W07 - Tracking Time and Costs on Work Orders (MCU)
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Learn how to incorporate labor and materials into work orders including estimates and actuals, tools, and other costs and Tools.
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W07 - Tracking Time and Costs on Work Orders (MCU)
- 1. MC University W07|Tracking Time and Costs on Work Orders
- 2. MC University Agenda Labor Report Costs Tab Defined Estimated vs. Actual Labor Estimated vs. Actual Materials Other Costs and Tools Converting Estimates to Actuals
- 3. MC University Labor Report Labor Report Overview Labor Report Complete / Close
- 4. MC University Labor Report Overview Record notes and activity on Work Order Ongoing note (continuous) Often completed during Complete / Close
- 5. MC University Labor Report Overview (cont’d) Add / edit Labor Report options from Tasks tab: • Type directly into field • Edit button • Actions Lookup for consistency Failure Analysis and Follow-up Work data also available
- 6. MC University Labor Report Complete / Close Complete / Close process typically requires Technician to fill in Labor Report Functionality is similar
- 7. MC University Costs Tab Defined What are Work Order Costs? Estimates vs. Actuals Overview
- 8. MC University What are Work Order Costs? Costs can be associated with Labor, Materials, and Other Costs Costs added from: • Procedure (Estimates) • Manual (Costs tab) • Manual (Complete / Close)
- 9. MC University Estimates vs. Actuals Overview Estimates are pre-determined: • Not completed or used • Can be turned into Actuals Actuals have already occurred or been used: • Real cost of Work and Materials
- 10. MC University Estimated vs. Actual Labor Labor Fields and Columns Viewing Labor
- 11. MC University Labor Fields and Columns Estimated Labor fields and columns: • Selection Checkbox for removing entries • Labor description field (Craft or Labor Name)
- 12. MC University Labor Fields and Columns (cont’d) • Estimated hours (estimated work to complete) • Cost based on estimated hours and Labor rate
- 13. MC University Labor Fields and Columns (cont’d) • Charge rate defined for individual or craft (subject to designated markup)
- 14. MC University Labor Fields and Columns (cont’d) Actual Labor fields and columns: • Selection Checkbox for removing entries • Labor description field (Craft or Labor Name) • Reg, OT, and Other Hours expended by Labor
- 15. MC University Labor Fields and Columns (cont’d) • Work Date when work was completed • Cost based on actual hours and Labor rate • Charge rate defined for individual or craft (subject to designated markup)
- 16. MC University Labor Fields and Columns (cont’d) Last row of Estimated and Actual Labor includes: • Total Hours • Total Costs • Total Charges
- 17. MC University Adding Labor Actual Labor must be manually created (or converted from estimate) Use Add button to open Labor Module Lookup Craft, Employee or Contractor selections
- 18. MC University Adding Labor (cont’d) Labor Actuals fields: • Reg, OT or Other Hours • Date • Time In and Time Out • Assignments for this Labor complete • Comments
- 19. MC University Adding Labor (cont’d) Labor Estimates and Actual Fields: • Account and Category • Auto-Calc Cost? and Auto-Calc Charge?
- 20. MC University Adding Labor (cont’d) Example of Estimated Labor:
- 21. MC University Adding Labor (cont’d) Example of Actual Labor:
- 22. MC University Estimated vs. Actual Materials Materials Overview Adding Materials
- 23. MC University Materials Overview Estimated Materials: • Typically populated from Procedure • Creates a “reserve” quantity Two types of items for estimated material costs: • Stocked • Direct Issue
- 24. MC University Materials Overview (cont’d) Actual Materials: • Adjustments are made to Inventory levels • Can be used to “rotate” Assets • If estimates are defined, actual cost records will be created
- 25. MC University Materials Overview (cont’d) Three types of items for actual material costs: • Stocked • Direct Issue • Out of Pocket
- 26. MC University Adding Materials Inventory Module lookup is utilized to select Material Filters available to specify what type of Item for selection
- 27. MC University Adding Materials (cont’d) Inventory Items Popup: • Actual Qty • Account and Category • Other Cost, Cost, and Charge • Auto-Calc Cost and Charge
- 28. MC University Adding Materials (cont’d) Rotating Assets: • Last 5 fields of Inventory Popup • Business process specific!
