If you wish to record the time spent by employees on named activities then this is an excellent way to do so. The start and end time of each activity booking is recorded. There is the option to include pay rates in understanding the total time and employment cost (across all employees) on each activity. Examples might include costing production lines, work areas and the like.

 

Captureit supports Activity Based Costing (ABC). As the name implies, this is where employee labour costs are allocated according to the ‘activity’ being carried out by the employee. In this regard, an activity may be defined in a number of ways to suit the cost analysis required.

For example, in a manufacturing environment the activity could be working on a particular production line, cell or work area; in a service industry it could be a particular type of work.

If analysis at individual job level is required then Captureit Job Labour Costing comes into its own.

In either case, the employee’s recording of time is simple and straightforward, and can be via a selection of methods, including clocking terminals, bar-code readers, mobile devices and PCs. Whichever method you chose, Captureit will provide the detailed analysis you require, including who worked on what activity, at what times and at what cost.

It is usual to allocate each employee with a ‘cost rate’. This might be the employee’s pay rate, but, more usually, will include an amount for overhead recovery. By applying this rate to the time spent on a given activity you are able to understand the cost to perform that activity. This can then be compared to the budgeted cost for that activity. Activities can have differing cost rates.

An employee can work on several activities on the same day, just as several employees can work on the same activity at the same time.

In most cases, it is usual for the employee to make bookings that account for all paid hours. Codes can be set up for non-productive time, such as team meetings, training and waiting for work. When booking to lunch the current activity (and associated cost) is automatically suspended – there is no need for the employee to clock off and then back onto the activity. (Note, lunch can also be inserted automatically by the software).

Employees can be assigned automatically to their usual activity when their ‘shift’ starts or allocated the status of ‘No Activity’, which is an excellent way of spotting employees who are being paid but appear not to have ‘started work’. The status of all employees and the activity they are currently working on is shown constantly in real-time, meaning you always know what employees are working on.

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