Diverted
Time means that the Productives have been diverted onto tasks that
cannot be charged out to the customer. Typically this could be time
spent locating a vehicle, waiting for parts and other such issues.
Example:
A) Hours Attended = 320 B) Hours Worked = 304 C) Hours Diverted = 16 (A - B) D) Prime labour Cost = R10 E) Diverted Time = R160 (C X D)
Discussion:
The
mathematical formula is simply Hours Attended minus Hours Worked and
this is always shown as a monetary value, which can usually be found
within the Variable Expenses of the Bodyshop.
In
addition to this some financial reports might show the monetary value
of Diverted Time as a percentage of the Departmental Gross Profit.
Related Terminology:
This term is also known as Unrecovered Time, Idle Time or Lost Time.