- 29. MC University Adding Materials (cont’d) Estimated Example:
- 30. MC University Adding Materials (cont’d) Actual Example:
- 31. MC University Other Costs and Tools Other Costs Overview Tools Overview
- 32. MC University Other Costs Overview All costs that are considered miscellaneous / not associated with Inventory Estimates can be converted (same as Labor and Materials)
- 33. MC University Other Costs Overview (cont’d) Estimate Example:
- 34. MC University Other Costs Overview (cont’d) Actuals Example:
- 35. MC University Tools Overview Tools that are needed to complete the set of tasks (Procedure) Borrowed not purchased
- 36. MC University Tools Overview (cont’d) Example of adding Estimates:
- 37. MC University Converting Estimates to Actuals Complete / Close Dialog Options Convert Labor and Material Estimates
- 38. MC University Complete / Close Dialog Options Convert estimates to actuals via the Complete / Close Dialog Allows Techs to track actual costs and update inventory levels
- 39. MC University Complete / Close Dialog Options (cont’d) Complete / Close Dialog includes section to enter additional Labor, Materials, and Other Costs
- 40. MC University Convert Labor and Material Estimates Quick mechanism to convert existing Estimates or Assignments to Actuals Resets records created on the Actuals page and creates new records
- 41. MC University Adding and Converting Labor: Example Now let’s take a look at adding Estimated Labor and Materials to a Work Order, and converting to an Actual Labor record!
Editor's Notes
- Introduction: In today’s presentation we will be discussing Work Order Labor and Materials, including information on estimated and actual Labor, estimated and actual Materials, Other costs and Tools, and walking through how to convert Estimated to Actual records via the Complete / Close on the Work Order. Labor Report: How to utilize the Labor Report, it’s functionality, and where to access. Costs Tab Defined: Overview of the different types of Labor and Materials (estimates and actuals), and views of the Costs tab. Estimated vs. Actual Labor: Details of estimated and actual Labor and tools for using both. Estimated vs. Actual Materials: Details of estimated and actual Materials and tools for using both. Other Costs and Tools: Details of miscellaneous cost tracking, as well as how to add Tool estimates / utilize the Tool module for quantity updates. Converting Estimates to Actuals: How to convert estimates to Actuals.
- SECTION OVERVIEW
- Bullet 1: The Labor Report sub-tab displays the Labor Report used to record notes / activity on the Work Order. This sub-tab is accessed from the Tasks main tab of the Work Order, Labor Report sub-tab. Bullet 2: In contrast to the individual notes created on the Notes / Status History page, the Labor Report is one continuous (ongoing) note regarding activity. Bullet 3: The process of completing the notes for the Labor Report is typically done via the Complete / Close of the Work Order.
- Bullet 1: The Labor Report has many different options available for adding as well as editing information. Sub-Bullet 1: One way to add Labor information is to simply type directly into the Labor Report text box. Sub-Bullet 2: There is also an Edit button capability next to the “Add” button at the top right of the Labor report text box, which will open up a larger Text box to allow for easier viewing of longer paragraphs. Sub-Bullet 3: Lastly, the Actions Lookup stores commonly used actions which can be utilized for consistency as well as can be time saving for the Technician (these can also be edited to store organizational specific information, if necessary). Bullet 2: From the Labor Report sub-tab there is also access to the Failure Analysis section, as well as Follow-up Work capability (when clicking on New a follow-up Work Order is created).
