In this era of Industry 4.0, the benefits of automation are touted at every turn. It may be hard to believe that paper-based timesheets are still a big part of how owners and vendors in the heavy asset industry get work done.
On one end of the spectrum, there are industrial leaders who eagerly embrace the Internet of Things (IIoT) technology for everything from predictive maintenance to autonomous robots. On the other end, there are owners and vendors still gathering physical signatures to validate the time resources spend on-site.
Paper Timesheets Lack Accuracy
From refineries to chemical plants to mines, it is not uncommon to use paper and manual timesheets to validate proof of presence for contracted services. This involves tedious confirmations and manual service entry sheets that are prone to errors and inaccuracies. It is especially difficult to verify daily hours worked while juggling labor classifications, multiple pay rates, and unique contracts.
Often, timesheets for labor, equipment, and materials are signed off by field supervisors as a backup during the invoicing process. Often a foreman reports hours for their crew by glancing at their watch or rounding up to the nearest hour.
As a result, there is no way to accurately verify labor, material, and equipment charges, which can lead to after-the-fact reconciliations. How do you pay contractors accurately when field supervisors rarely have visibility into agreed-upon skill requirements and contract terms?
Often, the time being approved may not be accurate or based on gate log data without the knowledge of the accountable party. It is also not a great use of crew time to chase down the accountable party on-site—especially if the person is in the field managing multiple jobs in various locations. 
Why Paper Timesheets Persist in Heavy Industry
The heavy asset industry is not alone in its reliance on paper timesheets. Workforce.com found 1 in 10 companies were still relying on manual timekeeping systems in a 2021 survey.
More than half admitted manual errors in time and attendance data, noting their biggest issues involve integrating their data with other HR systems.
Those who use paper timesheets do so for many reasons—from simplicity to familiarity. Paper timesheets have been used for decades and many sites and plants have established processes and are resistant to change.
They may also believe changing to digital systems is more expensive and requires training, even though there is a proven cost benefit to embracing digital tools.
Consider this recent report of U.S. and Canadian owners, general contractors, and specialty contractors. The 1,000-plus surveyed included companies that range from $5 million to over $1 billion in volume.
The report found 26% of respondents still use paper-based records or non-digital processes as part of their workflows. While most of these were smaller firms, more than 15% of larger companies also reported being in the early stages of their digital journey, relying on spreadsheets or paper.
Of those surveyed, 32% of respondents reported the need for new technology to drive operational efficiencies and cost controls due to economic conditions.
What Are Paper Timesheets Costing You?
Even as investment in new technology has boomed, there are still operators who resist using an automated contractor solution to control, manage, and reduce contractor labor, equipment, and material spend.
Beyond the obvious issue of having to manually manage paper timesheets, let’s look at how paper timesheets could cost your company.
You may have an accountable party within your organization who confirms work was performed per the timesheet. However, paper-based timesheets are not based on access control information (gate log data), but instead by a foreman or supervisor documenting total hours.
Common inaccuracies in timesheets that later turn up in audits include:
- Manual process errors
- Lack of verification for labor, equipment, and material charges
- Lack of contract and skill compliance
As a result, it’s common for audits to show invoices were paid even when they don’t comply with Rates, Terms, and Conditions.
Beyond just the time and labor of manual data entry, calculation, and management, where do you store and file all the paper timesheets? Another consideration is the cost of paper and printing the timesheets. Manufacturers using paper timesheets need a constant supply of paper, ink, and printers.
Paper timesheets that require physical collection and transportation also mean you lack real-time data. This can cause delays in accessing and analyzing your data. This lack of real-time information can hinder decision-making processes and impede timely adjustments in labor allocation or resource planning.
Consider what is at risk when managing a multi-million-dollar turnaround project with thousands of contractors arriving daily on-site. You need to know if you are lacking the right skill mix for the day’s work.
Using real-time metrics can provide visibility into real-time headcounts by contractor, skill, and shift. Plus, you’ll know which equipment and materials are required by contractors and shift.
Why Automated Timekeeping Works
Digital, automated timekeeping systems can streamline your processes, reduce errors, provide real-time data, and simplify administrative tasks. With “to the penny” accuracy and timely approvals, both vendors and owners can streamline the end-to-end business cycle.
Accurate and immediate project information also allows for effective, proactive project management. Making informed changes mid-course can dramatically improve the ability to finish on time and on budget.
McKinsey cites the example of an Asian automotive company that reduced its die manufacturing time by 47% by using a real-time production monitoring and scheduling system, with integrated workflows and tablets replacing paper-based processes for operators.
The company also increased production output by 6% by connecting all its production machinery to a single manufacturing information system that tracks performance metrics and automatically detects bottlenecks.
How the Track Platform Helps
Track provides enhanced visibility and accuracy by aligning gate log data from the Access Control System with contractual terms and conditions before the accountable party reviews and approves the timesheet. Track also allows the history of who authorized the Timesheet to be captured and stored along with a timestamp.
Here is how it works:
- Contracting companies can review gate log time for their resources and request additional time based on contractual terms and conditions applied in Track.
- After distributing the resource’s hours and costs along with the contractual equipment usage and allowable material charges to the appropriate cost, the contracting company can perform a final review before sending to the owner company.
- The acceptance of Labor, Equipment, and Material charges in Track takes the place of a physical paper timesheet handoff—without anyone having to be in the same place at the same time.
By validating the work, the owner and contractor can have confidence in the accuracy and transparency of the gate log data and equipment and material charges. Track also integrates with SAP and other ERP systems, so contractor payments and real-time cost reporting are included.
