TDC - Management Labor Category

This category is a one time entry of a constant, updated annually, exported from your existing computer systems. Your existing method of calculation need only meet the TDC recommendations below. As with all labor categories, cost should be net cost (insurance, SSC, benefits, etc.), not just base salary.

As with all the labor categories, your accounting software is a good source to export or link all the various Management wages to your downtime cost reporting software. Tracking this manpower cost in relation to downtime cost can be automated through I.D. tags, or typical work order reports.

When equipment breaks down, we all realize the area supervisor will be there insuring necessary actions are taken. Requesting maintenance, redirecting operators, reporting to upper level management, altering production schedules/flow, administrative tasks, etc. Fifty percent of the time a machine is down can be extra tasks a supervisor is required to perform.

What isn't tracked in today's facility is the time upper level management is tasked, related to a machine breakdown. The production manager, plant manager, general manager's time, can cost the the company several times the supervisors cost. Not just the time they may visit out on the floor to see how it's going, but other behind the scene tasks such as arranging meetings, making phone calls and other administrative tasks, to name a few.

As with all the other labor categories, procedures must be put in place to track these cost and assign to the appropriate cost center. TDC reports will point out what task may be better performed by less expensive employees.

See also Business Management, 

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