- Bullet 1: The complete / close process of the Work Order typically will require / have the Technician fill in information to the Labor Report. This Labor Report section can be hidden / moved depending on the type of Complete / Close in place at your organization (for more information on the Complete / Close and Enhanced Complete / Close, please reference the Work Order Standard and Enhanced Complete Close Configuration presentation). Bullet 2: The Labor Report functions the same from the Complete / Close as it does from the Labor Report sub-tab, however the Technician can fill in details about many different parts of the Work Order in one easily accessible location. It is important to note that the functionality is close to the same except for the edit button and the follow-up indicator not being added to this section.
- SECTION OVERVIEW
- Bullet 1: Work Order costs can be associated with Labor, Materials, or Other Costs and are tracked against the Work Order from the Costs tab. The Costs tab is designed to track all costs associated with the Work to accurately record and report these costs. Bullet 2: Costs can be added in multiple ways: Sub-Bullet 1: A Procedure is the most common way of adding estimated costs, as estimated materials are generally used for Preventive Maintenance Work Orders. Sub-Bullet 2: However Actual costs can be added manually via the Costs tab. Sub-Bullet 3: Or Actual cost records are created from the complete / close screen by converting estimated into actuals records.
- Bullet 1: Estimated Costs are any costs that are being pre-determined for the Work Order. Sub-Bullet 1: Have not been completed or verified. Sub-Bullet 2: These estimated costs are designed to be, eventually, converted into Actual records (this process is explained later in this presentation). Bullet 2: Actual costs are any costs that have already occurred or been used. Sub-Bullet 1: For example, the work has already been done by the Technician and the Materials have already been used. Because of this reason, the Charge is applied and the cost of work will be noted, unlike the estimates.
- SECTION OVERVIEW
- Sub-Bullet 1: The selection Checkbox is designed to offer a selection for removing Labor entries. To select a row, click inside the checkbox. To remove a selection / check that has been made, click inside the checkbox. This column is also used when estimated labor has been added or edited, but not yet saved (revert control). Clicking that control will revert the changes / additions before saving. Sub-Bullet 2: The Labor field is the description of the Labor itself. If the Labor is a craft, the craft will be listed. If it is assigned to an individual, the individual’s name will be displayed.
- Sub-Bullet 3: The Estimated Hours column will only be shown for estimated Labor records. This column will show the amount of Hours that has been estimated for that particular assignment. Sub-Bullet 4: For estimated labor, the Cost is calculated by taking the estimated hours and multiplying by the Rate defined at the Labor Record level.
- Sub-Bullet 5: The total charge for the labor record is based on the charge rate defined for the individual or craft, or is subject to a designated markup. If there is no markup or charge rate defined for the labor resource or craft, the charge will be the same as the cost. If there is a markup defined for the labor resource or craft, the charge is calculated by determining total cost and applying the markup percent. If there is a charge rate defined for the labor resource or craft, the charge is calculated by multiplying the total hours by the charge rate (regardless of whether the hours are for regular or overtime). If there is both a charge rate and markup defined, the charge rate will be used. Screenshots: An example of how the Charge rates function is depicted in the above screenshots. The Computer Technician II has a Regular hour rate of 100, with a Charge Rate of 30. Because there is both a Markup Percentage AND a Charge Rate in place, the Charge Rate is used. When adding the Craft of Computer Technician II to a Work Order for 1 hour of estimated work, the Cost is 100 however the actual Charge for the work will be 30 as designated on the Rate of the record.
- Note: Some of these fields function identical to the Estimated Labor portion, so they will only be listed here and not gone into full detail! Sub-Bullet 1: Same as Estimated Labor functionality. Sub-Bullet 2: Same as Estimated Labor functionality. Sub-Bullet 3: The Actual, Regular, Overtime, and Other Hours column show the actual hours expended by the Labor resource for the work order. Regular hours are copied from the target hours listed in the assignment if assignments were converted to actual labor (explained in detail later in presentation).
- Sub-Bullet 4: The date defined on the record is considered the Work date (copied from assignment date if assignments were converted to actual labor). This field can be back-dated if needed. Sub-Bullet 5: The total cost for the labor record, which is calculated based on the hours entered and the corresponding rates for the labor resource.
