1 LABOR INTENSITY Labor intensity is the sum of living labor costs in man-hours of working time for the production of a unit of product in physical or value terms both for the entire range of output and for individual types of work and operations. The labor intensity indicator () reflects the direct relationship between production volume (Q) and labor costs in man-hours of working time () according to the formula: (hours). Q There are technological labor intensity (), service labor intensity (), production labor intensity (management () and total labor intensity (). Technological labor intensity (), labor intensity) is determined by the labor costs of the main workers. It is calculated for production operations, individual parts, assemblies, and finished products. Maintenance labor intensity () is calculated based on data on the labor costs of auxiliary workers engaged in production maintenance in all production departments of the enterprise. Its calculation is made for each operation, product, or in proportion to the technological complexity of the product. Production labor intensity () characterizes the labor costs of main and auxiliary workers to produce a unit of product, i.e. is the sum of technological complexity and maintenance complexity:
2. The complexity of management () is estimated by the labor costs of managers, specialists, administrative personnel, security, etc. Total labor intensity (personnel and calculated using the formula:) reflects labor costs of all categories. Labor intensity indicators are standard, planned (design) and actual. Standard labor intensity is determined on the basis of labor standards (time standards, production standards, service time standards, headcount standards) and is used to determine the standard volume of labor costs required for the production of individual products or the implementation of the entire production program. The planned labor intensity may be less than the standard due to the planned reduction in labor costs as a result of organizational and technical measures. Actual labor intensity is the sum of actual labor costs for the actual volume of work or output. The labor cost indicator is calculated using the formula: t, where labor costs to create a certain volume of products, in man-hours of working time; number of workers employed in the production process;
3 t the average number of actually worked, standard or planned working hours per employee. Example 1 A team of 3 people completed an apartment renovation in 5 working days with a working day of 8 hours. Labor costs for the renovation of this apartment will be: 3 people. 5 days = 15 man-days, or: 15 8 = 120 man-hours. If this work was performed by one worker, the duration of the repair would be: 120 man-hours / 8 hours. = 15 man-days. Example 2 A typist typed a report in 3 working days with a work duration of 8 hours per day. What will be the labor costs in hours? 3 8 = 24 hours.
4 Example 3 A team of 2 people unloaded a car in 6 hours. What will be the labor costs to complete this work? 2 6 = 12 man-hours. Example 4 A team of 4 people completed the repair of a classroom in 5 working days, working 8 hours a day. What will the labor costs be? 4 5 = 20 man-days, or: 20 8 = 160 man-hours. Example 5 A team of 3 people completed the renovation of an apartment of 32 m2 in 4 days with a working day of 8 hours. What will be the total and specific labor costs? Total labor costs: = 96 man-hours. Specific labor costs: 96 / 32 = 3 man-hours per 1 m2.
5 Example 6 A worker processed 64 parts in 8 hours of work. What will be the specific labor intensity of processing 1 part? 8 o'clock 60 min. / 64 = 480 min. / 64 children = 7.5 min./child. Example 7 A team of 3 people repaired 6 machines in 5 working days with an 8-hour working day. Determine total and specific labor costs. Total labor costs: = 120 man-hours. Specific labor costs: 120 / 6 = 20 man-hours per 1 machine. Example 8 Two loaders unloaded a car with a 10-ton load in 6 hours. What are the total and specific labor costs? Total labor costs: 2 6 = 12 man-hours. Specific labor costs: 12 man-hours / 10 t = 1.2 man-hours / t
Labor intensity (the formula of which allows you to calculate how much labor will be invested in a particular set of works) helps to identify the structure of time and effort. It also makes it possible to determine how much work productivity can increase to ensure the most rational use human resources and forces.
How to calculate labor intensity?
Most often, it is presented as an indicator that indicates the amount of labor costs (over a certain period of time) that were spent on the production of one unit of goods or carrying out one work operation.
Labor intensity, the calculation formula of which helps to establish a direct relationship between labor costs and the volume of products produced, is calculated as follows:
- Q=T:V.
How to decipher the calculation of labor intensity?
In the above formula, the main task is taken over by Q. This variable is the amount of cost per unit that is produced per hour. It should be understood that calculating labor intensity is a rather complex matter and requires special attention. The fact is that today there are different types of it, which are calculated using different formulas.
Types of labor intensity
In the modern world, there are eight separate types of it, each of which is calculated using a completely different formula. However, most people who encounter this problem try first of all to determine what type they need to calculate.
Labor intensity is divided into:
- Technological.
