How to track labour hours on jobs
Track labour on jobs by having operators record a start and stop time against a work order and operation, usually by scanning the job card at the work centre. Multiply the hours by that work centre's hourly rate to get labour cost. Keep setup, run, rework and waiting as separate time types so the job cost and the efficiency figures both make sense.
By Arunkumar V, CTO · 03 November 2026 · 2 min read
- how to track labour on jobs
- labour hours per job
- work centre rate calculation
- shop floor time tracking
What to record for each time entry
A time entry is one person working on one operation of one job for a continuous period. Keep the fields few so the entry takes seconds, and let the system capture the times. Review open entries at the end of each shift and close any left running.
- Work order number and the operation or routing step.
- Work centre and operator.
- Start time and stop time, captured by the system rather than typed.
- Time type: setup, run, rework or waiting.
- Good quantity and scrapped quantity at stop, where the step produces parts.
Setting a work-centre rate
The hourly rate is what the work centre costs to run for one productive hour, including the operator. The figures below are invented to show the method. Say a press brake costs 48,000 a month: operator wages 30,000, depreciation or lease 10,000, power, tooling and maintenance 8,000. It is available for 160 productive hours a month after breaks and planned maintenance. The rate is 48,000 ÷ 160 = 300 per hour.
Review rates once a year or when wages or a lease change. A rate set too low makes every job look profitable; one set too high makes the shop decline work it could have done.
Worked example on one job
Using example figures again, say a job for 40 panels runs three operations. Laser cutting: 20 minutes setup and 1 hour 10 minutes run at 900 per hour, so 1.5 hours × 900 = 1,350. Press brake: 30 minutes setup and 2 hours run at 300 per hour, so 2.5 × 300 = 750. Welding: 3 hours run and 30 minutes rework at 450 per hour, so 3.5 × 450 = 1,575. Labour cost for the job is 1,350 + 750 + 1,575 = 3,675, or 91.88 per panel. The rework half hour is visible on its own, which is the point of separating time types.
How to track labour hours on a job
- Step 1
Define a work centre for each machine or bench group and set an hourly rate for each.
- Step 2
Put a terminal and barcode scanner at each work centre with the time entry screen open.
- Step 3
Have the operator scan the job card and choose setup, run or rework to start a time entry.
- Step 4
Have the operator scan again to stop, entering good and scrapped quantity for that step.
- Step 5
When the job closes, total the hours by work centre, multiply by each rate, and compare with the routing estimate.
Where ZMOS fits
ZMOS logs labour at work centres against work orders, using job cards printed with a Code 128 barcode, and uses those hours at the work-centre rate in the job cost on the day the job closes. Routing steps and work centres are defined per work order. It suits sheet-metal, machining and fabrication shops of 10 to 50 people. It is a job-costing tool rather than a payroll or attendance system, so if the main need is attendance and wages, a dedicated HR tool is the better fit. See job costing in ZMOS.
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Inside ZMOS
What if an operator works on two jobs at once?
Choose a rule and apply it every time: split the time equally, or book it to the job that occupied the machine while the other waited. An operator setting up one machine while another runs unattended books the time to the setup.
Should labour be tracked per person or per work centre?
Both are recorded, but the cost uses the work-centre rate. Costing by person makes the same job cost different amounts depending on who ran it, which is unhelpful for quoting. The person field is for reviewing training and routing accuracy.
How do I get operators to record time honestly?
Make the entry a scan, not a form, and use the figures to fix routings, rates and quotes rather than to judge people. If an operation always takes longer than the routing says, the routing is wrong. Compare booked hours with paid hours weekly.
Can I use timesheets instead of scanning?
Yes, but end-of-day timesheets are reconstructed from memory and round to neat figures. Scanning at start and stop captures the real time with no effort, and the difference shows up in setup and rework hours, which timesheets miss.
See it on your own stock and jobs
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