fall apart. We’ve done all the work to make sure it is clear and concise for our use and reporting but failure to audit the work and review the reporting is the #1 reason we find service departments struggling to make the numbers work at the end of the day.
That’s why we’ve put together a step-by-step process for auditing OpCodes in CDK, with relevant tools and best practices to help you and the team along the way:
Step 1: Log In to CDK
-
- Access CDK by logging into the portal with your credentials. Navigate to the Service Department module, where all service-related data is stored.
-
- Why It Matters: This is the central hub for accessing repair orders and the associated OpCodes. Kind of a “jumping off point” for you to review your OpCodes, ROs, and a lot more.
Step 2: Access Repair Order Inquiry
-
- Navigate to Service Module > Repair Order Inquiry to view all open and closed repair orders. You can also edit or adjust repair orders here and close repair orders.
-
- Best Practice: Filter repair orders by date, department, or technician for a more focused review. This is also commonly used when performing one-on-ones with your team or during sessions with groups to review in aggregate without singling any particular person out. Servicing the customer as a team should be of the highest priority here and is something most folks can relate to.
Step 3: Search for OpCodes
-
- Use CDK’s filter function to pull up repair orders based on specific OpCodes. For example, if auditing brake repairs, filter by OpCodes starting with “BR.”
-
- Why It Matters: Narrowing down repair orders based on OpCodes ensures that you’re reviewing relevant services only. When filtering by OpCodes, focus on services that are frequently subject to discrepancies (like labor-intensive repairs or warranty work). Warranty claims are particularly sensitive to incorrect OpCodes, and mistakes here can lead to denied claims or delayed payments from OEMs.
Step 4: Review OpCode Details
-
- Open the Repair Order Detail screen. Check that the OpCodes used match the work performed, and cross-reference with technician notes to ensure accuracy.
-
- Example: If a customer came in for an oil change but the OpCode used was for a transmission repair, this is a red flag that needs correction. Let this go on too long and you’ll be fighting to claw back lost dollars – best you don’t start down that path.
Step 5: Normalize and Assign Dispatch Codes
-
- Use CDK’s Opcode Normalization function to ensure that all OpCodes follow consistent formatting across the dealership. Assign dispatch codes to streamline workflow and route services to the correct team.
-
- Why It Matters: Dispatch codes ensure that services are correctly assigned and processed, reducing delays in service.
Step 6: Validate Labor Times and Parts
-
- Compare the labor times attached to each OpCode against OEM labor guides or dealership standards. Similarly, validate that the parts listed in the repair order match the service performed.
-
- Common Error: Parts for unrelated services accidentally getting billed under an incorrect OpCode can cause customer dissatisfaction and financial loss.
Step 7: Generate OpCode Reports
-
- In Service Reporting, generate custom reports that show how OpCodes are being used. Look for patterns or discrepancies in usage.
-
- Statistics: According to a recent survey, nearly 70% of dealership profitability issues stem from errors in service billing, much of which is OpCode-related(Car Dealership Guy News).
Step 8: Correct Discrepancies
-
- If discrepancies are found, use the Repair Order Adjustment function to correct the OpCodes and associated billing.
-
- Tip: Use the Discrepancy Finder tool in CDK to automate this process and flag potential issues early.
Step 9: Export and Save Audit Results
-
- Use CDK’s Export Function to save your audit reports in Excel or PDF format. Store them securely within the dealership’s DMS for future reference and compliance reviews.
Key Takeaways
-
- Start with a solid foundation: It is almost like the house upon which everything else is built. Properly structured OpCodes reduce errors in billing and other areas. No doubt your CSI, paycheck, and finance team will be overjoyed with the results.
From a finance team’s perspective, properly structured OpCodes minimize the need for manual adjustments and reduce the likelihood of rejected warranty claims, improving cash flow and preventing revenue loss. - Involve Others and Hear Them: Implementing processes and systems without buy-in is just silly. If you want to truly help them understand “What’s in it for me?” and tie it to the goals of the organization. Make sure you have input from your frontlines – the technicians, advisors, and the parts team but then make sure you communicate back where you heard them and how it fit in to the final result. You’ll get much faster adoption this way.
- Start with a solid foundation: It is almost like the house upon which everything else is built. Properly structured OpCodes reduce errors in billing and other areas. No doubt your CSI, paycheck, and finance team will be overjoyed with the results.
