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Which Numbers To Look At?

Lawrence Snow (Lawrencesnow@comcast.net) provides a great look at how to use the correct numbers to manage with in his article "Are We Looking At The Right Numbers?" from Contracting Magazine.

Often contractors get caught up looking at the wrong numbers. Big buckets of numbers are just that - big buckets of numbers. No real decisions can be made from them. If you want to actually use numbers that mean something try breaking them down into their core components.

Don't bring a job cost report out to the site and show the foreman that they are over-budget on the 5,000 hour cost code for light fixtures. First of all, if you see it on the job cost report then it already happened and secondly there isn't enough detail in this cost code to make a difference.

You would get better results by looking at the fixtures that make up 70% of that budget (likely 3-4 types) and then having a "competition" for which team could install the most, tracking results daily.

Learn more - "Job Cost Variables (What Your Reports May Not Tell You)"

Posted by David Brown on February 10, 2007 08:12 AM|Permalink

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