Some companies summarize the hours worked by all employees for an operation and record them in a single transaction. Others record the hours worked by each employee. Use the second method if you want to report on employee efficiency or examine labor rate variances.

You can calculate employee efficiency when you report labor by employee, provided that only one employee works on any given operation.

See Utilization and Efficiency for more information.

The system calculates labor rate variances by comparing the labor rate defined for an employee in Actual Pay Rate Maintenance (14.13.21) to the standard labor rate for the operation’s work center, defined in Work Center Maintenance (14.5).