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What is your production %

Discussion in 'Business Operations' started by Az Gardener, Feb 14, 2007.

  1. Az Gardener

    Az Gardener LawnSite Gold Member
    Messages: 3,899

    For those of you who keep track of such things. I am especially interested in those with 2-3 man crews.

    For those that are not clear how to calculate this, you take the hours you were working on a paying job and divide it by the hours you were paid for the day.

    Example start time 7:00 -3.30 less .5 for lunch = 8 hours x3 man crew=24 paid hours.

    Job 1---3.0 M/H
    Job 2---1.5 M/H
    Job 3---4.5 M/H
    Job 4---9.0 M/H
    Total---18 Billable man hours Divided by 24 paid hours =75% production rate.

    I began to closely track this number at the beginning of the month and I was shocked at how low my production hours are. Right now my avg is at 75.5 %

    I was very pleased with the rate over the summer, typically around 80-85% but I was just randomly checking it. My foreman thinks it is because I was gassing up the truck and gas cans in the summer.

    Now he does it with the crew in route from one house to another. We also got a new yard/field office that is closer to the areas we work in so I expected the % to at least stay the same not go down.

    So what is your % of productive hours in a day
  2. carcrz

    carcrz LawnSite Silver Member
    Messages: 2,085

    looks like you need to either go to a 2 man crew or land some bigger jobs so you are on site longer & less travel/down time.
  3. Az Gardener

    Az Gardener LawnSite Gold Member
    Messages: 3,899

    the hours I posted were just for an example. I have my own ideas about where the time is going. I am just curious what the industry average is.
  4. Az Gardener

    Az Gardener LawnSite Gold Member
    Messages: 3,899

    Little bump, anybody keep track of this stuff ?
  5. Focal Point Landscapes

    Focal Point Landscapes LawnSite Senior Member
    Messages: 401

    Just roughed it out ytd - about 80% - can't seem to plan and coordinate efficiently. This seems too low unless it would be multiple small jobs . Nice performance metric - improving the number could mean a lot of money . What variables are keeping your number down? Most of my issue is my own ineptness.
  6. cpel2004

    cpel2004 LawnSite Bronze Member
    Messages: 1,415

    Now this is agood thread.
  7. Az Gardener

    Az Gardener LawnSite Gold Member
    Messages: 3,899

    I think 80% would be an acceptable number, anything around 85 would be outstanding. This would vary from maint to install work.

    I know I have good guys, and I am confident they are not milking the clock. I think our new yard is the culprit.

    While it is central to all our jobs and greatly reduces travel time on all but one day.

    It is big, 2 acres and the office and parking is at one end and the shop and truck is at the other.

    I am not there in the morning so there is no pressure to be exactly on time.

    My foreman carpools with another guy so if one comes in early or stays late so does the other guy.

    There is also the gate we have to unlock when we arrive and unlock when we leave, sounds stupid I know but there is 4-6 min a day times 3 guys it all adds up.

    We have also implemented some new systems to keep the truck and equipment better maintained so on Monday every week there is a truck inspection that probably takes 10-15 min.

    When the business was at my house they parked walked 20 ft got in the truck and left they could get there at 7:00 and be on the road at 7:03

    Now I'm lucky if they leave the yard before 7:15-7:20
  8. JGroverCU

    JGroverCU LawnSite Member
    Messages: 25

    This all sounds great but you have to look at the things that you have control over.
    1. Are you scheduling your maintenance accounts with respect to the areas that are closest to eachother? (reduce travel time)
    2. Have you considered using the term "useable time"? For instance, the lunch break is a must. Dont factor that into the 8 hr day. I know that AZ took it out in the original post, but that is not considered time that is allowed for efficiency.
    3. Lock/unlocking gates is a part of efficiency because it is required by the customer. It would be the same if you had to pick up the dog poo. If you are doing something that the customer wants, and you agreed to it, factor it into your efficiency.
    4. Lastly, figure out what number you are looking for in effiency. If you specifically want to know how long your guys/gals are on a mower or running a piece of equipment, than that is not really a fair number. The reason I say that is because to the little extras that we have to add in to make the customer happy.

    Efficiency in this business is hard to estimate. If you want the highest possible %, then I would suggest putting a concentrated effort in picking up as many yards in one neighborhood that it takes to fill an 8 hour work day.
    I would say the best way to measure your efficiency in this business is by the sq. foot. That is how we make estimates for customers. You know that a certain amount to sq. feet take a certain amount of hours to mow/edge/blow. Why change the basic measurement to find your efficiency?

    As far as landscaping, there are way too many issues that can come up for me to list, so that is another argument in itself.
  9. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    just under 72%...I am primarily a mowing contractor so my employee's windshield time wil be more than does those do only land or hard scaping IMO.
  10. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Messages: 5,407

    How do you guys figure your man hour rate? From the time the guys leave(and fill up w/ gas) till the time they get back is what I have to pay for... so total gross divided by total man hours would be your man hour rate... it is just hard to believe guys on here get $60-$85 per man hour when figuring it that way.

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