Labor intensity is the cost of work time per unit of product (work or service). The products of enterprises are assessed both in monetary form and in kind.
Labor intensity is measured, as a rule, in standard hours, i.e. hours spent on production.
This indicator is the inverse of the labor productivity indicator and is calculated using the formula:
T = Pv: Kp where:
T - labor intensity; Rv - working hours; Kp - the number of products produced.
Labor intensity is the reciprocal of output.
Calculate the labor intensity of individual operations, products, and works:
Technological labor intensity (Tm) is the labor costs of the main workers, piece workers and time workers. It is calculated based on production operations, parts, assemblies and finished products. It is found by dividing the labor costs of workers by the amount of products produced by them.
Maintenance labor intensity (To) is the labor costs of auxiliary workers in the main workshops, auxiliary workshops and divisions that are engaged in servicing production. The calculation is made for each operation or product or in proportion to the technological complexity of the products.
Production labor intensity (TP) - consists of technological labor intensity and maintenance, i.e. These are the labor costs of main and auxiliary workers to complete a unit of production. It is calculated by dividing the labor costs of main and auxiliary workers by the number of products produced.
t pr. = t tech. + t obsl where (10)
t tech - technological labor intensity;
t obsl - labor intensity of production maintenance.
Labor intensity of management (Tu) - consists of the labor costs of managers, specialists and employees. One part of these costs that is associated with the manufacture of products and is directly allocated to these products. The other is not related to the manufacture of products and relates to them in proportion to production labor intensity.
Total labor intensity of products (Tp) - consists of all labor costs for the manufacture of each product and their entire amount.
Determined by the formula: Tp = Tt + To + Tu = Tpr + Tu (11)
The labor costs of all auxiliary workers reflect the labor intensity of production maintenance (t obsl), and the labor costs of all employees and service personnel, as well as security, reflect the labor intensity of production management (t control).
Labor intensity is distinguished:
1. Standard labor intensity it is calculated on the basis of current labor standards, as well as time, output, time, service and number standards. Used to determine the labor costs required for the manufacture of individual products, and also for the implementation of the production program.
2. The planned labor intensity differs from the normative one by the amount of reduction in labor costs that are planned in the current period due to the implementation of organizational and technical measures.
Actual labor intensity is the sum of labor costs for the volume of products that were produced or the volume of work performed.
Advantages of the labor intensity indicator:
1. It establishes a direct relationship between production volume and labor costs.
2. The use of the labor intensity indicator allows us to link the problem of measuring labor productivity with the factors and reserves for its growth.
3. He has the ability to compare labor costs for identical products in different workshops and different areas of the enterprise.
4. Eliminates the influence on the labor productivity indicator of changes in the volume of supplies according to the organizational structure of production.
Currently, we can name the following methods for determining the labor intensity of design work:
Statistical;
Expert;
Cost;
Labor costs for the production of a unit of goods or products depend on many factors, which are divided into two groups:
Natural-climatic, biological and agrozootechnical;
Organizational and technical;
Analysis of the labor intensity of production
Reduced labor intensity and increased productivity are achieved in different ways. The most important of them:
Mechanization and automation of the production process;
Development and application of high-performance technologies;
Replacement or modernization of old equipment;
However, measures to improve the equipment and technology used do not live up to expectations without improving production and labor.
Often, businesses purchase or lease expensive equipment without even preparing to use it. As a result, the utilization rate of such equipment is very low. The spent fixed assets and resources do not bring results.
Let us highlight some factors for reducing the labor intensity of production: those related to the subject of labor; means of labor; and with the organization of labor in the production process.
1. Improving the characteristics of products and their designs; right choice source materials.
2. Modernization of old equipment and introduction of technologies;
3. Improvements in the organization of labor and production.
It is also possible to highlight industry reserves for reducing labor intensity (specialization, cooperation and concentration).
A reduction in labor intensity can be caused by the enterprise implementing organizational and technical measures that were not included in the plan or were not provided for by it, as well as by increasing the level of mechanization and automation of the technological process.
Thus, the system for managing the labor intensity of production at an enterprise should provide for comprehensive consideration of the impact of production factors at all stages life cycle products, both by the amount of absolute labor intensity and its relative reduction in the process of mastering production of products.
