SHOP MANAGEMENT

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					SHOP MANAGEMENT                                          Spring Semester 2006
Great Basin College                                           One Credit Hour
Instructor: Michael Lundberg                                       DT 203B


                                 Philosophy

Student and instructor are working toward common and practical goals which are
discussed at the onset. Student and instructor will be actively involved in
the process of learning. Guidelines for the course are specified but latitude
is given to explore new ideas and concepts. Learning is a change in one's
behavior; the road to change is marked by the instructor, and the student's
responsibility is to understand.

                           PURPOSE & COURSE GOALS

This course is designed to give individuals experience in the management of an
equipment repair business. Basic business operations and procedures will be
the main focus for this entrepreneur's course. Individuals will learn what
forms are needed to start and run an equipment repair business, along with
quarterly report filing information.

* Know fundamentals of small business operation.
* Know the procedures for acquiring a business license.
* Develop a mission statement for your company.
* Demonstrate the ability to calculate shop rate by budgeting.
* Demonstrate communication techniques for positive customer
relations.
* Know current fees and able to calculate these fees for state
industrial insurance, state and federal unemployment tax, and      employee
health insurance.
* Know competitors shop rates.
* Demonstrate the ability to calculate Nevada sales tax.
* Demonstrate the ability to apply concepts learned in class to
   class project.
* Demonstrate the ability to estimate repair bills by the use of
   a flat rate manual.
* Know the principles of credit card usage.
* Know fundamentals of your pay stub.


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Page 5
                               READING ASSIGNMENT

Students will be required to read one article related to small business
operation. Reference to these articles will be used in the class project.
Students will be asked to voice their opinion on issues researched in their
article.

                               EVALUATION & GRADES

Project                      30%
Final Exam             60%
Participation          10%




                              PROJECT REQUIREMENTS


Students will create a heavy equipment repair business budget using
information gathered by each team. This project will be presented to the
class and discussion will follow. The budget will include the following:


*Shop Rental Fees
*Wages for two employee; employee AA@ $8 dollars/hour; employee     AB@ 15
dollars/hour
*Calculate State Industrial Insurance
*Nevada Sales Tax and Nevada Business Tax
*State and Federal Unemployment Tax
*Estimate Utility bills; electricity, gas, garbage, water, phones
*Business Insurance - including auto, garage keepers, property     liability
*Employee Health Insurance
*Medicare and Social Security
*Shop Equipment; Rental or Lease
*Service Truck Expenses
*Develop a warranty policy based on 3 competitors warranty policies. This
policy should include parts warranty.
*Credit cards.


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*Advertising, Phone book, Billboard, Newspaper.
*Employee Training
*Computer and service manuals, bookkeeping software
*Freight Costs
*Professional Fees; Accountant, Bookkeeper


All expenses will be based on a 40 hour week and 4 weeks per month. All
calculation should be on a per month basis.


Each student will come up with a company name and mission statement.




At the completion of this project, students will be able to calculate shop
rate, service call out rates, and identify profit margins. The information
gathered will be analyzed and discussed so that suggestions may be made to
increase profits.




                                                                          Page 5
Business Terms

1)    Invoices


2)    Statement


3)    Work Orders


4)    Estimates


5)    Profit


6)    Depreciation


7)    Taxes


8)    Billable Hours


9)    Customers


10)   Accounts Payable


11)   Accounts Receivable


12)   Incentive


13)   Employee Time


                            Page 5
14)   Overhead


15)   Expenses


16)   Income
17)   Flat Rate

18)   Warranty


19)   Come Backs


20)   Marketing


21)   Markup


22) Gross


21)   Net


23)   Vender


24)   Amortization


25)   Simple Interest




                        Page 5
Budget Sheet for Repair Business / Month

Heating

Electricity

Cellular Phones

Water/Sewer

Shop Rental/Purchase Price

Service Truck Purchase/Rental

Credit Card Charges

Shop Equipment

Office Computers & Software & Service Manuals

Advertising, Phone Book

Advertising, Bill Board

Advertising, Newspaper


                                                Page 5
Budget Sheet for Repair Business / Month
Advertising, Internet

Business, Insurance AGarage Keepers@

Auto Insurance $500.00 Deductible
95 Ford F-350 1 ton 4x4
90 Ford Ranger 4x4

Competitors pricing & Warranty Policy

Employee A Cost/Month Pay/Hour---------->$
Gross Pay --------------->
Social Security --------->
Medicare ---------------->
Unemployment ---------->
SIIS -------------------->
Health Insurance -------->
Vacation/Sick Leave ----->
Retirement -------------->
Bonuses ----------------->

Employee B Cost/Month Pay/Hour---------->$
Gross Pay --------------->
Social Security --------->
Medicare ---------------->
Unemployment ---------->
SIIS -------------------->
Health Insurance -------->
Vacation/Sick Leave ----->
Retirement -------------->
Bonuses ----------------->

Shop Purchase/Rental

Freight

Professional Fees

Nevada Business Tax

Employee Training


                                             Page 5
Budget Sheet for Repair Business / Month
Business Licence




Cost Per Month to Operate Business ----------------->

Owner gross Pay Per Month--------------------------->

Shop Rate Per Hour --------------------------------->




                                                        Page 5

				
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