Are you still tracking production quantities on a weekly basis? Entering production quantities on a daily basis helps project managers complete their projects on time and avoid costly setbacks.
How Construction Productivity is Calculated
In the construction industry, companies typically estimate job costs and track productivity by calculating the number of labor hours required per unit of a project commodity (e.g. 2 hours per Linear feet of pipe). When completing the takeoff for a potential project, the estimator may assign 1,000 hours to installing 1,000 fixtures or 500 hours to pulling 10,000 feet of cabling.
Using the example of 1,000 fixtures, project managers can track productivity using construction accounting software by entering the number of labor hours used to install X number of fixtures on the fixture cost code. For example: after two weeks on the job, the field team has 500 fixtures installed in 700 hours. After entering the production quantities in the proper cost code field, it’s clear that the team is behind the estimated rate of 1 labor hour per 1 fixture installed.
Benefits of Tracking Production Quantities Daily
Most companies enter production quantities on a weekly basis but entering them daily provides more timely and accurate insights and helps significantly in creating a basis for claims.
Cutting Job Costs
Viewing production quantities on a weekly basis instead of a daily basis can be costly. Project managers learning about productivity issues a week late is a major blow to profit margins and depending on the number of employees involved with the issues, the losses add up quickly. If the right data is available at the right time, project managers are able to avoid reporting a surprise loss on a project to management.
Maintaining Project Scheduling
Daily tracking of production quantities allows project managers to better forecast when key project tasks will be finished and helps complete projects on time. Pinpointing accurate completion dates for different project tasks empowers project managers to call an audible and make manpower adjustments where they see fit.
Daily production reporting provides quicker insight as to how much material is being used and how fast it may run out. This is extremely vital information during this time of supply chain hell and 12-week lead times.
Construction schedules continue to get tighter and communicating effectively with the other trades on the project is increasingly important. When production quantities are tracked daily, project management accurately narrows down project phase completion dates, relays the dates to the other trades, and avoids trade stacking altogether.
STRUXI’s Solution for Daily Production Reporting
STRUXI’s cloud-based software allows users to enter production quantities by cost code in the same simple and quick user interface that users enter their time. Additionally, STRUXI BI provides real-time reporting to help view both past and future trends.
Schedule a call today to learn more about how STRUXI’s user-friendly software helps track daily production quantities.