| Hours per Week |
|
| x 52 Weeks per Period |
|
| x Number of Employees | |
| Gross Technician Clock Hours | |
| Number of Vacation Weeks per Period | |
| x Hours per Week | |
| Total Vacation Hours | |
| Net Production Hours per Period | |
|
|
|
| Total Operating Expense | |
| Divided by Net Production Hours | |
| Hourly Operating Cost |
In next month’s issue, INSIGHT will further examine the relationship between costs and productivity, including What-If scenarios that shops can use to see the effect productivity has on financial performance. To prepare for this discussion, use the charts and formulas presented in this article to determine your facility’s OE/TCH.
| Determining a Collision Repair Facility's Hourly Operating Cost | Operating Expense Calculation Chart |
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Reprinted from the November 1996 Issue of Collision Repair Industry INSIGHT.
© 1996 Collision Repair Industry INSIGHT. All Rights Reserved
