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Labor Reporting and Time Keeping

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maximo strategies When implementing a CMMS/EAM system, there are numerous functional, or business-related topics that arise in almost every project. This paper will fo- cus specifically with labor reporting and timekeeping. The Starting Point The first step in the decision process is to determine the labor reporting/time- keeping goals of your system. Maximo is designed to focus on core asset man- agement. This translates to a design that is focused strictly on the total cost of ownership and performance of an asset/equipment, from purchase to disposal. At first glance, you might agree that this is what you want to track in your system. As implementation gets closer, things become unclear be- cause this issue wasn't carefully consid- ered in advance. What Could Go Wrong? The goal stated above might be the obvious goal of every implementation. However, as the project progresses, or worse yet, after go-live, the difficult ques- tions arise. • How do I record my overtime? What about travel time? • What labor cost should I use for each person working on our equipment? • I need to bill someone for this work, how will I create an invoice? • This employee punches in for 40 hours each week, and I want to see 40 hours a week on Work Orders. I want to know what everyone is doing. And the list goes on. This is where the conflict becomes clear, and where you will have to decide on your goals. Which Goal is My Goal? "Pure" maintenance management fo- cuses on only the assets. There isn't any focus on timekeeping or labor reporting beyond actual wrench time. Furthermore, the cost (per hour) of labor used for wrench time needs to be standardized. Why? For "pure" asset management, the end goal is to optimize the return on your assets. This means being able to draw quantitative conclusions on the effective- ness of the work force, asset reliability, and total cost of ownership for assets. That is why ALL work order data must begin, and remain, normalized. For example, if you introduce travel time to work orders, you'll skew your cost results. The asset located far away from the shop will appear to cost substantially more to own and operate than the one near the shop. The same is true for labor rates. If you have the same work being performed on the same types of assets by a more junior resource, the asset maintained by the less expensive resource now appears to perform better, on a cost basis. An ac- countant and/or your finance people will argue that the above statements are true, and from an accounting perspective, they are correct. But if you introduce these elements into the work order strategy, the metrics needed for superior asset man- agement are no longer readily available. What this means to your implementation needs to be made clear to those who will be using the system. The worst mistake an organization can make is to confuse accounting, finance, timekeeping and payroll goals with those of an asset management system. They are very different, and each of those Over the coming months, Interloc Solutions will be publishing a series of articles providing real world functional advice for your Maximo implementation. This first article will focus on labor reporting and timekeeping. About Dave Dawson: Dave Dawson is the Vice Presi- dent, Professional Services at Interloc Solutions. Dave has worked in the Maintenance field for over 25 years. His background contains a rather unique combination of real world/front-line experience and business education, as well as process consulting and Maximo implementation. Dave has worked as a mechanic, a lead mechanic, a maintenance supervisor, and a maintenance manager. As a maintenance manager, he was responsible for a fleet of more than 2500 pieces of equipment, with an annual operating budget of over $24 million. Dave's consulting highlights include working with the 3 largest com- mon carriers in North America, the world's largest airline, and numerous other Fortune 500 clients and large public sector organizations. As a mainte- nance management and pro- cess consultant his guidance is extremely credible and proven, always based on what really works in the real world. Labor Reporting and Timekeeping

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