+ All Categories
Home > Documents > Blended Rates

Blended Rates

Date post: 15-Jan-2016
Category:
Upload: quito
View: 16 times
Download: 0 times
Share this document with a friend
Description:
Blended Rates. Chris McKay Agrium. Situation. noob. owned. What I ’ ll Cover. Us and our Path What is a Blended Rate? How to calculate and use Analysis and follow up Key points to take home Questions. Us and Our Path. Us and Our Path. Similar Methods and Practices. - PowerPoint PPT Presentation
Popular Tags:
26
Produced by: Blended Rates Chris McKay Agrium
Transcript
Page 1: Blended Rates

Produced by:

Blended Rates

Chris McKayAgrium

Page 2: Blended Rates

Slide 2

Page 3: Blended Rates

Slide 3

Situation

noob

owned

Page 4: Blended Rates

•Us and our Path

•What is a Blended Rate?

•How to calculate and use

•Analysis and follow up

•Key points to take home

•Questions

What I’ll Cover

Page 5: Blended Rates

Slide 5

Page 6: Blended Rates

Us and Our Path

Page 7: Blended Rates

Us and Our Path

Slide 7

Same Tools and ProcessesSimilar Methods and Practices

Page 8: Blended Rates

Why a blended rate?

Slide 8

Page 9: Blended Rates

Slide 9

What is a blended rate?

Average $/hr

Page 10: Blended Rates

Slide 10

At its most basic:Sun Mon Tue Wed Thu Fri Sat

             

             

             

             

             

             

             

             

             

             

Overtime  

Regular Time  

One Blended Rate

Do Stuff?

Do Stuff?

Do Stuff?

Page 11: Blended Rates

In Straight, Over, and Double time Journeymen only Equipment used at an hourly rate Escalation Shift differential

“Directly attributable to the work; preferably charged hourly.”

Out Travel time Subsistence/LOA Supervision Standby time Productivity

“Not directly attributable to the work”

Slide 11

Makeup of Blended Rates

Page 12: Blended Rates

Slide 12

Pipefitter Example

Blended Rateo Use Journeyman RT & OT

rates onlyo 5% escalation/yearo 30% on nights ($x/hr

premium)

Overhead Travel time Subsistence/LOA Supervision Standby time

Page 13: Blended Rates

Slide 13

Exchanger Wash Example

Blended Rateo 3 Journeymen per crewo HP Pumpo Lanceso Widgets for lanceso 5% escalation / yearo 50% on nights ($y/hr

premium)

Overhead Travel time Subsistence/LOA Supervision Standby time Radios Chemical charges

Page 14: Blended Rates

The Blended Rate Table

Slide 14

Page 15: Blended Rates

Slide 15

Examples in use

Page 16: Blended Rates

Keep it Simple!

Slide 16

Page 17: Blended Rates

Slide 17

Gut Check

• Example: Vendor X (support vendor)o Planned:

1,500 planned MH’s $50/hr blended rate $75,000 expected

o Requested: 2,240 MH’s $108,000

• We added about $10k to O/H WO for Stand-by

• The rest is found work related (we could cut manpower levels early if no found work)

Page 18: Blended Rates

Slide 18

Examples after use

Page 19: Blended Rates

Slide 19

Analysis

Planned:

• Blended Rate

• Hours

• Cost

Actual:

• Blended Rate

• Hours

• Cost

Planned:

• $50/ hr

• 10,000

• $500,000

Actual:

• $40/hr

• 12,000

• 480,000

Page 20: Blended Rates

Planned Hours 3,185Estimated Cost $219,765Blended Rate Calculated $73/hrBlended Rate Used for Planning $69/hr  

Actual Hours 3,336Actual Cost $241,339Actual Blended Rate $78.72  

Hours Deviation + 4%Cost Deviation + 10%Actual vs. Planning Blended Rate + 14%Actual vs. Calculated Blended Rate

+8%

Analysis

Slide 20

- Used mix of Jman and apprentices in blended rate: we got all JMAN!

- 100% JMAN would have resulted in an $80/hr blended rate.

- More work was done pre-TA than expected on straight time.

- Hours were fine. Will still do pre-TA review with trade.

Page 21: Blended Rates

Slide 21

Overwhelmed by Details?

Too Much Too Little

Simple and Repeatable!

Page 22: Blended Rates

Slide 22

Keep in mind….

There are different ways to do this:

• Develop a system that works for you.

• Document it.

• Analyze and adjust.

• Update documents.

Page 23: Blended Rates

Slide 23

Where we ended up:

• Started with basic knowledge, but no focus

• Realized deficiencies

• Rolled topic into our community of practice

• Recognized similarities

• Understood requirements & differences

• Documented method and templates

• Successful use

• Iterative improvement

Page 24: Blended Rates

o Create a blended rate for planning & budgeting.o Carefully choose what is in the blended rate.o Benefit from post-TA analysis.o Don’t underestimate the value of documenting your

knowledge!

Key Points to Take Home

Page 25: Blended Rates

Produced by:

Double Click on the icons to view a draft document describing blended rates, and an Excel template to calculate them.

Blended Rate Excel Template

Sample Blended Rate Method (Draft)

Page 26: Blended Rates

Produced by:

Chris McKayAgrium

[email protected]


Recommended