What Is Daily Production? And, ... What Do I Need To Know About It?
In this week’s issue…
What to know & when to know it
469 words, total reading time 3 minutes
Daily production is the daily value of goods delivered, and services provided, to a job site. Nothing more or less than that.
It’s important because integrators are in the production business. Most of the daily costs incurred are related to delivering on the promises made when the client agrees to a proposal.
You don’t need trucks, installers, inventory, or a warehouse to sell stuff – you need them to deliver and install stuff. Knowing the details about daily production makes you a better production manager. Get good at it, and you’ll produce more – and make more money – on a daily basis.
What went out the door today?
Every time you buy something at a store, you get a piece of paper (or an email) that details what you bought and how much it cost.
It doesn’t matter if the store sells large, expensive items or thousands of inexpensive items. Every store you’ve ever been to knows what goes out their door each day.
But integrators rarely know what’s going out their door. Installers are grabbing piles of stuff and taking it to job sites and, in many cases, there is no daily record of what they took. Or, it gets written down later – when memory has had every chance to alter reality.
In almost no case does that daily pile of goods get tied to its value on a job estimate, and/or then get invoiced as daily income. Imagine if that kind of record-keeping happened in a store!
What got done on the job today?
Most integrators attempt some form of daily work order, upon which they ask installers to document their hours on a job, what got done, and what special issues or problems might need to be addressed. Installers show an amazing knack for forgetting to fill these out. Managers often don’t mind, because they don’t have time to review them. Yikes!
The WO is an essential practice. It is the core daily communication between the jobsite, and the company’s project manager(s). It should be submitted daily, and reviewed daily, no excuses.
This daily WO is also a production record. It can be used to help project administrators calculate the value of daily services provided. Along with the daily record of what goods went to the job, the WO would provide all the info required to calculate the total value of daily production, and possibly answer the question posed by today’s Coffee.
These are the simple practices of daily production management. Coupled with daily production administration, it is one of the core reasons the companies we work with are among the most profitable in our industry.