Production Tracking - Total Daily Production

Look at your costs in three major categories and focus on tracking what matters the most.

D. Brown Management Profile Picture
Share

Look at productivity as a daily “Jar” where your objective is to pack as much “Earned Value” into it as possible.

Field Productivity: Total Daily Production when Production Tracking. 3 Cost buckets, Highly Variable, Mostly Fixed, and Indirect.
  1. Highly Variable costs which can be impacted the most by focusing on the 6 Pillars of Productivity and ABC Daily Planning
  2. Mostly Fixed costs such a major material and subcontractors can be impacted the most through disciplined and integrated supply chain management.  
  3. Indirect costs including jobsite supervision and logistics are driven by schedule which is a function of how much gets spent each day in categories 1 & 2. 

Focus on “Billable” as a great indicator of your value-add for the day considering that 100% completed tasks are easily billable to the customer.  If you want great cash flow on your project then your Schedule-of-Values (SOV) must be loaded in aligned with your task plan.

Optimizing productivity is about keeping the ratio of actual costs vs. billable equal to or lower than the ratio of your budget vs. contract.  Watch this as a daily, weekly, monthly and a running Job-to-Date (JTD) metric. 


Focusing on What Matters

Improving Labor Productivity Workshop

 

 


Production Tracking - Total Daily Production
Field labor is the often the biggest variable on a construction project - making it the biggest risk and opportunity....

Production Tracking - Total Daily Production
Field labor is the often the biggest variable on a construction project - making it the biggest risk and opportunity....

Valuation Math - Multiple of Earnings
In a valuation, you will often hear the term multiple of earnings. This is usually calculated based on some average of the last 3-5 years earnings and weighted toward the more current years.
Asking Good Questions
The ability to ask good questions will improve your learning, teaching, hiring, selling projects, building projects, and growing your contracting business. The discipline of formulating good questions often answers the original question and many more.
Valuation Math - Growth Pays
All other factors being equal, a contractor that can accelerate growth after the purchase will -- in most cases -- be able to pay for the business quicker.