Direct Labor Cost Analysis for Yummy Gum Production PPT

This PPT slide, part of the 48-slide Relative Cost Position Analysis PowerPoint presentation, titled "Relative Cost Position" provides a detailed breakdown of direct labor costs associated with the production of various types of gum, specifically focusing on the mixing stage of the value chain. It outlines the calculations for direct labor costs based on several key factors: the number of mixing machines, the production capacity of those machines, staffing requirements, and wage rates.

The slide presents data for 3 gum types: Sugar, Sugar free, and Bubble. For each type, it specifies the number of mixing machines used and the corresponding production output in terms of "100 sticks per hour." The calculations show the total production capacity for each gum type, revealing significant differences in output. For instance, the Sugar free variant utilizes nine mixing machines, resulting in a total output of over 12,000 sticks per hour, while the Sugar variant operates with only 2 machines, yielding nearly 1,900 sticks per hour.

The slide further details the staffing per machine and wage rates, which are critical for calculating total direct labor costs. The Sugar free gum has a slightly higher staffing requirement per machine compared to the Sugar variant, which impacts overall labor costs. The total direct labor costs for each gum type are summarized at the bottom, showing a total of $8.1 million across all types, with Sugar free accounting for the largest share at $5.6 million.

This slide effectively illustrates how operational decisions regarding machine utilization and staffing directly influence labor costs, providing valuable insights for potential customers interested in optimizing their production processes and cost management strategies.

This slide is part of the Relative Cost Position Analysis PowerPoint presentation.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Costing Cost Management Value Chain Production

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor

... [read more]

– Michael Duff, Managing Director at Change Strategy (UK)

"My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me

... [read more]

– Bill Branson, Founder at Strategic Business Architects

"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group

"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates

"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

– Moritz Bernhoerster, Global Sourcing Director at Fortune 500

"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC

"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World

"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The

... [read more]

– Roderick Cameron, Founding Partner at SGFE Ltd