**Production Rates Part 2: How to Use the Calculator**

This is Part 2 of the Production Rate videos, click here to watch Part 1: Why You MUST Have Set Production Rates.

In today’s video, I’ll teach you exactly how to use the production rate calculator, which will save you hours of time for future estimating, so you can deliver proposals and win bids on the spot!

So, if you look at this first tab down here at the bottom, this is the labor tab, this is not required to do production rates, but I do have an extra row that will actually give me my cost per unit, whether it’s a square foot, linear foot or each.

And so, you have to figure out your labor rate to be able to do that. So, this tab under labor will take care of that.

All the yellow cells are the ones that you would put your information in, so in this one right here, the first row, we just put the first name of all the employees, the second row, we put the amounts that they make per hour, I have $19, $18, $15, $13 and $22.50.

Down here at the bottom it adds it up, a total of $87.50 and the average is $17.50.

Now, with my burden, it comes out to $25.09, and the burden is figured out from the sales here, I have unemployment, my matching taxes, and Workman’s comp.

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The next one I have is vacation, and this is not normally in burden, but I do have it in my burden, to be added, it’s based on the hours worked.

So, I can figure it out and put it in there. But this $25.09, this is what my labor cost is per hour, including the burden.

So, if we go to this tab here, this ‘walls’, this is set up to paint walls 2 coats, and then it’s measured by square feet, so I put that in its first two yellow cells.

I actually have 3 jobs already set up in here, this first one has 2556 square feet that was done, and the man-hours it took is 24.75.

The second job is 400 square feet, and it took 7 man-hours to do. And then this third job was 6517 square feet, and it took 32.5 man-hours to do.

So, this next row, this would actually figure out the production rate for each one of these jobs, the first one is just a little over 103 square feet per hour, the second one is just over 57 square feet per hour, and the last one is 202.4 square feet per hour.

If you go ahead to the bottom, this will get you an average, it automatically adds up all the production rates, and gives you an average.

So, the average of these 3 jobs is 148.4 square feet per hour. So, that’s whenever you estimate, you are going to estimate that you can do 148.4 square feet per hour.

So, if you get a job that’s 150 square feet, you know it’s going to take a little more than an hour to get it done.

This is the one that has to do… the $25.09 labor cost, it automatically goes up right here, it’s automatic, and you actually don’t have to do it.

But it will multiply your production rate by your labor rate. And so, this job right here, I paid 24 cents per square foot, for the labor, not material, and this is not what I charged the customer, this is what the labor cost me, labor only.

The second one was 44 cents per square foot, and the next one was 12 cents. And again, down here at the bottom, it will average it out.

So, these 3 jobs altogether, I paid 70 cents a square foot, to get the jobs done, and again, that does not include materials.

And then the next tab, this one is not done in square feet. The next tab is ceilings, it is the same way, except it is just for painting ceilings, and you will put all your square footage in that, in the hours.

The next tab is doors, actually, doors and jambs, and they are done by each, so I just count the number of doors.

So, here I have 2 jobs, for the first job, there were 5 doors, and that took 3 man-hours to get done. The next job was 10 doors, and it took 5 man-hours to do.

So, the production rate for the first job is 1 and two-third doors, that’s how many doors I got done in an hour, it’s 1 and two-thirds, or 1.67.

The second job, I did 2 doors per hour, and then down here it will give you the average again, 1.875, that’s how many doors you can do in an hour, with these production rates, in this scenario.

And then, here is my labor cost to paint those doors it cost me $13.38, each one. I have jambs separate from doors, again, you just count the doors, I also have the base, and the base is done by linear feet.

So, you have a base, linear feet, and again, here is my labor cost per hour. So, here’s 3 jobs, one of them is 700 linear feet a base, 160 linear feet a base and 350. So, the first one took 8 hours to do, 1 hour for the next one and 3 for the next.

So, here again, my production rates, 87.5 linear feet of base painted on this one, 160 linear feet of base painted every hour, this is done per hour, and just 116 linear feet on this one.

So, down here my production rate for these 3 is 100.8 linear feet per hour, so I am going to charge, for every 100 linear feet or base that I do.

I am going to charge them for an hour’s worth of labor, and again this is my cost per linear feet, it actually cost 25 cents, a linear foot to paint base.

When you do this, I would start relying on this, say 3 jobs, if you get 5 to 10 jobs in here, it will be more accurate, the more jobs you have in, your average will move a lot less.

But after you hit 10 jobs in here, you pretty much should be able to be pretty much in this job you have and use that and you will be pretty accurate.

If for some reasons you do want to do a job and let’s say your average down here is 100, and you do one job and personal reason.

You only get 50 feed out of it, then I would try to see what the differences of that job has compared to most of your other jobs, because that big a difference, there is something wrong, it was either harder, the guys didn’t go as fast, they took a break in the calendar, or it also could be a mistake.

Maybe they started the time before they actually did it, or they took out the clock out for lunch. Something like that, it could be any of those things.

Also, on these tabs at the bottom, also have things for the outside, I have fascia, like this one here is for fascia on a one-storey, and then I also have fascia for the two-story level, because the production rates would be quite a bit different from those and these are done by linear feet.

And then I have a soffit, for the first storey and second storey, and again by linear feet. And then I also have siding, siding from the first storey level and the second storey level, and these are done by square feet.

And then I have a railing, so like a railing on a front porch. In this case, right here, we had 25 feet of railing, and it took 5 hours to do.

So, my labor rate is 5, I do 5 feet per hour, and there is only one job in here, so this is my average, 5 feet per hour, it is saying it cost $5.02 per linear foot to do this.

So I have another tab, especially for people that use Estimate Rocket, it is just production rates for ER (Estimate Rocket) and Estimate Rocket, you put the production rates in there, you don’t put it in there by the hour, you put it in by what you can do in a minute.

And so, this automatically figures it out, it takes the averages from all these tabs and puts them here. And so, you can see right here, doors, it takes me 32 minutes to paint a door, this one, 0.95 minutes to do a base, basically 0.6.

Right here is 12 minutes to paint one foot of railing.

So, you will just copy these and put in the Estimate Rocket. But again, this is only for people who use Estimate Rocket, it is not going to help anybody else out.

I am Dalton with DYB coach, if you need to get a hold of me, or have any questions, you can reach me at dalton@dybcoach.com, thank you!