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Job Costing
Job Costing

There are a number of work stations, all PC’s will be linked to the network. Each station will have a PC, monitor & keyboard. The monitor will be a “Touch screen” for easy input and hand held Laser scanner to read the barcode labels. Each station will have a “Badge rack” to store the Job numbers. Each employee will have two cards. One for Job (red) and the other for Time Attendance (green). A Job is made of a series of “Tasks” Each task is allocated a Cost and a duration called Budgeted Time.
These times are automatically added up to equal the amount of “Time” required to complete that Job. Each Job can have different tasks (Selected from the drop down box) and can have a different time and hourly cost to the company for each Job.
So Job One is made of a number of Tasks and the time allowed is 18.15 hours. As you build up a history, Time will tell whether you are under or over the time allowed for completing your Jobs.

Production Timing

The objective is to accurately record and measure the time allocated to a Job before you start, then compare that time against the time actually taken once the Job is finished. Now you can use that valuable information to see where the “haemorrhaging” of time went too. For the first time, you have information allowing you to start analysing where to look to find that “leakage” of excess hours and profit. Is the problem caused by man, machine, both? How does the system work? (You can use a barcode or fingerprint reader)The Production Timing module works in conjunction with the TurboTime Time & Attendance software module (T&A). In a nutshell, the one keeps track of the hours spent at work (payslip) and the other keeps track of the hours actually worked on various Jobs. Employee is who clock on Jobs are issued with TWO credit size card cards. One GREEN the other RED. The GREEN card is used for Time & Attendance. The second RED card is used to clock ON / OFF jobs. (Job card).

Why do we need TWO cards? – Good question!

One card is for T&A and the other is Job / Production timing. We need to monitor the Attendance (Time spent at work - time attendance - T&A) and we need to monitor the time spent on Jobs. Not everyone clocks on Jobs! These are two totally different functions. You could also have different employees clocking on the SAME job at the same time. What we need to do is record which employee clocked on what Job and the time. The Job number and description is added in TurboTime, you print the Job numbers and attach the Barcode to the Job card which is inserted into the badge rack.
 
Attendance ON / OFF

All staff will clock in/out at their workstations located around the factory at convenient points. (PC Touch screen & Laser gun.) When the employee touches the PC monitor “Time IN” they can then scan their GREEN TIME tag to record their arrival time for their shift (T&A) their name and the Date & Time displayed on the PC Touch screen which shows “Accepted”.
 
Clock ON a Job.

Before an employee i.e. (555-John) can clock onto a Job, you need to add the Job number to the TurboTime JOB software. Take your existing Job number i.e. AC63452 and add it to our list of jobs. Each Job is then made up of a number of “Tasks” (See picture) and each task is allocated a number of hours with a cost. These cost equal the total hours for the Job. Then print a number of Barcode. i.e. Print 8 copies.
Steps to clock

· 1. The employee Select JOB ON. (The Green side of the PC Touch screen.)
· 2. Places fingerprint OR scan the Barcode Employee number.
· 3. Scan the JOB number (Use the barcode scanner) i.e. Job AC63452
· 4. Then scans the Sub JOB he will be performing. i.e. Welding.
 
We know, that John (555) clocked ONTO JOB (Job AC63452) + Task (Welding) Date & Time and can measure the time taken for each task.

Clock OFF a Job.

Only one person can work on one Job at a time, else they need more than one “J” number. The employee touches the PC screen to clock “OFF a Job”. This is coloured RED to make to easier. They then scan their Job employee “J” card and select the Job, then the reason why they are clocking off that Job. They then clock onto the next Job. Else clock on to “Waiting for Instructions” (They need to account for their time.) There are about 8 reasons why they clock off the Job. I.e.

· 80 = Waiting for Instruction!!!
· 81 = Waiting for Parts – Job Stopped.
· 82 = Power failure.
· 83 = Emergency change Job
· 84 = Machine breakdown
· 85 = Task completed
· 99= Job totally Completed. etc
 
This is printed with the appropriate information onto a Bar code label, and attach that and inserted that into a plastic sheet. This is attached to the wall next to the clock station for easy reference. After a few weeks they know the codes, but leave it there anyway for the new guys. This makes it really easy to scan Off a Job. The employee (John 555) takes his Red “J” Job card, goes to the nearest station.
 
· Touch the “JOB OFF” on the PC monitor
· Scans his Card
· Selects the Job from the list on the screen
· Enters the reason he b i.e. 85 Task Completed

Now we know that 555 (John) has clocked off Job your Job AC63452 (date & Time) and the reason 85 Task Completed.
Honestly, we cannot make it easier than this for the employees to clock On or Off jobs. Remember the KISS principal? – Keep It Simple Skatabol!

What is positive about the system?

· Firstly, and most importantly, it is easy for an illiterate worker to use.
· The touch screen gives the employee an opportunity to get feed back
· They cannot clock onto two Jobs at the same time.
· Measures Job Time. – Accumulates Total Time spent on each Job.
· Measures Employee Time. Time spent working on different Jobs - Daily.
· Different employees can clock onto the same Job, at the same time.
· Measure how long it takes to complete a Job! (Start to Finnish)
· Calculate the total time & manpower it took for that Job.
· Shows all the ON & OFF times clocked for each Job.
· We calculate the Attendance (time spent on site)
· Shows WHY clocked OFF what job i.e. Waiting for Parts, Breakdown, Completed, etc.
· Keeps the Job information after the Job is complete. your Job number AC63452
· This free up number 25 to be used again on the next job your Job number AC99850
· You can now use this as a yard stick against the time spent on Jobs. I.e. spent 27.5 hours on the job, but they only allowed 15.00 hours to complete Job AC63452? –
· You will loose a lot of money fast, by quoting on Jobs like this!
· Unfortunately, the opposite is also true. If you over-quote, you may lose orders.
· At least with TurboTime Job Timing, you now have a measuring tool to help and guide you.
· This allows you to find the “sweet spot” and which jobs are profitable for your business.
 
What could be negative?
 
· You must run reports daily to see who never clocked off a job yesterday, etc.
· You can have as many saved Jobs as you want, BUT NOT open more than 99 “JOBS” at any given time. Your old Job AC63452 info is saved once you close the Job.
We know from hard learnt experience that the more key codes we allow the “workers” to key in! The more chances they have to key in the wrong codes accidentally or on purpose! We have now eliminated that. It is possible for one to clock for the other, but fingerprint readers will not work in your environment. This system is as close as we can get to make the system idiot proof.
 
At least this system gives you a lot of feedback and you can now measure how much time is allocated to Job and how long it actually took. Also the time wasted by employees booking time to “Waiting for instructions” You are paying for their time whilst they wait for instructions. If they book to much time to the job, you will pick up against the time / Job. You know what time you allocated to the job when you quoted. –At least each “Task” is allocated a time and the Time from each Task is combined to make up the total time of the Job. Now question why it took so long? – Machine or Operator problem? or was the time allowed in the Quote the problem?

The employee cannot beat the system. They have to account for there time no matter what.