- Bullet 1 / Sub-Bullets: The last row of the Estimated and Actual Labor table displays the total labor hours, costs, and charges. This is a cumulative count of all rows of Labor that has been added for the particular Work Order.
- Bullet 1: Actual Labor records must be manually created on the Work Order, as they are intended to be used to track real Hours and Costs that have been accumulated after work being done. If estimates have been populated from a Procedure, then the option to convert the estimated Labor to Actual records is also an option – however this will be discussed in more detail later in this presentation. Bullet 2: The “Add” button is used to add additional Labor records (for both actuals and estimates). When selected, the Labor Lookup will open, allowing the Technician / User to pick their name (or another users name) from the options. Bullet 3: In the upper left hand corner of the Labor Lookup there are “Type” selections for Craft, Employee, or Contractor. By filtering through these Types, different Labor resource records will be shown to select from.
- Bullet 1: After selecting a Labor resource for Actual Labor, there are many different fields that can be filled in (dependent on organizational needs). Sub-Bullet 1: There are three different types of hour fields that can be utilized to accurately reflect what type of hours have been completed. Regular hours are the most common use, however Overtime (OT) and Other Hours can also be used to track specific types of hours separately. This can especially be helpful when reporting off specific types of hours (such as reporting on all Overtime hours spent). Costs and charges are automatically calculated after entering the hours, based on the rates stored for this labor resource. Sub-Bullet 2: The Date field is designed to track the specific Date the work was performed. The date field will be populated with the current date by default. This date can be overwritten to reflect a different work date if necessary. Sub-Bullet 3: The “time in and out” fields can also be entered, allowing Technicians to track the exact times that they performed the work. The “Time In” and Time Out” fields are maintained independently of the hours fields, however, so they must be calculated by the Technician. Sub-Bullet 4: The indicator for “All assignments for this labor are complete?” is set on by default. This control allows you to show that multiple assignments for this labor resource (associated with this work order) are all complete, without having to access each individual record. This state of completion will be reflected on the Complete/Close Work Order Dialog. Sub-Bullet 5: The Comments field can be used to add any additional explanatory information required.
- Bullet 1: There are a couple of indicators that both estimated and actual Labor records will show when adding new Labor. Sub-Bullet 1: The Account and Category can be modified using the module lookup to access a list of accounts/categories stored in the respective module. There is also an option on the Work Order Complete / Close to fill in all Accounts and Categories for ALL records on the Work Order with the same Account / Category. Sub-Bullet 2: The Auto-Calc Cost? and Auto-Calc Charge? indicators are, by default, automatically selected. These Indicators control the calculation of the Cost and Charge based on the standard calculations within MC. If these are unchecked, the Technician / User can then have manual control to change the Cost / Charge free of auto-calculations.
- Bullet 1: After selecting a Labor resource for the work (in this example the Contractor name is American Shack), the Estimated hours must be entered. The Cost and Charge for the work will be auto-calculated based on the Labor record rates.
- Bullet 1: As shown in this screenshot, there are multiple different hour options to choose from – in this example, 2.5 regular hours were completed, while 1 were considered overtime hours. The work Date took place on 2/5/2014, and the Time In / Time Out have been filled in to show the exact time that the Technician was performing the work. The Cost and Charge have been auto-calculated from the Techs Labor rate, and the Tech has completed all assignments for the Work Order and filled in comments that the work has been completed.
- SECTION OVERVIEW
- Bullet 1 / Sub-Bullets: Estimated Materials are typically populated from a Procedure from a PM schedule, and alert the Technician of what Materials should be used / can be used, track the estimated costs for planning purposes, or for other organizational purposes. If there are estimated Material records created for stocked Inventory items, MC will reserve the quantity of Material designated in the Inventory Module. Similarly, as quantities are modified, MC ensures the correct estimated quantities are reserved. Bullet 2 : There are two types of items that can be added for estimated material costs – Stocked and Direct Issue. Sub-Bullet 1: Stocked items are inventory items/parts that are maintained in a stock room. Inventory is maintained on stocked items, indicating the quantity on-hand (physically available), the quantity reserved and the quantity available (on-hand less amount reserved). Sub-Bullet 2: Items that are being requested for purchase specifically for a Work Order are designated as “Direct Issue.” Direct Issue items do not affect any inventory retained in a stock room. Add the item as estimated material, using the Stock Room Filter Control to specify that the item will be “Directly Issued.” This option generates a “request” for the Direct Issue item, prompting appropriate users to create a purchase order for the item(s). Once a purchase order has been generated (through the Order Items Feature or through the Purchase Order Module), it will be listed on the “Costs-Purchase Orders” Tab for the work order.