When checking the correctness of spending of funds by the executors of a state contract and protecting the initial (maximum) price, representatives of the customer, along with contract documents and calculation materials, require justification of the amount of costs. Namely - to present technological maps, time sheets, consumption standards for raw materials, supplies, fuel, use of machinery, equipment, etc. The justification of labor costs raises especially many questions.
Labor costs themselves depend on two factors: the average size wages main performers and labor intensity of work.
The accepted salary depends on the level of wages in the industry and region. When determining the planned level of wages, the achieved level is multiplied by the consumer price index (CPI) and the index of changes in real wages. To confirm the level of payment by type economic activity in your region you can request a certificate from Federal service state statistics.
How to justify labor costs or labor intensity? What labor standards should be applied?
To justify the labor intensity of time-based payment, you can use a convenient Timesheets broken down by project and employee category.
Labor intensity should not be confused with production.
Output determined by the volume of products produced (work performed) per unit of personnel. Production standards are established both in physical terms (pieces, kilograms, meters, etc.) and in monetary terms for a certain time of work (hour, shift, day, month, year). They are necessary for planning production potential and labor costs.
Labor intensity measured by the labor costs of working time for a certain volume of output in a specified time.
Hence the basic labor standards:
Production rate- this is a certain amount of work (in m2, cm3, etc., that is, in physical terms) or the number of units of production that an employee or group of employees must complete per unit of time under certain technological and organizational parameters. For example, an assembly fitter must assemble 2 products in an hour of work.
Standard time- the amount of working time that an employee or group of employees must spend to perform certain work. For example, an assembly fitter must assemble 1 product in 30 minutes. Standards for labor costs can be established for an operation, product, work, or set of works.
The work rate is divided into the time of work itself and the time of breaks
THE STATE DOES NOT REGULATE NORMS AND REGULATIONS IN THE FIELD OF LABOR
(except for establishing a minimum wage). Unified and standard time standards, developed centrally, in relation to ordinary commercial organizations are advisory in nature.
To establish a dialogue with a military mission, an enterprise can develop time standards independently or engage a consulting firm that provides similar services. The standards are approved by order or regulation of the enterprise, and then agreed upon with representatives of the trade union organization and the state customer.
Let's say you decide to develop standards yourself.
Step 1. First, you need to study the design and technological parameters of the equipment used at your enterprise, its compliance with the manufactured products and ergonomic requirements, professional qualifications, psychophysiological and social characteristics of workers, working conditions, technology used, organization of the workplace, its maintenance, etc.
Step 2. Next you need to create technological map indicating workplaces and the number of workers at each workplace. To do this, it is better to select the areas of work that are most characteristic of the technological process.
Step 3. Calculate the required number of studies to ensure the objectivity of labor standards.
Step 4. Direct research. You can take the short or long route here.
Long way - various options photographs of working hours, momentary observation method, timing, microelement rationing, benchmarking, factor rationing, etc.
Timing
Timing consists of the following stages:
The time series stability coefficient is understood as the ratio of the maximum duration of execution of a given element of an operation to the minimum.
Momentary Observation Method
The method of momentary observations is statistical method obtaining average data on the actual workload of workers and equipment.
Working time photo
A photograph of working time (FW) is used to establish the structure of its costs during a work shift or part thereof.
Microelement rationing
The work process is divided into microelements that, with the required degree of accuracy, reflect the content and describe the time characteristics of the corresponding labor movements.
Benchmarking
When using this method, the labor costs of a given enterprise or division are compared with other enterprises on the market or standard divisions.
Factor rationing
The activities of the department are divided into processes by which labor costs are estimated. The method is based on economic and statistical analysis and its application requires the use of a fairly serious mathematical apparatus.
To document research, you can, for example, use a working time photo card.
Shortcut-establishment of labor standards based on the application of labor standards and calculation formulas. This allows you to avoid having to resort to labor-intensive processes timing and photographs.
In this case, the process of developing time standards consists of the following stages:
- study of the technological process, standards of labor organization and workplace maintenance;
- operation design;
- development of necessary organizational and technical measures;
- calculation of the duration of the operation as a whole and its individual parts.
