Tracking Job And Mechanic Efficiency

Post date: Jul 18, 2011 2:45:1 PM

SMCP uses several job cost functions and reports to provide you with tools to measure productivity.

Each order has a place to record the total 'estimated hours' for that order. The system is not designed to try to do it 'per item' because you can't really assign the hours that exactly: on a multi-door job, for example, you may take a whole day or so to get things set up, or install jambs, etc.  So it's all tracked on a per job basis, using hours - this, ultimately, is what you need to manage anyway, because this is what ultimately finds its way to your financial statement.

When the work orders come in at the end of the day from mechanics (or in the morning) the hours are recorded in the 'Add job cost entries (55)' function in SMCP.  The screen here is designed to be used by a person entering all the daily entries from mechanics' paperwork, multiple jobs for each mechanic, then one mechanic after another.  Time is divided into 'Hours' (for regular production time), 'Travel' (travel time to and from) and 'Backcharge' (time that shouldn't count against production, or may be charged back to the supplier).  Additionally, each time entry can be identified by 'type' (typically 'mechanical' work, or 'electrical work', etc. 

These two pieces are the key: each job needs to have the estimated hours recorded, and each day needs to have the hours used assigned to a job.  When that's done, you get a very comprehensive efficiency report (the 'Job Cost Daily Report (1078)' in the SMCP) for each job and each mechanic over any selected window of time.  (You should also be able to review the Job Cost Summary (1079), which shows actual material costs as well as expended labor and the Job Cost List By Completed Date (1082) to get a good picture of how each job went from an efficiency standpoint.)

The efficiency calculations work like this: first, the job as a whole is evaluated with a 'job efficiency' percentage: a job that was estimated for 10 hours and TOOK 10 hours has a '100%' efficiency; if the same job took longer, its efficiency percentage is proportionately lower.  Additionally, the mechanic's performance is factored in to yield daily job efficiency values as well (the complete list of report factors is detailed below.)

All of these reports are intended to be used as part of a regular management routine.  Looked at casually, from time to time, the information is anecdotal - any one day can't tell you much.  But reviewed periodically, trends quickly emerge - and we've found that the report can spotlight underlying problems in areas you may not otherwise see.  For example, you may notice that certain jobs, or certain kinds of jobs have a pattern of lower efficiency: it might turn out that because travel time is an issue, starting mechanics earlier or pre-delivering material can make a difference.  Often this report turns up issues with getting out in the morning, loading trucks, callbacks, etc.

It all hinges on routine and discipline - but as always the trick is go convey the sense of purpose and mission to the people who need to enter the data.  Often it helps to show them a trade-off: if they start doing this, they can stop entering the same data elsewhere.  Sometimes we find people trying to add in new procedures but not getting rid of the old ones, and then people just perceive it as 'more work'.  One of the SMCP design principles is 'Enter ONCE': then leverage the linkages and reporting that the system offers.

(The complete list of definitions for all the metrics on the 'Job Cost Daily (1078)' report follows:

DEFINITIONS:

'Total Estimated': Total number of hours estimated for the particular job.

'Total Used': Total number of hours logged against the particular job; this includes regular hours AND travel hours logged into the job cost system for that job.

'Job Efficiency %': Hours Used divided by Hours Estimated,expressed as a percentage.

'Total Charged Hours For Day': Total of hours logged into job cost system for this mechanic, for this day.

'Avg JOB Efficiency For Day %': Average efficiency of ALL jobs for this mechanic for this day. This is a weighted average: the hours logged in the job cost system for each job are multiplied by the job efficency for that job giving a product for each job for that day. These products are added for the entire day, then divided by the Total Charged Hours For The Day, yielding an average daily JOB efficiency. (This does not take into account hours on the clock.)

(This calculation in detail: First, an 'efficiency product' is calculated for EACH entry in the day, by adding the hours used and the travel hours (NO backcharge) and multiplying that sum times the efficiency of the job for that entry. Then all these 'efficiency products' for all the entries are added into a combined 'efficiency product' for the entire day:

'bdDailyEfficiencyProduct = SUM for each entry in the day of ((bdJobHoursUsed + bdJobHoursTravel) * bdJobEfficiencyPercentage)'

Then the 'AVG Job Efficiency' for the day is calculated by dividing the 'efficiency product' by the number of hours of work and travel (NO backcharge) for that day - this is printed on the report:

'bdDailyJobEfficiency = bdDailyEfficiencyProduct / bdWorkAndTravelHoursForDay')

'On The Clock'*: Total number of hours recorded for the mechanic for the day, read from the time card system data.

'Net Daily Efficiency'*: Efficiency, expressed as a percentage, based on the job efficiency multiplied by the ratio of hours logged on jobs to hours on the clock. This number reflects the job efficiency increased or decreased depending on whether the hours on the clock for the day are less or more than the hours logged into the job cost system for the day.

(This calculation in detail:

Net Daily Efficiency = ((Working + Travel) * (DailyJobEfficiency/100)) + BackChargeHrs) / on the clock hours)

'Overall Avg. Job Efficiency %': Overall average efficiency of the jobs this mechanic worked on during the selected time period. This DOES NOT take into account time on the clock, only the efficiency of those jobs based on hours entered into the job cost system.

'Overall Avg. Net Efficiency%'*: Average efficiency for the mechanic for the selected period, factoring in the job efficiency AND time on the clock.

*These factors are not applicable for systems without the time card module.)