Job Shop Hours Defined

In job shop estimating where does efficiency play a role?  When you are estimating generally ask yourself how many “Man Hours” are required to producing the part or performing a specific operation.

Lets define some terms first

Man Hours

Man hours is the total time to accomplish a given task.   This does not mean that if a task if 40 man hours it will take five 8 hour days.  You could potentially accomplish the task using more then 1 resource and therefore you can finish the task with 5 people working 8 hours in 1 day.

Direct Hours

Amount of time that an employee is performing a task specific to a work order.

Indirect Hours

Amount of time that an employee is performing a task that is not being applied to a specific work order.  This includes sweeping, cleaning, accounting, etc.

Estimated Hours

Amount of time an estimator puts towards a specific task or job that is an educated guess.

Actual Work Hours

The actual hours an employee spends performing a specific task


Efficiency is the ability to accomplish a given task with the minimum expenditure of time or effort.

Worker Productivity or Effectiveness

Worker productivity is the time spent on a task versus the time they are actually getting paid for.

Worker productivity will never be 100% because of the time interferences a worker keeps from doing their assigned assignments.  These include things like using the restroom, meetings, e-mails, chatting, break time, etc.   The time between direct hours and indirect house is the effectiveness rate.   This is not the the same as efficiency where its calculated as the measure of ones performances performing a given task.

The next blog post will go into more detail and examples of job shop efficiency and effectiveness.

Author: MIE Solutions

David Ferguson has over 20 years of experience in the manufacturing and fabrication industry. David Ferguson has been to over 100 manufacturing companies helping and guiding them to be more efficient and cost effective. As a child in Junior High School David Ferguson found a passion for the early computer systems, which would drive much of his future work. David Ferguson created and sold his first computer program, Arrow Data Systems, which was an early CAD/CAM system for the Apple 2e Computer. In the late 1980's after seeing his father (a sheet metal manufacturer) come home many nights estimating, David Ferguson saw an opportunity to optimize his effort through computer technology. Shortly thereafter the FabriTRAK Production Control package was developed. The Quote It! estimating package was developed out of the FabriTRAK system to become one of the leading sheet metal estimating packages in the world. David Ferguson has always had a passion for developing software to make the manufacturing process simpler, faster and more efficient. Prior to founding MIE Solutions David Ferguson worked with his father at Alco Sheet Metal, METALSOFT Inc. and was a consultant at Toyota Motors Sales. David Ferguson has his Masters in Computer Science and Mathematics from California State University, Long Beach.

One thought on “Job Shop Hours Defined”

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s