- Services.
- Production.
- Management.
- Complete.
- Regulatory.
- Factual.
- Planned.
Technological, production and total labor intensity
The technological type, the formula of which differs only to some extent from the classical one, can be determined by the labor costs that were produced by both time workers and piece workers. In addition, the value can be easily calculated using production operations, finished products, individual parts and assemblies.
Production labor intensity, the formula of which is determined by calculating the labor of auxiliary and main workers, is a combination of its technological type with maintenance.
Total labor intensity, the formula of which is as follows:
- Q full = T auxiliary worker + T main work. + T work control = Q ex. + Q prod.,
allows you to reflect all labor costs for the production of one unit of product. It is the most serious.
Labor intensity of maintenance and management
The labor intensity of maintenance can include all those labor costs that were incurred by auxiliary workers. At the same time, all employees must be employed in production service areas entirely. The calculation of such labor capacity is carried out using all operations, products and services.
The labor intensity of management includes the labor costs of security guards, specialists and managers. Moreover, the work of each of them will be calculated differently. Those labor costs that are directly related to the manufacture of a product will relate specifically to these products, the same part that is not related to them will relate to proportional productivity.
Standard, actual and planned labor intensity
Standard labor intensity, the formula of which is calculated using the main labor standards (service time, production time, number, etc.), allows you to determine the total amount of time and effort required to create any product or the entire program.
Actual labor intensity is understood as one whose formula includes all the labor costs that have already been produced. This takes into account the volume of work or output.
Planned labor intensity is slightly lower than standard. But at the same time it includes planned costs, which should always take place when something is produced.
The labor intensity of work (the formula of which is determined each time by calculating the time spent on the production of one unit) allows you to measure productivity and thereby identify reserves for possible growth.
What is labor productivity?
Labor intensity (the calculation formula for which was discussed above) often affects the manufacture of a product or the conduct of an operation. The concept of labor productivity includes indicators of the productivity of all employees of the enterprise. It can be measured by the amount of work performed (products manufactured or services provided) that were completed over a certain period of time. At the same time, with the help this concept you can determine how well a worker copes with the need to create goods, services and other products with his labor in an hour, week, month, year, etc. In the modern world, the amount of work that was produced by one worker is usually called a separate concept - "production". With the help of production indicators, the owner of a business can measure the work that each employee did in a certain period of time. It does not make much difference whether it was the provision of services or the production of goods.
Labor productivity meters
Among the most important meters it is worth highlighting the following:
- Cost - in this case, the so-called index method is used, when productivity is compared for different periods time.
- Natural - they can only be used if the enterprise produces only one type of product for a long period of time.
- Conditionally natural - can be applied even if the enterprise produces various products. But in this case, one type of it will be chosen as a conditional one, and all other products will be reduced to this coefficient.
- Labor - they are applicable if it is necessary to calculate labor productivity in different departments of one enterprise.
Labor productivity can be easily calculated using a special formula:
- P = O: H,
where "O" means the amount of work performed by one employee for a certain amount of time, and "H" is total number all employees who work at this enterprise.
So that labor productivity can be determined with the greatest possible accuracy, experts recommend paying attention to some important requirements. Among them the following should be highlighted:
- Consider all the labor spent on one specific type of work.
- It is imperative to eliminate possible distortions that may be associated with some differences in labor capacity.
- Eliminate the possibility of re-calculating labor costs when past labor is taken into account.
- Compare possible changes in labor productivity due to an increase or decrease in average wages employee.
Sometimes in foreign practice, in addition to labor productivity, the term “productivity indicator” is used. To calculate it, one should take into account not only the labor costs for the manufacture of a particular product, but also the resources that were used in the manufacturing process (this could be land, working capital and fixed capital).
There are two general approaches to measuring labor productivity: through indicators of output per unit of labor (time) or labor intensity - the cost of labor (time) to produce a unit of volume of products (services).
The first indicator of labor productivity is production output (B). An indicator of the volume of products (work, services) produced per unit of labor costs. Output is a direct indicator of labor productivity, since the more products are produced per unit of labor input, the higher the level of labor productivity. Calculated using the formula:
Where V- volume of production; T - labor costs for a given volume of production.
Time worked is measured in man-hours or man-days worked. In accordance with this, when studying labor productivity, indicators of the average hourly and average daily labor productivity of workers, as well as the average monthly (quarterly, annual or for any period from the beginning of the year) labor productivity of workers or workers are used. These indicators are calculated as follows.
