Hourmakes

Hourmakes is a productivity metric used to measure the rate of high-quality output over time. It quantifies the effective number of units produced per hour, with quality incorporated by counting only outputs that meet predefined standards. In practice, hourmakes is calculated by dividing the number of good units completed by the hours worked, or by using adjusted hours to account for rework.

Etymology and origin: The term emerged in late 2010s industry discussions about time-based performance measurement and modular automation. It is not tied to a single company and has been described in various reports and guides as a flexible metric for cross-process comparison. The concept is sometimes used alongside traditional metrics such as units per hour and cycle time.

Calculation details: Hourmakes can be defined as GoodUnits / HoursWorked. Some organizations define GoodUnits as units that pass quality checks, excluding rework; others use adjusted hours to include the time spent on rework, giving Hourmakes = GoodUnits / (HoursWorked + ReworkHours).

Applications: Manufacturing lines, logistics operations, software development, and service centers use hourmakes to assess throughput, plan staffing, and compare process efficiency across teams and shifts. It supports line balancing by highlighting where speed or quality bottlenecks limit output. It is most effective when standard definitions of quality and units are established.

Limitations and criticism: Hourmakes can incentivize rushing to boost figures at the expense of quality if not properly managed. The metric also requires consistent quality criteria and data collection, which can be difficult across heterogeneous tasks. When used alone, it may obscure longer-term improvements or variation in task complexity.