Work order production tracking and profitability are two separate business activities


Work Order


Work Order Production Tracking

Is centered around the organization, dispatching, monitoring for completion and close out activity associated with each work order. The objectives are to make sure that

  • The work is started and completed to meet promised dates and times
  • Accuracy in reporting of hours and work that is to be invoiced
  • Work is completed correctly (quality control)
  • Driver productivity analysis. Is the driver completing work in a timely fashion so that it is a net profit e.g ., Before tax profit @ standard (Sales - Total paid hours X Loaded hourly rate)
  • Work order is successfully closed out (e.g. check work done, production records updated and invoiced)

Work Order Profitability
The profitability of the work order is a simple calculation :
Before Tax Gross Profitability = Sales for work order - (Total paid hours X Cost@Standard/Hour)
Management then looks at all work order by the driver to see that over time he/she is profitable in completion or work assigned. 


Work Center

Work Center Production Tracking
Work activity for a full labor day where the same type of work is repeated many times for different customers and service locations. Some examples are commercial waste route. Driver goes to stop to stop emptying bins and reports back as each stop is completed. Production tracking is similar to work orders except costing is done on the entire day rather then an individual stop

Work Center Profitability
The profitability is for the entire roue for the day, not a specific stop. Just as in work order production tracking. The calculation is 

Before Tax Gross Profitability = Sales for entire route - (Total paid hours X Cost@Standard/Hour)