Time Is The Product, Profit Is The Goal

Woman aircraft worker, Vega Aircraft Corporation, Burbank, Calif. Shown checking electrical assemblies (LOC)It seems in manufacturing, business managers are used to having metrics like product line profitability, expected revenue from sales, breakeven points, and the like. In professional services businesses, the same performance metrics can still be obtained, if we use time (and billable time) as our product, and resources as our product lines.

As we can see in the table below, the metrics really are the same; it’s just the name that changes.

Manufacturing Professional Services
Productivity
How much product was made.
Work in process
How many billable hours were worked.
Income by product line
How much profit was generated by sales of each product line.
Project/Client profitability
How much profit was generated by resources working on each project or for each client.
Budget control
How much spending is planned to produce each product line.
Budget control
How much work is expected to be done for each project.
Revenue by product line
How much revenue was brought in by sales of each product line.
Revenue by resource
How much revenue is generated by each person employed by the business.
Production line scheduling
Which product is planned for production, how much production time is available.
Resource utilization
Planned project assignments for each person employed by the business.
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