Cost per Hour of Output
Dan Wain avatar
Written by Dan Wain
Updated over a week ago

The 'Cost per Hour of Output' metric is designed to provide insight into the cost to complete an hour of Production Tasks.

There are 2 key inputs that impact the 'Cost per Hour of Output':

  1. The fully-loaded rates you are paying the staff members completing the work

  2. The Yield of Staff Members over the time-period you are running the report for.

For example, the table below illustrates the varying hourly rates and Yield performance across 3 teams:

Group

Team A

Team B

Team C

Hourly rate

$45

$16

$45

Yield

60%

40%

50%

Cost per Hour of Output

$75

$40

$90

The 'Cost per Hour of Output' is a valuable tool to assess the relative cost of production across your organization. It should be used as a means to ensure that you have good workload balance across your staff. That is, if you have highly-skilled, highly-paid staff members completing simplistic tasks, this metric will help you uncover that.

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