Labor Breakdown is a method to allocate payroll expenses to cost centers.
How Does It Profit You?
By keeping your employees focused on goals. Having the labor breakdown figures allows you to see where the effort of your people is being spent. It allows you to set and monitor targets for waste reduction, quality improvements, training, and any other measurement of employee time.
Specific Questions Answered
- how much time is spent in direct vs. indirect labor?
- what is the allocation of measurements to products or machine centers?
- what are the pay rates associated with products or work centers?
- how much time was recorded for customer work against payroll time paid?
- how much time is spent on non-value added activities?
- who worked on a machine and for how long?
- what failure prevention actions took place?
- how much time was spent on training and quality improvement activities?