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TDC - A closer look at Labor

This category is a one time entry of a constant, updated annually, exported from your existing computer systems. Your existing method of calculation need only meet the TDC recommendations below. As with all labor categories, cost should be net cost (insurance, SSC, benefits, etc.), not just base salary.

As with all the labor categories, your accounting software is a good source to export or link all the various Management wages to your downtime cost reporting software. Tracking this manpower cost in relation to downtime cost can be automated through I.D. tags, or typical work order reports.

Please click on sub-topic in yellow, to learn more.


  • LPP / Equipment Contribution is not as accurate, as using the items below in addition to direct labor (machine operators).
  • QC

  • QC wages of those involved in Extra inspections, Rework, etc.
  • Maintenance

  • Indirect maintenance labor as well as Mechanic/Technicians doing actual troubleshooting and repair. 
  • Engineering

  • Downtime support, troubleshooting, specifications, re-engineering.
  • Management

  • Time associated with downtime support, out at downed equipment, meetings, calls, administrative, and decision making research time.
  • Granted, procedures will need to be put in place and enforced to accurately track labor time associated with equipment down, but the savings will be well worth it.

    With all these categories, it may appear to be too much to monitor and analyze. Click here to see why there is no need to sound the "Data Overload" alarm.


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    Business Industrial Network was founded in 1995 Copyright 1995 [Business Industrial Network]. 

    All rights reserved. Revised: January 14, 2005.

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