-
- Train your team and hold them accountable: Consistent and thorough training (and follow up) are where this all breaks down. Make sure that you are reviewing this with your team and giving friendly reminders where appropriate. This should be a mandatory, non-negotiable piece if you want to see your team thrive long term.
-
- Use CDK’s built-in tools: Take advantage of CDK’s normalization and reporting features to streamline the audit process and maintain accuracy. If you find that you need more beyond that – KT Automotive partners with OptionSoft to bring you targeted reporting along with hands-on guidance to help you focus your time and make sense of the data.
- Audit regularly: A proactive audit strategy catches issues early and keeps the dealership running smoothly with folks getting paid on time, GP looking up, and plenty more benefits – in fact, we bet you’ll find something almost every time!
- Use CDK’s built-in tools: Take advantage of CDK’s normalization and reporting features to streamline the audit process and maintain accuracy. If you find that you need more beyond that – KT Automotive partners with OptionSoft to bring you targeted reporting along with hands-on guidance to help you focus your time and make sense of the data.
By mastering OpCodes and following these steps, dealership leadership can drive improved performance, greater profitability, and higher customer satisfaction in their service departments. If you need a helping hand crafting your OpCodes and combing through the reports – KT Automotive is ready to answer the call for all of our current customers.
Simply fill out this form and we’ll be in touch shortly!
Identify Common Services: Start by listing all common services offered at the dealership—oil changes, brake repairs, tire rotations, diagnostics, etc. Each of these services should have a clear, descriptive OpCode that’s easy to remember.
Group by Categories: Break down operations into categories like Maintenance, Repairs, Diagnostics, and Inspections. This grouping allows for better reporting and analysis. For example:
Oil Change: OC001
Brake Repair: BR002
Diagnostic Service: DI003
Set Up Consistent Naming Conventions: Consistency is key. Each OpCode should follow a uniform structure, starting with a prefix that identifies the category (e.g., “BR” for brakes) followed by a number or additional letters for specific jobs.
Leverage OEM Guidelines: Ensure your OpCodes align with Original Equipment Manufacturer (OEM) recommendations and standards for warranty claims and repairs. Further, take advantage of your aftermarket offerings like Wynn’s to align with dealer recommended intervals and those that align with the Titanium Coverage from Wynn’s.
Include Parts and Labor Rates: Attach labor rates and parts lists to each OpCode to streamline pricing and reduce errors during invoicing. What happens if a parts team member doesn’t pull the right product or worse – it doesn’t get pulled at all – leaving you high and dry when it comes time to submit claims and more. CSI may take a hit too if something is incorrectly billed. Best not to chance it, huh?
Deploying OpCodes to Your Team and Holding Them Accountable
Your advisors and technicians probably don’t need another thing on their plate. That’s why OpCodes are meant to be simple to understand but once the OpCodes are created, the next step is rolling them out to your team and establishing accountability. Perhaps the most pivotal part of the entire process.
Training: Provide thorough training to all service advisors, technicians, and billing personnel. Every team member should understand the importance of using the correct OpCode for each service and that it is a non-negotiable to use these moving forward.
Create a Reference Library: Set up an easily accessible digital or physical reference library where the team can quickly look up the correct OpCodes for any job. For example, we typically provide our customers with a nice print piece for their team to also put on their desks that is customer-friendly and mitigates errors during launch.
Tip: This should be followed by everyone on your team. We always recommend that this be introduced to everyone at once to mitigate confusion and with team leads trained to help their colleagues.
Monitor Usage: Use reporting tools within your DMS (scroll down to see which ones) to monitor how frequently OpCodes are used. Incorrect or inconsistent usage can indicate areas where there are challenges causing the team – such as using old OpCodes so they can discount, result in tens of thousands in lost revenue every quarter. Stop letting it happen to your team – it eats at your profits.
Hold Teams Accountable: Regularly audit OpCodes (weekly to start), and hold the team accountable for accuracy. Introduce incentives for error-free usage and implement corrective measures for repeated mistakes. Consider setting up a contest that will help your team put some excitement behind the new initiative. We commonly help folks do this through our rewards program.
Regularly recognize and reward employees who consistently use OpCodes correctly. Small incentives, such as gift cards or public acknowledgment, can motivate the team and reinforce the importance of accurate coding.
