Measuring Productivity
There are several methods to measure productivity in the shop. The most common is to total the prices of the work completed.
Price Output
To do this have each jeweler keep a Daily Logbook; a sample is provided at the end of this section. Each day record the jobs finished and the retail price of each job. If the job is a new sale and preformed at no-charge, record the price that would have been charged. At the end of the month, total all of the daily totals. This will give you the total output for the month. Divide this amount by the number of hours worked. This will give you average output per hour.
Average output per hour is a good figure to base incentives on. It is easy to figure and takes little bookkeeping time to compile. A goal can be set for monthly or quarterly averages. A bonus paid if the goal is met, a larger bonus paid if the goal is exceeded by a certain amount.
Be certain to use the price for labor only. For jobs where parts are installed use the price for labor to do the job not the total retail price. Keep two price columns in the logbook one for total price and one for labor price. The total of the Labor Price column is your total output for the day.
Although average price output per hour is a useful figure, it is not a true productivity measurement. For example a jeweler could work faster for a period of time, then spend time talking. Because of the first period of time over-all output may have gone up, but actual productivity has decreased.
An additional problem is its dependence on pricing. If prices are not set properly, false information will be gathered.
Productivity Rate
A true measure of productivity is expressed as a percentage. It is the amount of productive time (billable hours) compared to total time at work. For example, A jeweler works an eight-hour day. Of those 8 hours, 6 are spent working and the remaining 2 hours are spent on breaks, talking, etc. This jewelers productivity rate is 75% (6 ¸ 8 = .75 or 75%)
A method to measure productivity is to have your jewelers keep a daily time log, such as the sample sheet provided at the end of this section. Having a digital clock near the bench, in easy sight of the jeweler, helps in recording the time.
Measuring Productivty continued