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Direct Labor Cost
Direct labor cost is a part of wage-bill or payroll that can be specifically and consistently assigned to or associated with the manufacture of a product, a particular work order, or provision of a service. Also, we can say it is the cost of the work done by those workers who actually make the product on the production line. Determination of the direct labor cost *Planning the work to be performed. *Describing the job content of the work, by indicating the skill, knowledge, etc. *Matching the jobs with the employees. Usage The direct labor cost is part of the manufacturing cost. Calculation of direct labor cost In the direct labor cost we need to have the job time and wage we will pay it to the worker to calculate the direct labor cost as in this formulation:- \text = \text \times \text Depending on the context, there are various methods to calculate personnel costs, such as on an hourly or daily basis. Wage The wage is the payment rendered to the worker per hour as a compensa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost
In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production. More generalized in the field of economics, cost is a metric that is totaling up as a result of a process or as a differential for the result of a decision. Hence cost is the metric used in the standard modeling paradigm applied to economic processes. Costs (pl.) are often further described based on their t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Production Line
A production line is a set of sequential operations established in a factory where components are assembled to make a finished article or where materials are put through a refining process to produce an end-product that is suitable for onward consumption Typically, raw materials such as metal ores or agricultural products such as foodstuffs or textile source plants like cotton and flax require a sequence of treatments to render them useful. For metal, the processes include crushing, smelting and further refining. For plants, the useful material has to be separated from husks or contaminants and then treated for onward sale. History Early production processes were constrained by the availability of a source of energy, with wind mills and water mills providing power for the crude heavy processes and manpower being used for activities requiring more precision. In earlier centuries, with raw materials, power and people often being in different locations, production was distribu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Time And Motion Study
A time and motion study (or time-motion study) is a business efficiency technique combining the Time Study work of Frederick Winslow Taylor with the Motion Study work of Frank and Lillian Gilbreth (the same couple as is best known through the biographical 1950 film and book ''Cheaper by the Dozen''). It is a major part of scientific management (Taylorism). After its first introduction, time study developed in the direction of establishing standard times, while motion study evolved into a technique for improving work methods. The two techniques became integrated and refined into a widely accepted method applicable to the improvement and upgrading of work systems. This integrated approach to work system improvement is known as methods engineering and it is applied today to industrial as well as service organizations, including banks, schools and hospitals. Time studies Time study is a direct and continuous observation of a task, using a timekeeping device (e.g., decimal minute sto ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Work Sampling
Work sampling is the statistical technique used for determining the proportion of time spent by workers in various defined categories of activity (e.g. setting up a machine, assembling two parts, idle…etc.). It is as important as all other statistical techniques because it permits quick analysis, recognition, and enhancement of job responsibilities, tasks, performance competencies, and organizational work flows. Other names used for it are 'activity sampling', 'occurrence sampling', and 'ratio delay study'. In a work sampling study, a large number of observations are made of the workers over an extended period of time. For statistical accuracy, the observations must be taken at random times during the period of study, and the period must be representative of the types of activities performed by the subjects. One important usage of the work sampling technique is the determination of the standard time for a manual manufacturing task. Similar techniques for calculating the standard ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Predetermined Motion Time System
A predetermined motion time system (PMTS) is frequently used to perform Labor Minute Costing in order to set piece-rates, wage-rates and/or incentives in labor (labour) oriented industries by quantifying the amount of time required to perform specific tasks under defined conditions. Today the PMTS is mainly used in work measurement for shorter cycles in labour oriented industries such as apparel and footwear. This topic comes under wider industrial and production engineering. One of such a system is known as "Work Factor" and more popular Methods-time measurement, (MTM) released in 1948 exist today in several variations and used in some commercial applications. New legislation in developed markets following sustainability issues, Living Wage movement and the 2013 disaster in Rana Plaza, Bangladesh have brought labor costing and standards back to the focus of activists and global fashion retailers. Occupational safety and health (OSH, OHS), Ergonomics, Skills development and job sat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Labor Burden
Labor burden is the actual cost of a company to have an employee, aside from the salary the employee earns. Labor burden costs include benefits that a company must, or chooses to, pay for employees included on their payroll. These costs include but are not limited to payroll taxes, pension costs, health insurance, dental insurance, and any other benefits that a company provides an employee. Company paid time off such as paid sick, holiday or training time must also be considered as part of the Labor Burden as it is a cost to the company. Labor burden cost is important to compute and understand because it includes a variety of significant costs that are often viewed as company overhead, but are in fact, costs related to employment. Many businesses fail because they focus simply on payroll and payroll taxes, and neglect to consider the entire actual cost required to enable an employee to perform their work. Overhead should be spread out over all of a company's income-generating e ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Wage
A wage is payment made by an employer to an employee for work done in a specific period of time. Some examples of wage payments include compensatory payments such as ''minimum wage'', ''prevailing wage'', and ''yearly bonuses,'' and remunerative payments such as ''prizes'' and ''tip payouts.'' Wages are part of the expenses that are involved in running a business. It is an obligation to the employee regardless of the profitability of the company. Payment by wage contrasts with salaried work, in which the employer pays an arranged amount at steady intervals (such as a week or month) regardless of hours worked, with commission which conditions pay on individual performance, and with compensation based on the performance of the company as a whole. Waged employees may also receive tips or gratuity paid directly by clients and employee benefits which are non-monetary forms of compensation. Since wage labour is the predominant form of work, the term "wage" sometimes refers to a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
