Title

On Target: Overhead Cost.

Abstract

Manufacturing costs are usually divided into direct labor, materials and overhead. The cost of direct labor as a percentage of value added has dropped from approximately 50% to less that 10%. Material costs are being addressed by many. Overhead costs have increased at an alarming rate. Yet, little attention has been given to this element of manufacturing costs. Although managers list it as their number three worry. This paper targets overhead cost. It is divided into its elements and each is analyzed. The solution recommended is to evaluate each component of overhead to determine if it is essential. If so, can it be done cheaper? An integrated automation system is last after the individual computer systems are eliminated. Tools recommended are a systems study and Value Analysis of each element of overhead.

Publication Date

12-1-1986

Publication Title

Annual International Conference Proceedings - American Production and Inventory Control Society

Number of Pages

527-529

Document Type

Article; Proceedings Paper

Personal Identifier

scopus

Socpus ID

0022934536 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/0022934536

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