Calculate billed field time
To calculate this billing-based measure of labor utilization, divide field hours billed to customers by total paid field hours for the same period, then multiply by 100. If 90 of 100 paid field hours are billed, the utilization rate is 90%; 10 hours remain unbilled. Set a target based on your service mix and use the same time categories each period.
Identify where unbilled hours go
Unbilled hours arise from warranty calls, call backs, billing adjustments, vehicle maintenance, warehouse time and estimating time. Labor utilization is an important management tool allowing managers to identify how time is being used and to make adjustments.
For example:
- If the time spent on call backs is high, then there may be a quality and supervision issue
- If hours are attributed to billing adjustments, it may indicate a scheduling and dispatch inefficiency resulting in travel time that cannot be invoiced.
Record time on each service ticket
Training techs to make sure Job Tickets show all the time spent on a job is critical; the tech should be doing his paperwork on the clock, not after he has checked out of the facility. These procedures and the proper training of service techs can make a dramatic difference in profitability.
By using Centerpoint Connect’s Service module, the process of managing time becomes less complex. Reporting features and visibility are key to tracking labor utilization.
Use this service ticket closeout checklist to review the time and supporting notes before billing.
