mymicros.net theoretical labor

8/18/2019 Mymicros.net Theoretical Labor

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Theoretical Labor


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Contents

Declarations 2

Overview 2

Theoretical Labor Metrics 2

Theoretical Labor Standard 4

Theoretical Labor Program 8

Theoretical Labor Allotment 10

Appendix 15


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The mymicros.net Theoretical Labor (TL) feature identifies labor overages in near real-time, by comparing actual labor vs. what it should be for the business volume that is generated.This approach is an improvement over traditional theoretical labor models that typically useforecasted labor, which based on forecasted sales. Removing the often-unpredictable salesforecast as a factor greatly improves the accuracy and value of this calculation.

TL is measured against one of three actual labor types:

1.

Job Code

2. Job Category, or

3. Labor Category.

The labor type is then used against one of four operational indicators to determine theTheoretical Labor for the period. TL can then be compared to actual labor in terms of LaborHours and Labor Cost (dollars).

C H A P T E R 1

Overview


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Theoretical Labor Metrics 2

TL analysis may be implemented by establishing one or more TL Metrics. Each TL Metricmay have one or more TL Standards associated with it.

As an example: If the TL Metric is Server Labor, there may be different staffing standards based on day part or time of day and day of week.

TL Metric TL Standard TL Description

Server Labor M-F Lunch Shift The standard used to determine serverstaffing at lunch Monday - Friday

M-F Dinner Shift The standard used to determine serverffi di d id

C H A P T E R 2

Theoretical Labor Metrics


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Chapter 2 Theoretical Labor Metrics 3

3.

Select Add (or select an existing metric and click Edit) from the top menu bar

4. Enter/modify the name field


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Chapter 3 Theoretical Labor Standard 4

The Theoretical Labor Standard is often considered the "heart" of the application. It is here

where the actual configuration of TL takes place. This section will determine three areas ofTL:

1. Which labor type will be reported on

2. On what basis the labor type will be reported

3. How will the theoretical labor be determined (Values Tab)

Main Tab

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Theoretical Labor Standard


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Labor Revenue CenterThe TL Standard may be used to determine staffing for a revenue center by revenue center basis. This is particularly useful for larger properties or outlets. If this is not required, theLabor Revenue Center Master and Labor Revenue Center POS Reference fields should beempty. If this is to be used, choose either a Labor Revenue Center Master or enter a LaborRevenue Center POS Reference number.

Labor Program

Labor Programs can be used to assign TL Standards to particular stores instead of theorganization as a whole. This indicates what Labor Program the TL Standard belongs to. Ifnone, this Standard will apply to all locations in the organization that do not have a LaborProgram assigned (See section 3, Administer theoretical labor programs, for moreinformation).

Labor Type (Required)The TL Standard may be compared against one of three types of actual labor: LaborCategory, Job Code and Job Category. Once the Labor Type has been set, depending on theselection, select a Labor Category Master, Job Category Master, Job Code Master or enter aLabor Total POS Reference number (the object number associated with the labor category, job code or job category).

Labor RateThe TL engine will not only determine the theoretical hours but may also determine thetheoretical labor cost. This is enabled by assigning a Labor Rate. This is the theoretical costof labor per hour. It is used in charts and reports for comparison with the Actual Labor cost.


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2.

By Step

Step can be a non-linear, step-wise calculation where theoretical labor is based onspecific threshold values of the basis type. The Step Basis should contain thehourly volume indicate, Theo Hours should contain the number of hours to applywhen the volume indicator does not exceed the Step Basis. For example thefollowing table shows how theoretical labor hours could be defined for specificvolumes of sales per hour:

Step Basis (sales/hr) Theo Hours (labor/hr)

100 1

180 4

300 8

400 12

500 15

10000 20

If sales in a particular 15 minute period are $45, this is equivalent to $180/hour, thus4 hours of labor should be used, or 1 hour within a 15 minute period.


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Chapter 4 Theoretical Labor Program 8

The “Theoretical Labor Program” allows creating individual “Theoretical Labor Standard”for Location / Group of Locations. Labor Programs are not required to use TheoreticalLabor. It is a method to allow you to configure different standards, for the same TimePeriods, across your Organization.

b i h b Ad i i i d l Add

C H A P T E R 4

Theoretical Labor Program


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Chapter 4 Theoretical Labor Program 9

4.