Step 5. Processing of received materials. You study the reasons for deviations between indicators and choose the most objective, average standards.
Step 6. Implementation. It is better to test averaged standards in a specific area of work, to study their intensity, compliance with sanitary and psychophysiological standards. It is important to select the right workers so that the performers not only correspond qualification requirements, but their length of service and work experience in this profession were at least 2–3, but not more than 10 years. They should not be too experienced, otherwise the norms will be too stressful. At the same time, you cannot hire completely inexperienced young workers, otherwise the standards will not be tense at all. Labor standards must be achievable by the majority of workers, fair, and not provoke tension in the workforce.
The collected information must be analyzed and necessary calculations, prepare reporting documents. It is better if the optimality criterion is the minimum total labor costs associated with obtaining necessary information and its subsequent use.
Step 7 Registration regulatory documentation. The standards must be approved by order or regulation of the enterprise, and then agreed upon with representatives of the trade union organization and the government customer.
It is recommended to review time standards every 5 years, as well as when the organization of work changes, or the introduction of new equipment and technology.
ATTENTION! The Labor Code of the Russian Federation prohibits changing standards if some employees have achieved higher output due to their higher qualifications or work experience, as well as in the case of the use of advanced forms and methods of labor organization. It is necessary to warn about changes in labor standards against the signature of each employee to whom they concern two months before the start of implementation. Changes outdated standards certification commission, which indicates the reasons why current standards are recognized as not certified and subject to replacement.
The certification commission can change outdated standards, which indicates the reasons why the current standards are subject to replacement.
A simpler way to revise existing labor standards is to apply correction factors to existing ones. This process is less complicated to perform, but the requirements for registration, approval and approval remain the same. Correction factors can also be used when working outdoors during difficult periods. climatic conditions, when introducing new equipment and training to work on it, for new employees, trainees and students.
In order to reduce the labor intensity of accounting or to automate it, piecework labor standards can be replaced by service standards or standardized tasks. In this case, performers are transferred to temporary work and given certain tasks that they must complete in a certain period of time or in one working day.
In any case, it is useful for an enterprise to have a system labor standards and standards. Its presence allows you to competently use the resources and potential of the team, and also allows you to plan the production process with a large degree of objectivity and reliability in terms of the use of labor costs.
The developed indicators of time standards can be presented in the form of special forms, for example:
How to use time standards when planning the work of sales managers. Read, take a break... We promise it will be useful.
Home Accounting and HR Personnel accounting The main function of man-hours is to determine the work productivity per hour of time. This makes it possible to assess the potential feasibility of work within a certain period. This is useful for the organization, both for calculating the possible costs of labor of subordinates and determining the timing of the project. It also helps to know the amount of labor expended. This value is even more important than the money-hour ratio. Although it is quite approximate, it still saves a lot of time. It’s not for nothing that there is a saying: “time is money”: the work invested is also paid. Therefore, enterprises should be interested in optimizing the time of employees at the enterprise. This is not only the employee’s presence in the workplace, but also the possible productivity of his active work activity in general.
Calculation of the “man-hour” value
The maximum possible hours are defined as the maximum possible labor production by the company's employees. In fact, hours worked are defined as hours spent on a specific task. The amount of attendance is not labor hours, but they are taken into account as the sum of all man-days worked with downtime.
The calculation formula looks like this: H=K*T;
- H is man-hour;
- K is a number indicating the number of workers;
- T – hours spent on completing the task.
For example, to calculate man-hours for a month in a company with 30 employees on an 8-hour work schedule, using the following formula, you need to determine it as follows: 30*8*21=5040. A man-hour is the number of employees multiplied by the number of hours they work. Calculations change if the worker is absent from work or works part-time.
Labor intensity formula
Labor costs are a component in determining labor intensity. Labor intensity Labor intensity is the amount of working time spent on producing a unit of product (performed service, work). Reducing labor intensity is an indicator of increased efficiency.
Labor intensity is inversely proportional to the labor productivity indicator (the number of products produced per unit of working time). Therefore, an increase in labor productivity is an indicator of increased efficiency. The amount of labor intensity is influenced by many different reasons, but among them the main ones can be identified: the level of personnel qualifications, the degree of technical equipment of production, the complexity of manufacturing goods, the degree of automation and working conditions.
