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three labourers). However, for many organizations, the crew Service Lines
cost blend is one dynamic that may not receive the level of
scrutiny it requires. This is more than simply bolstering with
a cost-of-living increase. In fact, best of class firms are taking
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a more formulaic approach to dissecting the cost drivers.
Below is a theoretical formula that represents the new
multiplier:
COVID FACTOR = ( B + C + D – E – F + G – H )
New Crew Rate = (Old Crew Rate – Q) * COVID FACTOR
COVID FACTOR – Multiplier based on COVID positive and
negative impacts
Q – Crew Size Decrease
B – Crew Size Loss of Production Decrease
C – Tool and Hygiene Cleaning Cost Production Decrease
D – Clean Materials Cost Impact
E – “Productive Site Through Cleanliness” Enhancement
F – “Less Distractions” Enhancement
G – “We can’t carpool” Transportation Cost Increase
H – Spacing Enhancement
The knee-jerk reaction to this formulaic approach is
around the “How-do-we-calculate-these-factors” discussion.
First, there is probably more art and less science when it
comes to developing the analytic factors. Put another way,
the process of identifying and quantifying the impacts is as
much of a win for any firm. Successful businesses are those
that delve into their cost structure and avoid broad generalizations
on productivity. For instance, with so much emphasis
on increased time associated with cleaning and hygiene, it
P R O D U C T I V I T Y
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