B2W Flipbooks

2 Labor rates The B2W ONE platform provides the setup of Labor Types, Labor Rate Classes and basic employee information in the Resources section. Labor Types represent the various roles associated with employees, such as Mechanic. Labor Rate Classes contain the hourly rates associated with the Labor Types, which is where the standard/average labor rate for a mechanic is setup. The information is then used to record time against work orders and timecards, resulting in labor costs. There are many methods that can be used in establishing standard/ average labor rates for use in B2W Maintain. It is important to take careful consideration when setting up these rates to ensure the costs report is within an acceptable variance to actual cost in the ERP. The following can be used as a guideline for establishing these labor rates: The simplest way to establish labor rates is to determine an average labor rate based on what your mechanics were paid previously. To keep this as close to actual as possible, it is recommended that you recalculate these rates annually. However, a quarterly review is recommended to determine if the variance is higher than acceptable. At that point, rates can be recalculated and updated accordingly. Parts cost B2W Maintain provides a mechanism for establishing parts in Inventory at standard cost or average cost. This is determined when setting up the Business Unit that the parts are assigned to. If the Business Unit is set to Standard Cost, a field is opened to allow a standard unit cost to be established when creating/editing a part, or when importing parts into B2W Maintain. This method is difficult to control and will often result in a higher variance, unless the user is updating the standard cost frequently. If Average Cost method (preferred) is selected when setting up the Business Units, the average cost for parts will be calculated as they are added to inventory. This will allow parts costs to report in an acceptable variance from actuals. Simple calculation of a standard labor rate: Gather the following information from your ERP system: Prior year total maintenance hours, total labor dollars and total burden dollars. Tires can be considered parts, and the costs associated with them are established in the same manner. Based on the method used, the parts cost will carry over to the work order when the part is recorded as used. This, in turn, will provide the parts/tire cost based on standard or average cost method. Fuel costs B2W Maintain has the ability to import fuel transactions to equipment in order to monitor life-to-date fuel usage and cost. Since this is an import into B2W Maintain, it is up to the user to decide whether they use actual fuel cost or an average fuel cost. 4 When using the standard labor rate method, you only will capture straight hours in B2W Maintain because overtime and double time are included in the rate calculation. HOURS DOLLARS AVERAGE PER HOUR LABOR (REGULAR) 16,000 $400,000 18,810 $510,500 18,810 650,500 $34.50 140,000 2,800 110,000 10 500 TOTAL LABOR LABOR (OVERTIME) TOTAL BURDEN LABOR (DOUBLE TIME) STANDARD AVERAGE RATE

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