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TDC - QC Labor Category

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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 Quality Control 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.

  • Direct QC labor related to downtime
    • First product inspections
    • Re-work inspections
  • Indirect labor related to downtime
    • Return shipment sorting
    • Material handling/shipping expenses
    • Trips of QC personnel to customer's site

When calculating the cost of re-work, it often will bring insight to the most cost effective solution, in regards to the re-work or scrap question. Often re-work demands over-time, trips to customer locations and other hidden costs that are not given full consideration.

A Quality Note: Quality does not cost, it pays.
Quality really pays in reference to Machine quality, replacement part quality, repair quality, Service quality, and management quality. Please give us examples you have witnessed of how cutting quality corners, cost more in the long run.

Are you a manufacturer? Click here to participate in our Downtime survey and receive free 66 page report. (updated and emailed to you automatically as survey grows.)


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