Today I want to highlight what a Production Rate is, and some of the benefits of utilizing a production rate.
Production Rates are defined as: A unit of measurement that, when provided, will calculate the labor and material necessary to complete a task.
Some companies still find themselves doing “drive-by estimations” before they get to actually measuring EVERYTHING that goes into pricing out a project. Switching over to using Production Rates for estimating has a number of great benefits. Specifically:
Consistency in our estimating process
Consistency allows you to estimate the same services over and over without changes
Efficiency
Production Rate utilization means you aren’t starting from scratch on every estimation.
Job Costing
You will know right away what segments of a service need to be revisited to ensure profit margins are reached
Identify win or loss
On a whole, it’s helpful to ANY business to know how they are performing.
Scalable
Production rates allow for any estimator to produce similar results on an estimate regarding labor & materials.
Friend, are you using Production Rate in your estimation process? If not, we would love to help you started along the path to better estimating! Click the button below to schedule a free consultation.
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