scholarly journals Combining simple motion measurement, lean analysis technique and historical data review for countering negative labor cost variance: A case study

2021 ◽  
Vol 13 ◽  
pp. 184797902110236
Author(s):  
Bami Adeyemi ◽  
Akinola Ogbeyemi ◽  
Wenjun Zhang
Keyword(s):  
Production Management ◽  
Historical Data ◽  
Labor Cost ◽  
Idle Time ◽  
Manufacturing Companies ◽  
Labor Costs ◽  
Motion Measurement ◽  
Simple Motion ◽  
Cost Variance

Negative labor cost variance (NLCV) is an important problem in many manufacturing companies today. NLCV refers to the situation that expected or standard costs are less than actual labor costs in production. Management of NLCV, including the identification of causes for NLCV and the elimination or significant reduction of NLCV, is the topic discussed in this paper. The question studied in this paper is thus: what is an effective methodology in the environment of strong privacy protection to identify causes for NLCV and to significantly reduce it? The study presented in this paper proposed a methodology by combining a simple motion measurement (stopwatch), lean analysis techniques, and historical data review to study the NLCV problem. A case study was taken on a particular company called ABC to test the effectiveness of this methodology. Specifically, the result of the study revealed that (1) the employees in ABC waited for one reason or the other for almost 5 h (idle time) in a 16-h daily operation period (2 shifts running at 8 h each), which accounts for 32% of the total productive time, and (2) the elimination of the waiting time or idle time over the years concerned could account for 83% of all identified wastes in ABC. Through this case study, the effectiveness of the proposed methodology was demonstrated and the applicability of the proposed methodology was also implied.

scholarly journals PENGARUH BIAYA PAKAN DAN TENAGA KERJA TERHADAP KEUNTUNGAN USAHA AYAM RAS PETELUR MILIK VONY KANAGA DI KELURAHAN TAWAAN KOTA BITUNG (Study kasus)

ZOOTEC ◽  
2017 ◽  
Vol 37 (2) ◽  
pp. 207
Author(s):  
Brian Tumion ◽  
V V.J Panelewen ◽  
A Makalew ◽  
B Rorimpandey
Keyword(s):  
Linear Regression Analysis ◽  
Secondary Data ◽  
Research Problem ◽  
Multiple Linear Regression Analysis ◽  
Labor Cost ◽  
Labor Costs ◽  
Measured Variable ◽  
Chicken Farm ◽  
The Cost

ABSTRACTEFFECT OF FEED AND OPERATING COSTS ON PROFIT OF CHICKEN LAYING FARM OWNED BY VONY KANAGA AT TAWAAN VILLAGE IN BITUNG CITY (Case study). This research was conducted in Vony Kanaga laying farm located in District Ranowulu Bitung City. The research problem was how the influence of feed and labor costs to the amount of profits and how much profit can be obtained at the company laying chicken farm in the district of Bitung City Ranowulu. The purpose of this study is to determine the effect of feed and labor costs against profits in laying chicken company, to find out the benefits of the company laying chicken farm in the district of Bitung City Ranowulu. The data collection method is using a field survey using primary and secondary data. Subdistrict Ranowulu Bitung determined based on the largest population in the city of Bitung. Model analysis of data that multiple linear regression analysis and profit. The measured variable is the cost of feed, labor costs and profits. The result showed that the average cost of laying chicken feed per day is Rp. 7.813.410. The average labor cost per day is Rp. 2.388.000. Total Proceeds from the sale of eggs and feces in the company-owned chicken laying Vony Kanaga Rp. 13.514.520 so as to obtain profit of Rp. 3.313.110. Based on the results of this study concluded that the cost of feed and labor simultaneously significant effect on profits in the company-owned farm chicken laying Vony Kanaga in District Ranowulu Bitung City. Company-owned farm chicken laying Vony Kanaga in District Ranowulu gives an average profit of Rp. 3.313.110 Keywords: Feed Cost, Labor Cost, Pro

scholarly journals Effect of Calculation of Cost of Production on Selling Price of Products Manufacturing Companies in Papua (Case Study CV. Sagita Grafika)

2016 ◽  
Vol 7 (3) ◽  
pp. 6-10
Author(s):  
Mugiati ◽  
Bosta Sihombing
Keyword(s):  
Secondary Data ◽  
Primary Data ◽  
Selling Price ◽  
Manufacturing Companies ◽  
Labor Costs ◽  
Total Cost ◽  
Method Of Calculation ◽  
The Cost ◽  
Costing Analysis