- Bullet 1: The Actuals Materials section of the Work Order Costs page lists actual material that is used for the currently displayed Work Order. Sub-Bullet 1: As actual material is recorded, appropriate adjustments are made to stock room inventory levels. Sub-Bullet 2: In addition, actual material records can be used to “rotate” assets between stock room and production nodes on the asset tree (not discussed in detail in this presentation). Sub-Bullet 3: If estimated materials were defined for the work order, actual cost records will be created. Initially, these records will only have values for estimates; the actual quantity and cost fields will remain blank until updated on this page or through the Complete/Close Process (conversion process explained in more detail later).
- Bullet 1 / Sub-Bullets 2 & 3: There are three types of items that can be added to the Work order for actual material costs. This includes Stocked and Direct Issue items (same as estimated Materials). Sub-Bullet 3: Items that will be purchased “out of pocket” can be added as Actual Materials. Items that are designated as “out of pocket” do not affect inventory and do not initiate any purchase order activity, making it ideal for on the fly additions that do not need to be tracked via Inventory.
- Bullet 1: To access the Inventory Module lookup, simply click on the Add button under the Materials (estimates) or Materials (Actuals) section. This will open the Inventory Module lookup. Bullet 2: There are many different filters available to narrow down searches / choices. To select a specific Type of item (such as Direct Issue or Out of Pocket) use the navigation controls in the upper left hand corner of the lookup. The Indicators for “Items set as Direct Issue” or “Associated with Asset / Location” can also be helpful when narrowing down Item choices.
- Bullet 1: After selecting an Inventory item to add to the Work Order, the Inventory Items Popup will display – prompting the Technician / User to fill in important information. Sub-Bullet 1: The Actual Qty should be filled in with the amount of the Item that was actually used. This will auto-populate the Cost / Charge appropriately, dependent on the amount of Items. Sub-Bullet 2: The Account and Category can be filled in by using the module lookup to access the list of accounts / categories stored in the respective module. Sub-Bullet 3: The Other Cost, Cost and Charge rate can be modified as needed. The value placed in the Other Cost field is added to the total Cost and Charge fields. Changes made will only effect this particular actual material record (will not change the rate associated with the inventory item).
- Bullet 1 / Sub-Bullets: The last five fields on the Inventory Items Popup can be used to designate the rotation of assets between production and stock room nodes, or between different locations on the asset tree. This functionality is organizational specific as not every one will choose or need to use this feature. Because of the complexity and uniqueness of Rotating Assets as Inventory Items, this topic is discussed in full detail in the Parts and Purchasing Track.
- Bullet 1: After selecting Inventory Item # 125031 for an estimated item, the Cost and Charge for this item are auto-populated from the information stored on the Inventory record. The Account and Category can be filled in (if necessary), and any other costs associated with this Item can be added as well. The most important piece of information is the Est. Qty, as this will determine the cost / charge that is added. Also – this particular item has been selected as “Out of Pocket” which means it will not be deducted from any actual Inventory counts.
- Bullet 1: After selecting Inventory Item 125030 as a Direct Issued item, it is important to fill in the Actual Qty and fill in any other costs (in this example, 4.50 has been added as additional costs for this particular item). The Cost / Charge will auto-calculate based on the Inventory record, however these can be modified if necessary. No information will be filled in at the bottom of the Dialog for Rotating Asset information, as this is not required / necessary.
