In this video presentation lesson, we'll use a calculator to formulate daily tool-time performance for heavy industry shutdowns, turnarounds, and outages. Note: This same calculator and formula can be used for routine maintenance and projects.

Before we begin, we're going to make some basic assumptions: 1) A Productivity Factor (PF) is applied to direct industry benchmark estimates on step-out plans and all activities are direct tool-time related, in other words, we have not padded hours to make up for non-productive time, nor have we added any indirect activities into the step-out plan to make up for safety meetings, permitting, breaks, travel, receiving tools and materials, etc., 2) We consider Performance Pf (uppercase P lowercase f) as an outcome of how well we planned and estimated, 3) 1.0 Pf is our target; anything greater is higher performance, anything less is under performing, and 4) We apply productivity factor during scheduling, not during planning and estimating. This allows us to run various what-if scenarios to determine the most optimized plan (lowest cost, shortest duration, fewest resources).