Calculates the average cost of delivering one hour of service, including labor, parts, and overhead.

What it Measures ?

How much we spend per hour of service.

Relevant StakeHolders 

Finance, Ops Heads

In-depth Use Case / Real-world Example

To determine this, total service-related costs over a period are divided by the total hours of service delivered. In a factory support context, if a team spent 500 hours servicing machines at a total cost of ₹5,00,000, then the cost per hour is ₹1,000. Tracking this helps identify cost leaks and inefficiencies in resource allocation. Reducing this value while maintaining quality means the organization is optimizing both workforce and material usage.