Five percent of the cost reductions were from its Kanban system; 80 percent were from redesign of plants and machines to reduce indirect labor
Harbor states flatly that no company can hope to accomplish its productivity goals if it can't reduce the amount of indirect labor
Thus, we expect that there is a difference between direct labor and indirect labor
at the level of trust in superiors and the behavior or risking new ideas.
Given this expansion, the indirect labor
content of exports in unskilled-labor-intensive sectors rose from 14% of total employment generated by labor-intensive sectors to 42% (excluding employment generated by maquila industry).
Although other approaches have used LEGO[R] blocks to teach management accounting terms and techniques (Roth, 2005; Morgan, Martin, Howard, & Mihalek, 2005; Burns & Mills, 1997), this simulation is different in two major ways: (1) it focuses solely and comprehensively on job order costing whereas previous articles have only superficially covered job order costing, and (2) by using the variety of materials called for in this simulation, the product and manufacturing process is more realistic, affording the students the ability to clearly see the differences between direct materials and indirect materials, direct labor and indirect labor
, and other items that constitute manufacturing overhead.
Time is a valuable resource of the enterprise, and with ERP, it is possible to monitor and reduce wasted indirect labor
* Indirect labor
reduction--Material Flow Efficiencies
Other indirect labor
costs can also skew your financial picture.
This increases the timeliness and accuracy of parts replenishment while reducing indirect labor
Rich Kaestner, director of the Total Cost of Ownership Project at the Consortium for School Networking (CoSN), says people should also look beyond initial investments to life cycle costs, including direct labor such as maintenance, and indirect labor
costs such as user downtime due to system failure.
* INDIRECT LABOR
COST: the costs of users supporting one another and themselves, attending training classes, learning informally, developing user applications, and experiencing downtime
Instead, American management was more interested in building a personal empire of an indirect labor
workforce and failed to invest in (computerized) machine tools to compete in world markets!