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Ratio of direct labor verses support personnel

GolfGolf 41 Posts
in HR Documents Vote Up0Vote Down
Does anyone have a formula or know where I can get information for determining what the ratio of direct labor verses support personnel up to and including VP of Operations, or Plant Manager should be. This is for a manufacturing company.
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  • Don DDon D 9,834 Posts
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    There is no magic formula. What you are seeking is elusive. It varies from industry to industry and varies greatly even within an industry. If, for example you are running a sewing operation, your direct labor will far exceed your indirect. And even within the sewing industry, it will matter whether you are 50% handsewn or totally mechanized with only a few operators. If you have frequent layoffs and shutdowns, you may get out of wack off and on throughout the year with your cost analyst shouting about indirect being too high. If you are labor intensive and have a lot of machinery operating, you may find that you have to have an inordinate number of support personnel to troubleshoot it or tweak it and these aren't direct labor. This is sorta like trying to define as comfortable a man who has his head in a 300 degree oven and his feet in icewater. On average, he's comfortable, or so it might appear to the casual observer.
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