In the Labor Program drop-down, specify a Labor Program; this Labor Program isthe same program that was set up in the Theoretical Labor section of the portal:

Within the TL Standard, you can assign the standard to a specific Labor Program. This


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Chapter 5 Theoretical Labor Allotment 10

Hours Calculation Theoretical Labor Daily Allotment Hours is a calculated part of the allotted daily hours. Itserves as a subset of the standard theoretical labor fixed period total calculation. It is used to provide daily preparation hours to a labor metric. The calculation is done at the end of eachday. The hours may be imported (e.g. “fixed”) or calculated (e.g. “prep”). This will be done

in a general way to support an unlimited number of allotments.

The key difference between the TL Allotment Standards and the TL Standards is that TLAllotment Standards calculate for a day at a time where the TL Standards calculate for every15 minute fixed period within the configured start and end time.

End-Of-Day ProcessesAt the end of each day, every location uploads the end-of-day result set files to the RTAserver. These result set files contain data such as net sale, gross sale, total number of guests,

C H A P T E R 5

Theoretical Labor Allotment


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Once all the result set has been posted onto the database warehouse, RTA server uses thealready posted daily data to starts the daily allotted hour’s calculation.The results of the calculated daily allotted hours are then posted onto the databasewarehouse.

Administration Since theoretical labor allotment is a subset of the theoretical labor standard, many of theadministrative features are similar to the theoretical labor standard. To create an allotment:

1.

Login as Sys Admin

2. Navigate to Admin | Warehouse | Theoretical Labor Allotment | Add or Edit

3. Assign the Allotment Name

4. Determine if the allotment is a Fixed Period - prep allotments are not fixed.


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Note Fixed allotment will allow you to manually upload your allotmenthours. (See Appendix)

Theoretical Labor Allotment Standard


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Labor Total Type The TL Allotment Standard may be compared against one of three types of actual labor:Labor Category, Job Code and Job Category. Once the Labor Type has been set, select aLabor Category Master, Job Category Master or Job Code Master or enter a Labor Total POSReference number (the object number associated with the labor category, job code or jobcategory).

Basis type

Basis Type can only be set if the Allotment this Allotment Standard belongs to is not set asFixed. Five basis types can be used to calculate the theoretical labor allotment:

• Net Sales

• Gross Sales without Discount Total

• Number of Guests

• Number of Checks

•

Number of Table Turns

In each case a revenue center may be selected so that the volume indicator will only reflectthe activity of a specific revenue center (and the labor standard will just be based on thatactivity). If the revenue center is to be used, selected either a Basis Revenue Center Masteror enter a Basis Revenue Center POS Reference number.

If either the basis type “Net Sales” ” or Gross Sales without Discount Total are selected, a


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Calculation AlgorithmThe calculation of the theoretical labor daily allotted hours is as follows:

DailyAllottedHours = scaleMin + (dailyBasisTotal * (scaleFactor/100))

where

scaleMin is the minimum number of labor hours required when the dailyBasisTotal is 0

scaleFactor is the number of hours to add for each increase of 100 in dailyBasisTotal.

Daily Basis Total CalculationBasis type and, if valid, basis major group dictate the value of dailyBasisTotal.

basisType basisMajorGroup dailyBasistotal

Number of guests Not matter OPERATION_DAILY_TOTAL.numGuests

Number of tableturns

Not matter OPERATION_DAILY_TOTAL.tableTurns

Num of checks Not matter OPERATION_DAILY_TOTAL.numChecks

Number of guests None OPERATION_DAILY_TOTAL.numGuests


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Theoretical Labor Appendix

Appendix 15

A endix

Figure 1: Example of the Theoretical labor Allotted Hours Import Template (period tab)


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Appendix 16

Figure 2: Example of Theoretical Labor Allotted Hours Import Template (allotted hours tab)


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Appendix 17

Figure 3: Example of Labor Summary Report


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Appendix 18

Figure 4: Example of Labor Summary by day Part and Hour Report


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Appendix 19

Figure 5: Example of Theoretical Labor by Day Part Report


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Appendix 20

Figure 6: Example of Theoretical Labor Detail Report

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