Now let's move on to how labor intensity is determined.
Formula for calculating labor intensity of work
Info
The categories of labor costs, labor intensity and labor productivity are often found in scientific and practical activities to express economic indicators efficiency (optimization) decisions made. Understanding the significance of these categories for analyzing the effectiveness of the tasks being solved in the field of technosphere security, let us consider their substantive essence and interrelation in more detail. Labor costs What are labor costs? In economics, labor costs refer to the number of units of personnel labor required to complete a job.
They are usually measured in man-hours, man-days, man-months, or man-something else. Labor costs can be planned or actual, and are used to calculate the completion date of a project (conceived solution), financial costs for its implementation, and efficiency analysis. Actual labor costs are the amount of work already completed in the project.
Labor intensity. distinguish technological labor intensity (t), labor intensity
The Index methodology includes the expressed characteristics of each individual species, which are assessed using a scale. The actual determination of all indicators is then measured. The index is calculated using the following formula: Иi=ИВi+(6-Ипi). IVi is an index of the significance of a quantitative parameter of type i. Ipi is an index that corresponds to the problem parameter. The index itself can be determined on a 5-point scale, the prices of which are set individually for each organization according to the needs and complexity of the work. The labor potential itself may contain several elements of the employee’s importance: qualified skills, psychophysical abilities, personal level of development. Psychophysical skill highlights a person’s abilities on the physical and emotional level: endurance, stress resistance, concentration.
How to calculate man-hours with explanations and examples
Labor productivity is measured by the amount of products (work performed, services provided) produced by an employee per unit of time. Labor productivity is the reciprocal of labor intensity, measured by the amount of time spent on a unit of output. Mainly three types of labor productivity are considered: Actual labor productivity; available labor productivity; potential labor productivity.
Actual labor productivity (output) is inversely proportional to labor intensity and is determined from directly observable data using the formula: (1.38) Where is the actual output in units of measurement of a given type of product (pieces, ton, m3, etc.); - actual costs of living labor in time units (man-hours, etc.).
Based on these data, it is convenient to calculate the total amount of man-hours for a calendar period for all areas of the enterprise. 2. Now let’s calculate the cost of goods produced in the reporting period. To do this, we will again use primary accounting documents.
The type of document depends on the specifics of the enterprise itself. After this, the ratio of the amount of time spent, expressed in man-hours, to the cost of goods produced by the enterprise is calculated. The result of the calculation will be the desired coefficient of labor intensity of the product.
Important
Depending on what is included in the costs, labor intensity can be of several types. Let's look at each of them. Technological labor intensity (Ttechn.). The calculation formula includes the labor of only those workers who directly produce goods (perform work, provide a service): Ttechn.
Download “LABOR INTENSITY. There are technological complexity (T), labor intensity" Error: Download Document
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.
How to calculate labor intensity in man hours example
Calculate the complexity of production management by adding up all the costs for managers, employees, specialists and security. After this, also divide the resulting value by the number of products produced. 5 In order to calculate the total labor intensity, sum up all labor costs, that is, the costs of foremen, builders, carpenters, managers, specialists and other workers and divide by the number of products produced. 6 Labor intensity is also distinguished by the nature of labor costs. There are three types: planned, normative and actual labor intensity.
The normative one shows the amount of labor costs within the normal range. Calculate it by multiplying the standard time in minutes by the number of units produced. 7 Planned labor intensity shows the amount of labor costs per unit of output, taking into account processing or shortcomings of the specified standards.
How to calculate labor intensity in man hours, example on a business trip
The formula for calculating labor intensity is as follows: Tr = Tz / W, (1.34) where Tr is labor intensity (man - hour / piece (ton, m3, etc.); Tz - labor costs (man-hour) - usually measured in man-hours hours; W is the volume of production (work performed, service produced) (pieces, ton, m3, etc.) Considering formula (3.4) in conjunction with labor costs, we can say that labor costs are a component value in determining labor intensity. It is convenient to calculate labor intensity. perform in the following order: 1. First, the amount of time worked by the workers of the enterprise during the billing period is determined. The source of data for calculating the actual time spent can be primary accounting documentation, in particular, time sheets for each site or workshop.
