Pulp Fact, Not Fiction --Dickeson

It would get a lot more meaningful (painful?) if we kept that time in hours instead of dollars. Can we do that? Of course we can—if we want to. Start the timing when the lot of paper for a job is received. Or, go back to the time it was received as free stock in inventory and track every minute until cash is in hand. Compare the hourly value-added divided by paper dwell-time hours by job or customer account. Shocking thought, isn't it? But, isn't it more realistic than applying a BHR—Budgeted Hourly Rate—to a portion of labor time? (We know that those BHRs are an expedient fiction at best.) Value-added by job is far more real than any BHR we can possibly dream up.