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Analysing Work

Analysing Work

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Analysing Work

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When analysing work we use 3 main KPIs

Productivity – In Evopos terms this is the split between productive time (normally work that is being paid for) and non-productive time (Setting up, Maintenance, Breaks etc). Everyone normally has some non-productive time but the goal is to minimise it especially with the higher skilled (more expensive) staff. For example in a bike workshop you would normally get the apprentices to push the bikes out in the morning. Productivity is calculated by the actual work done in a period rather than what has been invoiced. Productivity reports can also be used as a time sheet as it is a complete record of when each person has worked and what they have been doing. Because this is a full record their standard wage can be calculated from it (bonuses, if applicable, could be calculated from Efficiency or set targets).

Efficiency – This is basically how efficiently (quickly) staff can complete Jobs. Efficiency is measured between the Logged (worked) time and the final Invoiced time. If 2 hours are Logged and 1 hour is Invoiced the efficiency is 50%, if 2 hours are logged and 3 hours are Invoiced the efficiency is: 150%. Because we need the final Hours Invoiced we normally do this by Jobs Invoiced in a period.

Proficiency – This is a combination between Productivity and Efficiency. It is harder to calculate accurately as Productivity is based on everything that has been worked on in a time frame, where as Efficiency is based on what has been invoiced in a time frame. To get accurate figures we need details of which uncompleted Jobs have been carried forward from each period.

Bonus Schemes

Some businesses have found it advantageous to set up a bonus scheme to encourage work to be done quickly and efficiently but not too quickly so mistakes are made. There are various ways you can do this, the following is one example:

Standard Hours - Pay a standard hourly rate based on the hours worked. This may be adjusted if breaks have been longer than the statutory amount or work has not been deemed to be carried out in the prescribed manner. A target amount of Hours is normally set for a period. Re-work may be deducted from this

Additional Hours - In certain cases working over the target number of hours may be paid for but only if agreed and minimum productivity and efficiency levels are met.

Bonus - The specified period for a bonus can be different to the standard payments for hours worked. If the productivity and efficiency percentages for that period are above target percentages, plus the number of Productive Hours are above the target number, then you may want to pay a bonus.This is normally based on a percentage of hours over the target Productive Hours.

Other businesses prefer to review the performance on a regular basis by using the same information, and if changes to the performance are evident then wages can be adjusted accordingly.