Quantification of Losses of Labor Efficiencies: Innovations in and Improvements to the Measured Mile

Abstract

This paper describes a rigorous procedure for quantifying damages arising from loss of labor inefficiency. Throughout, deficiencies with the measured mile concept are cited. Perhaps one of the least recognized deficiencies is that the measured mile is a concept, not a procedure. Thus, every analyst is left to conduct the study as he/she pleases. This paper defines a step-by-step process for doing a damage study, and cites rules to follow when performing the study. Following the procedure and rules will lead to more rigorous and defensible analyses. A baseline analysis is described and presented as a way of adhering to the measured mile concept. The principle difference is in how best performance is defined. In a baseline study, the focus is on periods of high output (production), not good productivity. The baseline periods need not be continuous. Also, the analysis is performed on combined data (one account), not many accounts. The calculations used to perform a baseline study are illustrated using a simple case study project. Reasons for recovering damages because of losses of labor efficiency are also cited.