What is a good labor cost factor % to go to 10hrs/from 8 and 6 dy wk instead of 5 dy wk. = Premium time
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In theory, it shouldn't be that much more because you complete the same work faster. If you are going from 40 to 50 during the week, possibly the same resource couldn't work the Sat. But lets assume it does. Does this mean x 1.5 factor x 1/3 of the hours - because 40 of the 60 would be straight time leaving 1/3 of the hours x 1.5. What do you think? I understand we could and should look up the rates per trade etc, this is just to be an estimate against budgeted cost to accelerate.
2 replies
Oldest first- 0Peter Holroyd ·
John,you need to look at
John,
you need to look at their trade working rule agreements for the cost factors as opposed to the productivity (output) rates.
We found that some agreements for instance give a second 0.5 hr pm break for a 10 hr day shift as opposed to a 10 min tea break on a 8 hr day shift. Others allowed the breaks to be taken (or not) at the end of the day shift. Other work agreements insist on doing the 40 hours before you were eligible to do the o/t.
If you want generalisation - these might be applied
Output/hr Cost
8 hr x 5 day shift 1.0 1.0
10hr x 5 day shift 1.0 1.1
10hr x 6 day shift 0.9 1.25
12hr x 5 day shift 0.8 1.5
12 hr x 5 night shift 0.7 2.5
9 day x 10 hr rotating shift 0.9 1.25
Could well be a diference if you want CtE rather than Manpower costs and need to add in additional supervision costs.
Peter
- 0Peter Holroyd ·
John,you need to look at
John,
you need to look at their trade working rule agreements for the cost factors as opposed to the productivity (output) rates.
We found that some agreements for instance give a second 0.5 hr pm break for a 10 hr day shift as opposed to a 10 min tea break on a 8 hr day shift. Others allowed the breaks to be taken (or not) at the end of the day shift. Other work agreements insist on doing the 40 hours before you were eligible to do the o/t.
If you want generalisation - these might be applied
Output/hr Cost
8 hr x 5 day shift 1.0 1.0
10hr x 5 day shift 1.0 1.1
10hr x 6 day shift 0.9 1.25
12hr x 5 day shift 0.8 1.5
12 hr x 5 night shift 0.7 2.5
9 day x 10 hr rotating shift 0.9 1.25
Could well be a diference if you want CtE rather than Manpower costs and need to add in additional supervision costs.
Peter
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