1. What is Sales Per Man Hour (SPMH)?

Sales Per Man Hour (SPMH) is a key performance metric that measures the amount of sales revenue generated per hour of labor. It helps businesses evaluate the efficiency and productivity of their workforce in generating revenue.

2. How Does the Calculator Work?

The calculator uses the SPMH formula:

Where:

• \( Sales \) — Total sales revenue in dollars
• \( Man Hours \) — Total labor hours worked

Explanation: The formula divides total sales by total man hours to determine how much revenue is generated per hour of labor.

3. Importance of SPMH Calculation

Details: SPMH is crucial for businesses to measure labor productivity, optimize staffing levels, identify performance trends, and make informed decisions about resource allocation and operational efficiency.

4. Using the Calculator

Tips: Enter total sales in dollars and total man hours worked. Both values must be valid (sales ≥ 0, man hours > 0).

5. Frequently Asked Questions (FAQ)

Q1: What is a good SPMH value?
A: Ideal SPMH values vary by industry, but generally higher values indicate better labor productivity. Compare against industry benchmarks and historical performance.

Q2: How often should SPMH be calculated?
A: SPMH can be calculated daily, weekly, or monthly depending on business needs. Regular monitoring helps track performance trends.

Q3: Does SPMH include all labor costs?
A: SPMH focuses on revenue generation per hour worked. For cost analysis, consider combining with labor cost metrics.

Q4: Can SPMH be used in service industries?
A: Yes, SPMH is applicable to any business where labor contributes to revenue generation, including retail, hospitality, and service sectors.

Q5: How can businesses improve their SPMH?
A: Strategies include sales training, process optimization, better scheduling, cross-training staff, and implementing productivity tools.