Collect Labor at the Operation Level
Job-level totals hide the problem. A job that ran 10 percent over could have had a 40 percent setup overrun offset by a faster cycle time, and the fix for each is different. Record time per operation (saw, mill, lathe, deburr, inspect), with setup and run captured separately.
Floor kiosks, tablets or barcode scans on the traveler work better than end-of-shift entries from memory. Machine monitoring such as MachineMetrics can supply spindle-on time, which complements operator-entered labor rather than replacing it.
- Clock in and out per operation, not per shift
- Separate setup, run and rework time
- Capture first-article and inspection time
- Record scrap quantity and reason with the labor
Make Estimated Hours Comparable
Comparison fails when the estimate and the job do not line up. If an estimator quotes five operations and the job is routed with eight, or quotes at 100 pieces and the order is for 25, the variance means nothing. Convert the estimate into the job routing without retyping, and normalize to hours per piece for run time and total hours for setup.
Flag jobs where the quantity changed by more than a set threshold so they are not counted against estimator accuracy.
Reading the Variance
Look for patterns, not single jobs. Group variances by part family, machine, operator and customer. Consistent setup overrun on one machine points to fixturing or tooling; consistent overrun on a material suggests wrong feeds or tool wear; overruns only on first runs show a missing proving-out allowance.
Also look at underruns: a part that consistently runs 30 percent under estimate means you are quoting too high and probably losing bids. Scrap and rework hours belong in the same view, since they usually explain the biggest overruns.
Try it here, free
Infor VISUAL Shop Labor Ticket Log Worksheet
An editable log of labor entries by work order operation with hours, rate, setup versus run and computed labor cost.
Feed Corrections Back Into Quotes
Review monthly and update standard setup and run times for part families that show a consistent gap in the same direction over at least three jobs. Do not overreact to one bad job: a broken tool or a bad material lot is not a new standard. Record the correction and date so you can see if it improved quote accuracy.
Close the loop for the estimators too, by showing them their own estimated versus actual numbers; most adjust quickly once they see them.
Where AI Helps and When It Is Overkill
Asking your ERP why jobs went over takes a report writer or a good deal of spreadsheet work in most shops. A private AI assistant over the ERP, like what Netray builds, can answer questions such as which part families ran over estimate by more than 20 percent last quarter, and show the query behind the answer. If you run fewer than a few dozen jobs a month, a monthly spreadsheet review is enough.
And no analysis helps if operators do not record time honestly, so fix collection first.
Frequently asked questions
How do I compare estimated and actual hours in JobBOSS or E2?
Use the job cost or job analysis reports that show estimated versus actual labor by operation, and filter by closed jobs. The comparison works best when the job routing came from the quote and operators clock against each operation. Export to a spreadsheet to group by part family or machine.
What is an acceptable variance between estimated and actual hours?
There is no fixed number. Repeat parts should land close to estimate, while new parts naturally vary more. Focus on consistent direction rather than size: if a part family runs over every time, the standard is wrong. Track the trend and the distribution, not single jobs.
Why are my operators' recorded hours inaccurate?
Usually because time is entered at the end of a shift from memory, or because the system is slow to use on the floor. Make clocking per operation quick with kiosks, tablets or barcodes, explain how the data is used, and avoid using it to punish individual operators, which encourages rounding.
We can connect read-only to your ERP and show estimated versus actual hours by part family from your own jobs. Start with one quarter of closed jobs.