In the operation of an enterprise, it is important to properly manage resources. The main goal is to reduce. When analyzing the state of affairs, the labor intensity of products is used, the calculation formula of which is based on data on the time spent by department employees. Analysis of the results allows us to identify factors inhibiting development, optimize the number of employees and the size of wage costs.
To determine productivity, you need to know 2 indicators: labor intensity and output. Labor intensity (intensity, labor costs) refers to the time costs required to produce a unit of economic product (goods, services, work). The output of one worker is inversely proportional to labor intensity, measured in standard hours or man-hours.
In economic theory, 5 types of labor costs are identified:
Analysts use ratios divided by purpose. 3 indicators of labor costs are calculated:
- normative – time allotted for process standards
- planned – planned time for the production of a unit of economic product
- actual - time spent on producing a unit of product in practice
Labor intensity is calculated for a unit of production, individual operations, a process, batches of individual products, and gross product. This coefficient allows us to determine the dependence of production volume on labor costs without taking into account changes in the assortment and organizational structure of the enterprise. The data obtained for individual sites is easily linked and allows you to determine the relationship between productivity and existing reserves.
The analyst determines the maximum for specific conditions, allowing him to evaluate and optimize the operation of the enterprise.
Labor intensity formula
This coefficient is calculated by analyzing the efficiency of the workforce used at the enterprise and the volume of salaries.
The value depends on:
- employee qualifications
- equipment quality
- complexity of the technological process
- level of automation
If technological labor costs are calculated, then K is the number of workers employed directly in production. If an indicator is required for support or management personnel, K is the time spent by this category of workers.
Production labor costs are the sum of technological and maintenance labor intensity. Full intensity is the sum of technological, maintenance and management labor costs.
The standard indicator is determined by the standards of production, time, management, maintenance, etc. To develop a production or business plan, benchmarks are compared with actuals to determine what costs need to be reduced to achieve planned production volumes.
Procedure for calculating labor intensity
Calculations are made sequentially:
- are taken, the number of workers in each category and the volume of man-hours for a certain period are determined for individual sections, workshops, enterprises
- the volume of manufactured products is calculated in units or cost
- the coefficient value is obtained by dividing man-hours (number of employees) by units of economic product
This is the actual labor cost ratio, which can be compared with the standard or planned one to identify the factors that caused deviations. The analyst's findings help improve the efficiency of the enterprise. Analysis over several periods makes it possible to determine the dynamics of changes and the reasons that caused them.
The goal of a business is to increase productivity by reducing labor costs. If a large range of products is produced, it is important to calculate the indicator for each type. Total labor intensity may decrease due to changes in the indicator for an individual product or individual division.
Productivity is associated with wage costs. Their level is influenced by economic and organizational factors, including the level of management. Analysis of labor costs allows us to identify shortcomings in management that contribute to the irrational use of time. It is also beneficial for employees, as it is a prerequisite for increasing wages.
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Managing the resources of any enterprise is a prerequisite for the effective functioning of all systems. Reducing costs leads to a reduction in production costs. One of the main indicators of the analysis is labor intensity, the formula of which will reflect the picture of the state of affairs in this production system. Based on the data obtained with its help, the financial service will be able to identify factors limiting development and eliminate them in the future. Therefore, it is necessary to consider in more detail how to calculate the labor intensity formula.
The value of the labor intensity indicator
Labor intensity, the formula of which will be discussed in detail below, allows the financial analyst to draw a conclusion about the relationship between the costs of production resources and time. This is an indicator that reveals information about how long it took the company to produce a unit of product.
When planning, this indicator makes it possible to find the maximum permissible level of productivity in specific conditions. This leads to a more efficient organization of the company's work.
The labor intensity formula allows you to evaluate the result of the work of a workforce over a certain period of time. It will also be quite easy to determine how much work one worker was able to complete during this period.
There are several approaches to assessing labor intensity. They depend on the composition of the costs included in it. It can be complete, technological, service or production management, as well as production.
Advantage of the indicator
Labor intensity, the calculation formula of which relates to indicators of labor productivity, is calculated with the output indicator. But the first one has a number of advantages. It is able to identify a pattern between labor costs and volume finished products.
