Understanding Production Rate

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Understanding Production Rate

ArborNote Production Report  |  Customer guide

Production Rate shows the dollar value of completed work per crew hour, after accounting for the portion of material costs associated with that work. It helps you compare production performance across work orders and dates.

How Production Rate is calculated

Step 1 — Allocate material costs to completed work

Material Allocated = (Dollars Completed ÷ Job Total) × Job Material Cost

Step 2 — Calculate the hourly production rate

Production Rate = (Dollars Completed − Material Allocated) ÷ Actual Hours

Dollars Completed is the value of work recorded as completed for the reporting date. Actual Hours are the crew hours logged for that work order on that date. Job Material Cost is the material cost entered for the work order.

Which proposal amounts are included?

AmountHow it is treated
Line-item valuesIncluded in completed production dollars as applicable.
Other CostAllocated into line-item values. Do not add it again if it is already included in those values.
Permit Cost and Custom CostIncluded as applicable; these amounts are added separately from line-item values.
Sales taxExcluded from the Manage Work Orders Est $s amount and the aligned production-dollar calculation.

Example 1 — A production rate with material costs

Suppose a work order has a $3,200 job total, $240 in material costs, $1,600 of completed work for the day, and 5.5 actual crew hours.

Material allocated: ($1,600 ÷ $3,200) × $240 = $120

Completed work after materials: $1,600 − $120 = $1,480

Production Rate: $1,480 ÷ 5.5 = $269.09 per hour

Example 2 — Understanding additional costs

A proposal shows $800 in line-item values, which already includes $100 of allocated Other Cost. It also includes $100 Permit Cost and $100 Custom Cost.

Estimated dollars = $800 + $100 + $100 = $1,000 (excluding sales tax).

The $100 Other Cost is not added again, because it is already part of the displayed line-item amount.

Why might Production Rate show $0?

No actual crew hours: Check that crew time was recorded for the correct work order and date.

No completed dollar value: Check that the work was recorded as completed for the reporting date.

Missing or zero job total: Review the work order estimate and ensure the job total is available.

Comparing the Production Report and Manage Work Orders

For equivalent completed work, the Production Report’s completed-dollar calculation is designed to align with the Est $s calculation in Manage Work Orders. Both exclude sales tax. When comparing values, check that you are viewing the same work order, reporting date, and completed scope.

If the figures still differ, contact ArborNote Support with the work order number, production report, and screenshots of both views so the team can investigate.

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