It’s Time to Crack the Op Code and Get It Right BY JORDAN JANKOWSKI, CHIEF OPERATING OFFICER, ARMATUS DEALER UPLIFT There are financial and performance implications for using miscellaneous operation codes, and fixed ops leaders should establish clear expectations that advisors select the most accurate operation code for every repair order. It’s a simple message: The miscellaneous operation code is no longer the default choice. Advisors should select the appropriate operation code from the approved list for every transaction. In a modern dealership service department, the operation code is not simply a bookkeeping label attached to a repair order. It is one of the fundamental pieces of data used to determine who paid for the work, what work was performed, how it should be accounted for, how technicians were paid, how the department is measured and, in many cases, what the OEM will reimburse. When op codes are inconsistent, duplicated, outdated or misunderstood, the resulting damage can extend far beyond an untidy DMS screen. It can distort management reports, misclassify revenue, complicate warranty reimbursement, affect technician productivity calculations, make customer-pay performance look better or worse than it really is, obscure opportunities, and, perhaps most importantly, cause dealership leaders to make decisions based on data that isn’t telling the truth. That is a much bigger problem than a messy menu. When it comes to a warranty reimbursement submission, some approaches rely heavily on op codes to decide which repair orders qualify, so they inherit every coding error. While state-of-the-art software can work around bad op code usage, there are still many other reasons to clean up this very prevalent issue. 10
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