Average hourly output of a worker:
Where V- volume of products (works, services) produced in the reporting period; - man-hours actually worked by workers in the reporting period.
Average daily output of a worker:
where are the man-days actually worked by workers in the reporting period.
Average monthly (quarterly, annual or for any period from the beginning of the year) production of a worker (employee):
Where - average number workers (employees) in the reporting period.
Methods for determining output are classified depending on the unit of measurement of production volume:
■ natural (conditionally natural) - used for the production of homogeneous products at individual workplaces, production teams, at the enterprise, i.e. when determining output specific type products (works and services). When using this method, production is expressed in natural units of measurement (B = q: t, Where q- physical volume of production of homogeneous products);
■ cost (based on the cost indicators of manufactured or sold products) - when the enterprise produces heterogeneous products. When using this method, production is determined in monetary terms ( 
,
where C is the price of a unit of production, rubles);
■ labor ( measurement of labor productivity is based on taking into account the volume of products produced in the cost of working time (standard hours)). Its advantage over others is that the calculations use a more accurate meter - the labor intensity of each type of product, regardless of the degree of its readiness (products, semi-finished products, work in progress). In this case, both actual and standard labor costs are widely used.
The cost method is widely used. However, if labor productivity (LP) is calculated based on manufactured or sold products, then this method overestimates LP, since the result includes the cost of past labor - the raw materials used, the volume of cooperative supplies, etc. This drawback is eliminated when calculating output on the basis of net output or profit, as well as when calculating the profitability of labor, which reflects the ratio of profit to costs.
If we are talking about labor productivity in industry and the denominator uses the average number of workers on the payroll or the average number of workers instead of time spent, then the output indicators can be determined accordingly using the formulas:
Accordingly, the average number of industrial production personnel and the average number of workers, people.
The second indicator of labor productivity is the labor intensity of products (Te). This indicator of individual labor productivity characterizes the cost of working time (the cost of living labor) to produce a unit of output or to perform a unit of work.
Among the types of labor intensity of products, depending on the composition of included labor costs, the following are distinguished:
· technological labor intensity () - reflects all labor costs of the main workers (piece workers and time workers) directly affecting the objects of labor;
· labor intensity of production maintenance () - labor costs only for auxiliary workers engaged in production maintenance;
· production () - all labor costs of main and auxiliary workers; determined by the formula:
· labor intensity of production management () - labor costs of employees: managers, specialists and other employees;
· total labor intensity () - labor costs for the production of products of all categories of production equipment of the enterprise. It is determined by the formula:
· total labor intensity (), determined by the labor costs of all categories of PPP workers:
The total labor intensity of a unit of production is determined by the formula:
Where T- time worked by employees of all categories of production staff of the enterprise (shop), h; V- natural volume of manufactured products, pcs. (either in tons, meters, etc.).
The labor intensity of products is an inverse indicator of labor productivity. Therefore, the indicators of production and labor intensity of products are inversely related:
The actual and standard labor intensity of products are distinguished. The first is used in the analysis process, the second - when planning labor productivity.
The actual labor intensity of the product is determined by the actual labor costs (in hours) to produce a unit of product.
Standard labor intensity determines the amount of necessary (standard) labor costs (in standard hours) for the production of a unit of product under the conditions of existing production.
The ratio of the standard labor intensity of products () to the actual labor intensity () determines the coefficient of fulfillment of time standards:
Thus, the concept of “product labor intensity” is closely related to labor standards, rationing, which is one of the directions for increasing labor productivity.
What is the labor intensity formula and why do you need to calculate this indicator? This ratio is important for several reasons: it shows how efficiently the enterprise operates, and also serves as the basis for developing a production plan for the next reporting period and allows for more efficient management of resources.
What is “labor intensity”
The term “labor intensity” usually refers to the ratio of resources and time spent on their production. Typically measured in man-hours. Sometimes the word “production” is used as a synonym for the concept. Calculating this coefficient allows you to achieve the following goals:
- Calculate how much labor and time is needed to create a unit of finished product.
- Identify in which areas resources are being used productively and in which areas need optimization.
- Identify weak links in the technological process.
- Determine whether there is room to improve productivity.
The term “labor intensity” usually refers to the ratio of resources and time spent on their production.
Formula for calculating labor intensity
How to calculate labor intensity? To do this you need to use the following formula: working hours production of a certain number of products divided by the number of goods manufactured. Let's look at the formula and calculation example in more detail.