- SECTION OVERVIEW
- Bullet 1: The Other Costs section of the Work Order is designed to track miscellaneous costs that may come up while completing the Work Order. These costs may be outside of the estimated Labor / Materials, and needs to be tracked as such. These costs are typically not associated with an Inventory item or specific Material. Bullet 2: Estimate records created for Other Costs can be converted to Actuals the same way that Labor / Materials can – from the Complete / Close. Note: do not add manual cost records if you plan on converting estimates to actuals!
- Bullet 1: When adding Estimates for Other Costs there are a few key fields that can be filled in to provide detailed information about the misc. costs. The Name and Description are entered by typing in any desired value – typically the Name is shorter and more concise, while the description provides more detail as to what the cost is. The Company, Labor, account and Category field only need to be entered if necessary (not required). For example, if it is important to enter the vendor associated with the cost, a Company can be added (see screenshot). The Cost and Markup can be defined as well, which auto-calculates the Charge.
- Bullet 1: The Other Cost Actuals have additional field options available, however many of the fields are similar. The Name, Description, Company, Labor, Account and Category, Actual Cost, Markup, and Charge all function the same as the Estimates. However there are also fields for Invoice #, which allows the Technician to apply a specific Invoice to the record, as well as “Other 1 / 2” fields for any other information that needs to be included. The Comments section allows the Technician to include any important notes or information that pertains to the new Other Cost record.
- Bullet 1: Tools that are added as estimates to the Work Order are tools that are needed to complete the Work Order. These Tools are created in the Tools Module of Maintenance Connection, and are not considered Inventory Items as they typically do not come at any cost. This feature is typically only intended to be used if you have Tools listed in the Tools module – otherwise, it does not relate to anything. Bullet 2: These Tools are considered “borrowed” when they are added to a Work Order (used and returned), rather than purchased – so there is no cost record. Note: Tool quantity records will NOT update automatically and must be manually updated. For example, if a Tool is added to a Work Order, then the user must go in and manually update the Quantity on Hand to change the Available count.
- Bullet 1: To add a Tool to the Tools (Estimates) simply click on the “Add” button, and select the Tool from the Tool Module Lookup. Once selected, the record will be added to the Work Order. To change the Issued Quantity to the correct amount, simply go to the Tool record in the Tools Module, and select the “Locations” tab. From here, you can edit the “Issued” to reflect that one of the Tools is in use, and the Available will auto-calculate based on the data entered. The Last Counted field is also important to ensure that the counts are kept up-to-date and accurate.
- SECTION OVERVIEW
- Bullet 1: The powerful feature to convert estimates records (both Labor and Materials) is accessible from the Work Order Complete / Close Dialog. These are considered “Actions”, and the Indicators for these Actions are located under the Actions header. Bullet 2: This functionality allows Technicians to track their Actual costs and update Inventory levels quickly and efficiently – without having to create manual entries for their costs. It is important to note that this feature should only be used if the estimates are = to the actuals, otherwise the data will be incorrect.
- Bullet 1: The Work Order Complete / Close also has an additional section that can be shown (turn on via preferences) to add Labor, Materials, and Other Costs. This gives the Technician flexibility to add new records on the fly from the Complete / Close.
- Bullet 1: The option to convert estimated or assigned labor to actual labor provides a quick mechanism to convert existing estimates or assignments to actual labor, allowing you to keep track of actual labor costs. The same process takes place for setting Materials / Other Cost estimates to Actuals. Bullet 1 Note: The options for Labor are simply alternatives. You cannot set actual labor hours to both estimated and assigned labor. You must choose which current records (assignments or estimates) most accurately reflect the actual labor performed. Bullet 2: It is important to understand that these options reset any records created on the Actuals Page. The conversion options create new “actual cost” records based on the information stored in the estimates or assignments, resulting in the deletion of any manually entered records. As such, to ensure that no important data is lost, you should not use these conversion options if you are using the Actuals Page to enter actual labor hours / costs or Materials actuals.