1. Measuring Production & Benchmarking
RIA Strictly Contents Convention

2. Today How to Measure Contents Cleaning Production
How to use Production Metrics in your Contents Business
How Benchmarking with Improve your results

3. Super Important Thing to Do…..
Use accounting software
Use job process tracking software

4. How to Measure Contents Cleaning Production
What needs to be Measured?

5. What needs to be Measured?
Labor

6. What needs to be Measured?
Ancillaries

7. What needs to be Measured?
Vendors

8. How do You Measured Production
Labor
Pack out
Hand Cleaning
Mechanical Cleaning
Storage/Warehouse
Pack Back

9. Labor
Formulas
Tracking
Time cards
Software
Administration

10. Labor Basics How many boxes can you pack out in one hour?
Not all boxes are equal…..

11. Labor Basics How many boxes can you hand clean in one hour?
What is the density of the box and the contaminant

12. Labor Basics How many boxes can you mechanically clean in one hour?
What is the density of the box and the contaminant

13. Labor
Basics
How many hours does it take to store the contents and manipulate the items in your warehouse?
Is this lost cost?

14. Labor On-site Clean No mechanical Hand cleaning takes longer
More pressure- customer eyes
More personal less robot

15. Labor Labor Plus Burden All payroll expense and insurance included
Take your cleaning wage X 2
$12- $24 with burden

16. Labor On a 50 Box Job Boxes / hour per box (Labor)= Hours
Hours X Wage plus Burden= Job cost
50/4 =12.5
12.5 X $24 = $300

17. How do You Measured Production
Ancillaries
Boxes
Packing material
Trip Charges
Inspections
Storage

18. Ancillaries Boxes Average price to Supply $5.50
Average price to purchase $1.25
How they effect the downstream production

19. Ancillaries Packing Material Protective Cost
Protection against breakage
Cost of doing business
Usually tracked on the case

20. Ancillaries Trip Charges Unplanned Expense Reasons why? Forgot items
High touch policyholders
Customer requests

21. Ancillaries Inspections In warehouse viewing
Finding much needed items before full delivery
Scoping & Estimates

22. Ancillaries Storage Measuring the cost of your storage Vaults
Square footage
Rack space
Temporary storage

23. Ancillaries How do you track ancillaries Warehouse Shop
All expenses are inventoried and allocated by job number or name
Bulk purchasing
Supply Chain Management
Warehouse supervisor

24. Ancillaries How do you track ancillaries Purchase for each job
Each project get a basic package of supplies no matter the size or scope
Additional items are added against the project

25. Ancillaries How do you track ancillaries
Labor outside of the general cleaning and Moving
Track additional trip labor and inspection time.
View trends and allocate as needed
Most likely done after estimate and billing is processed

26. Ancillaries How do you track ancillaries Inspection and Scoping
How many jobs do you scope?
How many jobs do you get?
Who follows up
What is the goal?

27. Ancillaries How do you track ancillaries Storage
Did you charge storage
How did you calculate the space
What is the current cost of your space

28. Ancillaries On a 50 (1 X 1) Box Job Boxes= 5.50 X 2 X 50 = $ 550
3 Trips= $75 per trip = $ 225
Scoping and Estimate = $
Storage 50 X 1 sq. X $1.43 = $71.50 $

29. How do You Measured Production
Vendor Services
Movers
Refinishing
Specialty

30. Vendor Services
“Do what you do best and sub out the rest”

31. Vendor Services
What information do you need to know before you sub out?
What can I charge
How do I charge
Are they insured
What is the expectation

32. Vendor Services Work you might sub out Piano moving & restoration
Furniture restoration
Specialty or Niche Services
Textiles
Electronics
Art

33. Vendor Services How do I track my production when I subcontract?
Invoices
When will the items be restored
How will they be delivered
Who bills?

34. Vendor Services How do I track my production when I subcontract?
Invoices
When will the items be restored
How will they be delivered

35. Vendor Services How do I track my production when I subcontract?
What is your plan for profit margin
10/10
More…..

36. Production Metrics in your Contents Business
“What gets measured gets done”

37. Production Metrics in your Contents Business
Once you know your numbers, you measure against the trend.
Your team can clean 5 boxes a hour, you have a 50 boxes, the job should take 10 hours.

38. Production Metrics in your Contents Business
Every job that comes in is 50 boxes and each job takes you 15 hours. Do you add labor or remove?
You are cleaning at 3.3 boxes a hour

39. Production Metrics in your Contents Business
Law of diminishing returns.
Adding labor doesn’t always a create a positive result

40. Production Metrics in your Contents Business
Review of process
Moving work stations
Reducing steps
Using more mechanical cleaning
Staging at the warehouse
Pack out coordination

41. Production Metrics in your Contents Business
Review of Expenses
Ancillary expenses
How many boxes did you purchase?
Can you buy solvent in 55 gallon drums
Do you need another vehicle
What is the profit margin per silo
Sub more out

42. Production Metrics in your Contents Business
Track over time
1st month, collect data
2nd month, look for leakage
3rd month, monitor trend and record
4th month, implement change
5th month, review results
6th month, implement change

43. Production Metrics in your Contents Business
A 10% correction on a $100K business creates, $10K. A 10% correction on a $1 million dollar business creates $100K Controlling lost cost impacts your bottom line

44. How Benchmarking will Improve your results
I wish I had a clone of Ross, he is the greatest worker I have.

45. Benchmarking will Improve your results
Benchmarking can create similar results across employees and work stations
Benchmark a positive result, and hold employees accountable to the benchmark
Benchmark a low standard to set the level to improve, nothing below this mark is acceptable

46. Benchmarking will Improve your results
Labor
Boxes cleaned per hour
If you clean 4 boxes hour at a wage and burden rate of $24, with an average job of 50 boxes, 1 job a week over the course of a year.
52 X 50 X(50/4)X24
52 jobs
2,600 boxes
650 hours total, 12.5 per job
$15,600 total payroll labor, $6 Dollars a box to clean

47. Benchmarking will Improve your results
Labor
Boxes cleaned per hour
If you clean boxes at 6 an hour at a wage and burden rate of $24, and average job of 50 boxes over 1 job a week.
52 X 50 X(50/6)X24
52 jobs
2,600 boxes
8.3 hours per job
$10,358 total payroll labor, almost $4 a box. Saving $5000

48. Benchmarking will Improve your results
Ancillaries
Make sure you bill.
Benchmark the average ancillaries per job, per month
Trend your trip charges and pre bill
Storage- find a correct metric that represents your true cost
Scope and Inspection fees, track your estimate verse job approval
Purchased 100 boxes, billed 61 boxes, only have 5 boxes in inventory
“used boxes as placemat at home for entry way”
Mover used the boxes to protect the furniture in the cube van
Limit your lost costs

49. Benchmarking will Improve your results
Vendors
Have more than 1
Compare the pricing and service
Do not put all your eggs in one basket
Hold them accountable to a benchmark
Communicate your expectations

50. Final Thought
Measuring production makes you review your process and employees
Any improvement is immediately rewarded
Allows for growth
Improves decision making

51. Final Thought Using the metrics to run your business
Will create positive habits
Greater accountability
Improved financial results

52. Final Thought Benchmarking Sets the standard
Allows you to constantly raise the bar
Focus’s your time and energy
Allows for your to work on your business, not in it.

53. Thank You