- To begin the calculation, you need to establish the exact amount of time that was used to produce a certain volume of products. This information is taken from time sheets. This document reveals the number of man-hours - units corresponding to one hour of working time of one person.
To calculate the number of man-hours, you need to add up all the hours worked by all employees. Let’s say that an enterprise employs 5 people, their working day is 8 hours. For one shift the number of man-hours is 40 (5 people x 8 hours), for a working week - 40 x 5 = 200. - Next, you need to determine the total cost of all goods produced (services provided, etc.) during the specified time. This number must also be taken from the documentation.
- To calculate labor intensity, you need to divide the number of man-hours (first point) by the total cost of goods or services (second point). The resulting value is the labor intensity of a unit of production.
Let's look at the calculations using a specific example. During an 8-hour working day, 5 employees produced 100 units of goods, costing 80 rubles per unit. We count step by step.
- Number of man-hours: 5 people x 8 hours = 40 man-hours.
- The total cost of all products: 100 units of product x 80 = 8,000 rubles.
- Product labor intensity coefficient: 40 / 8,000 = 0.005.
How to interpret the ratio
Now you know how to find the labor intensity factor.
- The lower the value of the labor intensity coefficient, the higher the labor productivity.
- This indicator needs to be monitored over time - it should decrease, that is, labor productivity should increase. If it takes less time to produce the same volume of products, it means the technological process has been optimized and the professional skills of workers have improved.
- If, on the contrary, the value of the indicator has increased, you need to find the reason that complicates production. These could be problems with equipment, new raw materials, a new employee, or even a general decrease in motivation in the workforce.
- You need to compare the coefficient value not only with previous values, but also with planned ones. That is, based on the data obtained, you need to prepare a plan and include in it an equal or slightly reduced value of labor intensity for a similar reporting period.
What affects labor intensity?
The value of this indicator is influenced by a very significant number of factors. To competently analyze the data obtained, you need to know and take into account all influencing factors.
Each individual production has its own list, but the most common are:
- Professionalism of the employees.
- Well-established technological process, comfortable conditions work.
- Timely supply of raw materials.
- No problems with infrastructure and communications (no power outages, access roads are cleared, etc.).
- Motivation of workers, mood in the team and decent wages.
Why is specific labor intensity calculated?
Specific labor intensity is a value showing how much time is spent on producing one unit of product (good, service). Let's look at how this coefficient is calculated. He is in inverse proportionality with labor productivity and is calculated by dividing the number of workers by the amount of work in monetary terms.
Example: 5 workers produced 100 units of product in 1 shift at 80 rubles per unit. We already know that the labor intensity coefficient will be equal to 0.005. And what value will it get? specific labor intensity? 5 / 8 000 = 0,000625.
Is it possible to calculate labor intensity for a production program?
The complexity of the production program is an important factor, which will show how many man-hours will have to be spent to complete the entire production plan. It can be either planned - that is, calculated before the start of the program, or final - to estimate how many man-hours it took to produce a given amount of products in fact.
It is not difficult to calculate this coefficient - you need to multiply the amount of production provided for by the plan by the time spent (in man-hours) to produce one unit of goods. For example, a production program involves the production of 1000 units of products, at a cost of 2.5 man-hours per unit. 1000 x 2.5 = 2500 man-hours.
Economists distinguish several types of labor intensity.
Types of labor intensity
Above are the two most common types of output in practice: production and specific. However, economists identify several more types of labor intensity:
- Technological labor intensity implies an assessment of the time costs of all workers.
- Maintenance - on the contrary, shows how much time was spent on auxiliary workers.
- Production - is the sum of the values of technological labor intensity and maintenance, that is, the time costs of main and auxiliary workers.
- Management - records the time spent by process managers.
- Construction of the facility - special case labor intensity, shows how many man-hours will be spent on the entire construction process of the facility.
How to calculate labor costs
Labor costs are the entire amount cash, payable to employees for the reporting period. The formula for labor costs is quite simple. Necessary average annual number employees multiplied by the average salary of one employee.
As an example, let’s calculate monthly labor costs for an enterprise with 15 employees and an average salary of 27 thousand rubles. 15 x 27,000 = 405 thousand rubles. If you need to get the value for the year, then the monthly costs need to be multiplied by 12: 405,000 x 12 = 4,860,000 rubles.
How to optimize labor intensity
The main result of the calculation of output should be the analysis, which will show which components of the technological process need to be improved. Of course, each individual enterprise will have its own optimization paths, but in general the following options can be mentioned:
- increasing the professionalism of employees, retraining;
- implementation modern technologies and innovation;
- improving logistics;
- analysis and improvement of the technological process;
- use of higher quality raw materials.