Setting Up OpCodes
OK! Time to dive into the weeds. In CDK, several functions, like UOC (User OpCode) and USPS (User Parts Search), are integral to creating, modifying, and managing OpCodes. These functions provide flexibility and efficiency, ensuring that dealerships can customize their service operations to match their workflow. Here’s an overview of the most commonly used functions related to OpCodes and their roles in the DMS:
UOC (User OpCode)
- What It Is: UOC stands for User OpCode, which allows the creation and customization of OpCodes specific to a dealership’s needs. This function is used when a dealership needs to create a new OpCode not provided by default in CDK’s library or modify an existing one to fit the dealership’s unique service structure.
- Example: A dealership might use UOC to create a specific OpCode for a localized service, such as detailing or a tire rotation promotion that is unique to their region.
USPS (User Parts Search)
- What It Is: USPS allows users to search for specific parts within the CDK system when creating or modifying OpCodes. When associating parts with an OpCode, you can use USPS to search for and link the relevant parts to the OpCode. This ensures that the correct parts are billed when the OpCode is applied to a repair order.
- Example: If creating a brake repair OpCode, USPS will help find the correct part numbers for brake pads, rotors, or other components associated with the job.
UMO (User Maintenance OpCode)
- What It Is: UMO stands for User Maintenance OpCode and is used to create or maintain service maintenance OpCodes. This function helps in managing the recurring maintenance tasks for vehicles, such as oil changes or inspections, that occur at regular intervals. UMO provides options to include manufacturer-recommended maintenance schedules, making it easier for the service department to stay on top of routine services.
- Example: Creating an OpCode for a 10,000-mile inspection, which includes oil change, tire rotation, and brake inspection.
UOS (User OpCode Search)
- What It Is: UOS allows users to search through a list of OpCodes that are either already in use or available for creation/modification. It provides an easy way to find and apply the correct OpCode for a service, reducing the time service advisors spend searching manually through lengthy lists.
- Example: If a service advisor is entering a repair order and needs to quickly find the OpCode for an engine tune-up, UOS will help pull up the correct code without having to go through multiple screens.
OCN (OpCode Number Lookup)
- What It Is: OCN is a lookup tool for finding existing OpCode numbers quickly within the system. Usage: When a technician or service advisor needs to verify or reference an OpCode number, OCN allows them to search by description or partial OpCode to retrieve the full code.
- Example: A technician working on a transmission service can use OCN to look up the specific OpCode for the service instead of entering the entire number.
UPR (User Pricing)
- What It Is: UPR is used to assign or update pricing for OpCodes based on labor hours, parts used, or flat-rate pricing. Dealerships can create different pricing structures for OpCodes depending on the service type, location, or labor rate.
- Example: A dealership might use UPR to assign a different price for labor rates during weekend hours or to offer a promotional discount for certain services.
Step-by-Step Guide to Auditing OpCodes in CDK
Auditing OpCodes is where most people fall apart. We’ve done all the work to make sure it is clear and concise for our use and reporting but failure to audit the work and review the reporting is the #1 reason we find service departments struggling to make the numbers work at the end of the day.
That’s why we’ve put together a step-by-step process for auditing OpCodes in CDK, with relevant tools and best practices to help you and the team along the way:
Step 1: Log In to CDK
-
- Access CDK by logging into the portal with your credentials. Navigate to the Service Department module, where all service-related data is stored.
-
- Why It Matters: This is the central hub for accessing repair orders and the associated OpCodes. Kind of a “jumping off point” for you to review your OpCodes, ROs, and a lot more.
Step 2: Access Repair Order Inquiry
-
- Navigate to Service Module > Repair Order Inquiry to view all open and closed repair orders. You can also edit or adjust repair orders here and close repair orders.
-
- Best Practice: Filter repair orders by date, department, or technician for a more focused review. This is also commonly used when performing one-on-ones with your team or during sessions with groups to review in aggregate without singling any particular person out. Servicing the customer as a team should be of the highest priority here and is something most folks can relate to.
Step 3: Search for OpCodes
-
- Use CDK’s filter function to pull up repair orders based on specific OpCodes. For example, if auditing brake repairs, filter by OpCodes starting with “BR.”
