Page 13 - Estimators Piping Man Hour Manual
P. 13

INTRODUCTION
                 Production and Composite Bate


      This is the golden key that unlocks the gate to the wealth of process pipe estimating  informa-
      tion that follows. The most important  area to be considered before calculating labor  dollars is
      productivity  efficiency.  This is a must  if the  many man-hour tables that  follow  are  to  be cor-
      rectly applied. Productivity efficiency  in conjunction with the production elements must be con-
      sidered  for  each individual project.
      I have found after comparing many projects  that production percentages can be classified into
      five  categories  and the  production elements  can be  grouped  into  six different  classifications.
      The  six different  classes of production elements  are:

                       1.  General economy
                       2.  Project  supervision
                       3.  Labor  relations
                       4.  Job conditions
                       5.  Equipment
                       6. Weather

      The five  ranges  of productivity efficiency  percentages  are:

                           Type             Percentage  Range
                        1.  Very  Low           10-40
                        2.  Low                 41-60
                        3.  Average             61-80
                        4.  Very  Good          81-90
                        5.  Excellent           91-100

      Although you may agree with the ranges described  here, you may still wonder with such a wide
      percentage  range how to determine a definite percentage. To illustrate how simply this is done
      we will evaluate  each of the  six elements  and give an example with each.

      1.  GENERAL ECONOMY

        This is simply the state of the nation or area in which your project is to be developed. Things
        that  should be evaluated under this  category  are:

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