How do you determine one’s true productive hours?

Productive hours are determined once the total costs of the individual is determined. We then need to look at productive hours. Now productive hours recognize that when we talk about a 40 hour week and a 52 week year - in reality two of those weeks a year are taken up with public holidays, two of the weeks per year are generally taken up with sick leave, depending on which country in the world you are there’s between two and five weeks of vacation leave every year. All of those weeks are usually paid for; you’re still on salary during that time. All of the tools you need to do your job and office space still exists but in reality you’re not able to produce or you’re not producing during that time.

In an example that’s included in the software tool, we use as an example 43 weeks a year as available productive time – when you’re actually in an environment where you can produce.

We also then used a productive week of 37 and a half hours recognizing that there’s time for breaks and lunch. So when you take those weeks and those hours and then you divide them into the actual costs that we did in our last session, you come up with a true hourly rate for a productive hour.

Could you just summarize what we’ve covered so far in the AutoVation course?

AutoVation has a number of elements and the unit of measure that we’re using is the monetised value of time. So we need to look at time in the work environment. We need to determine the value of that time with all business expenses – not just the salary component - but all of the infrastructure expenses. And then we need to divide that into the actual available productive hours. That gives us a very useful figure; that gives us the key figure, which is the monetised value of a productive hour of a particular individual. That can be done throughout an organization so that each different person in the organization’s productive hour value can be determined.

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