Steel Advice - The Fabricator's Resource
Dedicated to support the steel fabricator with real world solutions to real world problems.
The Project Manager
As the expended labor hours are installed in this sheet, the remaining total hours will automatically change. The projected labor hours for completion of the job will need to be adjusted accordingly to the required delivery date.
This is where the project manager will begin to see if projects will be running over or under on their assigned hours, and if targeted delivery dates will be met or not.
The plan is that the projected outcome will be revealed early enough in the project to enable decisions to be made that will change or reduce the impact of a negative result.
There will also be areas where extra work may be added. These areas appear as "open" labor hours that can be used for early fabrication of some projects, rush orders sold, or (not my favorite) a reduction in work force.
The point is that you will see it coming and will be able to plan accordingly.
Once you get the hang of it, this sheet is very handy for estimating and sales, shop supervision and accounting. It's not all about the Project Manager, you know.... :-)
Nesting labor hours for projects is easy on paper. In the real world, there are things that happen daily to dismantle the paint by numbers dream that a project manager may have. Keeping a handle on what is happening day to day and projecting the affect of each occurrence requires a talent that can only be learned on the job.
Manpower shifts happen constantly. Materials arrive late and get backordered without notice. Equipment breaks down, or supplies run short. Shop employees quit, call in sick or show up late. It is a wonder that the shop can get anything completed given all the challenges.
Using the Shop Labor Distribution sheet installed with actual expended labor hours together with the forecast remaining labor hours will help the project manager understand the course of the project in real time. It must be updated weekly and discussed with the shop superintendent for the information to be workable in creating realistic delivery dates.
Again about Indirect Labor
More on the Shop Labor Distribution
Indirect labor is a necessary evil in the fabrication world. This is the bucket where hours for meetings, clean up, repairs, safety, training and everything else miscellaneous is kept.
Even the slightest amount can have a serious impact on production. Anything that interrupts the continuous flow of the work has the ability to drive productive hours sky high.
If using this sheet, be sure to install the indirect labor hours in the top section so those hours deduct from the total daily allowance.
Staying on Track