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  • 1.  Labour actuals and pay roll

    Posted 01-18-2024 15:58

    Hi Colleagues,

    Recently I was presented with the challenge from the Finance group to explain why my total labour transactions in Maximo only accounted for less than 10% of the labour available time (and cost) according to the payroll system. My first explanation is that in Maximo we only capturing the wrench time, but it seems so little. My questions to the forum are:

    1 - What is the industry standard for % of wrench time vs total labor available time?

    2 - Should I be capturing more in Maximo to match the total labour availability? 

    3 - how your Financial departments recover the labour cost that is not tracked in Maximo?

    Thank you in advance for your feedback :)


    #MaximoUserGroups
    #WorkManagement

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    Erika M.

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  • 2.  RE: Labour actuals and pay roll

    Posted 01-19-2024 09:54
    Hello!
    You might find it useful to read an old article from Interloc titled "Labor Reporting and Timekeeping White Paper." please google it. I agree though that 10% of total hours from payroll system seems low, but there could be several factors to consider here. To address your questions:
     
     1)      Industry Standard for % of Wrench Time vs. Total Labor Available Time:
    The industry standard for the percentage of wrench time versus total labor available time can vary significantly depending on the type of work (i.e. corrective vs preventive from annual plan), industry, and organization. It's crucial to understand that what's considered acceptable can differ widely and is useless to your organisation, not to mention that is hard to convince people from Finance Group about the reality of maintenance...they simply don't want to hear about. therefore, rather than searching for a one-size-fits-all benchmark, I recommend looking internally to define your organization's "Effective Working Time." This should exclude non-productive periods like lunch breaks, personal breaks, preparation time at the start/end of the day, safety/training times as well as any administrative tasks or non-work-order-related activities. This metric will be closer to what you should aim to capture in Maximo as labor reporting.
     
    2) Capturing More in Maximo:
    Based on your findings regarding "Effective Working Time," you may indeed need to capture more data in Maximo to match the total labor availability accurately.
     
    3) Distributing Total Labor Costs based on Recorded Actual Labor Hours:
    To address the labor cost that is not tracked in Maximo, you can implement a cost distribution system based on the recorded actual labor hours. Start by setting a target for the percentage of total available effective time you want to capture in Maximo, let's say 80-90% from total effective hours/day, as your benchmark. This approach ensures that the labor costs from payroll are prorated based on the actual hours worked and reported in Maximo.
     
    Remember that industry benchmarks can vary widely due to factors such as work hours, shifts, and operational specifics. Therefore, focusing on your organization's unique "Effective Working Time" and aligning Maximo reporting accordingly is often the most effective approach to ensure accurate labor cost tracking.
    Best regards,
    Claudiu B.


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    Claudiu BRATU
    Rominserv
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  • 3.  RE: Labour actuals and pay roll

    Posted 01-19-2024 10:48

    Agreed with Claudiu, the range can be very wide depending on operations type.  The basic is the same, define what is productive vs non-productive time (billable hours vs Non-billable hours).

    Wrench turning time /billable hours (Review of WO, populating data to WO, travel time, tool, research, actual repair time)

    Non-billable hours (training, good customer service/sale, internal documents review/email/meeting/training/paid breaks/paid lunch).

    Consider adding a Work Type "Admin" to capture non-productive time.

    Example: 10 hours facilities maintenance environment, no paid lunch :

    Admin time: 2 hours and 30 minutes (PMWOGen to generate a weekly WO to capture/log work type Admin)

    2 15 minutes break

    1 hour of internal communication beginning and ending of shift

    2 15 minutes of shift change at each ending of shift

    30 minutes of good customer service interruption/personal bio breaks.

    Training can all be capture under this Admin work type as well.

    Loc Chu



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    Loc Chu
    Peacehealth
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