Considering an example of calculating labor intensity using a generally accepted formula, you can find ways and reserves for increasing the level of labor productivity. Studying the structure of production is one of the informative approaches to studying the efficiency of a company's use of labor resources.
By determining the value of the indicator in different workshops or areas, the analyst can determine where resources are used more efficiently and where there are trends unfavorable for the company.
Labor intensity excludes the influence of changes in supply volumes due to the structural organization of production.
If the range is too large, then representative products are selected from the total mass of goods. They usually have significant specific gravity in total production output.
Calculation formula
The formula for labor intensity per unit of product produced by an enterprise allows us to estimate all the costs of paying workers to produce one piece of finished product. The result obtained using this method is measured in man-hours. The formula looks like this:
Тп = Amount of time worked by all employees/Volume of products produced during this period. 
The numerator in this formula is measured in man-hours. This indicator takes part in the planning process. This process is carried out based on factors affecting the company's headcount or saving working time.
Types of calculation
Each of the labor intensity indicators presented above is determined in accordance with its economic meaning. The labor intensity of products, the calculation formula for which is discussed below, implies the total labor costs of the main and auxiliary employees of the company. It is calculated like this:
Tpr = Ttechn + Tob, where Ttechn is the cost of paying all the main workers directly involved in the production of products; Tob – costs associated with remuneration of service personnel. 
Total labor intensity is the broadest category to study. This includes labor costs for all personnel. It is calculated like this:
Tp = Ttech + Tob + Tu, where Tu is the cost of paying salaries of managers and security.
Cost savings
The complexity of the work, the formula of which was presented above, allows analysts to find ways to save costs on production. To do this, during the planning process, all factors influencing the indicator are considered, and managers make decisions on appropriate actions in this direction.
To improve labor intensity, a number of areas need to be explored. This will improve the efficiency of resource use. 
Management must constantly improve production technology, introduce new and reconstruct old equipment, improve the quality of raw materials, cutting, and reduce energy costs.
It is necessary to optimize specialization, production management, and reduce working time costs. One should look for ways to select the best production volume and expediently reduce the number of workers, and reduce the amount of labor-intensive products.
Savings calculation
Labor intensity (formula), a calculation example of which allows you to correctly determine the required amount of labor, first requires establishing its planned quantity. In the planning period, the indicator is determined as follows:
RSplan = OPplan/Vactual, where OPplan is the planned quantity of products; Vfact – production output in the reporting period. 
RP = ER∙100/(RSplan – ER), where ER is the saving in the number of workers.
This technique allows analysts to carry out adequate planning and find ways to optimize indicators.
Calculation example
To properly understand the evaluation system, you should consider the planned labor intensity. The calculation formula, an example of which is discussed below, will help you master this technology.
The company produces soap costing: shavings - 2.2 rubles, laundry soap - 1.0 rubles. and toilet – 1.8 rubles. In the reporting period, 95 tons of shavings, 65 tons of toilet soap and 200 tons of laundry soap were produced in 170 working hours. In the planning period, the company expects to spend 160 hours on the production of finished goods. It is assumed that 90 tons of shavings, 75 tons of toilet wood and 100 tons of household waste will be produced.
Sales of products in the planning and reporting periods are equal to:
- Рп = 100 + 90∙2.2 + 75∙1.8 = 433.
- Rho = 200 + 1.8∙65 + 2.2∙95 = 526.
Labor intensity is equal in the base and planning periods:
- That = 526:170 = 3.09.
- Tn = 433:160 = 2.71.
The improvement in labor productivity is equal to: 3.09:2.71=1.143.
Result value
Labor intensity, the formula of which was applied above, is an informative tool for assessing labor costs and their impact on productivity in future periods. Thanks to this, the management and financial service of the enterprise can optimize planned costs for paying employees various fields activities.
To analyze the company's performance, labor intensity indicators will reflect changes in the labor productivity of employees over time. This allows us to determine development trends and find factors limiting them.
Having familiarized yourself with such an indicator as labor intensity (the calculation formula is presented above), you can understand the principles of achieving effective organization of the company’s work, track its changes in dynamics and predict development in the future.