This study aims to determine how the effect of calculating the cost of an order made by the company and the method of calculation of full costing of the product selling price fixing mold. The data used is primary data, order data produced in the period from January 2013 to December 2013, the secondary data obtained from interviews and literature. From these results it can be seen that CV. Sagita Grafika calculate the cost of the product by using the order cost method that produces cost price and the selling price that is incompatible with existing theory, in which the charging of indirect labor and overhead costs shared equally on all types of orders in the amount of Rp. 11.78825 million for indirect labor costs and Rp. 3.1243 million for overhead costs so that volume orders will bear fewer overhead costs equal to the volume of orders more. By using a full costing analysis generated calculation method that the volume of orders that more will earn imposition overhead costs more, because in this calculation loading overhead costs charged by direct labor hours incurred for each order. So that orders with a total volume that many will use a lot of labor hours and vice versa. So in this study that most large orders received charging overhead is the order BS-02 Rp. 31,115,590.92 and most orders received little overhead loading is KK-01 orders in the amount of Rp. 2,208,622.32. Results of a comparison between the cost of the company with the full costing is the total cost of less Rp. 27,499,540.57, the selling price of Rp. 5,866,543.90, while the larger profit generated by using the full costing method that is Rp. 21,632,996.67

scholarly journals Pengendalian Biaya Tenaga Kerja Langsung dalam Peningkatan Efisiensi Biaya Produksi

2018 ◽  
Vol 5 (2) ◽  
pp. 108-113
Author(s):  
Diah Wahyuningsih ◽  
M Rifki Maulidiono
Keyword(s):  
Cost Control ◽  
Descriptive Analysis ◽  
Labor Cost ◽  
Production Costs ◽  
Manufacturing Companies ◽  
Labor Costs ◽  
Standard Procedures ◽  
Qualitative Descriptive ◽  
The Cost ◽  
Real Costs

Costs planning is a basic common issue faced by manufacturing companies where prior planned costs are being irrelevant with the actual costs, this especially happens with the case of labor costs. Companies must control costs effectively. Cost control can be measured by level of efficiency of previously budgeted cost and the real costs. Level of cost efficiency can be measured by comparing real costs with upcoming standard costs. This study aims to knowing how companies control its direct labor cost in order to increase production costs. The method applied in this study is qualitative descriptive analysis. The results show that when the company controls labor costs using methods such as finger print attendance to avoid cheating workers, standard procedures for operating machines, and faster production work standard of 51 days, we can conclude that the faster production the more efficient the costs spent by the company for the production process against the overhead costs consisted of water and electrical bills. On the other hand, we can also say that company’s policy towards the level of efficiency is 5%, mean while the actual level of efficiency is 0.43% for one unit production. This means that the cost control of direct labor costs run company still cannot achieve the expected level of efficiency.

scholarly journals Assess the lean performances in Vietnamese companies – a multi-case study in manufacturing firms

2013 ◽  
Vol 16 (2) ◽  
pp. 25-36
Author(s):  
Hung Nguyen Bui ◽  
Luong Phuoc Le ◽  
Dang Thi Hong Nguyen
Keyword(s):  
Cost Reduction ◽  
Labor Cost ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Structured Interviews ◽  
Standard Operations ◽  
Production Change ◽  
Better Than

This study is conducted to assess the Lean performances of 10 Vietnamese manufacturing companies in terms of 13 factors proposed by Hirano (2009). Managers of 6 large companies and 4 small and medium ones are invited to participate in semi-structured interviews to assess their own company’s Lean performances and raise the ideas for their assessments. The research results show that large companies perform better than the small and medium ones in all 13 factors. As a whole, the studied companies apply Lean at acceptable levels for their operations in terms of awareness revolution, the 5S’s, multi-process operations, labor cost reduction, visual control, quality assurance, standard operations, maintenance and safety. These companies have to effort much more in flow production, Kanban, leveled production, change-over, and human automation. To survive in the context of today Vietnam economy, these companies should focus on long-term strategies to take advantages of Lean philosophy for their future development.

Teaching Computer Based Historical Data Analysis

1994 ◽  
Vol 6 (1) ◽  
pp. 52-58 ◽  
Author(s):  
Charles Anderson ◽  
Robert J. Morris
Keyword(s):  
Data Analysis ◽  
Social History ◽  
Historical Data ◽  
Good Practice ◽  
Computer Assisted ◽  
Historical Data Analysis ◽  
University Of Edinburgh ◽  
Computer Based ◽  
The University

A case study ofa third year course in the Department of Economic and Social History in the University of Edinburgh isusedto considerandhighlightaspects of good practice in the teaching of computer-assisted historical data analysis.

