Episode Details

"It'll only take an extra ten minutes." Jeremy Hanson shows how that one sentence can cost a 22-technician company $154,440 to $228,800 a year and up to $1.14 million over five.

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After two complaints about sagging fiber, a fiber-to-the-home manager ordered fasteners every ten inches instead of every twenty-four on every install. Jeremy, consulting in the room, ran the numbers. At six to eight installs per tech per day, ten minutes becomes 22 to 29 extra labor hours daily and 5,720 to 7,627 hours a year, three to four full-time employees of payroll with no added customers. He walks it year by year to as many as 38,000 hours, then measures the loss against what a technician produces, $187.50 to $250 an hour against a $27 to $30 wage: roughly $1.07 million to $1.9 million a year in production capacity. He explains why good managers make this mistake, why a training problem should never be solved with labor, and gives a five-question test for pricing any rule before you make it.