Productivity and profitability tracking are done for several categories

  • Individual worker, e.g. driver
  • Work center ,e.g. Route, Pumping station,  Yard operations
  • Work category, e.g. all recycling 
Productivity tracking and profitability tracking are done two ways either Job shop costing or Time and motion

Job Shop Costing
This is when you track all the sales and expenses for a specific event and to calculate the profit for that single event. This is usually done  to get the baseline costs for a work task. Some examples are

Residential Septic Pumping - existing customer
The revenue is the total sales collected for the work. All costs associated with job include:
  • Office staff time to take order
  • Operations management time to coordinate work crew
  • Vehicle hours (all including dispatching, wait, transport, etc)
  • Driver hours
  • Assistant hours
  • Office hours to close work ticket
  • Office hours to invoice and collect monies
  • Followup hours on job completion, etc.
You get the gist all the costs, no exception. That includes management time. Sales minus the total costs is job profit.  You do this for several similar jobs and you get average costing profitability for this type of job.  Time consuming and the most expensive form of monitory business productivity. 

Costing at Standard
Usually hours of a monitored resource like drive\work center hours.  You get the total labor hours paid to the monitored resource and divide the total directed and allocated expenses  by the total hours to get Dollars per hour of cost at standard.  You calculate this number at the start of each year using last year's expenses. To determine the profitability of a work activity all you need to do is get the total sales and direct hours

Before tax gross profit = Sales - (direct labor hours X Cost @ standard/hr)
Simple and easily tracked via payroll hours and the sales associated with the work activity. You can review the numbers every three or six months to account for changing expenses like fuel, etc. This way you can easily and quickly identify work centers that are not profitable @standard.

Some examples of driver work center hours are:

  • Portable toilets
    • Service route driver
    • Utility driver 
    • Sales
  • Liquid waste
    • Residential septic
    • Gray water 
    • Grease
    • Black oil, yellow
  • Medical waste
    • Pickup driver
    • Disposal center
  • Propane delivery
    • Driver
    • Yard operations for bulk container
  • Fence 
    • Setup and take down crew
    • Sales
  • Solid waste
    • Commercial route driver
    • Roll off driver
    • Residential waste route driver or team
  • Cement
    • Delivery driver