A Case Study on the Un-Used Capacity Assessment Using Time Driven Activity Based Costing for Magnetic Components

2020 ◽  
Vol 6 (1) ◽  
pp. 18-39
Author(s):  
Areena Zaini ◽  
Haryantie Kamil ◽  
Mohd Yazid Abu
Keyword(s):  
Historical Data ◽  
Manufacturing Sector ◽  
Type I ◽  
Activity Based Costing ◽  
Cost Rate ◽  
Continuous Innovation ◽  
Magnetic Components ◽  
Alignment Process ◽  
Capacity Cost

The Electrical & Electronic (E&E) company is one of Malaysia’s leading industries that has 24.5% in manufacturing sector production. With a continuous innovation of E&E company, the current costing being used is hardly to access the complete activities with variations required for each workstation to measure the un-used capacity in term of resources and cost. The objective of this work is to develop a new costing structure using time-driven activity-based costing (TDABC) at . This data collection was obtained at E&E company located at Kuantan, Pahang that focusing on magnetic component. The historical data was considered in 2018. TDABC is used to measure the un-used capacity by constructing the time equation and capacity cost rate. This work found three conditions of un-used capacity. Type I is pessimistic situation whereby according to winding toroid core, the un-used capacity of time and cost are -14820 hours and -MYR2.60 respectively. It means the system must sacrifice the time and cost more than actual apportionment. Type II is most likely situation whereby according to assembly process, the un-used capacity of time and cost are 7400 hours and MYR201575.45 respectively. It means the system minimize the time and cost which close to fully utilize from the actual apportionment. Type III is optimistic situation whereby according to alignment process, the un-used capacity of time and cost are 4120 hours and MYR289217.15 respectively. It means the system used small amount of cost and time from the actual apportionment.

scholarly journals How Do Firms Respond to Reduced Labor Costs? Evidence from the 2007 Swedish Payroll Tax Reform

2021 ◽  
Author(s):  
Sven-Olov Daunfeldt ◽  
Anton Gidehag ◽  
Niklas Rudholm
Keyword(s):  
Tax Reform ◽  
Cost Savings ◽  
Labor Cost ◽  
Policy Instrument ◽  
Extensive Margin ◽  
Labor Costs ◽  
Payroll Tax ◽  
Payroll Taxes ◽  
Wage Effect ◽  
Marginalized Groups

AbstractOne way for policymakers to reduce labor costs and stimulate the recruitment of marginalized groups of labor in a highly unionized economy is to lower payroll taxes. However, the efficiency of this policy instrument has been questioned, and previous evaluations have mostly found small employment effects for such reforms. We investigate the effects of a payroll tax cut in Sweden that decreased firms’ labor costs in relation to the number of young employees that they had employed when the reform was implemented in 2007. We find that most firms received small labor cost savings as a result of the reform, but those that received larger cost savings increased their number of employees significantly more than firms that received no, or minor, labor cost savings. Our findings also suggest that the payroll tax cut increased the total wages paid to incumbent workers, but the wage effect was too small to offset the positive extensive-margin employment effect of the reform. In total, we find that the Swedish payroll tax reform created 18,100 jobs over the period 2006–2008; most of these jobs were within the targeted group of young employees.

scholarly journals The Enabling Role of Digital Technologies in Sustainability Accounting: Findings from Norwegian Manufacturing Companies

Systems ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 33
Author(s):  
Olena Klymenko ◽  
Lise Lillebrygfjeld Halse ◽  
Bjørn Jæger
Keyword(s):  
Research Area ◽  
Digital Data ◽  
Manufacturing Companies ◽  
Sustainable Operations ◽  
Business Model Canvas ◽  
Automation And Control ◽  
Sustainability Accounting ◽  
And Control

Sustainability accounting is an emerging research area receiving growing awareness. This study examines the role of digital technology in manufacturing companies’ sustainability accounting. To guide the research, we use a triple layered business model canvas, which supports the accounting of a manufacturer’s performance for the economic, environmental, and social aspects of sustainability. We present an explorative case study of four Norwegian manufacturing companies representing different industries. The findings from the study indicate that while accounting for economic values is well taken care of, companies do not perform comprehensive environmental and social accounting. Furthermore, we observed a shift from a focus on sustainability issues related to the internal manufacturing process to a focus on sustainability issues for the life cycle of the product. Even though the manufacturers are at the forefront with regard to automation and control of production, with extensive use of robots giving a large amount of data, these data are not utilized towards sustainability accounting, showing that sustainability and digitalization are seen as two separate phenomena. This study sheds light on how digital data available from applied Industry 4.0 technologies could enhance sustainability accounting with limited efforts, linking sustainability and digitalization. The results provide insights for manufacturers and researchers in moving towards more sustainable operations and products.

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