This article explains how the Efficiency Report compares the time an employee works on jobs with the labour value charged to customers. It also explains how MechanicDesk calculates effective hours and the final efficiency percentage.
The example shown contains one employee, one job and two labour lines.
Video
Opening the Efficiency Report
- Select Reports.
- Under Employee Reports, select Efficiency Report.
- Choose the Reporting period.
- Select Show Report.
The report displays a chart and a summary row for each employee.
The Efficiency Report summarises worked time, charged labour, effective hours and efficiency.
Reading the report
The employee summary contains the following information:
| Column | What it shows |
|---|---|
| Total Hours | The time recorded by the employee against jobs. |
| Charged Amount | The total labour value charged for the employee’s transferred timesheet entries. |
| Effective Hours | The charged amount converted back into hours using the employee’s charge-out rate. |
| Efficiency | The employee’s effective hours compared with the hours they worked. |
The chart separates the employee’s total time into Efficient and Non-Efficient hours. In this example, the employee recorded 2.75 hours, of which 1.86 hours were effective. The report therefore shows 67.64% efficient and 32.36% non-efficient.
Note: For useful results, make sure the employee’s charge-out rate is correct and transfer the relevant timesheet entries to the invoice.
Viewing the labour lines behind an employee’s results
Select the employee’s name to expand their results. The report shows each labour line used in the calculation, including the job, hours worked, effective hours and total charged amount.
Select a labour line to open the related job.
Expanding an employee shows the labour lines included in their totals.
How effective hours are calculated
Effective hours represent the labour value charged to the customer, expressed as time at the employee’s charge-out rate.
Effective hours = Total charged amount ÷ Employee charge-out rate
In this example, the employee’s charge-out rate is $80 per hour. The two timesheet entries were transferred to the invoice in different ways.
Labour line transferred directly to the invoice
The first timesheet entry was transferred to the invoice as its own labour line.
- Hours worked: 0.75 hours
- Total charged amount: $60.00
- Employee charge-out rate: $80.00 per hour
The effective hours are:
$60.00 ÷ $80.00 = 0.75 effective hours
Because the labour was charged at the employee’s normal rate, the effective hours are the same as the hours worked.
Timesheet entry attached to an existing invoice item
The second timesheet entry was transferred using Related invoice item and attached to an existing labour line. That invoice line was already set to $88.70.
- Hours worked: 2.00 hours
- Total charged amount: $88.70
- Employee charge-out rate: $80.00 per hour
The effective hours are:
$88.70 ÷ $80.00 = 1.11 effective hours
Although the employee worked for two hours, the labour value charged on the related invoice item represents 1.11 hours at the employee’s charge-out rate.
The Related Invoice Item field links the two-hour timesheet entry to the existing LAB - TECH FEE invoice line.
For more information about these transfer options, see Transferring timesheet entries to invoices
How the efficiency percentage is calculated
MechanicDesk first totals the employee’s hours and effective hours across the labour lines in the report.
| Result | Calculation | Total |
|---|---|---|
| Total Hours | 0.75 + 2.00 | 2.75 hours |
| Charged Amount | $60.00 + $88.70 | $148.70 |
| Effective Hours | 0.75 + 1.11 | 1.86 hours |
The efficiency percentage is then calculated as follows:
Efficiency = Effective hours ÷ Total hours × 100
For this employee:
1.86 ÷ 2.75 × 100 = 67.64% efficiency
If the result looks unexpected
Expand the employee’s row and check each labour line. In particular, confirm that:
- the employee’s timesheet hours are correct;
- the relevant timesheet entries have been transferred to the invoice;
- the employee’s charge-out rate is correct; and
- any timesheet entry transferred using Related invoice item is attached to the intended invoice line and charged amount.