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