-
- Why It Matters: Narrowing down repair orders based on OpCodes ensures that you’re reviewing relevant services only. When filtering by OpCodes, focus on services that are frequently subject to discrepancies (like labor-intensive repairs or warranty work). Warranty claims are particularly sensitive to incorrect OpCodes, and mistakes here can lead to denied claims or delayed payments from OEMs.
Step 4: Review OpCode Details
-
- Open the Repair Order Detail screen. Check that the OpCodes used match the work performed, and cross-reference with technician notes to ensure accuracy.
-
- Example: If a customer came in for an oil change but the OpCode used was for a transmission repair, this is a red flag that needs correction. Let this go on too long and you’ll be fighting to claw back lost dollars – best you don’t start down that path.
Step 5: Normalize and Assign Dispatch Codes
-
- Use CDK’s Opcode Normalization function to ensure that all OpCodes follow consistent formatting across the dealership. Assign dispatch codes to streamline workflow and route services to the correct team.
-
- Why It Matters: Dispatch codes ensure that services are correctly assigned and processed, reducing delays in service.
Step 6: Validate Labor Times and Parts
-
- Compare the labor times attached to each OpCode against OEM labor guides or dealership standards. Similarly, validate that the parts listed in the repair order match the service performed.
-
- Common Error: Parts for unrelated services accidentally getting billed under an incorrect OpCode can cause customer dissatisfaction and financial loss.
Step 7: Generate OpCode Reports
-
- In Service Reporting, generate custom reports that show how OpCodes are being used. Look for patterns or discrepancies in usage.
-
- Statistics: According to a recent survey, nearly 70% of dealership profitability issues stem from errors in service billing, much of which is OpCode-related(Car Dealership Guy News).
Step 8: Correct Discrepancies
-
- If discrepancies are found, use the Repair Order Adjustment function to correct the OpCodes and associated billing.
-
- Tip: Use the Discrepancy Finder tool in CDK to automate this process and flag potential issues early.
Step 9: Export and Save Audit Results
-
- Use CDK’s Export Function to save your audit reports in Excel or PDF format. Store them securely within the dealership’s DMS for future reference and compliance reviews.
Key Takeaways
-
- Start with a solid foundation: It is almost like the house upon which everything else is built. Properly structured OpCodes reduce errors in billing and other areas. No doubt your CSI, paycheck, and finance team will be overjoyed with the results.
From a finance team’s perspective, properly structured OpCodes minimize the need for manual adjustments and reduce the likelihood of rejected warranty claims, improving cash flow and preventing revenue loss. - Involve Others and Hear Them: Implementing processes and systems without buy-in is just silly. If you want to truly help them understand “What’s in it for me?” and tie it to the goals of the organization. Make sure you have input from your frontlines – the technicians, advisors, and the parts team but then make sure you communicate back where you heard them and how it fit in to the final result. You’ll get much faster adoption this way.
- Start with a solid foundation: It is almost like the house upon which everything else is built. Properly structured OpCodes reduce errors in billing and other areas. No doubt your CSI, paycheck, and finance team will be overjoyed with the results.
-
- Train your team and hold them accountable: Consistent and thorough training (and follow up) are where this all breaks down. Make sure that you are reviewing this with your team and giving friendly reminders where appropriate. This should be a mandatory, non-negotiable piece if you want to see your team thrive long term.
-
- Use CDK’s built-in tools: Take advantage of CDK’s normalization and reporting features to streamline the audit process and maintain accuracy. If you find that you need more beyond that – KT Automotive partners with OptionSoft to bring you targeted reporting along with hands-on guidance to help you focus your time and make sense of the data.
- Audit regularly: A proactive audit strategy catches issues early and keeps the dealership running smoothly with folks getting paid on time, GP looking up, and plenty more benefits – in fact, we bet you’ll find something almost every time!
- Use CDK’s built-in tools: Take advantage of CDK’s normalization and reporting features to streamline the audit process and maintain accuracy. If you find that you need more beyond that – KT Automotive partners with OptionSoft to bring you targeted reporting along with hands-on guidance to help you focus your time and make sense of the data.
By mastering OpCodes and following these steps, dealership leadership can drive improved performance, greater profitability, and higher customer satisfaction in their service departments. If you need a helping hand crafting your OpCodes and combing through the reports – KT Automotive is ready to answer the call for all of our current customers.
Simply fill out this form and we’ll be in touch shortly!
