MANAGERIAL CONSIDERATIONS
This is the tenth posting regarding labor/labour productivity and disruption. This contribution provides managerial considerations or issues regarding the impact of overtime on labor productivity. The Subject Series can be viewed here.
The impact of overtime on labor productivity is a relevant and serious consideration in many aspects of program and project management. In general, some of the points of concern include:
- “Project Management Plan – basis for the plan and related resource requirements”
- “Changed Work – both prospective and retrospective planning and pricing”
- “Delay Mitigation – planning and analyzing the options and related viability”
- “Schedule Recovery – methods, options and viability”
- “Forensic Analysis – claims for delay, acceleration and related impacts.”
Understanding the impact on labor/labour productivity and cost due to overtime is an essential skill related to both planning and forensic analyses. Remember, the impact on productivity applies to all hours worked, not just the hours associated with premium time costs. Hence, often the productivity impact is more costly than the premium time compensation component of the payroll costs.
The impact of overtime on labor/labour productivity is not limited to construction field labor. It presents in engineering, programming, consulting and other professional man-hours. [Read more…]