Conclusion
Calculation of labor intensity is necessary for proper planning and optimization of the production process. Based on data from primary documentation, it is possible to calculate all labor intensity coefficients - specific, technological, maintenance, management. However, after carrying out the calculations, it is important to identify factors that negatively affect the operation of the enterprise and plan their elimination.
Problems to be solved and guidelines for them
Labor productivity- this is an indicator economic efficiency employee's work activity. Labor productivity is measured by the ratio of the number of products produced (works, services performed) to the time spent on producing products (works, services) or to the number of workers who produced a given volume of products (performed a given volume of work or services), labor productivity is calculated using the formulas:
Output is determined by the formula:
where is the volume of products produced or work performed, rubles, m 3, pcs., t, m 2, etc.;
Labor costs, person-years, person-months, person-days, person-shifts, person-hours.
Between production and labor intensity of products there is inverse relationship:
Natural method measuring labor productivity is used in the case of production (release) of homogeneous products.
When producing a variety of products and a frequently changing assortment, output is determined in labor terms - in standard hours or in man-hours. To do this, the volume of work is multiplied by the corresponding time standards, and the results are summed up. This method of determining the volume of products (works, services) and labor productivity is called labor method .
At cost method measuring labor productivity, the volume of products (works, services) is expressed in monetary terms. The method allows you to compare the contribution of each category of workers to the total volume of production (for an enterprise, industry, etc.) in accordance with the share of each category.
Labor intensity - this is an indicator , characterizing the costs of living labor, expressed in working time, for the production of products, performance of work, and services.
Labor intensity indicator works - This is an indicator inverse to labor productivity. The labor intensity indicator is calculated using the formula:
where T is the cost of working time;
Q is the quantity of products produced.
Labor intensity is measured either in standard hours (standard days) of work, or in actual hours (man-hours, man-days) spent on production. In the first case there will be standard labor intensity, in the second - actual. The relationship between them is determined by the degree of fulfillment of the norms:
, (2.12)
Where - percentage of fulfillment of production standards;
- actual labor intensity, man-hours;
- standard labor intensity, standard hours.
There is a certain connection between indicators of labor productivity and labor intensity: the lower the labor intensity, the higher the labor productivity and, accordingly, the greater the volume of work performed. The relationship between them is determined by the formulas:
where is the percentage of growth in labor productivity with a decrease in labor intensity by
Reduction in labor intensity, %.
where is the percentage of reduction in labor intensity with an increase in labor productivity by
Productivity growth, %.
EXAMPLES OF SOLVING TYPICAL PROBLEMS
Example 2.4
A team of 5 workers produced 80 parts per shift. Calculate the output of one worker of the team per shift and the hourly output.
The output of each worker will be:
per shift - 80: 5 = 16 (parts);
per hour -16: 8 = 2 (details).
Example 2.5
A team of workers of 5 people produced 20 units of product per shift (8 hours) A, for which the time standard is set at 0.6 standard hours per unit, and 120 units of product IN, for which the time standard is set at 0.25 standard hours per unit. Calculate the labor productivity (shift output) of one worker in the labor dimension.
Standard hours.
Example 2.6
If a team of five people completed a workload worth 3,000 rubles per shift, calculate the labor productivity of each employee (output) per shift and per hour of work.
The employee's shift output will be:
In cm = 3,000: 5 = 600 rub.,
respectively per hour of work:
V H = 600: 8 = 75 rub.
Example 2.7
The company produced 20 units of products during the month A, the labor intensity of which is 0.5 man-hours, and 120 units of product IN with a labor intensity of 0.25 man-hours. Determine the average labor intensity of products per shift.
man-hour.
Example 2.8
If the standard labor intensity of production is 180 thousand standard hours, and the actual labor intensity is 150 thousand man-hours, determine the average production rate.
The average production rate will be equal to:
N exp = (180,000:150,000)´100% = 120%.
Standards are met on average by 120%.
Example 2.9
As a result of the planned organizational and technical measures carried out at the enterprise, it is planned to reduce the labor intensity of work by 20%, how much will labor productivity increase?
Ppt = (100 x 20) /100 – 20 = 25%.
PT will increase by 25%:
if the labor productivity of PT increases by 20%, then the labor intensity of Tr will decrease by 16.7%:
Ptr = (100 x 20) /100 + 20 = 16.7%.
