Production rates are a valuable tool when estimating. Below you will find some basic information on what a production rate is, the benefit of using them while estimating, and how to use them in Aspire Software.
What is a production rate?A unit of measurement that, when provided, will calculate the labor and material necessary to complete a task.
What is the benefit of using production rates in estimating?
- Consistency and Efficiency
- Job costing
- Identify if you’re winning or losing.
- Scalable
What are some examples of Production Rates?
Lawn mowing
In this example, it has been determined that the production rate 4.5 MSF per 1 HR.
If you were to create an estimate for 10,000 sqft of mowing, it will generate budget of 2.22 hours.
Fertilizer Application
In this example, it has been determined that the production rate is:
- 30 MSF per 1 HR
- 6 pounds of material per 1,000 sq. ft.
If you were to create an estimate for 15,000 MSF of fertilizer application, it will generate budget of 90 pounds of fertilizer and ½ HR.
By identifying a production rate, you are able to evaluate completed work to see if you are winning or losing. This creates a baseline expectation of how quickly work should be completed, and helps you avoid under/overestimating on material.
Now that you have an idea of what a production rate looks like, you can see the benefit of consistency and efficiency. Once you have the production rates identified and the kits created, you will be able to estimate all jobs at the same rate.
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